The world of revenue management continues to evolve at lightning speed. From transformation to cloud-based systems to the continued rise of artificial intelligence and machine learning, the pace of new features and capabilities is rising at an unstoppable speed. The emergence of modern revenue management platforms has enabled the application of disciplined analytics that predict consumer behavior at the micro-market levels and optimize product availability and pricing to maximize revenue growth. It has empowered organizations to focus on selling the right product to the right customer at the right time and for the right price. With the help of modern revenue management tools customer perceptions of product value can be better understood and product pricing, placement and availability can be accurately aligned with each customer segment. The widespread adoption of revenue management technology frees professionals from tedious manual tasks and enables them to spend time on higher value activities. Let’s look at this evolution and how it is transforming traditional revenue management processes.
Automation of Business Processes
Enterprises that invest in automation, create a foundation for their quote-to-cash process to be coordinated and efficient. This further leads to improved revenue management and well-organized collaboration between stakeholders. It also leads to demand based pricing optimization, enabling organizations to adjust pricing in real-time and adopt demand forecasting for making informed pricing decisions.
Application of AI and Analytics
Enterprises are increasingly adopting AI in their revenue management processes. AI can provide strategic insights to propel the enterprise ahead of the competition and delight its customers. Simply deploying an intelligent agent is a quick way to get started with AI, followed by machine learning to identify product recommendations, cross-sell/up-sell, or contract risk. Big data combined with the predictive capabilities of AI gives an organization a powerful platform for insight driven decisions.
Rise of Subscription Based Revenue Models
Recurring revenue business models are quickly gaining popularity across all industries, from automotive to healthcare to industrial manufacturing, resulting in increased demand for technology solutions that can manage these new models. Recurring revenue models offer an opportunity to disrupt markets and drive new revenue growth. Subscriptions are servicing customer lifestyle needs over the long-term, vs. one-time purchases. These new recurring revenue business models offer steady and predictable revenue streams with reduced risk and a high potential for growth.
To be successful, CFOs need to adapt and learn how to monetize recurring revenue models to drive business strategy and profitability. When these new revenue models associated with digital transformation take shape, they bring an exponentially greater level of complexity. RecVue’s unique, unified platform integrates with any CRM, ERP and front-end order processing systems, enabling customers to improve efficiencies across order-to-cash, revenue and general accounting, while gaining real-time access to data. Finance groups are able to increase accuracy and timeliness of billing and invoicing and aggregate billing information in a single system to improve analysis and forecasting.
Reach out to us today for a Revenue Management assessment and to learn how smart monetization can fuel your recurring revenue and traditional business models to support future growth.