The Pricefx Copilot can help identify outliers in margin opportunities by leveraging the Datamart Watcher and Actionable Insights capabilities.
Here's how it works:
Detection
The Datamart Watcher monitors transactional data to identify customers with an "underperforming" margin. If a negative trend is detected, such as a customer’s margin being lower than the floor margin identified within their respective customer segment, an alert is raised.
The Datamart Watcher in Pricefx Copilot is designed to monitor transactional data to identify customers with an "underperforming" margin. Here's how it works:
Data Collection: The Datamart Watcher collects transactional data, including fields such as Customer ID, Pricing Date, Invoice Price, Gross Margin, and Margin calculated on the Customer ID level.
Trend Analysis: The collected data is analyzed to identify negative trends. For example, the Watcher compares the customer's margin to the floor margin identified within their respective customer segment. The floor margin is typically defined as the Xth percentile of customers with the lowest margin in that segment.
Flagging Underperformance: If a customer's margin is lower than the floor margin over a defined period (e.g., the last 6 months), the Watcher flags this as an underperforming margin. This negative trend triggers an alert.
Actionable Insights: Once an underperforming margin is detected, the Watcher generates actionable insights. Actions are created to determine the root cause of the low margin, such as low list price, low guidance, or high levels of discounting. The Copilot provides insights and recommendations to address these issues and set the correct customer/market price.
By continuously monitoring transactional data and identifying negative trends, Pricefx Copilot helps businesses proactively address margin-related issues, ensuring that pricing strategies are optimized and profitability is maintained.
Actionable Insights
Once an outlier is detected, actions are created to determine the root cause of the low margin. This could be due to factors like low list price, low guidance, or high levels of discounting. The Copilot provides insights and recommendations to address these issues and set the correct customer/market price.
Here's how it works:
When the Datamart Watcher identifies an outlier, such as a customer with an underperforming margin, it triggers the creation of actions to determine the root cause of the low margin. This could be due to factors like a low list price, low guidance, or high levels of discounting.
The Copilot then provides insights and recommendations to address these issues and set the correct customer or market price. For example, if the root cause is identified as a low list price, the Copilot might recommend adjusting the list price to align with market standards. If the issue is due to high levels of discounting, the Copilot could suggest revising the discount strategy to improve margins.
These actionable insights enable the sales representative to take proactive measures to address the identified issues and optimize pricing strategies.
By providing actionable insights, Pricefx Copilot helps sales representatives address margin-related issues effectively, ensuring that pricing strategies are optimized and profitability is maintained
Proactive Measures
The sales representative can then take proactive measures based on the insights provided. This might involve adjusting prices, offering incentives, or improving the overall customer experience to increase the margin
Once actionable insights are generated, the sales representative can take proactive measures to address the identified issues and improve margins. Here’s how it works:
When the Datamart Watcher identifies an outlier, such as a customer with an underperforming margin, it triggers the creation of actions to determine the root cause of the low margin. This could be due to factors like a low list price, low guidance, or high levels of discounting.
The Copilot then provides insights and recommendations to address these issues and set the correct customer or market price.
For example, if the root cause is identified as a low list price, the Copilot might recommend adjusting the list price to align with market standards. If the issue is due to high levels of discounting, the Copilot could suggest revising the discount strategy to improve margins.
These actionable insights enable the sales representative to take proactive measures to address the identified issues and optimize pricing strategies.
By providing actionable insights, Pricefx Copilot helps sales representatives address margin-related issues effectively, ensuring that pricing strategies are optimized and profitability is maintained.