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Revenue Optimization is the process of maximizing revenue growth over the long-term. eCommerce businesses augment their income by adjusting what are often referred to as “levers.” These are pricing, inventory, marketing, and channel diversification (direct traffic, paid search, comparison shopping engines, mobile, social media). Optimization involves the following steps:

  1. Collecting and analyzing as much market data as possible.
  2. Segmenting customers to tailor marketing and communications.
  3. Forecasting demand based on past performance.
  4. Determining which optimization “levers” can generate higher revenue and making the necessary changes.
  5. Ongoing evaluation of the market so that appropriate shifts can be made.