Vendavo, a provider of margin and profit optimisation solutions, today announced new, advanced price and segmentation optimisation capabilities for the B2B Global 2000. The new Vendavo Optimisation Manager Product Suite includes Price Optimisation Manager (formerly known as Power & Risk) and the newest product, Segmentation Manager, enabling enterprises to make the most profitable pricing decisions that align with how customers value their products or services.
Currently, companies have to depend on data scientists, forcing them to rely solely on transactional and historical data for pricing decisions. Vendavo’s solution is the only offering that combines the science of the data with expert business insights to navigate complex enterprise pricing markets, enabling companies to deliver the most intelligent pricing guidance to the front lines, along with logical rationale and supporting data.
'The primary benefits of price optimisation are in margin and revenue improvements,' wrote Chris Fletcher, research director at Gartner. 'Gartner inquiries and reference calls indicate that a successful price optimisation implementation can increase margins by 50 basis points or more, and increase revenue by two to four percent, and reduce or eliminate revenue leakage through automated price management tools.”
Enterprise price optimisation solutions utilise well-designed segmentation models that align company prices with how customers value their products. For the first time with Vendavo’s solutions, customers have the power to create and manage segmentation models and tune them for their business by adjusting algorithmic models based on practical business logic. Vendavo Segmentation Manager™ leverages cloud-based big data architecture with B2B pricing expertise, which empowers sales teams with optimised, deal-specific target prices to negotiate more confidently.
“As the amount of data increases and market dynamics become more complex, traditional pricing models can’t keep up,” said Bala Tiru, vice president of product management at Vendavo. “The best option is a mix of sophisticated data and analytics with real world knowledge. One of our customers, a global chemical manufacturer with several billion dollars in revenue, implemented our data-driven optimisation model in one region, while retaining their traditional strategy in another. The region with optimised pricing guidance drove an additional six percent of revenue, while the traditional region dropped five percent. We are confident that our enhanced price optimisation capabilities help our customers make informed pricing decisions that drive profit to the bottom line.”