Top tips for renovating your revenue management function in FY2025

Are you aware of how much a revenue management overhaul could benefit your business? If you answered in the affirmative, you're far from alone. 

In today's times, Australian and New Zealand enterprises of all stripes are alive to the advantages that can accrue when they switch from legacy billing systems to cloud-based revenue management software that covers the revenue cycle from end to end and integrates seamlessly with their ERP solutions.

Being able to capture and consolidate sales or usage data and integrate it with systems that track and manage their customers means they can extract actionable insights to inform product and pricing decisions.

Over time, that can allow them to develop a richer understanding of customer requirements and behaviours. As a result, they're able to form a detailed picture of how, when and why consumers and businesses want to acquire their products and services.

All up, it's a compelling value proposition; one which many local businesses are keen to pursue over the upcoming 12 months.

Taking a systematic approach 

Getting the optimum return on an investment in next-generation billing technology isn't something that occurs by accident. It's invariably the result of a tightly managed project journey, one which incorporates process redesign, stakeholder consultation and a well-planned implementation process.

Here are some tips to help you make the switch to automated revenue management smartly and successfully.

Scope your requirements first

Many businesses know they need to change, the question is, to what, exactly? Being aware of inefficiencies and pain points in their current billing process is usually what prompts leaders to begin considering a revenue management overhaul, but it pays to dig deeper than that. A rigorous research and discovery phase will help you define your needs in detail and gain buy-in from stakeholders who'll be impacted by the upgrade.

Narrow down the options.

Customers have plenty of options when it comes to specialist business software, including in the revenue management space. Exploring all of them in depth can be a time-consuming and, arguably, time-wasting exercise. If you're crystal clear about your requirements and budget, you should be able to fairly quickly filter out the solutions that are too simple, too complex, too expensive or too basic. Doing so will enable you to devote your attention to the handful of possibilities that may be able to meet your business needs.

Select your supplier carefully

Choosing the right supplier is a multi-faceted process. Technical capabilities and price are important, and so is a prospective vendor's ability to support you and your team throughout the project lifecycle and beyond. 

Renovating your revenue management function is no simple undertaking, and it pays to work with a premium vendor that's in it for the long haul, one that invests heavily in optimising its products and delivering competent, responsive service to customers and partners. Doing so will ensure the time and money you invest is well spent.

Dedicate internal resources to the project

External partners may know everything there is to know about revenue management, but they don't necessarily know much about your business. That's why it's vital to dedicate internal resources to your project team – experienced operators who are across their subject matter and can ensure what's being put in place will support your operations.

And appointing a 'technical owner' early on – someone from your IT department who can get to grips with the workings of your chosen revenue management platform – will prevent you becoming excessively reliant on third party suppliers after the roll-out is complete.

Take a segmented approach 

Rome wasn't built in a day and nor will your new revenue management function be. Taking a segmented approach to implementation will enable you to progress steadily and safely, testing and refining as you go. 

Clearly defined milestones allow stakeholders at all levels to see that progress is being made—essential for maintaining buy-in and support from the organisation at large.

And going live with just a handful of customers initially allows you to 'flush out' your new revenue management system from end to end and rectify any issues at the outset. 

Towards a smarter future

Automating your revenue management function is a surefire way to drive efficiencies and cost savings and obtain the insights you need to optimise your offering. Putting time and energy into selecting the right partners and making the switch in a steady, systematic way will ensure your investment in this game-changing technology delivers an oversized return in FY2025 and beyond.