What is Revenue Management & Why It is Important For Your Business
Updated: Nov 24, 2021
Revenue management truly is both an art and a science. There is a lot involved and there is always more to learn. There is more to learn than most startups have time to think about, but lucky for you- I’m a real nerd when it comes to all of this.
If you Google Revenue Management you will Why do I say it’s a science? l see something along the lines of...
“Revenue management is the application of disciplined analytics that predict consumer behavior at the micro-market levels and optimize product availability, leveraging price elasticity to maximize revenue growth and thereby, profit.” source: Wikipedia
But if you ask us, it’s the convergence of sales, marketing, pricing, & distribution in order to create a strategy for pricing optimization- getting you more results for less time and money.
Why do I say it’s a science?
There are a lot of analytics involved, looking at the numbers in your business, conversion rates, reviews, trends and more… It’s important to know these numbers and look at them head one. It’s meticulous and somewhat prescriptive.
BUT it’s also an art...there is an expertise that comes from years of experience. It's a gut intuition and finesse that makes it an art. There isn’t ever one right or wrong answer, right or wrong way to set your prices or your strategy, but there are things that will and won’t work.
I have spent years in revenue management, learning the ins and outs, and seeing large companies and startups struggle because revenue optimization is not at the forefront of the company's priorities.
It’s why I started TIENNE Consulting and why our four blocks of expertise are what they are.
We combine sales enablement, strategy, pricing, and distribution to help your business grow as efficiently as possible.
It’s the combining of each of these areas that gives your business it’s unique revenue strategy.
If you’re thinking- wow… I know our pricing strategy isn’t as solid as it should be, you may be a perfect candidate for revenue consulting.
Revenue consulting is how we take a look at YOUR business and create a plan to increase your profitability and revenue. We help you see where you can increase your revenue through simple tweaks of pricing optimization by narrowing in your target audience, selling directly to that audience and pushing past your blind spots. Your business has a lot of growth left inside and sometimes it’s the simple tweaks that make the biggest impact.