Why profit optimization software could be a CFO’s secret to success in 2023

Some of the world’s leading companies are turning to profit optimization software. This is because it generates dynamic and individualized pricing. It also offers to customers, across their different sales channels, the opportunity to win business and optimize profitability.

Has it ever been more difficult to sell? Inflation, unpredictable supply chains and volatile stock markets have left Chief Financial Officers with a headache as they try to keep costs down, maximize margin, and optimize their pricing and offers to attract customers that are tightening their purse strings.

To achieve these things in 2023, CFOs will need the ability to make decisions and take actions at speed to adapt to rapidly changing market conditions.

Yesterday’s tools and solutions aren’t enough to solve today’s problems. Businesses that use manual spreadsheets to manage their pricing or create quotes are being left behind by competitors who are responding in seconds to convert customers with individualized pricing and offers.

“The first quote often wins,” says Grad Conn, Chief Marketing Officer at profit optimization software leaders, PROS. “If you don’t get a quote instantly or within minutes or hours, then you probably won’t win that deal. And is the quote optimized? Does that price take into account market conditions? Is the deal even profitable?”

PROS has become the secret of CFOs at the world’s leading companies. Using artificial intelligence (AI) to manage pricing and costs in real time, it makes sense of company data and integrates market factors so businesses can give customers individualized pricing immediately to increase conversion, margin and profitability.

Another challenge businesses face today is the complexity of huge product catalogues. For businesses with thousands of SKUs, manually updating pricing in real-time would require the dedicated mathematical genius of thousands of staff round the clock. Instead, AI seamlessly integrates with businesses’ CRM and ERP solutions to make sense of the data and maximize the value of every single transaction while also speeding up the sales approval process.

This combination of AI and automated processes has had a direct impact on the profitability of hundreds of companies. Data from 131 PROS customers revealed:

– an average margin improvement of more than 200 basis points, often as high as 500 basis points

– an average 8% increase in revenue, often as high as 100% and an average operational efficiency and productivity gain of 67%, often as high as 96%

– a Fortune 100 global IT company tapped into the power of PROS and achieved a 1.9% margin uplift, a 25% reduction in quote cycle time, and a 111% increase in quotes year-on-year

But just as customers can’t wait for the best price, CFOs can’t wait for a return on investment. So, how long does it take to see those kinds of results with this approach? A host of businesses have seen returns in the same quarter they integrated the software, while others have enjoyed returns within days. PROS recently helped a global energy company generate +$3 million of incremental revenue in the first six months and +$8 million in the first year.

As CFOs prepare for another year of volatility, fast and intelligent profit optimization will be critical to maximize margin, revenue, growth and profitability. The most forward-thinking CFOs are swapping spreadsheets for profit optimization software as they undergo digital transformation driven by the buying behavior and volatility of today’s market.

Profit optimization software could be the difference between thriving and surviving in 2023.