Article ID: | iaor20108724 |
Volume: | 9 |
Issue: | 5 |
Start Page Number: | 476 |
End Page Number: | 478 |
Publication Date: | Nov 2010 |
Journal: | Journal of Revenue and Pricing Management |
Authors: | Pinchuk Steve |
Keywords: | yield management |
Revenue and Supply Chain Management have successful added significant profits to organizations. There is still a great deal of profit and synergy that can be provided by these tools. Today's systems determine whether to accept a transaction based on the ‘bucket’ or segment that the entity belongs to, or in bid price revenue management (RM) systems a calculation of the past value of that entity is used. Values based on ‘buckets’ should only be used where it is not possible to identify the entity. Our systems must change. Loyal repeat entities should be priced and given services based on their individual future lifetime value to the organization. A new Individual Nano Entity Lifecycles methodology1 should be used to understand and predict entity behavior at the smallest level of each dimension of their actions. These predicted patterns can then be aggregated and analyzed to produce lifetime life cycle predictions and values. Marketing, RM, customer relationship management and other disciplines should base their actions on this same information.