Dec 14, 2020

Why Is Revenue Management Important?

Why Is Revenue Management Important?

Revenue management is an extremely important concept in the B2B world – though by no means simple to execute effectively. 

To define revenue management – it is a data-driven approach to predicting customer behaviours and using these predictions to optimise pricing strategies and revenue growth.

Crucially, revenue management is not simply about selling the most products to maximise revenue at all costs. Any aggressive, foolhardy discount scheme could achieve that – though it would likely reduce margins to the point of unprofitability. It is a highly disciplined practice that utilises data analytics to sell the right product to the right customer through the right distribution channels at the right time, and right price.

Below, we discuss the fundamentals of revenue management and consider the importance of utilising robust systems.


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