For any business interested in staying in business, the ability to predict incoming revenue in future weeks, months and years ahead is a vital necessity.
So, yeah, your internal revenue team is kind of a big deal.
Regardless of industry, businesses across the globe are in the mode of ever-ballooning expansion, both in competitive channels and complex business models. Revenue management is the process of capturing all available data to predict consumer behavior in order to enhance product availability and increase revenue. It is essential to have the right revenue team in place for any business seeking not only to survive, but thrive in today’s business climate.
Let’s take a look at who makes up this critical group to better understand the roles and responsibilities.
Every revenue management team has a revenue manager, a role advanced in the last several decades from a niche position within the hospitality industry to a must-have management role, given the complex inputs and business-dependent outputs. The specific fit within the organizational structure depends on the type of industry and the company itself. Revenue management requires a constant re-evaluation of pricing, products and processes in order to maximize revenue, with the revenue manager overseeing this directive. Typically, corporations choose to dedicate a section of the finance team to revenue management due to the bottom-line implications.
With the potential to predict customer wants and needs, establish more effective pricing and expand into available markets, a lot is riding on the revenue manager and this is where the operational management team comes into play.
The operational management team, by virtue of proximity to information on company strategy and pricing, can provide added information and access to help with the decision-making process. Operational teams used to handle revenue management themselves, before business demands and modeling complexity created the need for a full-time revenue manager.
Additionally, your sales team becomes critical members of the revenue management team. Revenue leadership is essentially the next step in the evolution of sales leadership. Today’s sales ecosystem itself is evolving, with smarter, more demanding customers, armed with lofty expectations and technological ingenuity available at every turn. Sales, marketing and services teams all working together are the key to a company having a successful revenue engine.
The line-level members of the revenue management team are the revenue accounting corps. Often referred to as senior accountants, revenue accountants are essential cogs in manufacturing companies, wholesale distribution, health care, retail and just about any business processing sales and service revenue.
In order to be effective, these revenue management team members must not only work in harmony together themselves, but also in the use of analytic tools and solutions available to them.
A revenue management team needs to be able to compile and analyze data – internally and externally – in order to make decisions on pricing and monitor trends. These are tasks incapable of being addressed by manual processes or non-scalable in-house solutions. The charge of maximizing a company’s opportunity for revenue and profits can no longer be left to chance.
Contact us today to learn how RecVue’s order-to-cash solutions can help ease the burden on your revenue team.