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Price Recommendations and Other Critical Information That Siebel DMW Provides

Siebel DMW enables the price approver to quickly and effectively answer the following questions by providing timely price recommendations and other critical information:

• What is the market willing to pay for the product? The market is defined as all accounts belonging to the same segment as the deal account. You can evaluate market conditions using the following information:
  • Price score. Siebel DMW scores and ranks each pricing request relative to the segment based on the weighting of the configurable metrics. For details on price score, see Table 2.
  • Market variability analysis. This analysis compares the proposed deal price with other deals within the segment. You can choose to compare the current deal with deals won, approved, lost, or all deals (any won, lost or approved quote status). For a sample market variability analysis graph, see Viewing the Market Variability Analysis.

    This analysis lets you compare the current pricing request to prices offered to and approved for other customers in the segment, and provides insight into potentially impacted customers. Performing a what-if analysis lets you simulate variations in price or quantity to find a deal price that is closer to the market regression for the product. Market regression is the average deal price for the product volume (quantity).

  • Price trend analysis. Price trend analysis shows the segment, invoice, and pocket prices, and margin percent for the line item during a selected period. Price trend analysis lets you compare the line item with deals won, approved, lost, or all for a meaningful period. For a sample Price Trend Analysis graph, see Viewing the Price Trend Graph.
• Why is the line item in question not profitable? And how profitable is this deal? Find out what the impact on margin and overall profitability for the line item and the entire deal would be if you approved the price exception. Also, you can use a waterfall graph to analyze adjustments to revenue to figure out how the proposed price can conform more closely to the other prices in this segment for this product.

  A waterfall graph (and corresponding pivot table) lets you see the components that make up a price. The waterfall graph shows the segment, invoice, and pocket pricing and margin percent for the deal, including the adjustments made between each price. Performing a what-if analysis lets you simulate variations in price or quantity for the product to find the relative impact on these prices and on the margin percent. For a sample waterfall graph, see Viewing a Waterfall Graph.

  The corresponding Waterfall pivot table lets you compare the components of this line item's waterfall for revisions of the current quote.

• How has the customer performed historically with regard to this product and for all products? Find out whether the customer is consistently paying less than the market average, whether the customer is consistently over-committing quantity on deals and not performing against the committed quantity, and what the customer's contribution to the segment is for this product using the following information:
  • Customer account history. Provides the history of all quotes for this customer for the current deal product and a list of all deals made with this customer for all products. This historical price and margin data can help you evaluate the overall contribution of this customer and how well the customer meets commitments.
  • Segment contribution. Indicates what this customer has contributed to the segment for this product.

NOTE:  Siebel DMW sales analysis is valid only when all deals in the segment are in the same transactional currency.