Revenue Management Solutions Overview
What are Revenue Management Solutions?
Revenue management solutions help businesses manage variable pricing for products and services. Revenue management solutions also help businesses record, report, and understand their transactions.
In many industries, a business can optimize their revenue by varying the price of a product or service based on time, location, and customer type. Making an informed decision about these factors requires proper analysis of a large amount of data. Once the decision is made, the price variation must be reflected properly in the business’s offerings.
Revenue management solutions aim to help businesses make and execute these pricing decisions. Most vendors offer products that capture, refine, and analyze customer data. Businesses set rules determining how this data should affect pricing, and the software executes pricing changes. Many revenue management solutions include billing functionality, allowing the software to process, record, and analyze customer transactions.
Some revenue management solutions focus on revenue recognition rather than data-driven pricing. These products are designed to account for revenue in accordance with generally accepted accounting principles (GAAP) and provide real-time GAAP reports. These products often contain accounting book features designed to comply with accounting and reporting standards.
Most revenue management solutions are tailored to the needs of a specific industry. For instance, telecommunications companies and airline companies care about different data and offer different product configurations.
Revenue Management Features & Capabilities
Most revenue management solution vendors include the following features:
Data collection, sanitization, and analysis
Customizable product bundles and tiers
Rules-based pricing, bundling, and tier management
Personalizable offers, promotions, and discounts
Forecasting for recurring revenue
Pricing for revenue management solutions varies based on feature set and customer count. Prices can range from under $600.00 to over $1,250.00 per month.