Why choosing the right pricing technology component is important
Companies that can leverage their data analysis capabilities have a competitive edge in sales negotiations and marketing effectiveness. The same applies for the pricing space. The power of pricing comes from a good pricing strategy, translated in optimised price setting and swift price execution. In general this mix will only be successful when a technology component enables this. In its 21 May 2009 report Forrester research recommended Pricing & Profitability Management Technology as a key driver for value: “CIOs: Suggest Pricing and Promotions Technology to Drive Value.”
But the key question remains: What price technology is needed to capture the value for my company?
How to determine the right technology component?
Many companies when looking at price technology face the challenge of finding the right one. Where to start since many options are available from basic spreadsheets to advanced specialised pricing software. When determining the right technology component – besides the typical assessment criteria such as functionality fit, user friendliness … – Deloitte proposes some guidelines below to ensure you come to a best fit solution. The combination of all of them should help you to build a decision tree in your selection process.