How Revenue Managers Become Strategic With Business Intelligence

By Author: Bappaditta Jana
Total Articles: 67
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To accomplish things correctly, revenue managers concentrate on adhering to policies and procedures. In order to facilitate revenue managers' work, several businesses have automated these procedures.

When it comes to pricing a group, introducing constraints to rates, and overriding the RMS, revenue managers are mostly operational and occasionally tactical. Everyone speaks about being more strategic at revenue management seminars, but getting past the operational and tactical levels doesn't seem to be that simple.

In such a case, BI tools can be extremely helpful as they help revenue managers become more strategic. Here are a few areas where BI tools facilitate strategic thinking for revenue managers.

Costing

Companies set their pricing strategies in response to customer price sensitivity and product demand. Comprehensive insights on pricing position, competitive data, shopping cart abandonment rate, historical pricing, and revenue are provided by business intelligence.

Businesses are able to reposition their pricing strategies, increase conversions, recover lost revenue, and ...
... make large profits by making decisions based on such insightful information.

Stock

Using state-of-the-art revenue management requires effective inventory management. BI uses information from previous transactions, product demand, and the supply chain to help determine sales influencers.

A supply chain's ideal procurement policies for storing high-performing, profitable products are suggested by business intelligence (BI) when the full supply chain is accurately tracked from order via distribution centers to delivery. This prevents low-value products from being stockpiled.

Additionally, BI offers alerts on replenishment status, proposes a variety of products, and a mix of goods that fit clients, and assists in addressing cancellation issues.

Marketing

Businesses use BI to find new clients by implementing tactics like marketing mix, bundling (selling two or more related products together), and efficient consumer segmentation. Comprehensive insights from the share of wallet analysis—the portion of business a business receives from particular clients—as well as information on customers' online and offline buying habits, frequency of visits, recent purchase history, and purchase value, offer insightful marketing concepts.

With that, companies may cross-sell value enhancements, offer personalized promotions, and recommend seasonal demand offers to specific clients in real-time.

Launch of New Product

Businesses must identify the proper target audience and comprehend market categories in order to launch products successfully.

Business Intelligence (BI) provides a comprehensive examination of market research data, encompassing factors such as market size, product breadth across various sectors, customer accessibility, homogenized target groups based on purchasing behavior and preferences, and quantifiable outcomes from past product launches.

These comprehensive study results from a channel-based, audience-based, competitor-based, market-based, and audience-based analysis allow for confidently launching innovative products into the market.

Hence Business Intelligence can serve as a quintessential tool to foster strategic thinking in Managers. The revenue manager will be assisted in making strategic decisions to maximize profits and boost revenue by having comprehensive calculations done automatically in addition to other dynamically updated KPIs and reports.

Bappaditta Jana is a blogger who loves to spend his free time engaging in sports or gardening. Based in Kolkata, he is currently working with EasyReports an IT firm that has developed a BI reporting tool that can easily integrate with Tally ERP and many other applications.