Customer Success Study: Healthcare Distributor

Transcription

1 Customer Success Study HEALTHCARE DISTRIBUTOR Global Healthcare Distributor Improves Pricing Profits on SQL Server Platform Pricing processes and insight generated $250,000 profit surge after just one quarter Unlock Your Data Unleash Your Sales 1

2 Executive SUMMARY Customer Multi-billion dollar, global manufacturer and distributor of medical supplies and technologies CHALLENGE Cumbersome pricing processes resulted in out-of-date pricing, lost margin potential No tracking of customer buying behavior and pricing trends No visibility into customers Willingness To Pay No single repository for pricing data No way to ensure compliance by sales force in implementing annual price increases SOLUTION PROS Scientific Analytics and Pricing Guidance PROS IMPACT Generated $250,000 profit increase after one quarter Saved $300,000 in hardware costs with SQL Server platform More than $1 million in gross profit increase expected annually 2

3 Distributor Searches for Low-Cost, High Performance Pricing Solution on Limited Budget This global medical products distributor faced several pricing challenges that kept it from realizing its full margin potential of billions in sales each year. By categorizing customers into large macro-segments, the company failed to determine if customers in a given segment were sharing the same attributes, and was unsuccessful in tracking their buying behavior within each segment. As a result, the distributor failed to anticipate how a given segment might react to its annual round of price increases. Without visibility into its customers Willingness To Pay, the distributor simply increased prices at the same rate across all segments. See at a glance how well sales reps are adopting price increases Why PROS A partnership approach where we roll up our sleeves and work with you to get the job done. Innovation that reaches beyond the status quo, creating smarter solutions to propel you ahead of the rest. Embedded data science that provides guidance and recommendations to help you compete and win. Nearly three decades of experience crunching big data to reveal opportunities and guide better business decisions. 3

4 The experience with PROS has been fantastic. Everybody in the organization has enjoyed the partnership from the CEO down to the entry level analyst. In addition, the distributor s pricing and product managers lacked the necessary reporting to assess the effectiveness of pricing initiatives. With no single repository for pricing data, reports were typically cobbled together from multiple sources in a manual process that produced incomplete or out-ofdate pricing. The company also had no systematic means of ensuring compliance with pricing practices, which resulted from sales representatives often refusing to pass on increases to their customers, leaving margin on the table every year. Company Selected PROS to Deliver: Scientific segmentation of customers and products PROS Provides Cost-Effective, Comprehensive Solution Using SQL Server Analysis Services With a very limited IT budget, the company needed a partner that could hold down total cost of ownership yet still deliver a high value and automated pricing solution that would be easily adopted by multiple end-users. First, PROS Scientific Analytics module was implemented to provide both a micro-segmentation with optimal pricing guidance and improved reporting capability. By analyzing the attributes of the distributor s North American business, PROS provided an understanding of customer buying behaviors and product pricing trends. Enhanced management flexibility and control of pricing performance Increased visibility into transaction types Opportunities within less profitable customer and product segments 4

5 Based on the results from the segmentation study, PROS then delieved Pricing Guidance that enabled customers to implement year-end pricing increases with more precision, and eliminate the practice of a flat price increase across the board. The clear micro-segmentation with optimal Pricing Guidance integrated well with end-users across the enterprise to ensure compliance with pricing strategies. Track sales dollars compared with gross profit dollars and gross profit percentages on a single screen PROS Solution Advantages Improved pricing processes by offering the right price at the right time based on a solid understanding of customer purchasing behavior and product attributes Identified opportunities to increase the performance of low performing customer and product segments Enabled product and pricing managers to see the impact of different pricing initiatives on margins through powerful, easy to use, reporting Created a solution that sales representatives would embrace, leading to better field compliance with price increases and returning higher margins 5

6 PROS has the best pricing science that I ve seen and upgrades have been literally accomplished within a day. PROS has made us successful to this point and will continue to make us successful for a long time. PROS leveraged its relationship with Microsoft to provide a high-performance and scalable solution utilizing SQL Server Analysis Services, storing terabytes of data on a Microsoft SQL Server platform. The distributor deployed Microsoft SQL Server Analysis Services to ensure high performance and fast response times for end-user queries. PROS Generates $250,000 Profit in First Quarter, $1 Million Expected for Year Comparing the same scope of customers that received a price increase the previous year, the PROS solution yielded a 187-basis point improvement in gross profit. Thus, the distributor was able to generate a $250,000 gross profit increase after one quarter. In addition, by implementing pricing strategies on a Microsoft platform, the company saved more than $300,000 in hardware costs compared to a similarly configured platform. The distributor expects a 30 percent increase in profits year over year, with a $1 million lift in gross profit over the previous year s price increase. 6

7 PROS Pricing Solution Suite PROS Pricing Solution Suite consists of four modules that work together to get you to Pricing Excellence Scientific Analytics Identify segment-specific pricing, find opportunities for margin improvement, and forecast and monitor your progress proactively Deal Optimizer Quote the right price for each deal by using guidance, market insights, and integrated approval workflows Price Optimizer Create the right price for each customer and product by setting science-based optimized pricing strategies and managing price lists automatically REBATE Optimizer Centralize and manage your rebate programs, and measure the effectiveness on deal profitability Monitor your performance and adherence to policy 7

8 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 optimize sales, pricing, quoting, rebates and revenue management across more than 30 industries. PROS has implemented more than 600 solutions in more than 55 countries. The PROS team comprises more than 700 professionals around the world. To learn more, visit PROS.com Copyright 2013, PROS Inc. All rights reserved. This document is provided for information purposes only and the contents hereof are subject to change without notice. This document is not warranted to be error -free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or tness for a particular purpose. We specically disclaim any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission. 8