The New Year would not be complete without resolutions. A re-imagined Revenue Management Strategy could be among your corporate objectives for 2015. Here are five resolutions to guide you toward increased revenue and greater profitability in the New Year:
- Set a Goal: Begin by setting a goal that is realistic but also requires a little stretch. It could be as simple as, our company will produce a 5 percent improvement from something in the Revenue Management area, such as price, customer mix, channel mix, inventory management, etc. Then take that percentage goal and convert it into a dollar amount, for example $50 million. That will make it feel more tangible – and work towards it.
- Replace Hype with Action Which Equates to Results: When it comes to Revenue Management, there tends to be a lot of hype about big data, predictive analytics, and other trending buzzwords. But the real question is, what do you do with the insights you gain? Or, what is your company going to do differently in the New Year? By leveraging predictive analytics with a re-imagined Revenue Management strategy, you will get the desired results.
- Practice Collaborative Analytics: The voice of the customer is crucial to your strategy – this includes your sales force as well. Build a consensus for a Revenue Management strategy, and don’t forget to incorporate the voice of the customer. Integrate human judgment and experience with analytical vigor. The end result is a powerful and transformational tectonic shift for any organization.
- Articulate the Customer Win: Many managers tend to be internally focused. But an external focus is critical to success. Put yourself in your customers’ shoes. Understand how your customers will win from your Revenue Management actions, and consider this when building your strategy. If you can’t articulate how they benefit from your Revenue Management strategy, how will you convert them to long term customers?
- Measure the Gains: When the end of 2015 arrives, measure your Revenue Management success. Objectively assess what went right and what went wrong – and try to improve upon it next year, using this measurement as a benchmark. Maybe you didn’t hit your stretch goal, but you will have inspired your organization and achieved more than you thought you were capable of achieving.
Now do what all New Year’s revelers do: Celebrate!
Celebrate your win – no matter the size and scope – and then publish the results internally and externally.