Pricing Strategy and Revenue Management with data-driven tools
directly impact a company’s HR strategy
How can the pricing strategy be developed in the most optimal way?
How, why, and at what price discount be differentiated for different customers?
Companies devote insufficient time and energy to an appropriate pricing strategy, including revenue management. Approximately 84% of hotels do not use dynamic pricing strategy, thereby losing nearly 5-9% of additional revenue, and this is just one of many examples.
A significant number of companies are still “stuck” to Cost-Based Pricing, this way giving a considerable advantage to their competitors using innovative pricing techniques. Many owners and CEOs believe that there is not much point in optimizing revenue since the company is profitable. If the question phrased: “Has the company got the most out of the revenue?” I.e. “have they maximized their revenue?” You would probably get the answer that there are still provisions, but they do not know where.
COVID-19 pointed out fundamental deficiencies:
- Companies did not know, even now do not know how much financial damage they have suffered because they do not sufficiently understand their data, segments and products. They only use template reports provided by huge databases.
- Cost-based pricing has become obsolete because costs have changed. The routine mindset which has been used needs to be replaced by data-driven thinking.
- Daily operational decisions must be supported by new reports based on extensive and complex market data. Only 17% of companies in Hungary are in a position to do this.
- Revenue management is outdated and inaccurate.
- Communication during the pandemic was in many cases chaotic inside and outside the company.
Content elements of Revenue Optimisation:
- Developing a pricing strategy
- Creating a 1-page senior management sales strategy
- Establishing market segmentation
- Creating a clear sales service and service matrix
- Rethinking management reports together
- Demonstrating a data-driven mindset
- Demonstrating tailored revenue optimization and maximization techniques
- Revenue planning and forecasting
- Assisting product analysis
- Market analysis, benchmark, Trend analysis, CRM, sales channel analysis and exploration,
- VMPC >>> analyze the interaction between quantity – price – product portfolio mix – cost and their impact on the company’s on revenue
What has HR got to do with it?
You can make better and more confident decisions about recruitment, dismissal, reorganization if the data are accurate and the situation about provisions is clear.
Data-driven thinking, along with Revenue Management, has been flourishing overseas and in Western European countries. If your company is open to discovering the essence of these concepts and then enjoy their results do not hesitate to contact us