Revenue Management

07 / 11 / 13

Last edited 12 / 24 / 20

2 min read

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When you implement a revenue management system, it will change staff roles and how internal data is analyzed and put to use. To be prepared for operational change and minimize disruption, it’s important to have a solid implementation strategy in place pre-launch. Organization-wide training on a new revenue management system is a vital means of empowering your staff to better connect with residents and colle revenue trend chart on wall agues.

One key reason for having a training strategy in place has to do with the typical turnover experienced in the real estate industry. If the property is running smoothly because the current staff knows the system but then new hires arrive, you must be nimble enough to train new employees quickly and ensure their understanding of the software is thorough.

As Jennifer van Arcken, director of information systems for BSR Trust LLC, pointed out, “There are a lot of parameters to set up on each property and if something gets changed then it might not be giving you the right response.” In short, the onsite team needs to know it is okay to pick up the phone and call their manager with concerns.

Not only do managers and staff need to appreciate the system, but they also must know how to sell the pricing to prospects. Prior to the establishment of revenue management systems, renters were sold on the bottom line. Now the question that matters is “When do you want to move in?” Prospects may be surprised at first when presented with lower longer-term rates based on an earlier move-in time frame. And they’ll hopefully be incentivized to sign a lease to start almost immediately, even if they still need to vacate a former unit.

Your prospects are savvier now, they understand how airlines and hotels operate and that prices will fluctuate. Managers should see this as a time saving device. Without time spent compiling information on how they created their pricing, they, along with their leasing agents, can focus attention on customer service and resident satisfaction.

Read the rest of this post on the NAA Aptly Spoken blog.