At Revenue Analytics, we don't succeed unless our clients get results. Our clients have emerged from every engagement with new capabilities, not just recommendations. These new Revenue Management capabilities span multiple disciplines, but have one thing in common: bottom line results. These case studies provide a perspective on some of the capabilities that our firm and our principals have partnered with our clients to develop.
Relevant Case Studies
Revenue DiagnosticTM (Cruise Lines)
Traditionally a leader in the Revenue Management space, a cruise line operator was experiencing slower growth due to market conditions.
They aligned with Revenue Analytics to identify areas of opportunity in forecasting, group and inventory management and pricing, and also conducted a comparative study of RM best practices through a Revenue Management ScorecardTM. In total, potential revenue benefits from identified opportunities exceeded $200M in incremental annual revenue.
Revenue DiagnosticTM (Manufacturing)
A carpet manufacturer partnered with Revenue Analytics to reassess its current pricing practices in a slow economy.
Together they conducted interviews and a data deep dive to identify areas of opportunity in organization, systems and tools, with over $95M in potential incremental revenue opportunity.
Revenue DiagnosticTM (Services)
An aviation services provider wanted to explore potential avenues to improve asset utilization and command higher margins on specific services.
They partnered with Revenue Analytics to uncover high-impact revenue opportunities through interviews and complex data analysis, arriving at recommendations that would result in an additional $21M in incremental revenue.
Revenue DiagnosticTM (Hospitality)
A large luxury destination club was experiencing demand imbalances and low member satisfaction.
In collaboration with Revenue Analytics, they found opportunities to improve asset utilization, demand forecasting methodology and promotion targeting, resulting in over $42M in potential revenue uplift.
Revenue DiagnosticTM (Retail)
A prominent movie theatre company sought strategic pricing improvements to increase revenue in light of unpredictable movie quality, decreasing moviegoer demand and highly seasonal demand patterns.
They partnered with Revenue Analytics to assess existing promotions, identify new product combinations and integrate analytics into pricing decisions, resulting in over $5 million in immediate revenue uplift.
Price Tolerance (Distribution)
With over 500,000 SKUs, this automotive parts distributor was struggling to manage pricing for all of their products effectively.
Working with Revenue Analytics, they developed a rules-based guidance program to price products based on non-price drivers, resulting in a $100M revenue uplift across the organization.
Promotions and Rate Increase Effectiveness (Communications)
A large cable operator was experiencing a decrease in new subscriptions and intensifying competition from other service providers.
They partnered with Revenue Analytics to optimize promotional and retail price increases to maximize current subscriber revenues while minimizing the disconnect rate of customers. The effort resulted in $42M in additional incremental revenues across the organization.
Forecasting (Hospitality)
A large hospitality company sought to improve their legacy Revenue Management system's transient and group forecasts.
Working with Revenue Analytics, they enhanced their forecasts by adjusting the methodology to reduce forecast error and automate the forecasting process. The resulting outcome was an 18% improvement in forecast accuracy and a 1% uplift in overall revenue.
Quick Hit Alerts and Reports (Hospitality)
Revenue managers at a leading hospitality company were using disparate data sources to manually analyze everyday RM performance.
They partnered with Revenue Analytics to create standardized alerts and reports to automate analysis, resulting in an estimated 0.25% revenue uplift.
Enterprise Optimization (CPG)
A multi-billion dollar consumer goods company had difficulties in balancing supply procurement and allocation variations with increasing consumer demand.
In concert with Revenue Analytics, the company developed a production optimization model to inform key supply decisions, saving an estimated $5-6M annually.
Promotions & Incentives (Automotive)
An automotive manufacturer sought to improve the effectiveness of its promotional and discounting practices.
With the principals of Revenue Analytics, customer response to incentives was measured and optimal recommendations were made based on market segment and incentive type, resulting in a $800M gain in revenues.
Price Optimization (Hospitality)
Already utilizing yield optimization, a large hospitality client wanted to advance one step further by optimizing hundreds of thousands of yearly rates.
They partnered with Revenue Analytics to develop a price optimization capability that would incorporate competitive data, price sensitivity and demand forecasting into a dynamic rate recommendation, resulting in a 2.7% incremental revenue uplift.
Negotiated Deal Price Optimization (Package Shipping)
A large package shipping firm was experiencing revenue leakage through reactive pricing practices and unnecessary discounting.
With the principals of Revenue Analytics, they developed a system to optimize negotiated deal prices at a granular level across their footprint, resulting in an estimated $120M in annual revenue uplift.
Pricing and Inventory Optimization (Automotive Retailer)
An automotive retailer was faced with slowing revenue growth due to changing market conditions and new competitive threats.
They aligned with Revenue Analytics to bring more sophistication and consistency to their inventory management and pricing practices through the creation of a new optimization system. Benefits are estimated at more than $160M in annual incremental revenues.
Transformational Project (Distribution)
A specialty products distributor was facing intense competition and lacked processes and tools to systematically manage the prices on their 30,000 SKUs.
Through a partnership with Revenue Analytics, they prioritized the high revenue opportunities, created a pricing organization and developed a price sensitive volume-based discounting program, with an estimated increase in revenues of 3.5%.
Forecasting and Rate Optimization (Media)
A large media company was struggling to maintain their rates during the recession and was experiencing downward pressure from competitors.
To maximize revenues based on current market conditions, they worked with Revenue Analytics to develop a granular forecast and rate card optimization capability that fit within their existing rate management architecture, resulting in an estimated $50M in incremental annual revenue.