What is your plan for achieving your revenue target in 2021? With new logo acquisitions increasingly scarce across industries, market-leading companies have had to reimagine how to go beyond the install base to optimize revenue generation.
SBI hosts multiple client advisory board meetings throughout the year to engage with industry leaders on best practices, common pain points, and more. When asked, “How do you plan to make your number this year,” this is what we heard.
Before diving into the following paragraphs, evaluate your current revenue growth strategy using SBI’s Revenue Growth Maturity Model. The RGMM assesses your capabilities across 8 functional areas to evaluate not only your organization’s overall maturity but your chances of making the number this year.
5 Keys to Reaching Revenue Goals in 2021
1. Market Leaders Are Taking a More Detailed Approach to Segment Customers and Prospects
Segmenting customers and prospects has been a best practice for many years. However, market-leading companies update their segmentation and take a more detailed approach to segmenting prospects and customers in 2021, with one CRO referring to it as “Hyper Segmentation.” This method segments prospects by industry, size, geography and calculating a 2021 potential revenue target. Additionally, some market leaders are prioritizing those industries not impacted or quickly recovering from COVID. This extra focus on segmentation has proven successful, and market leaders have seen an increase in win rates from 3-7%.
2. Market Leaders Are Optimizing Demand Generation Strategies to Maximize Return on Marketing Investment
To make the most of hyper-segmented prospects and customers, sales and marketing must closely align with the messaging being presented to the prospects and customers. Market-leading CROs and CMOs are meeting weekly, with the sole purpose of discussing demand generation efforts and ensuring their messaging has been tailored specifically to each segmented group to increase relevance to buyers and generate demand more efficiently. In addition, the extra weekly touchpoint allows Marketing to solicit feedback from Sales in real-time to better understand how prospects and customers are responding to the messaging being used.
To learn more about how Marketing leaders support the acquisition, nurture, and retention, view our latest Marketing blog here.
3. Hyper Segmentation Has Led to Cross-Functional Account Plans for Top Prospects and Customers
To drive new logo acquisition and customer expansion, market leaders use account plans to ensure the commercial teams are collaborating effectively. Commercial leaders require their sellers to hold account planning sessions more frequently than ever before. In addition, they require that someone from Marketing and Sales Operations attend the meeting and be mapped to their top prospects and customers. This creates a level of accountability and responsibility that previously did not exist.
To learn more about how Sales Operations can set up your sales team for success, read “Best Practices in Account Planning for Sales Operations.” Additionally, download SBI’s KPI builder here.
4. Market Leaders Are Targeting Expansion Within New Logo Accounts Acquired in 2020
Many commercial leaders pivoted to smaller, shorter opportunities which could be won more quickly in 2020. Pricing and packaging were used to reduce friction and make purchasing new products more consumable for prospects. These changes resulted in a positive NPS impact for 2020. Now that these prospects are paying customers, commercial leaders are focusing on expansion within these accounts. Some commercial leaders have even created tiger teams that focus exclusively on these customers.
5. Lastly, Market Leaders Are Re-Aligning Commercial Resources Based on More Detailed Segmentation and Customer and Prospect Opportunity
Market leaders have updated their coverage models to deploy a combination of Customer Success reps, Sales reps, and BDR’s to top prospects and customers to maximize customer lifetime value (CLTV) and minimize customer acquisition cost (CAC) and cost to serve. Additionally, they are more closely tracking net promoter score, as this creates referrals within large accounts and references which can be used to accelerate new logo growth and customer expansion.
To achieve your revenue target in 2021, a combination of new logo acquisition and customer expansion will be required. Market leaders execute against revenue targets using detailed segmentation, optimized demand generation, cross-functional account plans, and re-aligning commercial resources to increase customer lifetime value. Doing so enables Sales, Customer Success, and Marketing to be laser-focused on the right prospects and customers. How equipped are you to make the number this year? Start by measuring your capabilities on the RGMM and join SBI’s LinkedIn community to engage with your peers and share leading best practices.