Revenue management software aims to simplify and control a complex practice, and analytics advances are making its job easier
Revenue management (RM) is a complex practice, long done manually by many types of sales organizations. Revenue management software is gaining popularity as a way to automate and unify strategies around anticipating and influencing consumer behavior. Systems around RM can integrate pricing, contracting, compliance and analytics, allowing for greater visibility and flexibility to respond to quickly changing market conditions.
RM software is often tailored for specific industries, and increasingly uses advanced business intelligence and analytics to view market trends and customer behavior, then use data for forecasting. Tools can include contract creation, payment, revenue forecasting, recognition, reporting, allocation and billing capabilities. Dashboards and reporting help users stay on top of the complex revenue models that require multiple decisions in RM. Revenue management software should also store information relevant for auditing and compliance needs.
Best-in-Class Revenue Management Software Features:
- Offers real- or near-real-time forecasting and analytics, and analyzes market trends
- Integrates with pricing and distribution analysis tools
- Gives users the most complete visibility possible using the fewest manual processes
Top Considerations before Buying Revenue Management Software Products:
As revenue management software finds a place with more and more organizations, detailed data will become a key asset that drives decision making. Flexible modeling tools are a must to deal with quickly changing markets and customer behavior. RMS needs to be able to manage complexity in pricing and contracts. And a trend toward revenue optimization means that analyzing customer demand and past and current market data may become top priority. Future software may offer functionality to track and analyze social networking platforms in relation to revenue management and optimization.
Key Products:
1. Model N, Inc. provides revenue management software primarily for pharmaceutical, medical device, and biotech industry companies. The Model N Revenue Management solution provides organizations with advanced business intelligence to enable development of effective pricing strategies, respond to changing market conditions and identify issues. Dashboards and reporting offer visibility into the sales process, allowing users to track margins and revenues and analyze opportunities and channel activities. The Model N management suite applications align pricing, contract creation, management performance, settlement payments and more. They integrate with ERP systems and offer access-based control over processes.
2. AFS Financial Solutions offers enterprise revenue management and billing software solutions to enable companies to manage, analyze, report, and forecast their revenue. Their Softrax solutions automate the entire revenue cycle, from revenue recognition, reporting and forecasting, through complex billing and contract renewals. Softrax tools automate billing and revenue recognition, letting complex revenue models and their demands be automated in one system. Softrax stores all revenue-related information to smooth the path for audit and analysis processes.
3. Host Analytics provides on-demand corporate performance management solutions via on-demand SaaS delivery. Their solutions work to improve their budgeting, forecasting, financial consolidations, dashboarding, scorecarding, reporting and analysis. Their Revenue Planning software offers functionality to establish an accurate view of future sales with modeling tools designed for maximum flexibility. Templates use a data-driven interface to manage complex pricing schemes and multi-stage contracts. Revenue Planning also offers capabilities around automating sales and operations planning (S&OP).
4. Intacct develops on-demand financial management and accounting applications. Intacct automates key business processes, including order entry, cash collection and procurement through vendor payment. The Intacct cloud financial management system provides comprehensive functionality and integration with other key business systems. The Intacct Accountant Edition helps CPAs to serve their small and midsized customers with a customized dashboard. It allows for collaboration with clients, more visibility and security.
Revenue Management Software
Definition: Revenue management software automates a set of revenue maximization strategies and tactics meant to improve the profitability of certain businesses. Revenue management (or yield management) is the process of understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, perishable resource (such as airline seats or hotel room reservations).
