Business Intelligence and FMCG Glossary: #revenuemanagement
What is revenue management?
Revenue management has initially been developed in the hospitality industry. It is an organizational and management process aimed at growth and maximizing both profitability and return on investment. It is supported by analysis tools, data intelligence and smart data.
What is the goal of revenue management?
Its goal is to obtain the greatest possible profit level attracting the right customers at the right time through the right sales channels.
What are the main levers that can affect revenue management on FMCG markets?
- Pricing: definition of the appropriate price allowing maximum profitability while ensuring the competitiveness of the commercial offer.
- Assortment: choice of the products composing the offer as well as the core strategic ones on which commercial and marketing investments are focused.
- Promotions: : define the appropriate promotional mechanics and the choice of products to be promoted as well as the periods of action to ensure the highest return on investment.
- Supply chain: improve the efficiency of logistics, optimizing stocks to ensure the availability of products without generating excess in inventories.