In this section, you will find
What is Revenue Management?
Key Benefits of Revenue Management Software
Why Revenue Management is Important
Key Features of Revenue Management Software
How to Choose Right Revenue Management Software
Revenue Management involves application of analytics to maximize revenue growth by optimizing product availability and pricing and predict consumer behavior at the micro market level. Revenue Management is highly specialized for an industry. Revenue Management software can be delivered standalone or as part of a quote-to-cash suite.
Learn what is Revenue Management, how it works and how to choose the right Revenue Management software.
What is the right solution for you depends on your business context and needs. Let us help you firm up your needs and find you the right-fit solutions. Get your personalized assessment report now!
Read more about how companies in different industries are using Revenue Management software to drive results.
Read more about the latest news and updates in Revenue Management.
Updated By Cuspera
Last updated: Aug 16, 2023
The leading accounting and financial management software
Sage Intacct is an accounting and financial management software designed for Accounting firms, Construction and Real Estate, Subscription and SaaS, Healthcare, Financial Services and many other industries. It enables strategic decision making using dashboards specific to the industry. Its cloud based solution also allows for flexibility and scalability.
Sage Intacct provides for multi-entity consolidation and reporting in real-time enabling decision making with data.
Sage Intacct features Core Financials providing multi-dimensional data analysis, a platform that integrates with other Cloud Services such as Salesforce, and all the functionality required for quick decision making.
Sage Intacct’s reporting brings predictability to our revenue and ensures accurate visibility for management. They can now make beter informed decisions that increase customer lifetime value, reduce churn, and help us efectively compete in the market.Bret Belcastro
Revenue Controller
Acquia
Vendor: Sage Group plc
Founded: 2002
Company Size: 10001+
HQ Location: Limited North Park Newcastle upon Tyne NE13 9AA
Financials: M&A
Chargebee - Subscription Management Software
Chargebee is a subscription billing software that allows individuals, small businesses, and enterprises to automate subscriptions, billing, invoicing, payments, and revenue recognition processes via API. It helps enter new markets, acquire customers, and enhance customer relationships.
Chargebee provides a robust and flexible billing system to enable the sales and marketing team to run special promotions and the right tools for the support team to bill accurately and respond faster for billing queries. It also helps in collecting payments online from the payment gateway.
Some of its features include subscription management, recurring billing, security and compliance, recurring payments, revenue recovery, reporting and analytics, integrations and more.
The ease of use was important. Even if a customer didn't talk to a salesperson, they could go online, buy a subscription, and get started. We had automated a big part of the process. So there was an easy transition between the Chargebee platform and A Cloud Guru, to handle subscription management a...nd easily onboard users.
George K. Tsigounis
(Former) Product Manager
A Cloud Guru
Vendor: Chargebee Inc.
Company Size: 101-250
HQ Location: Walnut, CA
Financials: SERIES H
The Subscription Economy Platform. The world’s only subscription order-to-revenue platform that makes it much easier for companies to manage ongoing subscriber relationships.
Zuora provides cloud-based software on a subscription basis that helps companies launch, manage, and transform into a subscription business. It offers a suite of SaaS applications that deliver billing, revenue recognition, collections, and quoting capabilities. It serves the IT, media, healthcare, education, and other sectors. Zuora caters to various industries comprising software, hardware, media, transportation, construction, healthcare, education, retail, Internet of Things, and others worldwide.
Zuora makes it easy to manage subscriptions and keep up with fast changing go-to-market strategies on a single platform. It offers Zuora Central platform that acts as an intelligent subscription management hub that automates the subscription order-to-cash process, including quoting, billing, collections, analytics, and revenue recognition.
Zuora products include Zuora Billing, Zuora RevPro, Zuora CPQ, and Zuora Collect. Zuora Marketplace features apps that extend Zuora to be the perfect fit for business. It browse apps and pre-built integrations that meet the unique needs for every role, geography, and industry business tackles.
With Zuora running in the background, we are well-equipped to deliver sustainable value to our customers, based on dynamically evolving offerings that fit the healthcare industry & care providers’ demands.Rahma Samow
Head of Digital Health Global
Siemens Healthineers
Vendor: Zuora, INC.
