Shifts in enterprise software sales model is expected to positively impact pricing, boosting revenue, according a new report by PwC.
According to the report, the evolving software industry requires new pricing strategies.
PwC's global software leader Mark McCaffrey said by combining analytics with formalised processes and standards, companies can get on a path towards a more coherent, organisation-wide pricing model that delivers results.
"Companies today are focusing more on pricing excellence. Those who coordinate a pricing strategy framework with organizational processes and structure, systems, data and culture can obtain notable increases in ROI and decreased revenue leakage among other benefits." McCaffrey said.
The report outlines four pricing management frameworks which affects pricing maturity and financial results which include: pricing strategy, price formulation, transaction management and performance management and performance management.
These factors could affect and be affected by process, organisation and technology and data analytics along with the business functions.
"Once pricing strategy has been identified, companies can review the factors that influence cash flow starting with list price through to minimum required revenue,"
"These factors, which we refer to as 'price waterfalls,' can determine and shut off revenue leaks."
The report claims that systematising pricing can cut or eliminate the need for various sales approaches that require resources.