While seemingly a mere back-end process, investing in improving payments and revenue management is crucial for improving other aspects of a business. Earlier, in our article about the Global Payment Gateway Market, we speculated industry revenue to reach $276.2 billion by the year 2030. This market growth is primarily backed by surging demand for mobile-based payment solutions worldwide.
With technological progress, an increasing number of customers will seek convenient methods to make payments and conduct transactions for varied products & services. As such, businesses must adapt accordingly to track and manage incoming revenue. Today, revenue management software has become increasingly popular to help businesses big and small manage their company's finances, including expenses and incoming revenue. Below, we'll look at some of the ways technology is transforming revenue management for businesses:
Ensuring compliance
Aside from revenue and expenses, businesses must remain compliant with financial and legal requirements. Alongside technological developments and shifts in consumer demands and behavior, it can be overwhelming to keep up with changes in financial or legal requirements while operating ongoing revenue management manually.
Revenue management software SOFTRAX allows users and businesses to automate, comply with, and simplify Accounting Standards Codification (ASC 606) and the International Financial Reposting Standard (IFRS 15). Put simply, the software automates all aspects of ASC 606, including complex contract modifications and combinations, materials rights, and significant finance components, to ensure consistent compliance. Revenue management software can also automatically enforce multiple revenue policies to ensure your business stays on top of all finance and accounting requirements.
Greater accuracy
Another aspect of business operations and revenue management that technology has transformed is enhancing accuracy in operations. Accuracy in revenue management and forecasting can help businesses meet financial goals and make better data-based decisions. Insights from Shiji ReviewPro highlight how AI algorithms used by revenue management software can identify intricate patterns and trends across vast datasets. This enables precise demand forecasting and pricing decisions, which helps businesses reduce the risk of underpricing or overpricing their products and services. In increasingly competitive and saturated markets, businesses can benefit significantly from enhanced accuracy to help them stay agile and respond to shifting market trends effectively.
Personalized customer experience
Ultimately, the integration of emerging technologies, including artificial intelligence (AI) and machine learning, in revenue management can notably improve decision-making for businesses. These decisions, fueled by these advanced technologies, have the power to heavily impact customer experience and how they perceive and engage with the company.
Nowadays, the right revenue management software can serve as a key source of business intelligence, guiding businesses to better cater to shifting customer demands and concerns. With the utilization of AI technology and extensive data sets, businesses can effectively assess the outcomes and viability of specific products and services, as well as the level of satisfaction among their customers. This enables prompt decision-making based on data analysis, enabling businesses to modify or enhance their offerings for better customer interactions and client engagement.
Investing in revenue management technologies and solutions is ultimately beneficial for businesses as it ensures smooth operations and compliance with regulations. By improving revenue management practices, businesses can also better determine their financial goals and allocate their resources — like talent and budget — accordingly.
Of course, this doesn't have to be a case of technology replacing human counterparts. By automating revenue management processes, revenue managers can focus on strategic decision-making and handle other relevant finance operations to maintain positive business outcomes. Finally, improving revenue management also aids in providing a better customer experience in the long term as businesses gain valuable insights to improve or modify their current offerings.
For more insights, features, and market reports across industries, you can check out other posts in the Extrapolate website.