Founded: 2007
Company Size: 501-1000
HQ Location: 3050 South Delaware Street, Suite 301,San Mateo, CA 94403
Financials: IPO
Scalable platform that provides our publishing partners the freedom
Tipalti is the only payable automation solution to streamline all phases of the global accounts payable workflow in one holistic cloud platform. Tipalti makes it painless for finance departments to manage their entire AP and supplier payments operation. It serves business services, software, technology, e-commerce, retail, marketplaces, gig economy, video and digital media, gaming, adtech, and affiliate and influencer networks industries.
Tipalti’s comprehensive approach to automating accounts payable streamlines the entire bill-to-pay-to-reconciliation cycle. The platform manages all interactions between the payer and the payee to provide end-to-end control and optimize the entire AP workflow, future-proofing your operations for mass scale. It is designed to cut the time spent on onboarding and paying vendors, collecting tax IDs, processing bills, and reconciling payments. Tipalti automates the entire payable process to focus your time on growing business.
Our team is set up well for the future. We have seen many efficiencies in the past year with our tools and continue to look at tools that can help us scale even further.Byron Whitman
Corporate Controller
Next
Vendor: Tipalti, Inc.
Company Size: 101-250
HQ Location: 1810 Gateway Dr, San Mateo, California 94404, US
Financials: SERIES D
Credit Bureau | Check Your Credit Report & Credit Score
Equifax is a cloud-native global data and analytics technology company that helps drive smarter revenue and achieve better customer experiences. It collects, organizes, and manages various financial, demographic, employment, and marketing information.
It combines strength of unique trusted data, technology, and innovative analytics, it has grown from a consumer credit company into a leading provider of insights and knowledge that helps its customers make informed decisions.
Vendor: Equifax Inc.
Tax Compliance Software and Automated Solution
Avalara is a tax compliance software that assists companies with accurate tax compliance. Customers of Avalara manage the stringent tax obligations imposed by national, regional, and municipal tax authorities around the world by using Avalara to find faster, more accurate solutions.
Avalara provides options for a range of transaction taxes, such as sales and use, VAT, excise, communications, and others. The suite makes it possible to submit returns, file taxes, and adhere to document management standards. Also, assist clients in preparing for and achieving compliance, the company also provides professional services such as tax advisory services, implementation services, managed services, support plans, and training.
It is an all-inclusive, cloud-native solution for tax compliance. Receive calculations for sales and use taxes based on the most recent laws and rates. Automate the preparation, filing, and reimbursement of returns. Automatically exclude tax from exempt sales, effectively manage exemption papers from the cloud, and decide on the best content and business insights to use for the tax compliance strategy.
Properly collecting and remitting automatically is a breath of fresh air. It’s amazing!Bryan Papé
CEO and Founder
MiiR
Vendor: Avalara, Inc.
HQ Location: Seattle, Washington
Cloud Platform that simplifies the complexities of reporting and compliance.
Workiva is a cloud platform for transparent reporting that enables the customers to streamline processes, connect data and teams, and ensure consistency all within a controlled, secure, audit-ready platform. It provides transparency, unparalleled trust, and assurance for all stakeholders.
It helps customers connect critical business data directly from source systems to the cloud platform, seamlessly enabling collaboration and deep integration into existing workstreams.
It provides ESG reporting with financial rigor to earn the trust of all stakeholders. Internal Audit Management to protect the organization, and address risk gaps. Management reporting to manage data with less risk. SEC reporting, SOX compliance and more.
For as much as we innovate at Slack, we needed a platform that could innovate with us, Workiva was an easy choiceTaka Kawai
Director of Technical Accounting and SEC Reporting
Slack
Vendor: Workiva Inc.
Company Size: 1001-5000
HQ Location: Ames, Iowa
Financials: SERIES C
Subscription Billing and Recurring Billing Platform
Recurly is a subscription management platform delivering unrivaled results to smart brands. It handles all the complexities of subscription billing and recurring payments. It helps to enhance customer relationships and improve ROI.
Recurly integrates with enterprise solutions like Salesforce, NetSuite, and Avalara to provide efficiencies, reduce operating costs, and deliver a more satisfying customer experience.
