European Pricing Platform Survey Shows Big Data Investment as Critical to Sales Effectiveness, Business Success
LONDON and BRUSSELS, Oct. 21, 2013 – PROS® (NYSE: PRO), a big data software company, today announced the results of a European research survey conducted by the European Pricing Platform (EPP), a not-for-profit organisation that supports the development of pricing professionals in the region. Based on responses from more than 120 business leaders and pricing experts, the European Pricing Maturity Study 2013 indicates the majority of organisations want to improve their approach to sales and pricing management.
According to the research report, more than half (56%) of respondents overestimate their current pricing maturity level. Rather than being able to capture potential value opportunities and correctly position their goods and services for customers, the majority of organisations (90%) are currently only able to manage standard price lists or single transactions. To improve and better manage sales effectiveness, 88% of those surveyed are looking to invest in new technology over the next 12 months.
EPP President Pol Vanaerde commented, “Pricing is a strategic business enabler that drives sales growth and spans multiple business areas and functions, including sales, marketing, finance and product management. It is often not integrated and managed effectively. Companies that bring together pricing and sales are able to better perform in their markets, capture more value for their customers and increase their own profitability.”
PROS EMEA General Manager Eric Allen said, “These research results provide valuable insight into the role big data applications and pricing management can play in improving sales effectiveness. PROS helps companies bring sales and pricing teams together using data science and analytics that drive the right decisions and provide organisations with a competitive advantage for winning deals more profitability. Industries from manufacturing and automotive, to chemicals, logistics and services, are using data science to sell more effectively and improve results. We are pleased to have sponsored this research and appreciate the work of the EPP.”
As part of its research, EPP evaluated maturity levels for pricing across a range of industries including automotive, chemical, high-tech, life sciences, machinery and equipment manufacturing, postal and logistics, and telecommunications, in the business-to-business arena. Fast Moving Consumer Goods (FMCG) was the only business-to-consumer sector included in the report.
As part of the Pricing Maturity Model, the EPP assigned rankings to each respondent based on these criteria:
- Level 1: Price List Maintenance – practices basic pricing techniques.
- Level 2: Transactional Control – can sell products at the right price levels to customers.
- Level 3: Full Value Capture – practices greater segmentation of customers and solutions.
- Level 4: Pricing Optimisation – uses solutions and revenue models that provide the most value for the customer and profitability for the company.
Findings for these industries included the following:
- Respondents from the machinery and equipment sector were the most realistic about their pricing maturity. Companies in the sector are the most ambitious around improving their approach to pricing and sales effectiveness. They were also the most keen to implement pricing software that would integrate with their ERP and CRM systems.
- High-tech companies are the most mature in their approach to pricing, with 43% of companies operating at Level 3 of the EPP Pricing Maturity Model.
- In the chemical sector, 60% of respondents indicated that a dedicated price optimisation strategy was a ‘must-have’ business initiative for their organisation. A full 80% of those surveyed believe that big data analytics will lead to higher profit margins.
- In a surprising result, FMCG companies were the lowest ranked when it came to pricing maturity. The biggest challenges for these companies are gaining control over discount practices and making sense of the huge amount of data gathered during customer transactions, according to the research.
For information on how to use big data for sales effectiveness, visit the PROS website at www.pros.com. For a full copy of this report, visit http://info.pros.com/EPP-EuropeanPricingMaturityStudy_DownloadPage.html or call +44 (0) 1784 777 010. For more information on EPP, please contact Nicolene Barnard on nicolene.barnard@pricingplatform.eu.
About EPP
Founded in 2004, the European Pricing Platform has become the leading knowledge sharing platform for European pricing and profit optimisation decision makers, revenue managers and CxOs, dedicated to developing and sharing pricing knowledge, best practices and resources via on-line and off-line media. The EPP is dedicated to the professional development of the individuals and companies involved in the process of pricing and profit optimisation. To learn more, visit the website at http://www.pricingplatform.eu
About PROS
PROS Holdings, Inc. (NYSE: PRO) is a big data software company that helps customers outperform in their markets by using big data to sell more effectively. We apply 27 years of data science experience to unlock buying patterns and preferences within transaction data to reveal which opportunities are most likely to close, which offers are most likely to sell and which prices are most likely to win. PROS offers big data solutions to optimise sales, pricing, quoting, rebates and revenue management across more than 30 industries. PROS has completed over 600 implementations of its solutions in more than 50 countries. The PROS team comprises more than 700 people around the world. To learn more, visit www.pros.com.
Forward-looking Statements
This press release contains forward-looking statements, including statements about the functionality and benefits of big data software for pricing and sales effectiveness to organisations generally as well as the functionality and benefits of PROS software products. The forward-looking statements contained in this press release are based upon PROS historical experience with big data software and its current expectations of the benefits of big data software for organisations that implement and utilize such software. Factors that could cause actual results to differ materially from those described herein include the addressability of an organisation’s pricing and revenue management needs, the risks associated with PROS developing and enhancing products with the functionality necessary to deliver the stated results and the risks associated with the complex implementation and maintenance of big data software for pricing and sales effectiveness such as PROS software products. Additional information relating to the uncertainty affecting the PROS business is contained in PROS filings with the Securities and Exchange Commission. These forward-looking statements represent PROS expectations as of the date of this press release. Subsequent events may cause these expectations to change, and PROS disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.
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Media Contacts:
James Garber
pros@marchcomms.com
617-960-9875
Mark Kember
Goode Communications for PROS
mark.kember@goode.co.uk
+44 (0)1491 873 323