Distributors of electrical, construction, plumbing, components, equipment, materials
We help B2B distributors to improve profitability and margin mass through more advanced pricing processes and with the adoption of advanced analytics models and algorithms. We bring solutions that we have already successfully developed and tested together with large B2B distributors
Value for customers
B2B distributors distinguish themselves from companies in other sectors for several reasons which include: the high complexity and heterogeneity of the product and customer portfolio, the presence of large and distributed sales forces throughout the territory and the progressive digitalization of sales channels.
The ability to manage pricing and customer mix in an advanced way through the use of data and advanced analytics models are fundamental capabilities in order to improve profitability faster than competitors even in the presence of limited growth rates.
Areas of Opportunity
The main decisions and challenges companies need to face to improve profitability and successfully compete on the market.
How to improve profitability and turnover with pricing?
With the development of pricing processes (segmentation and guidance systems) that leverage machine learning models and internal skills, B2B distributors can reduce the discretion of the pricing process and increase profitability between 1.5% and 4%. % of turnover
Through the use of self-service software (e.g. Knime, Rapidminer), distributors can develop powerful machine learning systems quickly and at low cost.
How to use machine learning software for pricing and sales decisions?
How to engage the sales force in pricing projects?
To develop the full potential for improvement, it is necessary to “engage” the sales force with the correct pricing metrics and with the correct monetary / non-monetary incentive systems (gamification).
How can we take a more proactive approach to customers?
Through the use of algorithms it is possible to predictively determine the customers who require corrective actions based on the current / potential value and behavioral variables
How we help our customers
Pricing capability diagnostics
Quantitative / statistical assessment of historical data
Data-driven segmentation development
Pricing power and price risk by segment
Business rules and price target
Deal scoring tool
Pricing - insight
Decision-making processes and delegations
Price index metrics
Training and post-start support
Gamification models
Deployment reporting on Power BI or Qlik View / Sense
Decision-making processes and delegations
Incentive systems calibration
Pricing - implementation and engagement of the sales force
Critical processes
Diagnostics: Process - Responsibility - Prescriptive / predictive model - Motivation for action
Customer churn and health score models
Margin risk alert models by customer
Customer micro-profiling on behavioral analysis
Deployment, Training, Post start support
Reporting on results
Advance analytics for pricing and commercial decisions
Macro - requirements for the evaluation model
Short list of suppliers and solutions
Step 1: Contact and demo 1 - (5-6 suppliers)
Step 2: Custom demo and data (3 suppliers)
Quantitative business case (ROI, VAN, payback)
Scoring and supplier selection