How to… drive revenue growth

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How to Drive Revenue Growth

With many businesses struggling to meet their financial objectives, Leslie Hines, partner at Revenue Performance Management Group International, offers eight tips for enterprises looking to significantly drive their revenue growth

1. Understand your current capability

Hines says: “To improve conversion of leads to appointments by two per cent, what do you need? What’s your current rate? What components of your marketing and sales tactical mix contribute? Don’t try to fix what you don’t understand. It is essential you know where failures are in order to tackle them.”

2. Use analytics effectively

“People tend to measure revenue when it lands. Because they have no leading indicators, such as upstream conversion ratios and marketing and sales velocity, they don’t know what is going to happen the next day, let alone next quarter. If you know your lead indicators for each stage of the process you can achieve a level of predictability that will make a huge difference to growth. With good data, you know which levers to pull.”

3. Take the holistic view

“Revenue isn’t created by the sales team alone. The organisation as a whole has a responsibility to understand their buyer’s journey. Everyone needs to be fishing in the right ponds, with the right bait, catching the right fish. That is how you ensure your buyers are seeing the right message about your brand identity in all the right places.”

4. Find and deploy the right talent 

“You can spend a fortune building an F1 car but with a dud driver, you might as well have a clapped-out Morris Minor. Talent is crucial to growth, but are you recruiting the right talent in the right position? Too often in companies we see star sales performers promoted to management, only to fail miserably. When hiring or promoting, it is vital you really understand the strengths and weaknesses of your team.”

5. Get the whole team collaborating to drive revenue growth

“Collaboration is vital to business success, yet between sales teams it is almost non-existent. In almost no other field of business is such a key role left to individuals armed with little more than their wits and a mobile. They need to collaborate with every part of their business, including other sales staff.”

6. Know how revenue relates to value

“A £127m organisation with a six per cent EBITDA (earnings before interest, taxes, depreciation and amortisation) operating at the 2.4 per cent benchmark for revenue conversion, can increase enterprise value by 66 per cent by improving each stage of conversion?– lead, proposal, close – by one per cent. This can be modelled over three years, and can make a huge difference to company valuation.”

7. Create your action plan

“This is where things start to happen; where you set your revenue blueprint, define, agree and action who is going to do what, by when, in what order, and for how much. Remember that change management, and monitoring the effectiveness of changes around human behaviour, is key to revenue growth. Forward indicators are crucial to ensuring progress is being made.”

8. Reflect and learn

“These are significant changes for any organisations looking to boost revenue growth. Break down the blueprint into aggressive but manageable steps, learn from actions taken and embed this learning into what we call future action plan ‘spins’. Using these techniques, it’s entirely possible to achieve revenue growth of 36 per cent.”

Revenue Performance Management Group International assists organisations with the development of their revenue

rpmgi.com.au

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