It creates an unlimited number of subscription plans which support a variety of billing scenarios, payment plans, and business needs. Its analytics provides an overview of the subscriber, plan and revenue data, along with KPIs and trend analysis that helps to take action to improve on business every day.
No other option was as elegant or sophisticated, with the breadth of features we needed.Adam Hawes
Commercial Director
GatherContent
Vendor: Recurly, Inc.
Founded: 2009
Company Size: 101-250
HQ Location: 400 Alabama St. Suite 202 San Francisco, CA 94110
Financials: SERIES B
Global ecommerce platform to sell more, stay lean, and compete big
FastSpring is a full-service ecommerce platform that monetizes their products and services online. It is designed to help businesses manage payments, subscriptions, risks, compliance, checkout processes, billing, tax collection, and more on a centralized platform. It helps to increase revenue, boost efficiency, and eliminate complexity and risk.
It helps SaaS, software and digital content companies to manage their online stores and subscriptions and to sell globally by providing a localized experience for businesses and consumers, enabling businesses to maximize conversions, increase sales and grow business online. Organizations can accept payments via credit/debit cards, Wallets or payment gateways in compliance with Payment Card Industry Data Security Standards (PCI DSS).
FastSpring allows enterprises to customize the platform’s language according to customers' location and configure subscriptions or pricing plans with free trials, annual or monthly billing options and discounts. Additionally, it lets managers update online stores, products and prices in real-time and use the fraud monitoring and detection algorithm to block fraudulent transactions. FastSpring facilitates integration with various third-party systems such as Zapier, MailChimp and more.
Vendor: FastSpring, Inc.
Company Size: 101-250
HQ Location: 801 Garden Street, Suite 201, Santa Barbara, CA 93101, US
Financials: M&A
Venture Capital, Private Equity and M&A Database
Pitchbook provides public and private market financials and funding data for use by business professionals for identifying business opportunities and making data based decisions.
Pitchbook’s data covers information on venture capital, M&A and PE for business professionals to analyse fundings, business deals, investors and data around due diligence. Pitchbook data also provides information on networking opportunities, enabling connection with the right people at the right time.
Pitchbook’s entire data can be accessed through Desktop Chrome or Mobile versions - iOS or Android.
Vendor: PitchBook Data, Inc.
Company Size: 501-1000
HQ Location: 901 Fifth Avenue, Suite 1200, Seattle, Washington 98164, US
Financials: M&A
Revenue management is about the use of analytics
In essence, Revenue management helps in aligning perception of the product value with the product prices, placement, and availability. This, in turn, will help us maximize the revenue.
Revenue management focus necessarily varies by industry/vertical/segment. While there may be some similarities, some common elements, revenue management is highly specific to a vertical.
In general, revenue management software helps you align inventory and pricing to the perception of value at the micro-market level to maximize revenue and profit.
A Revenue management software will consume many data such as
· Pricing details at an “individual” (micro-segment, account level)
· Revenue recognition regulations applicable in the particular geography (built into the software itself)
· Revenue models (such as subscription, and pay-per-use) relevant for the specific industry (that you customize)
· Customer and Trade Promotions under execution
· Contracts
Based on this data, under the review of a revenue management expert, RMS will help maximize revenue as well as profit by managing elements such as
· Compliance demands
· Pricing optimization
· Promotion optimization
· Revenue Leakage Detection
· Product rationalization
Revenue Management software can be delivered standalone or as part of a quote-to-cash suite, which includes pricing software, CPQ software, and quote management software. When used by sales and marketing managers, revenue management also needs to integrate with CRM software.
L2RM (Lead-to-revenue management) is another adjacent/overlapping area to Revenue Management. Early L2RMs solely bridged a gap between lead generation activities and selling activities that were managed by a customer relationship management (CRM) system (e.g., closing the deal). The opportunity to calibrate marketing spend to revenue generation was a significant driver of L2RM. In a recent survey by Bizibl of business-to-business (B2B) marketers, slightly more than 50% of marketing organizations had reported implementing a system to manage the lead-to-revenue process.
While key benefits vary according to the industry, the classes of key benefits applicable across the sectors are:
Irrespective of the industry (be it a professional services firm, a software company, a services company, or a retail chain), revenue management software will help you close the accounts quickly at the same time providing you a complete picture of your organization’s revenue. You will be able to understand the impact of elements such as discounting, deal duration, frequency, and product mix on the growth as well as profitability. It will also help you do better forecasting of revenue and profit.
