Updated: May 8, 2019
In any energy supply organization, there is an inherent conflict that exists between the sales and the pricing sides of the organization. While these opposing forces can put sales and pricing teams at odds, it doesn’t have to be that way. We at TRUELight have identified a few ways to bring back the love this Valentine’s Day with tips for leveraging pricing analytics to drive sales.
In any energy supply organization, there is an inherent conflict that exists between the sales and the pricing sides of the organization. Sales is always looking for prices that are more competitive that lead to more deals being executed, while the pricing side is always trying to anticipate any change in market dynamics and maximize revenues to help mitigate the associated risk.
While these opposing forces can put sales and pricing teams at odds, it doesn’t have to be that way. We at TRUELight have identified a few ways to bring back the love this Valentine’s Day with tips for uniting sales and pricing.
One of the most effective solutions to this conflict is leveraging analytics to help bridge the gap.
Utilizing pricing data that most accurately aligns with current market conditions is essential to making smart business decisions; that’s nothing new. But the power of analytics doesn’t end there. It is also a powerful sales tool. In an industry that often suffers from transparency issues, the ability to provide data points to prospective customers (especially when backed by an independent third-party professional) is a deal maker.
One of the first ways to use analytics is in providing transparent comparisons between costs and revenues. Constantly analyzing the performance of pricing as well as the associated revenues to the ISO-level costs being incurred drives both a tightening of price activity and an understanding of the true costs associated with serving load.
Additionally, comparing internal pricing to competitor pricing can help drive an understanding of the value proposition your sales team is offering, and allows the pricing team to understand where they stack up to the competition. Along with providing mutual benefits to sales and pricing teams, this competitive analysis gives you an overall pulse on the health of your business.
So there you have it. Using analytics as the bridge to unite these resources makes for greater efficiency on both the sales and pricing side. As it turns out, the two are better together than they are apart.
TRUELight provides energy pricing analytics on an affordable and ongoing basis. To learn more or schedule a time to chat with our experts, contact email@example.com.