Modern Commerce – Maturity Model - · PDF fileModern Commerce – Maturity Model...
Transcript of Modern Commerce – Maturity Model - · PDF fileModern Commerce – Maturity Model...
Modern Commerce –Maturity ModelCraig ZawadaChief Visionary Officer, PROSFriday, May 12th
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Companies Today are Awakening to a New Era of Digital Business
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The buyer experience has changed forever….
Buyers expect frictionless interactions, every time
Digital, social and mobile are the new front doors
Buyers flow seamlessly across multiple channels
Time is the new currency
Self service and price transparency are the new normal
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Leaders must shift to a modern commerce strategy or risk getting left behind.
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Sales Experience
Value to Price
Company and Brand
Product and Service
Sales Experience is the New Battleground to Drive Revenue Growth
19
19
9
53
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The New Imperative
Company in control
Guesswork, selling on gut instinctOnline/offline silos
Manual, opaque pricing
Standard, pre-defined offers
From: Traditional commerce
Customer in control, fully informed buyers
Selling on science, algorithms, machine learningFrictionless, omnichannel experiences
Dynamic, transparent pricing
Personalized offers
To:
Modern commerce
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EMBED Dynamic Pricing Science in all modern commerce initiatives
The New Requirements: Dynamic Pricing Science
GENERATE the right offer atthe right customer moment; segment of one
ENSURE SPEED, PRECISIONAND CONSISTENCY across all channels continuously
TRACK AND ANALYZEhundreds and thousandsof internal and external factors
Essential for modern commerce and the modern buying experience
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Long Quote Turnaround Time has a Direct Impact on Win RateHigh Tech Example
50.2%
36.4% 36.0% 31.9%
27.8%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
-
500
1,000
1,500
2,000
2,500
<4hrs 4.01-8hrs 8.01-16hrs 16-24hrs >24hrs
Total QuotesWin Rate
>40% reduction in win rate
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Pricing Took the Majority of Time in the Quoting ProcessHigh Tech Example
Entry Admin Processing Sales Validation Pricing
Calculation Pricing Approval Quote Publishing
Partner Submits Request
Admin Team Processes &
Escalates
Sales Validates Request & Respond with Information Required for
Eclipse Deal Creation
Admin Team Creates
Eclipse Deal
Bid Desk Analyzes and Approves Deal, Seeking Justification/
Approval from Sales & Local BU
Managers
Bid Desk Seeks Region BU Approval and Performs Final
Approval (if beyond country delegation)
Admin Team Triggers Email Notification to
Partner
Region BU Seeks WW Pricing Approval and Performs Final
Approval (if beyond region delegation)
Partner
SQ Team
Sales Team
Bid Desk
Local BU
Region BU/Pricing
WW Pricing
1% 4% 24% 4% 63% 4%
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The risk to your business of getting this wrong
① SLOW: Can’t quote quickly, friction in the approval process② STATIC: Prices can’t move with the market③ IMPERSONAL: Prices not specific to customers and segments④ SILOED: Disconnection across sales channels⑤ INCONSISTENT: Varied pricing across customers creating low
price expectations
Money left on the table, reduction in win-rate and downward price pressures.
Single biggest factor holding modern commerce back?
The inability to price dynamically across all channels
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Question #1
To what degree does each of these represent a revenue or profit risk to your company in the next 5 years?scale of 1 to 5 (1 = no risk, 5 = significant risk):
* Price are TOO SLOW – and you cannot quote quickly* Prices are TOO STATIC – and do not move with the market* Prices are NOT PRECISE/PERSONALIZED – to a customer/segment* Prices are NOT OMNICHANNEL –across channels * Prices are INCONSISTENT –across customers
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The Pricing Science Maturity Model
Real-time
Pers
onal
ized
Offe
rs
Autonomous,No-Touch
What do you want to happen?
Dynamic Pricing Science
GuidedWhat could have
happened?
Rearview Analytics
Why did it happen?
ManualWhat happened?
SpeedDays
Prec
ision
One
Size
Fits
All
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Question #2
What category best describes the current state of pricing in your company?
A. Manual, Excel Based B. Rearview AnalyticsC. Guidance – what happened?D. Autonomous, No-Touch
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The eight pillars of modern commerce
AlgorithmicDynamic Mobile Real-time
Frictionless Omni-ChannelPersonalized Transparent
Driving Customer Success
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The Modern Commerce Maturity Model
Real-time
Perso
naliz
ed O
ffers
SpeedDays
Prec
ision
One
Size
Fits
All
Personalized
Frictionless
Omnichannel
Dynamic
Algorithmic
Real time
Transparent
Mobile
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Question #3
What category best describes the current state of modern commerce in your company?
1. Not yet Started2. Mobile/Dynamic3. Algorithmic/Transparent4. Personalized/Omnichannel5. Frictionless/Real-Time
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Different initiatives where dynamic pricing science may be included
Funded Initiative Business Case
Digital transformation Shift to Modern Commerce with Dynamic Pricing Science
Customer experience Create a consistent customer buying experience across every channel
Revenue and margin erosion Scale and execute dynamic pricing strategies that move with the market
Sales productivity Deliver winning quotes that grow margins
Price optimization and management Increase sales and margin growth through better insights and control
Revenue management Drive incremental revenue and profit through increased accuracy
Quote-to-cash improvement Maximize value of every deal
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Question #4 What initiative does dynamic pricing science fall under in your company?
A) Digital transformationB) Customer experienceC) Revenue and margin erosionD) Sales productivityE) Price optimization and managementF) Revenue managementG) Quote-to-cash improvement