Profits should be derived from revenue—not from cost cutting! This is one of the two golden rules given to companies by strategy expert Mumtaz Ahmed, chief strategy officer of Deloitte LLP and author of Three Rules: How Exceptional Companies Think.
Exceptional companies focus on revenue generation and the development of a strong foundation within their organization to generate more revenues as a sustainable competitive advantage. The Revenue Generation Maturity Framework™ developed by The Growth Engine examines 10 critical elements within an organization that impact its ability to improve revenue performance. These elements are like cogs in a well-oiledmachine—free of the rust of backward thinking and other impediments that hinder action, each component seamlessly rotates and sets the entire system in motion.
Marketers are playing in an uncertain field.
We have seen tremendous change in consumers’ behavior in the past 10 to 20 years brought about by rapid technological advancement. The Internet has played a disruptive role in diversifying market segments and transforming the way businesses interact with their audiences.
Consumers now hardly listen to the advice of in-store sales personnel—they have conducted their research online and learned about the differences in features of competing products. They immediately recognize a better deal from a good one after browsing a host of online sites offering the same piece. Many are skilled at prying on special promotions that are offered exclusively online.
There are simply too many new elements that marketers should take into consideration in order to thrive in this period of the digital age.
What percentage of your revenue did that series of webinars contribute last quarter? Does the top-line figure justify the CMO’s decision to fund that million-dollar marketing campaign?
A CMO practicing Revenue Performance Management has deep insights on ROI of marketing programs and could give an outright response to these important questions. Unfortunately for many companies, marketing executives do not set revenue goals and overlook the importance of tying marketing efforts to returns. Traditional marketing practices focus only on marketing activities and rarely pay attention to revenue generation.
Revenue Performance Management is a systematic approach that enables business leaders to analyze and quantify the results of marketing activities with the end goal of optimizing revenue growth. It entails evaluating marketing and sales performance to identify drivers as well as impediments to this growth.
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.
You want to achieve greater revenues for your business by building on better value propositions, increasing customer spend, cross-selling, shortening the buying cycle, leveraging customer loyalty, and increasing your overall market share. Great goals! But how do you exactly plan to achieve them?
A very good place to start with is to get to know your customers well. This article aims to present you with some insights on how you should go about to target the right customers!
What is about some organisations' social media strategy that makes them so successful?
There are a number of strategies and models out there but time and time again there are two attributes the major players use to really engage their audience. I believe that whatever model you choose the following two elements cannot be overemphasized for achieving successful interaction and participation.
1. First I think that audience participation is critical. If you want to achieve a significant level of interaction than posts should always speak to your target audience needs.
2. Secondly I think that companies who mine their history to continually tell the story of the business in an engaging way are able to convert people with less effort.
Ensure you have a good media plan in place as that is the key to driving whatever attributes that you deem to be successful.