Pricing strategies can be complex and often include frequent changes based on market demand, seasonality, competition and a host of other variables. Setting the right price point at the right time can mean the difference between a record-breaking month and a total bust. And with sales revenues being one of the most important KPIs a company tracks, setting the right pricing strategy and hitting monthly goals is critical.
BI tools can serve a valuable role in determining appropriate pricing. Particularly, using a dashboard that enables you to adjust pricing and view expected future sales results is extremely valuable when making these critical pricing decisions. The ClicData Pricing and Supply dashboard tracks the supply chain performance for every product category and shows how an increase or decrease in price could affect sales over time.
Imagine you have knowledge that demand for a certain product will skyrocket next month, and company sales goals have been increased accordingly. You are planning a marketing campaign to ensure your prospects know that you have what they need. There is potential to have a stellar sales month. However, the price point for the product will greatly affect the success the entire initiative.
Determining the right price takes time, research and planning. Having the ability to plug in a potential price discount or increase and immediately see the anticipated results of sales over that period informs you and your team of the possibilities. Of course, there are other outside variables to take into account along with this data but viewing these numbers in an easy-to-read chart makes the options quicker and easier to digest and discuss.
Inventory is key to this operation as well. You will need to ensure you have plenty of units on hand to fulfill a large bump in sales. By extracting raw data from enterprise resource planning (ERP) systems, data warehouses and other data sources, the ClicData dashboard can show inventory levels right along-side the sales numbers. Combined inventory and pricing insights amplify the value of your reporting.
This is one simple example of how BI data on supply chain and pricing information plays a crucial role in decision-making that directly affects company revenue. When you begin your analysis, make sure to know the tangible decisions that can be driven by the data and only get as granular as necessary. Pull reports based on what you need to make the decision, not every detail that is possible. By using a BI tool to analyze data, you gain insights based on real-time data rather than yesterday’s batch roll-ups.
There are numerous ClicData dashboards that are easily implemented and show critical data for specific purposes. They can all be modified as you learn more about which additional data sets would help you solve specific problems over time. Take a look at a few dashboard examples as a starting point to see which ones would simplify your company’s decision-making challenges. If you want to talk with an experienced BI implementer about results they’ve seen in other instances, contact a ClicData expert today.