Fortune 50 Multinational Enterprise Tech Achieves $400M in Incremental Revenue
A Fortune 50 multinational enterprise technology company delivers experiences that amaze users with a portfolio of server, storage and networking solutions and services.
Challenge
Undisciplined pricing and slow quoting was leaving money on the table and costing this enterprise technology leader innumerable deals.
This service and technology company utilized an elaborate matrix of pricing approval thresholds, believing that its granular controls constituted the best pricing strategy for its products. After receiving feedback from salespeople and partners, it realized that the existing process was so complicated, confusing and sluggish that many partners were passing on quoting the company’s products altogether. Furthermore, a comprehensive review of its pricing showed there was much more variance in realized pricing than it anticipated as well as an unexpectedly high volume of unprofitable deals.
Solution
Intelligent, data-driven pricing enables autoapproval of routine deals and accelerates quote turnaround time
With PROS, this multinational enterprise technology company could empower partners and salespeople with greater autonomy to make small- and medium-sized deals. For small deals, sellers are provided with segment-specific, product-specific, preapproved discounts; for medium deals, self-service CPQ software equipped with PROS price optimization enabled a speedier quote turnaround process. With time freed from supporting these deals, pricing teams could focus their efforts on larger, more complex deals. PROS pricing solutions provide insights into price optimization that make deal review even more effective and efficient.
Results
12,000 new partners, 111% increase in quotes, $400M uplift in incremental revenue, and 200 basis point margin improvement.
A more efficient quoting process reduced this service and technology provider’s average quote response time from several days to two hours and increased its automatic approval rate from 10% to 80%. When customers and partners noticed the service improvement, the volume of quote requests more than doubled as thousands of new partners signed on to sell the company’s products. To date, PROS data-driven pricing guidance has helped this technology leader achieve more than $400 million in incremental revenue along with 200 basis points in margin improvement.