Commercial Services Provider

How Well Are You Pricing To Sustainably Grow Profits?

Built a tailored quoting engine and supporting processes resulting in $100M price impact over 4 years

Case Study

Situation

Approach

Impact

Related Insights

Revolutionizing Pricing with Data-Driven Solutions

Empowering sales teams and unifying processes to deliver $100M in price impact.

Facing decentralized processes, inconsistent pricing, and low CRM adoption, a U.S. market leader sought to align pricing with their product and service value. INSIGHT developed a nationwide market-based pricing model, integrated it into their CRM, and provided sales teams with accessible, data-driven recommendations. In-person workshops engaged sales reps, while our analytics engine tracked compliance and performance. These solutions delivered $100M in price impact over four years and equipped the client to sustain success with enhanced systems and training.

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Situation

Aligning Pricing Strategy in a Complex Landscape

Overcoming CRM limitations and decentralization to ensure competitive, consistent, and guided pricing.

Made a large investment in Salesforce.com for quoting needs, but complex pricing factors made it insufficient for their needs
Struggling to get adoption across their sales team
US market leader but not pricing appropriate to their product and service offerings versus the competition

Limited price guidance, segmentation, or tools in place across nine regions
Aggressive acquisition strategy led to decentralized processes
Significant and unpredictable price variation

Deep Understanding of Current State

Conducted in-depth qualitative and quantitative analysis to build a quantified opportunity summary and supporting implementation plan

Key Learnings from Analysis:

Internal pricing strategies weren’t tied to value offered or cost – e.g., unit rental price did not account for labor, delivery, and ancillary services and in some cases were providing discounts
Pricing decisions were made by siloed reps trying to get a sale
Unique position and scale created significant pricing power
Strong corporate leadership was critical to driving desired behaviors
Pricing processes and tools were needed to support the business, not weigh it down

Example: Regional Variation

Significant price variations across branches within the same region

Example: Cost Structure

Cost structure was heavily driven by number of weekly services; organization rewarded opposite behavior

Example: Service Charge Variation

Variation on extra service charges by region, branch, individual

Approach

Innovative Solutions for Market-Driven Pricing

Integrated models and hands-on training empowered sales teams with data-driven tools and measurable outcomes.

Created nationwide rental rate pricing targets through a market-based pricing model
Integrated the pricing model into the existing CRM, including all necessary pricing factors and better quoting recommendations, providing the sales team the ability to access data driven recommendations within their current systems and processes

Engaged sales reps by conducting in-person pricing-focused workshops
Generated measurement engine to track results and sales rep compliance and performance

Impact Process

Utilized a phased roll-out approach to build confidence and ensure buy-in where branches felt uncertain if they could raise prices

Differentiated Pricing Implementation

Developed custom pricing model to determine recommended price based on factors most important to the business

Explored customer, product, and order attributes to align on pricing power and key factors relevant for the pricing model, while mitigating risk.

Primary Model Factors – Bold
Secondary Model Factors – Italicized
Tertiary Model Factors – Standard

Quoting Application Integration

Created a closed-loop process that recommends the right price while also tracking compliance and patterns to optimize over time

Quote Application Benefits

Agile approach: began with excel-based tool, followed by web-based application, then integrated into CRM
After launch, high user compliance to pricing recommendations
No change to historical win rates
Some regions saw price impact results >20% when using the quoting application
Simple to maneuver; did not slow down or delay the quoting process
- Ability to provide the optimal price target while on the phone with a customer
Allowed easy incorporation of price increases with simple updates

Driving Impact Through Measurement

Implemented a compliance-driven reporting structure and KPI measurement engine with price sensitivity insights and feedback loops to reinforce behavior and optimize performance.

Example Change Management Reporting: # Quotes, Win Ratio, Order & Price Compliance, Unit Pricing Trends
Example Measurement Reporting: Price-Volume Trends, Price Realization, Unit Quantity Trends, Price Sensitivity, Seasonal Trends

(shown left: example price sensitivity scorecard to monitor how changes in price are affecting KPIs and where price model changes might be needed)