Jul 3, 2025
As a revenue optimization and data analytics consultant, all the time I see people and companies misunderstanding data analytics and revenue optimization. They often are misguided by these three false ideas.
1. Data analytics is costly
False - data analytics can be incredibly cheap, depending on how you approach it. Most companies think data analytics is and should be done through a large and reputable agency. Whilst this was true 30 or 40 years ago, it sure isn't true now. Large agencies are clunky and inefficient, and smaller agencies or individuals are much easier to work with and far cheaper. Back then, it could cost $300,000 - $500,000 for some data storage, pipelines, analysis, and user support. Nowadays, you can get 5x that for $5,000 - $10,000 if you use a consultant or smaller agency.
2. Revenue optimization is risky
While yes, this is somewhat true, it's very misleading. Some consultants and agencies (wink, wink) offer some form of a "pay for the results model". This means they either only get a payment if they generate additional revenue, or they have a small base fee, and then get a portion of revenue they generate. By using this model, it essentially eliminates risk entirely, it also ensures that the consultant or agency has its values aligned with the values of your company, in other words, everybody wants you to succeed. Revenue optimization and data analytics is a necessity, nearly every company uses it and the ones that don't are missing out on millions.
2. Revenue optimization is risky
False – data analytics is not reserved for Fortune 500s with massive datasets. In fact, small and mid-sized businesses often see the biggest wins from even simple data analysis—things like optimizing pricing, reducing churn, or streamlining marketing spend. These aren't massive projects; they can be done with just spreadsheets and a few basic tools. The myth that you need a “huge operation” to benefit from analytics is outdated and holding many businesses back.