Watch here as Dan Perry, Principal at SBI, and I discuss this very topic.
It starts with strategic alignment. This begins with a clear understanding of the corporate strategy. It is followed by a grasp of the interdependencies among the various functional strategies. And to truly be aligned, you must also link these internal strategies with external market conditions.
Dan and I dig into this concept even further. We discuss the impact of strategic alignment on your customer acquisition cost (CAC). Approximately 35% of revenue is allocated across product, marketing and sales. A reduction in CAC of 30% drops more than 10% to the bottom line. Additionally, we’ll discuss customer lifetime value. We have found that aligned strategies result in a 26% higher customer lifetime value. This directly impacts top-line revenue for years to come.
We will walk you through how to calculate each of these, step by step.
During the episode, we will use SBI’s Revenue Growth Methodology. If at the end of the episode, you’d like a copy for yourself we will let you know how to get one.
Ultimately, having strategic alignment increases your chances of making your number. It also reduces customer acquisition costs, and increases customer lifetime value. This creates shareholder wealth. If you want to make sure you are strategically aligned, watch here.