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The Importance of Revenue Management - Ledger Bennett
The Importance of Revenue Management - Ledger Bennett
The Importance of Revenue Management - Ledger Bennett
INSIGHTS
Ledger Bennett
27th January, 2020
Revenue management is all about forecasting demand and pricing sensitivity and
matching those factors to determine your price. Ensuring that these factors work in
your favor requires a great deal of knowledge about your customer base.
For example, Marketing and Sales teams are pushing for more bookings around the
holidays; meanwhile the Revenue Management side of the business understands
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that holiday bookings are a given and would prefer Marketing and Sales to push more
for autumn bookings to prop up a slow season.
By aligning teams and putting emphasis on good communication, everyone can
work towards the same goal of optimizing revenue across your teams.
Channels and Outreach
Another common challenge facing revenue management determining the proper
channels to attract prospective customers. Is it best to nudge leads with an email
marketing campaign or are social promotions more attractive? Is it better to spend
time following up with would-be customers via phone calls or via emails? How do you
get the most responses from your existing lead pool?
To properly build an outreach strategy, it’s crucial to understand that each channel
has its place in a coordinated Marketing plan. Prospective customers likely use email,
text, phone and social media daily, so pursuing leads on each of these channels has
its benefits.
Of course, following up via each channel takes a lot of time and effort which is why
some companies are adopting Artificial Intelligence (AI) solutions to lighten the load.
Yes, AI might seem a more ethereal topic to some. But in reality, AI is affordable,
powerful and within the reach of many businesses, no matter their size or vertical.
The goal is to empower teams for long-term planning while simultaneously allowing
for short-term agility to tackle challenges on a day-to-day basis.
Revenue Management Software (RMS) handle many of the complex operations
behind revenue management so you can focus on strategies. Various RMS solutions
pull data from your own business and the wider market to help you make informed
decisions about how to run your business including rate recommendations,
competitor data, revenue estimations and more.
The Takeaway
Properly leveraged, revenue management offers businesses a way to maximize their
profits by matching variable price to the right customers at the right time. This isn’t
always easy, so it helps to coordinate your efforts with the teams inside your
organization and to adopt the right tools and technologies to inform your strategies.
Highlights
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