Revenue management is a multi-step process that starts with data collection and ends with evaluating your new strategy.

Data collection
This stage involves collecting and collating data from a range of sources, both internal and external. These may include historical sales information, customer browsing data, competitor analytics, market research and third-party data – for example, from your census or Datamine’s Retailwatch dashboard.

Data analysis
This stage can involve several analytics methods, including customer segmentation, category analysis and customer acquisition modelling. Essentially, the Datamine team looks at the data from different angles and configurations to build insight into your customers, products and business.

Forecasting
Forecasting takes analytics a step further, using past data to model future performance. For example, you could look at predicted sales volumes or revenue for an upcoming period for specific product category or brand sales, or potential price fluctuations.

Implementation
This is when your new pricing strategy and other elements are put into practice. For some organisations, this could involve implementing an app or other tool to track competitor pricing. For others, it could mean setting up new price systems in a POS system. It may also involve changing how your sales, marketing and procurement teams work and communicate.

Evaluation
Testing and evaluation are about measuring your progress and looking for more opportunities for improvement. Track your chosen KPIs when changes occur, and tweak your approach if they don’t seem to be changing. For example, if you implement new price levels based on competitor prices, you might track overall revenue, average transaction value and customer numbers to build your understanding of your performance. If customer numbers are up but revenue is stable, it could indicate that you need to try another approach.
Talk to our team to find out more about using Revenue Management in your organisation.
Revenue management services solutions for a range of industries
Revenue management offers benefits for a range of customer-facing sectors. At Datamine, we’ve delivered revenue management services to businesses across Australia and New Zealand.
Industries include: