5 Uses of Artificial Intelligence for Enhanced Revenue Assurance
The majority of B2B management teams believe their pricing decisions need refinement, and about 15% have adequate information and tools to set and monitor prices according to a recent Bain global survey of more than 1,700 business leaders. For the companies that lean on finance for their growth, evaluating AI and Machine Learning would be your moment of upliftment. To succeed in today’s competitive, multi-channel globe, brands need to quickly catch and act on the optimal buying paths that are producing attention and revenue. With the new insights and studies under Revenue Assurance and product revenue segmenting, all sources of data such as media, email, website, ads, and discounts require precise marketing, achieved only by creating highly relevant and deeply automated revenue management at every touchpoint. Here are 5 uses of artificial intelligence for improved Revenue Assurance today:
1. Using AI to detect then prevent the most ineffective customer discounts and features, freeing up more monetary resources and time for those that earn profits.
A recent Bain & Company research composition, Bringing Order to Discounts Gone Haywire, provides a clear example of how AI can be used to demarcate discounts by each customer segment and type of discount. It mentions how focused analysis of discounts can help stop revenue leakage due to the trades that are more complex and the levers more varied, linking investment and customer behaviour difficult to tease out. An effective approach according to them uses segmented statistical analysis to look at the effect of a discount across all variables—product, region, customer segment and so on. That analysis can become the baseline for an artificial intelligence-supported engine to continually optimize results and inform trade-offs for different types of investments. It shows which transactional levers contribute most to profits, which ones reduce the value and what the pricing chart should look like to maximize profitable growth.
2. Pricing procedures are automated with AI in revenue management systems to boost Revenue Assurance.
The best pricing rule automatically calculates the prices based on considerable factors like similar product prices, historical selling prices, and customer feedback for the products, within the Minimum and Maximum price barriers that are set. Using AI and Machine Learning to look for patterns in pricing, volume and mix analysis to gain many insights then make changes accordingly to capitalize on the transactional data for measurable results today. These patterns include diagnosing the price, volume, and mix instabilities often locked within the restrictions of transactional data. Combining them has proven difficult and a challenge to combine in an intuitive application. Being able to deliver real-time price optimization driven by regional market conditions is a significant doing with AI implementation.
3. AI and machine learning are helping pricing managers find what a given customer is willing to pay or optimizing price across their product base.
Identifying arbitrary regions in pricing, discount, and deal size decisions are difficult to identify for buyers and products using data alone. This helps managers to analyze whether existing discounts make sense by correlating deal size to deals made, recognising outliers where discounts have been granted due to the negotiating discernment of the customer and therefore optimising revenue assurance.
AI can act as great sales mentors. The technology will allow the machine to listen in and analyze interactions, then formulate plans for how to improve in the future. Over time, the algorithms will become masters at predicting what will and won’t work. This means a sales program can approach connections with the best strategies right out of the gate.
4. Revenue optimization and flexibility are increasing beyond industries with limited inventories, including airlines and hotels, proliferating into manufacture-on-order only services.
All marketers are scouring for competitive, contextually relevant pricing delivered through AI. Machine learning is enabling varied price optimization to encompass product and services pricing scenarios depending on many factors like product, factoring in medium, customer detail, sales course, and the product’s standing in an overall pricing strategy. AI can eliminate the guesswork in product pricing strategies by automating the pricing process based on data.
AI will look at a diverse range of factors (including other exchanges a company has made) and compare the numbers against the odds to come up with a price offer that will produce customer satisfaction while assuring you earn a profit.
5. AI is allowing Configure, Price, Quote (CPQ) effectiveness by bringing greater precision and control to price management and optimization, which grows margins, reduces costs, and increases promising financial performance.
AI have the computing power and are rigged with precise functions to value based on its contributions to improving pricing management, optimization, and long-term performance as part of CPQ selling strategies. Thus helping with the ability of an organization to attain stable gross margin, revenue, and profitability performance year-over-year. AI applications can suggest the price that each segment of the customer base is willing to pay to sales and revenue managers. Using AI and Machine Learning algorithms in pricing guidance in CRM and CPQ systems is key to pricing segmentation strategies success. The larger the sample size of high-quality sales and transaction data and AI systems can obtain, the better the machine learning algorithms can accurately predict willingness to pay levels.
With enough data and a stable system in place, AI and Machine Learning will no doubt help grow revenue and assure great insight into the customer segment, product prices, revenue leakage, and transactional information to help managers make contemporary decisions. If a company is not taking benefit of AI and machine learning, your deals and discounts are not performing at peak efficiency, which might mean losing revenue. It’s not an overstatement to say that AI is a game-changer in the industry. The tier of the understanding you can attain from analyzing data is on another level. With the depth and complexity of the data, there’s nothing in the revenue optimization space that AI can’t help you do more effectively.
References :
https://www.bain.com/insights/pricing-global-private-equity-report-2020/
https://www.bcg.com/en-us/capabilities/pricing-revenue-management/overview
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