Segmentation Is the Solution
Pricefx quickly identified customer segmentation as key to the company’s pricing success, and set to work on one of the company’s largest business units.
They first implemented their PriceAnalyzer tool, which rapidly and effectively segmented the company’s total addressable market based on a unique set of strategy-specific parameters, while simultaneously identifying price increase opportunities and detecting margin leakage.
Pricefx also implemented PriceBuilder and QuoteConfigurator, the former creating clear and impactful price policy definitions and guidelines, and the latter supporting sales and back-office teams in creating quick and error-free quotes in response to price inquiries.
By segmenting customers into groups based on attributes (like company size, order history and future sales potential), the company was able to standardize and simplify their pricing process and provide segment-based pricing guidance to sales reps. Having witnessed immediate traction at this first unit, the company rolled out its transformation to the next. As each business unit is unique, so too was Pricefx’s approach. PriceAnalyzer and PriceBuilder were the key tools leveraged at the second unit.