Revenue Optimization

What is Revenue Optimization?

Revenue optimization is the strategic management of pricing, inventory, demand and distribution channels to maximize revenue growth over the long term. It uses demand modeling, demand forecasting, pricing optimization, consumer behavior predictions and other activities to ensure the right products are sold to the right customers at the right time and for the right price.

The Revenue Management Levers

eCommerce businesses striving to increase their revenue have a wide array of different strategies that can drive fast and profitable growth at their disposal. These strategies can often be referred to as ‘levers’, in the sense that companies need to know which one to pull and when to pull it to dramatically increase their margins. The primary levers include:

The Revenue Management Process

The revenue management process can be broken down into 5 steps:

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Justas Markus: CEO & Co-Founder of GetFound XL and a blogger at Entrepreneur.com, Observer.com, Influencive.com and others. Catch up with Justas on Twitter.