Price and revenue optimization (PRO) software uses analytics to help companies maximize profitability for any targeted level of revenues. PRO utilizes data about buyer behavior to gauge individual customers’ price sensitivity and predict how they will react to prices. It enables users to charge buyers who appear to be less sensitive more than those who appear more price-sensitive. PRO is a significant departure from inward-focused, single-factor pricing strategies such as cost-plus pricing or, in the case of financial services, risk-based pricing (using a borrower’s credit score, for example). Instead it offers a multifaceted customer-centric analytic approach to pricing built on analysis of large sets of data.
At this year’s Global Pricing Forum, host Nomis Solutions announced the availability of its Discretion Manager software, which supports dynamic price negotiations. The annual event brings together thought leaders and practitioners interested in pricing. Nomis currently has 17 of the largest 100 banks as customers. With more customers, this year’s event had larger attendance than last year’s.
Topics: Big Data, Sales, Sales Performance, Office of Finance, credit, financial analytics, Nomis Solutions, PRO, Operational Performance, Analytics, Business Analytics, Business Performance, Financial Performance, banking, Financial Services
I recently attended the 2012 Global Pricing Forum hosted by Nomis Solutions, a provider of software and services to banking and finance companies. This annual event brings together thought leaders and practitioners in the area of pricing and revenue optimization (PRO). This technique uses analytics to sift through large data sets to tease out customer behavior characteristics, identify customer segments and quantify their price sensitivities. These complex calculations require software designed for the purpose, but most in the financial services industry rely on older methods that produce less-than-optimal results. Analytics can help organizations more carefully manage the process of defining offers to customers (especially the levels of discretion offered to account managers and sales people) and the terms and conditions.
Topics: Sales, Sales Performance, Supply Chain Performance, Office of Finance, credit, financial analytics, Nomis Solutions, PRO, Operational Performance, Analytics, Business Analytics, Financial Performance, banking, Financial Services
Doing one’s homework is vital in buying business software. However, unless you’re replacing a relatively simple application, it’s hard to know exactly what to evaluate. Indeed, if people in a company given this task don’t have experience in using a specific type of business application or don’t understand how new or improved functionality will help execute business processes better, they may do a poor job of assessing the available alternatives. Third-party consultants may be helpful, but their prejudices and familiarity with a vendor’s products may cloud their objectivity. In the end, a buyer might agree with their point of view, but this agreement should be an informed decision.
Topics: Performance Management, Sales, Sales Performance, Human Capital Management, Office of Finance, Zilliant, Model N, Navetti, Nomis Solutions, PROS Pricing, Servigistics, Signal Demand, Operational Performance, Analytics, Business Analytics, Business Performance, Customer & Contact Center, Financial Performance, Oracle, Vendavo, Price Optimization, Profitability, Software, Vistaar Technologies