Finally, you’ve gained approval around the leadership table to move forward with your pricing and revenue management initiatives. It’s an exciting time to be sure, but before you start pulling triggers, let’s assess where your organization is when it comes to two of the most critical factors of RM and pricing success: Technology and Data.
Ask yourself the following 5 questions:
1) Are manual process steps required to perform pricing and inventory analysis, comparisons and/or execution?
If things are very manual today, chances are excellent the right tech isn’t yet in place. Remember, just about everyone starts with manual processes; it’s the right application of technology that enables many of these tasks to be automated and optimized.
2) Can we dynamically change prices when market factors shift?
Having the tech in place to be able to be responsive to the market is one of the first steps. Without it, we’re still updating spreadsheets and emailing six layers of approval.
3) What competitive data (sales, pricing) is available to us?
How are we using it today, and optimally how could it be used to make better pricing decisions? Leveraging competitive data provides a holistic market perspective for analytical models.
4) Can we, and have we, mapped our sales, products, customers, and competitive data to each other?
Data preparation requires combining various, often separate data sources – sometimes in different formats. This can be tricky, but without good data – it’s garbage in, garbage out.
5) Have we systematically tracked our pricing changes and results?
Once we have the right tech in place, automated tracking of strategic decisions on pricing and inventory can provide essential feedback to both analytical models and business teams on what drives revenue uplift.
By answering these questions first, your company will be on the right track to advancing your Revenue Management teams and implementing world-class Pricing and Revenue Management capabilities.