In the businesses, with Fixed Capacity, Perishable Inventory, or Low Marginal Servicing Costs, Revenue management can add significant upside. It is also highly useful when the demand can be segmented with varying sensitivity to prices among the segments. Revenue management can help manage peaks and valleys in demand, which can be predicted with some degree of certainty.
Some of the revenue management software includes and/or integrates with contract management. Contract management or Contract Lifecycle Management is closely related and widely used business activity to Revenue Management. New ways of driving revenue mean the customer lifecycle is changing. Allocating the contracted revenues based on GAAP revenue recognition standards is undergoing massive change due to the recent GAAP mandates ASC 606 and IFRS 15 (for subscription-based businesses, and when they are permitted to recognize revenue) — making contract management, more than ever before, an essential part of a Revenue Management System.
There are software products available to address channel revenue management. Most revenue management software products have included revenue models to be able to help manage different revenue streams such as subscriptions, usage-based billings. Some products have the ability to detect revenue leakages in different scenarios.
Most revenue management software will also help you to solve and/or manage the revenue recognition compliance, thereby reducing the risk.
For those businesses with inventory distributed across many locations, Revenue Management will help optimize the inventory. It is not just across sites but can be across multiple channels. Multi-channel inventory management (also known as multi-source inventory) is the process by which businesses account for and track orders from various sales sources on the stock that is stored at multiple locations, such as marketplaces, e-commerce, retail, and wholesale. Getting the right products at the right place and the right time is a vital part of this process.
Across the board, one would expect some common capabilities in any Revenue Management System:
· Data Visualization and Reporting
· Analytics
· Track pricing details for micro-level
· Revenue recognition
· Revenue models, such as recurring and transaction-based
· Promotion management
· Dynamic Pricing
· Yield Management
· Online Reputation Analysis
· Interface with rate shopper (3rd party rate shopper)
· Competitor pricing analysis (internal Rate Shopper)
· Multi property management
· Price suggestions by channel, room and rate types
· Occupation forecasts
· Competitor Analysis
· Forecasting
· Price Optimization
· Interface with Recommendation Engines
Bid Price Control
· LEG/SEG Demand Forecast & Optimization with Decision Support
· Network Optimization
· Voucher/Promotion management
· Demand volatility adjustments
· Regulatory compliance
· Channel revenue management
· Contract management
· Revenue leakage management
· Scheduling and optimizing advertising
· Partner billing management
Ability to handle different classes of customers
· Chargeback Payer
· Government Pricing
· Rebate Payer
· Medicaid Payer
· Medicare Gap Payer
· Utilization Payer
SKU management
- Channel management
- Product cannibalization
- Promotion management
- Contract management
· Recognize revenue from various business models
· Inventory returns, billing disputes, and revenue leakage
· flexible billing and order management practices limit business growth
· revenue recognition compliance
Practically, any industry can benefit from the revenue management capability. There are examples from B2C as well as B2B segments.
Here are some examples of industry verticals that have widely adopted revenue management:
Hotels, Landlords, Financial services, Media/Telecom, Distributors, Medical products, Airlines, Courier Services. Automotive, Banking, Insurance, Retail, Energy, and Utilities.
Revenue management will be viewed as a strategic necessity in most of the service industries. It is rapidly reaching that point in the Hotel and Car Rental industries already.
Revenue management solutions are tied closely to the industries (for business dynamics) and geographies (from a compliance perspective). So, the first step in choosing the software is to lay down the context in detail and use it to filter out the solutions not related to the vertical context.
As discussed earlier, a revenue management software solution can have very many capabilities. You need to assess which of those capabilities are essential for your business.
And, a Revenue Management software can be part of a quote-to-cash system, part of the marketing/sales operations and more. Knowing who in the organization will benefit and use the software will help you choose the right software.
Since the revenue management works in conjunction with other business activities such as contracting, you will also need to determine the touchpoints between the revenue management software and other software that you use today. Integration between these products is imperative to get the most out of the deployment.
