An Overview of Revenue Analytics for Event Industry
Revenue Analytics is simple terms can be defined as a set of decisions support tools that help finance and contracting professionals in making informed decisions based on reliable insights. Revenue analytics helps managers in making better decisions as it results in working towards overall goals of increasing revenue by selling product or services at the right price. The revenue analytics helps in understanding the status of any prospective customers and in defining actions that are required from each department of the company.
Revenue Analytics in Event Industry – An Overview
The plethora of changes in the Event Industry witnessed during the last decade point to the fulfillment of a continuous quest for customer service excellence. This is resulting in the largest event management companies across this sector spending more than $43 billion on revenue analytics – which is a multi-dimensional and evolving field harnessing statistics, Artificial Intelligence and other tools to identify meaningful patterns in large data sets.
The capacity of using revenue analytics is dramatically advancing an organization’s understanding of both its own internal systems and broader trends that involve its customers, clients and partners in the event industry. Revenue Analytics requires access to a highly detailed marketing data; as such, event industry need to track historical data around when marketing programs run, about what their attributes were, who they touched and when marketing programs ran. Without this information, revenue analytics are worthless.
For event industry, there is a need for their operating systems to store historical data and unless they store this data, the event management company will not be able to measure or understand the revenue analytics trends. Companies in this sector need powerful analyzers and dashboards so that their business analysts can explore data trends and insights without wasting valuable time in learning how to use technology and building custom reports.
Digital revenue (analytics and data driven) is more capital efficient than analog revenue with both requiring capital investment and engender liquidity risk. However, adjustments to the mix of digital products are far lower than capital-intensive businesses. The below mentioned chart shows how Digital Revenue beats Analog Revenue according to the Gartner Data and Analytics Leadership Vision for 2017 Report.
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Data and analytics leaders are at the heart of the digitization and as such must act urgently to create an information strategy, modernize their infrastructure and hire data and revenue analytics specialists. The revenue analytics for event industry has emerged as a technology tool enabling them in recognizing profitable ways to increase the demand for their services.
The revenue analytics market size estimated to grow from $9.27 billion in 2015 to $21.92 billion by 2020 at a Compound Annual Growth Rate or (CAGR) of 18.8% due to increasing cloud deployment of revenue management platforms and solutions. North America has the largest market share due to technological advancements in revenue analytics technologies.
The revenue analytics is all about effective decision-making and in the event, industry, it ensures that the robust, repeatable processes are implemented in every type of revenue management decision. According to Gartner, companies that are automating their lead management business processes between marketing and sales had led to an increased conversion rate by at least 50%.
Not surprisingly, corporations are devoting significant resources to even marketing activities with 51% employing between 1 to 10 full time event planning and management employees and 27% employing 11 or more employees. One in 10 is allocating more than half of their marketing budgets to events.
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Event organizing/management companies having staff with marketing operations expertise can help them in building the data and analytics foundation needed to support their revenue analytics strategies. For instance, a marketing operations expert can help you build the revenue analytics platform needed to support its analytics strategies. When it comes to dashboards it is important for the concerned even management company to tailor to their right audience using role based dashboards for CMO, Sales, CEO and CFO