The sweeping popularity of digital channels has completely transformed the world of sales. Manufacturers, distributors, and wholesalers can no longer afford to set one rate and let it run in the background. Modern pricing management involves the complex process of juggling multiple pricing strategies and time-consuming processes.
With so many things on their plates, revenue managers face several challenges in making important decisions. Below, we talk about three main struggles everyone in this fast-paced role needs to deal with daily, along with ways a powerful pricing revenue management software can help overcome them.
Understanding the ‘big picture’
The biggest challenge of revenue management is thinking beyond the sales – the most successful pricing strategies outline ways to maximize profits across all business areas. Managing price adjustments can be tricky, but it’s also crucial for the success of any business.
It’s an indisputable truth that prices fluctuate, no matter your industry, so it makes sense that your rates should change. However, many pricing managers struggle to decide when they should make such changes and how often such tweaks are necessary. With the help of powerful pricing revenue management software, you can view performance figures, filter them by customer segments and adjust your rates in real-time.
However, there’s also the added pressure of setting up and managing promotions. Whether you’re dealing with simple discounts and incentives, or more complex alternatives such as rebates, royalties, and commissions, you’ll need a powerful tool to keep your affairs in order.
The right pricing software can allow you to do all that and more. Advanced pricing management tools offer you a user-friendly preview of historical data and forecasts, making the process simpler, quicker, and more efficient for your employees.
Choosing the right strategy
In addition to making your day-to-day life more manageable, a pricing revenue management solution enables you to look to the future. Backed up with an in-depth analysis of your past sales and revenue generated, you can quickly evaluate business performance and adjust your pricing strategy accordingly.
Depending on your business goals, you might want to segment pricing based on customer attributes, specific product or service features, or even create your groups using any documented data category from your audience research.
Similarly, you can use the built-in functionalities of your pricing revenue management software to set up a variety of rebates for both vendors and customers, enabling them to access discounts and collect payments in a manner that’s convenient for them.
Manual vs Automation
Efficient revenue management is about keeping pricing dynamic. Many companies struggle with the day-to-day management of their rates and discounts, primarily because they have data scattered across various documents.
Aside from the potential error that can occur during manual data input and the inefficiency of this method, lack of automation can hinder revenue managers’ work to execute a dynamic pricing strategy successfully.
Instead of going through the tedium of manually implementing all pricing updates, copying price lists, and combing through data for the information you need, you can automate the entire process with the help of pricing revenue management software and leave all that in the past!
Besides, when you invest in a pricing management tool, you take advantage of its advanced functionalities to measure customer loyalty levels, quickly set up exceptions to your main price list, and efficiently convert sales data to a unit of measure.