We have gathered 7 of the most effective strategies to boost your revenue performance.
Focus on revenue generation
You knew that already? We thought so, too! But the real issue is this: too many companies do not always
align their business plans with revenue goals.
Set your annual business plan with defined revenue targets. For example, Marketing is considered as one of the largest cost centers in most organizations. If marketing budget, however, is aligned with revenue targets, with corresponding ROI expectations, it could turn into a profit center and bring in predictable revenue to the table. A company can make this work depending on its level of revenue performance maturity.
Sit Marketing next to Sales
Marketing and Sales must work together. Revisit your organizational structure and assess if it supports both lead generation and customer lifecycle management, and provides room for collaboration between the teams that initiate these efforts.
Aligning Marketing with Sales means that revenue goals are shared between them. Your marketing manager works parallel to your sales manager because they have shared revenue responsibilities. When targets are set, members of your organization know exactly which direction to take—that is, nowhere but up the revenue scale.
Help your customers make decisions
What we really want you to do is cross-sell. Your customers are already using your products and services. Take advantage of this direct access to your patrons and find out what else they need. Then, match each identified need with solutions that your organization can provide. Help them make the right choices by filling in the blanks.
You have a system that large legal firms use to manage their daily operations? Link that to a content platform with tools that help that firm’s lawyers with their legal practice. Of course, provide the content, too! Cross-selling could spell significant profit for your business.
Get your sales team to do the dirty work
Okay, we mean some hard work. Get your sales team to up-sell.
In large enterprises with many corporate clients, up-selling requires extensive product knowledge, deep understanding of customer needs, well-kept relationships with partners, and a lot of convincing powers.
Successful up-selling entails that your team is able to convince your customers that upgrading to a higher-end product or service will bring them superior results. And it should! It also entails happier customers and greater revenue for your business.
Review your pricing model
Can you bundle a more expensive and in-demand product with a cheaper and less essential offering? Your customers might want the latter, too, but are unwilling to get it at full price.
Position bundles as “complete solutions” and make buying easier for your customers. You sell more products and get bigger overall revenue out of the deal. Alternatively, market more expensive and elaborate services as premium offerings and achieve larger profits without getting more products out. With the latter strategy, you even create higher perceived value for your products and services, which in turn justifies the higher price.
Get your customers to sell your products
But make them happy first.
Satisfied customers willingly promote your products and services to others in their circles that could be way outside your reach. They will talk about your excellent job in social media, during industry conferences, and with the procurement committee.
The more of your happy clients promote your offerings, the more business you can expect. Net Promoter Score or NPS “measures customers’ overall experience of your brand” and is identified to be “a leading indicator of growth” for companies. It is calculated based on the respondents’ answer to a single question: “How likely is it that you would recommend [brand] to a friend or colleague?” An NPS score could be from -100 to +100, measuring detractors and promoters respectively. A positive score means your customers are likely to be voluntary ambassadors of your brand. A higher NPS also means “you will likely outperform the market, and managing your organization to improve NPS will also improve your business performance, whether you are aiming for faster growth or increased profits.”
Leverage actionable intelligence to identify revenue opportunities
Turn your attention to revenue-focused metrics as identified in the Revenue Generation Maturity Framework™: customer lifetime value (CPL), retention rate, customer churn, conversion rate, brand equity, cost-to-acquire, and ROI.
Insight into these metrics allows you to accurately measure your company’s performance per area, and optimize revenue strategies as necessary. Use analytics to identify revenue opportunities that you might otherwise have missed.
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