Most companies looking to drive up their revenue growth think that it’s an issue of reinventing the wheel or scrambling to make new sales. But much of the answer may lie in simply optimizing a company’s existing revenue management system. Your own business might be losing between three percent and eight percent of hard-earned income just because of outdated, fragmented, or inefficient pricing and billing methods. If you want to know where you should concentrate your efforts to grow your company’s revenue, modernizing your revenue management solutions can be a priority.
Upgrading to a cloud-based revenue management system will be especially helpful if your company deals in services that require recurring payments. New software could also increase your agility in delivering these services for an ever-expanding digital market. To better illustrate what the upgrade can do for your company, here are the five best reasons to modernize your current revenue management systems.
It will treat you and your staff to an all-in-one revenue management experience
One compelling reason to modernize is the fact that it will be much easier for you and your staff to operate from a single source of truth. Using one cloud-based revenue management system instead of disparate, manually-driven systems will allow you to be nimbler with high volumes of customer data. You’ll be able to manage billing, pricing, customer analytics, pricing simulations, commitment tracking, and other tasks involved in the revenue management workflow from one place. That means that your revenue management experience will seem less disjointed and more streamlined, and overall less of a burden to complete.
It won’t be difficult to maintain an optimized revenue management system, either. Today’s software comes with automatic upgrades, and is less prone to downtime and delay. It’s also engineered to uphold an airtight level of security for your customers’ data. In other words, you’ll achieve a unified view of the revenue management process, and you can streamline all work related to it. You’ll also be able to do it on a system that’s faster, safer, and more efficient than your old legacy system may be.
It will enhance your current pricing strategy
As time goes on, the original prices on your products and services will change. That requires your company to have some control over your pricing strategy as well as resilience to imminent price changes. The great thing about a new revenue management solution is that it’ll allow you to practice dynamic pricing on your repertoire of products and services. An optimized platform for revenue management will also cue you in on when price erosion occurs, thus giving you the opportunity to prepare for it.
Working from a better revenue management solution will give you greater mastery of the data involved in crafting a pricing strategy. You’ll be able to make profit margin estimates that are actually close to the mark and launch a pricing strategy that earns your company more.
It will maximize your earnings on your fee-based income
As stated above, maximizing your revenue growth doesn’t have to be about rushing to increase your sales or pushing for the release of new items. You can bolster your current earnings on your fee-based incomes simply by upgrading to an optimized solution. Most companies see their investment in a cloud-based revenue management system as a means to save money. But the shift to a more modernized solution can not only save money but can also actively increase profits.
For one, the new pricing and billing software will allow executives to implement more accurate and more responsive pricing decisions without as much friction. There will also be fewer occurrences of pricing and billing errors, which are huge burdens to most companies’ revenue management systems to begin with. Your current customers will continue to trust in your system, and word-of-mouth about the dependability of your system may bring new customers to your company.
It will help you seal more deals with end-to-end deal management
Another notable benefit of an upgraded system is that it will make you even better at the art of sealing customer deals. Attractive deal templates and the ability to manage multi-currency, multi-division customer deals may be part of the software package.
An optimized system will allow you to deftly manage customer deals from whichever accounts are involved in the hierarchy. Your platform may also allow customers a chance to try pricing simulations for the products they’re interested in signing up for. They’ll be able to visualize what their pricing plan will look like and how much they’ll spend for the options you give them.
Too often, customers follow a cycle of “click-buy-bye” with your company’s offerings. But your new revenue management software may allow you to postpone that “bye.” It can help you find ways to tap into new revenue opportunities with your customers, such as loyalty rewards or other incentives.
It will vastly improve billing experiences for you and your customers
When you upgrade to an optimized revenue management solution, you may notice several positive changes to your billing processes. You and your staff will be able to save a lot of time and money on calculating bills and compiling accurate invoices for your customers. You’ll be working with a system that can automatically adjust pricing changes for you, all without you needing to break a sweat. Let’s say, for example, that you’re part of a health insurance company using this software. Once you deploy this solution, you’ll be less stressed when customers’ policy changes reflect on their forthcoming insurance bills.
The new platform may also allow you to foster thoughtful, personalized, and customer-centric billing experiences. Additionally, you’ll be able to release flexible billing solutions that your customers will greatly appreciate. You can also issue instant digital invoices that they can settle via email, on a mobile app, or through an online customer portal service. If your customers can receive and settle their bills with you right away, they’ll stick with your business for the long haul.
Conclusion
Suffice to say, you don’t need to work from scratch to boost your current revenue growth. It may be a better approach to revisit your existing revenue management systems and give them a much-needed upgrade. You’ll see the difference in how much you earn when you launch the system and put better revenue management practices in place.