Consistent Revenue Growth
How To Get Revenue Growth
Without Inconsistencies
Achieving Revenue Growth Management (RGM) Outcomes
Your business’s revenue growth management (RGM) rate is an indicator of how well your business is doing, in contrast to others in the market, as well as the extent to which your business can grow. Therefore, it is one of the key performance indicators that your business must follow for:
- Improving the probability of achieving your revenue growth objectives
- Increasing your customer lifetime value
- Gain higher productivity per sales head count
- Decrease customer acquisition cost
As we advance, your business’ revenue growth management (RGM) strategy will be understood from CEO to shipping clerk, as everyone energetically applies it daily. The key to this strategy is to facilitate and attain alignment with the external market, the CEO’s corporate strategy, and the functional areas (such as sales and marketing). As a result, it ensures deliverable consistency leading to satisfied customers and lower customer churn. At the same time, it drives higher productivity per sales rep with emerging best practices.
However, doing so is not a quick-fix approach. It involves a long-lasting transformation that takes time to deploy and perfect. Your business must build upon culture and a discipline for continual improvement and optimization, aligning corporate, product, marketing, sales, and more. It requires agility and continuous refinement in the field. Those who implement an RGM strategy correctly grow their revenues faster than their competitors and faster than their market. They don’t rely on luck and timing. Simply put, it is easy to be good. Unfortunately, it isn’t easy to be great.
“Enterprise growth today is about more than making a sales number… Yet many companies still operate with a static sales model, which prevents them from responding effectively.” Source: Accenture’s Sales Performance Optimization Study.
The revenue growth management (RGM) methodology recommended here is purposeful.” “We are already doing this” that is in your reader’s mind as you read this is false, especially if you are only doing one part of the methodology in isolation. This methodology looks at the total and in sequence and focuses on achieving an integrated organizational approach to achieving consistent revenue growth. This methodology’s unique combination and order allow you to gain revenue growth in a timely fashion with minor disruption to the business. It requires investment and skills. Simply defining a strategy without execution is a waste of resources. This methodology is not a tool; it is a management method. It is a step-by-step process used daily to act as a team across all aspects of the organization, not just think as a team or act like a star individual. Notably, fewer than 22% of those who endeavored to make it happen did so in recent Accenture studies. However, they are the indisputable market leader; if you need regular insights as to how to any aspects of this approach, check out our newsletter.
Will Your Business Open The Door?
Do you hear opportunity knocking at the door of your market?
The overall markets’ pace decelerated to 2.62%, but remained above average in 2019. Sequentially revenue grew by .12%. Not surprisingly at the third quarter mark of 2020, overall markets’ pace realized a contraction in revenue by -1.22%. While sequentially revenue dropped by -.79%. Source: CSI Market Research
Consider before you begin with this approach that “most organizations seem to be wired for mediocrity” according to McKinsey & Company’s Research Studies.
If your business is struggling with:
Identifying hidden opportunities
Lacklustre distribution channels
Understanding buyer purchasing decisions
Uncovering your competitors success
Weak customer experience
Uninspiring brand promise and positioning
Inefficient marketing tactics
Unproductive organizational model
Difficulties attracting talent
Lack of forecast accuracy
Then you may wish to consider excerpts from McKinsey & Company’s studies, which confirms how most organizations shrink or disappear in the long term without a proper methodology. Only a third of excellent companies remain excellent for decades, and when organizations try to transform themselves, even fewer succeed.
Meanwhile, economic, political, social, and technological change continues to accelerate, and competitive pressure grows more intense. Now more than ever, organizations need reliable methods to achieve substantial, sustainable advances in performance.
It would seem opportunity is knocking, would you agree?
Implementing the ‘Right’ RGM Methodology
A lot has happened just in the last part of 2020 to impact the markets uniquely. So, have the best practices adapted accordingly? They likely have not and are in any case not as impactful as they once were since former best practices pivot off different market dynamics. To keep up to date with the latest emerging best practices, opt-in to our newsletter.
Similarly, operating procedures or industry standards drive revenue growth management (RGM) strategy. However, if unused, it will reduce revenue. Therefore, the ‘Right’ revenue growth management (RGM) methodology must spring up to address today’s market challenge. Effectively, it must innovate prior best practices while re-aligning standard operating procedures accordingly.
For example, McKinsey & Company’s research studies conclusively demonstrate one element of this methodology regarding talent management. Or it proved the connection between talent management practices and business results – while they did so from a business perspective rather than HR. Effectively, committed people will be needed when the objective to grow revenues is not a new goal. What is new is the persistent raising of expectations now more than ever as we move toward 2021 and beyond. It is the age of the “expectations treadmill.” Effectively expectations place more value on revenue growth rather than profit growth. So, how is your talent strategy aligned and acted upon with the ‘Right’ methodology?
The ‘Right’ methodology is more than the sum of each of your business strategy parts, i.e., corporate, product, marketing, sales, and talent initially. For instance, a corporate strategy will define which markets they can competitively address. But, it will not tell the sales team which accounts to call on. While this critical element is standard in the our recommended ‘Right’ methodology, where your business will:
Spend the usual on your marketing and sales, and the ‘Right’ revenue growth management methodology will lead to a decrease with your customer acquisition cost by -31%, or more importantly adds 10% to the bottom line.
Improve customer experience value with this methodology which will translate to a more sticky solution. Hence this methodology increases your customer lifetime value by 28%
Now align around serving customers in the areas that need the most help results in a sales team ‘truly’ enabled and: from prospect and opportunity conversion, quota, plan attainment, win rates through to overall productivity improvement of 59% per sales head count.
The previously mentioned 22% put this ‘Right’ revenue growth management methodology in place. And they enjoy a 94% success rate.
To reiterate the ‘Right’ revenue growth management methodology is a long lasting transformation that takes time to deploy with likely an average of a year, while the depth of the learning curve to perfect and achieve consistency is dependent on your organizational development, or another year. And the underlying process is agile and continuously refined in the field as well.
Revenue Growth Framework Review
The following strategy review seeks to uncover issues with your strategies across your business. In this review, it is important to challenge current assumptions and comparing to top growth organizations as well as establish a common plain language understood by all stakeholders.
bEffective’s strength is listening, observing, and uncovering the spark which will bind each of these strategies and more together.
For example, what’s essential to the CEO must be evident in your corporate business objectives descriptor. It should comprise fast-growing market targets rather than market share to establish focus. It will then be easy to convert into tactical steps and daily actions from quota to necessary client conversations per day.
The value of bEffective’s consultancy is our unique approach for uncovering that idea that will spark your business’ growth. So often, it is your people who have it but don’t even know it. One such client example was when we uncovered several people’s ideas in their product group. Upon hammering out the details vetting it, long story short, it doubles the firms’ profits in less than six months. Simply put, it is a testament to the human ingenuity, creativity, and innovation of today’s knowledge workers when it is properly activated.
Action Step
You’ve read our promise for the challenge you may be facing along with the ‘how-to’ solve it.
bEffective offers services to help your business establish its revenue growth management (RGM) as a whole or one of the RGM modules that you need help to improve.
Should you wish to do it for yourself, check out our resources menu for ‘how-to’ to solve the challenge mentioned above and others in this area of our website.
Remember that research and science dictate that building the ‘right’ revenue growth management (RGM) approach needs to be built in sequence, integrated, and more to achieve the promised percentage, dollars through to consistent cash flow.
Alternatively, please opt-in to our newsletter for appropriate daily and tactical daily aids.
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