What is Pricing Software?
Pricing software is a commercially available software application that automates pricing analytics, optimizes prices, and executes pricing changes to help organizations make more efficient and effective pricing decisions.
Setting the right prices is a challenge that all businesses face. And with the advent of increasingly advanced, fast-paced technological change in many of today’s industries, it’s a problem that’s becoming more complex by the day. Thankfully, pricing software has been developed to help companies overcome all manner of pricing-related obstacles, and it’s now being put to good use across a range of different industries.
Over the years, the capabilities of pricing software have grown from simple functionalities like helping organizations plan, manage and execute pricing, to far more complex, interconnected options. Today’s most advanced pricing software is capable of incredible things, handling vast volumes of data and integrating seamlessly with artificial intelligence and analytics to help companies strategize more intelligently than ever before.
Pricing Software: Core Types and Functions
Price Analytics
Analytics is at the heart of all good pricing software. The best software options combine cloud-based commercial intelligence with unbeatable monitoring, to help companies measure and monitor the business impact of all manner of pricing variations.
The pricing software takes into account everything from specific pricing to product volume, variety, and other factors that may affect buyer behavior. When used in partnership with other types of software, price analytics platforms can empower businesses to maximize the real value of their strategies, while also documenting and tracking the benefits of recent pricing changes.
Price Optimization
Businesses with the most agile pricing optimization strategies tend to be the ones that flourish. But providing such a service is a complex task, with a whole host of factors influencing the correct price point for different products.
Pricing software can help with optimization by continuously monitoring a whole host of different metrics in unison. Once a business moves from a manual way of gathering this data to an automated option, it makes the job of optimization far simpler and more effective. This heightened agility allows companies to act in a more timely manner, ensuring they capitalize on every available opportunity.
Price Management
Great pricing management makes a huge difference to the potential of a company. Pricing software enables businesses to manage their prices efficiently, by collating the information teams need to set the right prices and making this data immediately accessible through one, user-friendly platform. Pricing can then be managed in a more flexible, market-driven way using logic that is easily scalable across a company’s whole range of products, regions, countries, and channels.
With the right software in place, teams can easily ensure that their prices are always correct for their specific context. This benefit is of particular importance to companies operating in dynamic markets, where data might demand more specialized metrics and visualization.
Pricing Execution
Pricing execution is a key consideration for companies looking to outsmart their competitors. The practice of calculating prices correctly and then ensuring that they’re delivered to consumers in a timely manner makes a real difference to a company’s outlook. The best pricing software solutions facilitate this, and much more, through smart data analytics and unparalleled flexibility.
Increasingly advanced pricing software options include everything from AI-driven pricing intelligence, which delivers deal-specific pricing guidance directly to a customer’s CRM and quotation workflow, to CPQ software designed to advance companies with the complete coordination and streamlining of quote-to-cash processes.
IDC named Vendavo a Leader in B2B Price Optimization and Management Applications.
Four Benefits of Pricing Software
Pricing software that’s been designed with a company’s specific needs in mind offers a whole host of unmissable benefits. Take a look at some of the key ways that pricing software can enhance a company’s capabilities and make a real difference to its growth potential.
Revenue and profit generation
Providing a complete picture of the data that matters, pricing software can have a huge impact on a company’s ability to grow. Incomplete, disconnected data hampers all manner of revenue-generating and profit-enhancing processes, which is why putting the right pricing software in place is so important.
Faster quotes
Today’s customers don’t expect to wait around for quotes. By offering quotes at lightning-quick speeds, businesses can set themselves apart from their competitors and make the perfect first impression with customers. The quote-to-cash processes can be made far quicker and more efficient through the introduction of configure price quote (CPQ) software, which provides teams with all the information they need to quote quickly.
Dynamic pricing
Putting the right pricing software in place enables a brand to offer dynamic pricing for every customer. With markets becoming more complex and competitive, the onus is now on brands to reflect the complexity of their marketplaces through agile, precise pricing. Pricing software makes this possible in a way that manual processes never could. It’s faster, it’s more efficient and it’s always led by data.
Eliminate inconsistencies
If there’s one thing that consumers never fail to notice, it’s inconsistent pricing. This problem can have a real impact on a company’s reputation, and it may even put buyers off. But pricing software can now be used to make such inconsistencies a thing of the past. When pricing is managed in an automated way and informed by a whole host of different data points, any misaligned prices or inconsistencies can be quickly spotted and fixed before a product hits the market.
Finding the Right Pricing Software
Leading pricing software solutions are designed to work seamlessly with your existing processes, and fit in with how teams already work. In doing so, they offer a whole range of benefits that’ll make life much easier for all team members, freeing up time and capacity to help businesses advance. With pricing software becoming ever more intelligent, now’s the perfect time to start taking advantage of the incredible benefits that such software provides, by introducing a data-driven pricing platform in your company.
If you’d like to learn more about pricing software, make sure you get in touch. Our solutions are easy to integrate with current systems. They provide everything from scalability and AI connectivity, to unparalleled growth potential and an unbeatable ROI. Contact us and we’ll show you how our pricing software works, and explain what our range of software solutions could do for your company.
