Technology and data play a major role in today’s society. When building the case to implement a sophisticated Pricing and Revenue Management system, these two components are fundamental to the creation and sustainability of a successful Pricing and Revenue Management program.
In order for companies to facilitate analytical decision-making within Pricing and Revenue Management across the enterprise in a rapid, yet automated fashion, technology and data are essential. Without them, companies are ill-equipped to make informed and strategic business decisions in a timely fashion.
To evaluate whether you’ve got the right technology and data in place, some questions your organization should consider are:
- Do we have the capability to dynamically change prices as market factors shift? Not only does this help to improve your strategy, but also it guides future pricing actions;
- Have we mapped our sales, products, customers, and competitive data to each other? This is critical because data preparation requires combining disparate data sources and precise data aggregation;
- What competitive data (sales, pricing) is available to us? How can it be leveraged to make better pricing decisions? Leveraging competitive data provides a holistic market perspective for analytical models, and when executing strategies;
- Are manual process steps required to perform pricing and inventory analysis, comparisons and/or execution? Depending on the maturity of your organization, automation of these steps may be required to perform the optimal pricing analysis rapidly;
- Have we systematically tracked our pricing changes and results? Automated tracking of strategic decisions on pricing and inventory provide essential feedback to both analytical models and business teams on what drives revenue uplift.
By answering these questions first, your company will be on the right track to advancing your Revenue Management teams and implementing world-class Pricing and Revenue Management capabilities.
Technology and data are critical foundational elements to designing your next-generation Pricing and Revenue Management system.