What is B2B Price Optimization and Management?
Price optimization and management (PO&M) software enables companies to efficiently manage and optimize pricing for their goods and services. Recently, these solutions have expanded to provide sales intelligence advice like best-next-action recommendations and customer churn warnings. Some vendors focus on back-office price and product management, while others provide real-time sales intelligence to sales reps. The most successful offer both. This market covers vendors whose software supports B2B and B2B2C business models across industries like travel, wholesale, energy, financial services, life sciences, high tech, manufacturing, telecommunications, food and beverage, and consumer packaged goods.
Applications of B2B Price Optimization and Management
- Setting optimal prices: Analyzes data to find the sweet spot between maximizing profit and staying competitive.
- Automating price updates: Eliminates manual processes and ensures consistent pricing across channels.
- Managing complex deals: Optimizes pricing for negotiated deals with various factors like customer segment and order volume.
- Improving profit margins: Identifies opportunities to raise prices or reduce discounts without losing sales.
- Enhancing sales effectiveness: Equips sales teams with data-driven insights to close deals at better prices.
- Maintaining price consistency: Ensures all departments (sales, marketing) have access to the latest pricing information.
