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The Price of Innovation – Is Your Pricing Vendor Keeping Up?

June 3rd, 2024 | 8 min. read

By Iain Lewis

In pricing and the technology that drives it, agility and responsiveness now reign supreme and staying ahead of the curve is no longer a luxury, it is a necessity. This rings especially true for pricing, where even minor delays in adapting to market shifts can translate to significant profit losses. After all, even a seemingly meaningless 1% price change can now mean up to an 11% profit bump (and if you are an enterprise business with thousands of products, that is a lot of potential profit that could be left on the table). But the flip side is that navigating the ever-evolving pricing technology landscape can be tricky. Choosing the right pricing software vendor isn’t just about ticking features off a list; it is about finding a partner who actively invests in innovation and can keep pace with the ever-changing needs of your business.

For more than a decade, Pricefx has been at the forefront of developing innovative pricing technology, continuously investing as the technology grows and evolves. From machine learning and neural networks to agent-based AI (Artificial Intelligence) and now Generative AI, we continue to pursue AI innovation to drive value performance for our customers. As the world’s leading enterprise-grade native-cloud pricing software vendor, we take immense pride in using the power of innovative technologies to help solve top-line business problems and boost profits and growth for our clients.

So, how do you know if your current pricing software vendor is truly committed to innovation? Here are 10 key signs to watch out for:

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The Top 10 Signs that Your Pricing Software Vendor is Committed to Innovation

1. A Relentless Focus on Customer Needs

Innovation does not happen in a vacuum. True innovators listen to their customers, anticipate their challenges, and proactively develop solutions that address their pain points. Ask yourself these questions;

  • Does your vendor regularly engage with you, seeking feedback and understanding your specific needs and challenges?
  • Do they actively involve your feedback in new features and pricing software functionalities?

If not, it might be time to reconsider your partnership.

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2. Predictable Updates and System Improvements

One of the primary indicators that your pricing software vendor is keeping pace with innovation is the predictable frequency and quality of updates and improvements to their platform. A vendor committed to innovation will have scheduled release updates that incorporate new features, address user feedback, and adapt to changing market dynamics. These regularly timed updates should not only enhance the functionality of the software but also improve user experience and overall performance.

 

3. Scalability and Flexibility

As businesses grow and evolve, their pricing needs also change. A reputable pricing software vendor will offer a scalable and flexible solution that can adapt to the evolving needs of your business. Whether you’re a small startup or a multinational corporation, your pricing software should be able to scale seamlessly to accommodate changes in user volume, transaction volume, and pricing complexity without sacrificing performance or functionality.

 

4. Seamless Integration with Existing Systems

Pricing software doesn’t operate in isolation; it must seamlessly integrate with other critical business systems such as your other software systems like your ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), e-commerce platforms and more. A forward-thinking pricing software vendor will offer seamless integration capabilities that allow users to connect their pricing software with existing systems to streamline processes, eliminate duplicate data entry, and improve data accuracy. By integrating pricing software with existing systems, businesses can achieve greater operational efficiency and productivity.

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5. An AI (Artificial Intelligence) Commitment and Adoption Plan

In today’s digital age, emerging technologies like Generative artificial intelligence (GenAI), machine learning (ML) and and predictive analytics are driving significant advancements in pricing strategies. A forward-thinking pricing software vendor will integrate these technologies into their platform to provide users with advanced capabilities such as dynamic pricing, demand forecasting, and personalized pricing recommendations.

Pricefx has been at the forefront of the adoption and development of pricing AI, continuously investing as the technology grows and evolves. From machine learning and neural networks to agent-based AI and now GenAI, we continue to pursue AI innovation to drive value performance for our customers.

 

Our focus remains on being Fast to value with our productized use cases, Flexible with our composable Bring-Your-Own Science Optimization capability, and Friendly with our clear-box AI that lets your team see exactly how optimizations are designed and executed.

 

No other pricing optimization technology offers our kind of rapid value impact and long-term scalability and transparency.

By leveraging these emerging technologies, businesses can gain valuable insights and make data-driven pricing decisions in real-time.

6. Personalized Configuration

Every business is unique, with its own set of pricing challenges and objectives. A forward-thinking pricing software vendor will offer personalized configuration options that allow users to tailor the software to their specific needs.

This may include personalized pricing rules, workflows, dashboards, and reports that align with your business goals and strategies.

By offering a personalized experience, vendors can ensure that their software meets the unique requirements of each individual user.

 

7.  A Collaborative and Supportive Partnership

Innovation is rarely a solo endeavor. Look for a vendor who goes beyond a transactional relationship and truly values your partnership. Are they readily available to answer your questions, provide support, and offer guidance? Do they offer training and resources to help you get the most out of their platform?

Does your pricing software vendor operate an extensive partner ecosystem that can assist you in either integrating your pricing solution with your system or setting up a pricing strategy that is aligned with and can help your organization to achieve its overarching business goals?

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A supportive partner can be the difference between success and failure in implementing innovative pricing software technology and data-driven strategies.

 

8. Ensuring Time to Value (TTV) for Their Customers

True innovation goes beyond fancy features; it focuses on delivering tangible results quickly. Does your vendor prioritize rapid implementation and provide the resources and expertise needed to maximize your time to value (TTV)? Do they offer pre-built configurations, migration assistance, and training programs to accelerate your adoption of the platform? In today’s fast-paced world, waiting months to see results is simply not an option. Look for a vendor committed to getting you up and running quickly and delivering value from day one.

 

9. Robust Customer Success Initiatives

Innovative pricing software vendors prioritize customer success initiatives that go far beyond basic support and maintenance. Look for dedicated customer success teams, personalized onboarding programs, and ongoing education and training sessions that equip customers with the skills and know-how required to maximize the value of their investment.

 

10. Strong Commitment to Data Security and Privacy

Finally, in today’s data-driven world, safeguarding your valuable pricing data is paramount. Does your vendor prioritize data security and privacy? Do they have robust security measures in place and comply with relevant data protection regulations? Are they transparent about their data practices and willing to address your concerns? In an environment where data breaches are increasingly common, choosing a vendor with a lax approach to security is simply not worth the risk.

 

Beyond the Innovation Buzzword

Innovation is not just a buzzword; it is the lifeblood of success in today’s dynamic pricing landscape. By choosing a vendor that prioritizes the 10 key signs above, you are not just investing in pricing software, you are investing in a partnership that drives continuous improvement, empowers data-driven decisions, and future-proofs your pricing strategy for sustainable profitability.

While the presence of these 10 signs does not guarantee that your pricing software vendor is perfect, it certainly suggests that they are committed to keeping pace with innovation.

Ultimately, the choice of pricing software vendor comes down to finding a partner that aligns with your organization’s values, priorities, and aspirations. Remember, however, that innovation alone cannot guarantee success. Even the most innovative pricing software vendor will not yield maximum returns unless it is properly deployed, configured, and managed. Therefore, it pays to invest in ongoing training, education, and support to ensure that your team is equipped to derive the fullest benefit from your pricing software investment.

If you have already decided that Pricefx could possibly be the pricing software vendor that your company is looking for, talk to one of our experts now, or if you are undecided and would like to explore further tips on how to choose the right pricing software for your organization, check out this handy article below:

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Meanwhile, Happy Pricing!

 

Iain Lewis

Senior Solutions Strategist , Pricefx

Iain Lewis has worked in pricing as a practitioner for 27 years working at Automotive, industrial goods, business services and Distribution companies. Iain brings his unique perspective to each engagement to guide companies through complex buying decisions and has helped companies throughout Europe and South-East Asia continue to improve their pricing approach.