In this use case we are looking at how to improve margin, quote efficiency and win rates with the use of guided selling and decision support in Pricefx. Inquiries for product purchases are usually received via email or direct sales and this requires an answer in a timely manner with realistic pricing despite the process of receiving, evaluating, and responding to customer quotes being complicated and time-consuming. Pricefx offers a quick and integrated solution that streamlines the process and allows the distribution industry players to win business.
Use Case Situation Description
User Role:
Sales Account Executive / Sales Management
Business Objective:
Our business receives inquiries from customers throughout the year for quotes on potential purchase of quantities of products we distribute. These inquiries reflect at least two different purchase scenarios: (1) a quotation for product purchases for an upcoming fiscal year, often known as an annual quote. Awarding of these quotes can result in execution of a sales contract, or (2) a one-time spot purchase of product for a project or to fulfill a short-term need. We need to respond to the customer in a timely manner on these requests, with pricing that is realistic considering the products, markets, and respective volumes involved in the quote.
Complication:
The quote proposals are usually received by our sales and quote teams via email or direct interface with a customer’s purchasing site. These need to be fed back to our teams responsible for proposal management, evaluated for pricing and volume commitments, approved internally, and then transmitted by sales back to the customer. There are a lot of handoffs in the process that consume considerable time, potentially impacting win rate if there is delay replying to the customer. Additionally, it’s difficult to quickly perform appropriate analysis to determine the right price for the customer considering current and projected market conditions.
Capability Needed:
A quick, integrated way to receive, evaluate, and respond to customer quotes that provides the right price to the customer and allows us to win the business.
Benefit:
Company volumes, revenues, and margins will improve.
KPI:
Cumulative win/loss percentage on quotes.
Calculation:
Win/loss percentage = (Total deals won / Total opportunities) * 100