When the market is changing, like it has been for the first half of 2020, effective revenue management is more critical than ever. Revenue management covers many different aspects of running your business. Some of the activities are designed to increase revenue, including opportunity management, quoting, lead tracking, and other activities to capture more business and grow the top line of the P/L. Other activities in Revenue Management work to avoid issues treated as negative revenue that can be managed or avoided with careful business management processes.
Revenue Management solutions to grow the top line are already addressed to varying degrees with CRM tools and other business management processes. These include:
Opportunity tracking is used to identify new business opportunities, determine what needs to be done to maximize the company’s chances of winning the business, and track progress as the customer moves through the project’s steps from concept to production. Opportunity tracking solutions need to define the stages of the project, capture the customer’s situation as they represent their product and move toward production, capture what products your company could supply, and build a plan to get your products selected instead of your competitors.
Effective Opportunity tracking solutions, such as that supplied by NEHANET, also capture business potential information, timing information, activities that need to be executed to get designed in, and forecast synchronization that converts opportunities to forecasts when certain business conditions are achieved.
Forecasting that helps the team focus on what will provide the highest ROI is an integral part of good Revenue Management. It captures what the business expectations should be based on historical performance, order backlog, inventory availability, and new business opportunity expectations. The best forecasting tools, such as NEHANET’s, automate much of the forecast activity, allow judgment and approvals quickly developed with easy access to detailed business and opportunity information. Often, they are dynamic and continuously being updated as new business information is discovered.
Leads are the first indicator of a new business opportunity. Effective lead capture, qualification, and follow-up are essential aspects of a fair revenue management process. NEHANET provides effective lead capture solutions that segment leads to identify the highest potential candidates and drive the sales organization to follow up to convert them into good new business opportunities. Lead qualification automation leverages machine learning to find valuable opportunities in a sea of leads to keep the team focused on the precious ones. Lead follow up that is quick, effective, and efficient is critical, and that is what you get with the NEHANET Lead Management solution.
Quotes also are practical tools to maximize revenue. A useful quote system gets quotes out to customers quickly and makes sure they are competitive and complete. Automation of the quote process helps improve the quote process to get them done and swiftly approved. Effective quote solutions, such as the NEHANET Quote solution, give you insight into the competitive situation, historical data, and market results to help you quote what is needed to win without reducing the price any more than necessary. Automation enables you to get the information you need and expedite the approval process, so you respond to customer requests faster and more effectively than your competition to maximize your chance of winning the business.
Competitive information flows into the organization from customers, salespeople, reps, conferences, and the news. With an effective competitive information capture solution, you can make sure the latest competitive situation information is available to your salespeople and marketing team so they can position your solution effectively and win the business.
Revenue Management solutions to reduce lost revenue are also an essential part of maximizing your results. They include:
Effective distribution management solutions to reduce the natural inclination to quote the lowest price and win the business. NEHANET’s Revenue Cycle Management (RCM) solution is one of the best. It allows you to know and control what is going on at your distributors.
- Design Registration tools identify who is in charge of winning the business in the channel and restrict other distributors from underbid taking the business.
- Quoting solutions that track quotes to closure keep the focus on winning. With RCM, you keep from quoting against yourselves by not allowing competing distributors to break price and try to steal the business and reduce your margin.
- Ship and Debit tools control distributors’ claim process, so they are only recovering price book breaks that are approved and shipped to customers.
- POS management lets you see what business distributors are doing and factor their performance into reviews and programs to improve.
- Inventory management tools let you keep control of distribution inventory, so you avoid stranded inventory and keep the inventory profile synched to the business they are doing.
- Opportunity management through distribution lets you see what they are doing or not doing to win the business for you instead of other suppliers on their line cards.
Contract Management solutions also are useful revenue management tools.
- Tracking contract performance allows you to maximize your results and incorporate contracts by ensuring you are getting your share of the business as committed by your customers when they negotiated the contract price agreement.
- Sales tracking tools to make sure the contract business is captured and identified no matter where the business ships. Contract manufacturing globally with multiple distributions and rep channels make this a challenge that a right Contract Management solution such as NEHANET’s will let you keep it under control.
Revenue Management is an essential part of running your business in standard times and is even more critical when it is uncertain. Building an effective Revenue Management solution is one of NEHANET’s goals to help you be more competitive, better prepared, and more effective at winning every time you engage with a customer.