Data Hygiene 101: Why Proactive Data Management is Key for Pricing Success

“My data is a mess! I can’t possibly think about new pricing technology!”

This is a common complaint coming from pricing and technology teams that need to transform their pricing processes and modernize pricing systems – while shackled to outdated technology and an undefined data strategy.

In the realm of pricing and technology, the challenge of transforming processes and modernizing systems often intersects with the obstacle of missing or disorganized data. Identifying the root cause of this "mess" reveals three critical areas that underscore the necessity for a robust data strategy:

1. Lacking certain data, coming from CRM, CPQ, and e-commerce platforms, that supply end-customer data, is one major problem. No CRM, CPQ, e-commerce, or any underutilized customer-facing system causes an inability to capture relevant data in sales conversations, customer self-service interactions, quotes, and transactions. This data is important to pricing decisions now and in the future.
2. Too much irrelevant data in too many places that need to be maintained in a vast number of data stores, databases, CRM, and ERP systems is another problem. Some companies have lots of data in lots of places - data proliferation with no central data store or data lake. Much of it is irrelevant and not easy to get to. ‘Irrelevant and hard to get to’ doesn’t allow for fast and efficient pricing decisions.
3. A lack of data fidelity. Poor data quality, compounded by the burden of managing vast amounts of irrelevant information, perpetuates the adage of "garbage in, garbage out," undermining the foundation for accurate pricing strategies. It’s surprising how many companies don’t ensure data hygiene or govern the quality of the data they capture, consume, import, and store. Bad data results in bad pricing.

So, what good is ‘data strategy’ if the data is missing, no good, hard to find, and hard to get to? And more importantly, how can I have a good pricing strategy without a data strategy?

Implementing a comprehensive data strategy becomes imperative to addressing these challenges head-on and achieving pricing success. However, the absence of such a strategy perpetuates a cycle of reactive data management, resulting in missed opportunities, compromised decision-making, and ultimately, missed pricing opportunities that translate to financial losses. The right data strategy results in the right pricing strategy.

Despite the inherent value of data strategy, organizations often overlook its significance, viewing it as a mere cost center rather than a strategic asset. Often, pricing departments are viewed in the same way. However, the tangible impact of improved pricing decisions on margins and revenue underscores the pivotal role of data strategy in driving business success.

A proactive approach to data strategy involves:

1. Prioritizing Data Relevance: Identifying and capturing essential data, eliminating unnecessary clutter, and ensuring data integrity lay the groundwork for effective pricing strategies aligned with corporate objectives.
2. Investing in Data Infrastructure: Recognizing the value of centralized data storage and management solutions facilitates streamlined access to critical information, fostering agility and informed decision-making.
3. Acquiring the Right Tools to Effectively Capture and Utilize Data: With better customer-facing technology like CPQ, CRM, and e-commerce solutions, organizations capture and use what they need, and improve customer relationships with the right data delivered where and when it is needed.

To leverage data, data infrastructure, and better technology more effectively, organizations can partner with technology providers like Zilliant. We offer solutions that integrate with existing systems to optimize pricing and revenue management. By embracing a holistic approach to data strategy and leveraging advanced technology, businesses can unlock untapped potential, enhance customer and employee experiences, and drive sustainable growth.

One way we help you capture and use data more effectively is through our revolutionary cloud-based CPQ, CRM, and eCommerce platform. If you are a manufacturer using SAP, Zilliant has a great solution for you. Our recent acquisition of InMindCloud gives you even more ways to capture and transact based on quality data. We now offer a great end-to-end platform that integrates with our market-leading price optimization and price management solutions that can be foundational to a winning strategy. Having the right partner to help execute your data strategy and guide you in the process makes it much easier to realize success.

Let us help inform your strategy and execute better with the right tools. Reach out to us today!

Kyle Nations serves as an Account Executive at Zilliant, specializing in leveraging advanced technology to drive optimal pricing and sales effectiveness for global B2B enterprises.

Please connect and follow me on LinkedIn: https://www.dhirubhai.net/in/kyle-nations/