Revenue managers are at the forefront of every consumer goods business: understanding shopper preferences, optimizing products and their prices accordingly - all while aiming to maximize revenue. These goals remain constant but achieving them requires continuous adaption to evolving market conditions. Shoppers are more informed and demanding, while competition becomes fiercer. Preferences and means of selling goods and services change rapidly.
But the good news is: thanks to accelerating digitization, revenue managers have an increasing amount of data to inform their decisions at their disposal. However, without the right tools, information remains fragmented and leveraging it is exceedingly difficult.
Interested? Then learn more about the revenue manager of tomorrow in our whitepaper
Future needs of a revenue manager
Revenue managers face more volatile markets and evolving shopper preferences. Consumers are also more diverse than ever in terms of “ethnicity, income, education and rural-urban divide” according to Nielsen, making the “average” shopper difficult to identify. Revenue managers must therefore stay up-to-date with market dynamics and respond quickly to relevant changes. The following principles are key to success in an ever-more dynamic environment:
💡 Lean, iterative processes: Conducting analyses quickly and act fast is key for staying ahead of the competition amid accelerating market dynamism. Lean processes require a toolset which is flexible and gives accurate, actionable insight to ensure fast testing and measuring of different outcomes to get to the right answer faster.
💡 Acting proactively: Being proactive is immensely important for remaining competitive in the age of big data. Tomorrow’s revenue managers must be proactive and better anticipate how their decisions will resonate with consumers. This him to optimize their product- and pricing decisions to meet market demand.
💡 A holistic approach: To assure advantage at scale, revenue managers must employ a holistic approach across channels and categories. This means that pricing- and product decisions are based on a ‘single source of truth’ and coherent methodology is applied. Only with this consistency do revenue managers assure that their success is sustainable across the organization.
The tools revenue managers work with today cannot reflect these quickly evolving needs. Consequently, product- and pricing decisions can be based on wrong assumptions or come too late amid strong market dynamism. Revenue managers thus need a toolset which enables them to work in a lean, proactive manner and with a holistic approach to gain sustainable competitive advantage.
Figure 1: Consumer insights without buynomics is a long and incoherent process
buynomics enables the revenue manager of tomorrow to succeed
buynomics' core is a behavioral machine learning algorithm which reflects general human behavior. Behavioral effects are crucial in pricing and portfolio optimization. buynomics creates a sample of Virtual Shoppers who behave just like their real counterparts. In over 10 A/B tests buynomics has proven to be >95% accurate in its forecasts. This allows revenue managers to optimize prices and product portfolios, including the competitors’ offers.
Figure 2: buynomics provides an exact picture of consumer behavior
With its machine learning capabilities, buynomics enables you to become tomorrow’s revenue manager thanks to three core benefits:
✔️ buynomics makes forecasting shopper behavior a lean and straightforward process: Running a simulation takes only a few minutes. Results can be saved, and multiple test iterations can be run with ease. Changing prices or product features only takes a few clicks.
✔️ buynomics simulates new scenarios in real time: It shows the effect of portfolio and price decisions on revenue and profit immediately, without having to wait for additional market study results. Revenue managers can therefore proactively test their ideas instead of merely reacting to market trends.
✔️ buynomics reflects the complexity of your market: buynomics can combine all available information, including costs, competitors’ portfolios, and market analyses to forecast with its Virtual Shoppers. Any simulation therefore takes all relevant factors into account, every time. Hence, buynomics solves the difficult task of combining different streams of information into actionable insights.
buynomics is a simple, intuitive solution that allows you to test out all scenarios, prices, and product variations imaginable on a virtual market representing real shoppers in only mere minutes. The risks and expenses of market studies and conjoint analyses are eliminated. Our clients could improve annual revenue by 3-7% with the help of the solution.
Figure 3: Profitability of different scenarios compared with buynomics
Analyzing shopper preferences and charging an appropriate price decides over revenues and profitability of any business. When addressing these topics, revenue managers often stick to approaches they have used for decades or simply rely on their industry expertise and experience. Consequently, changes in shopper preferences and developments in market dynamics might get overlooked.
buynomics is a SaaS based machine learning platform that combines readily available information into a bigger picture. It creates a sample of Virtual Shoppers who behave just like their real counterparts. Once set up, revenue managers can test out various prices and product feature combinations in real time, with no need for additional market and price research. Thus, buynomics reduces the time to test a new idea from months to mere minutes and eliminates the risk of making wrong decisions in the real world. All the above makes the buynomics machine learning solution for the revenue manager of tomorrow – for a business that is not only more dynamic, but more profitable as well.
If you want to learn more about how buynomics enables the revenue manager of tomorrow to succeed, download our 11-page Whitepaper here.