Dynamic pricing using ERP data implemented.
Expected € 3.0 Mio in additional cross-selling.
A 46 % reduction in customer churn with AI.
Problem
How to selectively adjust your prices when you sell 100,0000 articles to 4,000 customers several times a week while closing cross-selling opportunities faster than your competitors?
The company is an owner-managed electrical wholesale company with local branch-offices in south-east Germany and wanted to improve the effectiveness of pricing and marketing through artificial intelligence.
It stocks over 40,000 immediately available quality products from renowned manufacturers while offering more than 100,000 articles across its digital and traditional sales channel. The client has consolidated sales data from the ERP and webshop systems.
The wholesaler trades with more than 4,000 customers in around 50 different product categories. They write around 500,000 sales transactions per year for revenues on the 100 Mio Euros region. There are pronounced price individualisation and variations across accounts and products.
The company is organised across product families, manufacturers, inside sales, sales reps, and services. Each sales team serves several large accounts, while the inside sales team directly serves the smallest customers.
Solution
Before meeting with Qymatix, the company was discussing developing its pricing software assembling open-source software, machine learning methodologies and external consultants. Compared to this alternative, the Qymatix Predictive Sales Software offers an excellent mix of results, value for money and flexibility. Thanks to the pre-trained predictive models, the Qymatix Solution provides tangible results in a matter of days and not months.
With the implementation of the Qymatix Predictive Sales Software, the company can now selectively and dynamically adjust prices across products and customers. Furthermore, the inside sales team is now able to select for each customer the products with the highest cross-selling potential, together with a recommended price range.
Using “federated machine learning algorithms”, the Qymatix Predictive Sales Software learns from the past historical sales transactions and finds the price ranges per customer and article with the higher probability of being accepted. By combining this prediction with the cross-selling and churn predictions, the sales team has now the right tool to increase customer lifetime value.
We rolled out the solution in two phases. In the first proof-of-concept, the Qymatix experts presented the technology to the company owner and the management team and trained a selected group of key users. The key users tested and documented during several weeks the suggestions of the Qymatix tool. After the necessary data integrations and operational roll-out followed.
Results
During the implementation project, the Qymatix Team showed the customer how they could selectively adjust prices to increase profitability. The company recognised now dynamic pricing and price optimisation as a top and achievable priority.
Using our Predictive Sales Software, we helped to identify hidden losses of about 2 Mio Euros per year due to preventable customer attrition.
With the help of the Qymatix experts, the company owner gained over the most sceptical salespeople.
The Qymatix software made visible the specific accounts and product lines where they can focus on Cross-Selling, to materialise a 10 % sales growth.
The company’s management identified seven-figures gains for discovered cross-selling potential, better dynamic pricing, and customers lost and at risk of churning.
“Qymatix Predictive Sales Software makes customer attrition risks and untapped sales opportunities over hundreds of customers and thousands of products easily accessible.”
Hermann Waselberger – AET Entwässerungstechnik GmbH
“Qymatix helps growing medium enterprises to find undetected business opportunities with existing customers. With thousand active ones in our portfolio, Qymatix Predictive Sales Analytics is exactly what we need.”
Daniel Schuster – Welotec GmbH
“Qymatix understands the challenges most of the sales leaders in medium enterprises are facing. I was looking for a way to offer my customers useful insights with one click and I found it with Qymatix Predictive Sales Analytics.”
Armin Harbrecht – aramido GmbH
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