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Yield Stories - Rate Card Updates · The Yield Doctor with James Deaker

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  hi I'm James deaker the yield doctor and
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  this is stories of yield during a
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  Consulting engagement with a New
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  york-based Media company I learned an
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  invaluable lesson about how even the
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  best yield analytics in the world is
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  wasted if there aren't good foundational
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  operations in place our project was to
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  help a company optimize the prices on
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  the rate card the rate card was crucial
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  it was supposed to be the guiding tool
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  for the sales team dictating the prices
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  that they would offer to their clients
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  we dove into the project worked closely
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  with the executive team to analyze all
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  the price history look at products there
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  were intense debate and number crunching
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  as we examine Trends competitive pricing
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  and potential price shifts but as we
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  shifted through the data something felt
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  off I noticed that the prices that the
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  executive team would ch changing didn't
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  seem to match any price change in the
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  historical data log in other words what
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  things were selling for in the market it
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  was as if the changes to the rate card
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  were irrelevant so on a hunch I asked
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  one of the analyst to spend some time in
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  the sales area observing how the rate
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  card was being used what they came back
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  with was jaw
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  dropping the sales reps still had the
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  old rate cards some over a year out of
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  date tacked up on their cubicle walls
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  they were still referencing those
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  outdated documents to quote prices to
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  the clients so despite the fact that the
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  executive team was analyzing revising
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  and approving new rate cards for months
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  the sales team was stuck in the past
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  using prices that no longer reflected
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  the company's updated strategy the
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  problem wasn't the quality of the
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  analysis or the strategy behind the rate
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  card it was the breakdown in the
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  communication process within the sales
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  team the new rate card should have been
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  a better reflection of the prices in the
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  market but the new pricing was
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  irrelevant to the salespeople and to
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  their
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  customers in the end the real challenge
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  wasn't the data or the pricing model it
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  was the disconnect between the strategy
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  and the
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  execution the gap in the process cost
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  that company a lot of money both in
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  terms of wasted management time and lost
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  revenue and for me the yield management
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  lesson that I learned was to make sure
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  that you understand the underlying
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  processes before you dive into the data