We recommend you evaluate whether the benefits of AI in the selected software provide good enough ROI for you. Most AI systems need very large quantities of data before they can make useful predictions and decisions. You need to assess your data readiness.
The U.S. revenue cycle is one of the most complex ‘invoice/payment’ processes ever to exist. From pre-service to zero balance, there are many silos of information from the system of record, third-party data sets, data from bolt-on niche platforms and more.
Other factors to consider:
How easy will it be to get the software up and running? How much external help is needed? And, availability of that support.
One has to take into account data onboarding, customization needed, integrations, training, and onboarding the users, etc.
What is the real revenue impact expected and over what timeframe? This may be needed to get the management buy-in.
· Expansive skill set needed as RM is a complex topic. Revenue management systems should not be seen as plug-and-play solutions. Need an experienced RM to steer the system.
· Dealing with business evolution (or anticipating) in adopting new channels of revenue. The selected software may not be able to support the new channels.
· Goal alignment between Marketing, Sales and Revenue teams
· Understanding of the Channels in depth
· The revenue management system requires loads of data that is updated in real-time. It may take up to six months for the system to stabilize.
·
Investments in revenue management generally have a very short payback period because almost all of the revenue increases generated goes straight to the bottom line. Using the Airline and Hotel industries where the capacity is fixed, one can look at benchmark revenue improvement to the tune of five percent plus or minus three percentage points. However, in the industries where there is more flexibility capacity, the potential benefits are likely to be considerably larger.
“85% Percent of respondents from large and full-service hotels who say that upgrading their Hotel Revenue Management capabilities has improved financial results. Revenue Growth”
“82% - Percent of respondents who say that one of the biggest benefits to be gained from Hotel Revenue Management is a reduction in time associated with traditional pricing tactics and getting pricing recommendations faster”.
Some of the Software Products in the Revenue Management space use AI to generate custom market segments with an implicit correlation between customer information and preferences. (Traditional approaches use pre-set market segmentation for future demand forecasting and management).
Revenue managers would look for opportunities to increase prices and maximize revenue on high-demand dates while maximizing profitability at other times. An AI-based revenue system can automatically make decisions and select the revenue strategies applicable to different market segments.
AI is increasingly used in the Hotel Industry in the pricing, booking management, selling and guest experience management.
AI already powers revenue management for airlines. Forecasting future passenger demand is one where there is a significant AI enablement in revenue management systems. For instance, Amadeus' AI-powered revenue management system “has evolved from focusing on capacity utilization - by forecasting each flight’s number of passengers, no-shows, and cancellations - to more advanced forecasting of travelers’ price sensitivity in different markets, network-wide passenger flows as well as what drives the way travelers choose between different options.”
AI is also used in managing/optimizing trade promotions particularly to manage the costs and the time to plan and deliver the promotions.
AI helps optimize pricing and promotions across categories for retailers.
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Integrated AR Automation Solution
Billtrust is a B2B accounts receivable automation and integrated payments pioneer that streamlines electronic payment delivery through the ground-breaking business payments network, enabling buyers and sellers to save time and increase cash flow by achieving touchless interactions and transactions with even the smallest of details.
Vendor: Billtrust
Company Size: 251-500
HQ Location: Lawrenceville, New Jersey
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Automate Room Rates to Maximize Hotel Revenue
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Founded: 2019
Company Size: 11-50
HQ Location: Sarjapur Main Road, 14 Kaikondanahalli, Bengaluru, Karnataka 560035, IN
Financials: PRIVATE
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Subscription Management and Billing Software
SubscriptionFlow is a subscription management platform that facilitates merchants, businesses, and providers to manage their recurring payment plans. It provides features and solutions to all small to medium size businesses. Its inclusive features such as subscription management, a self-service portal, sales text management, pricing and billing automation, integrations, payment gateways, and analytics help businesses to empower growth goals.
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Account planning software for sales optimization
Upland Altify is a customer revenue optimization platform for sales and sales operation teams to grow revenue and improve sales execution.
Vendor: Upland Software, Inc.
Founded: 2010
Company Size: 251-500
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Company Size: 10001+
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Company Size: 11-50
HQ Location: Derry, Derry BT48 7AB, GB
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Recurring revenue management platform
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