Exceptional executive leadership teams distinguish themselves from functional peers by adopting emerging best practices. In particular, they embrace the Revenue Growth Methodology, an emerging best practice that enables organizations to outpace their industries and their competitors by achieving strategic alignment across corporate, product, marketing, and sales strategies. It’s difficult to grow revenue faster than your industry’s growth rate and faster than your competitors. Leverage the How to Make Your Number in 2018 to access a revenue growth methodology to hit your number quarter after quarter, and year after year.
The following five signs indicate your organization could benefit from putting the Revenue Growth Methodology into practice.
/1 Getting Caught Up on the Expectations Treadmill
Sustaining growth is hard. is is especially true for large organizations. Let’s say that your industry growth rate is 5 percent, and your company has $1 billion in annual revenues. If you figure 5 percent growth for the next 10 years, revenues will rise to $1.63 billion. Now assume you want to outperform your industry and grow revenues by 8 percent for the next 10 years. To do this, you need to increase revenues to $2.16 billion. is requires new sources of revenue that can grow more than $530 million per year by the 10th year.
Sales effectiveness programs cannot produce this kind of result. To succeed, you must rely on a Revenue Growth Methodology that brings corporate, product, marketing, and sales strategies into alignment.
/2 Hitting Your Number Sporadically
Sometimes you make your number, but not consistently and not always. Temporary spikes in revenue are misleading. They cause sales leaders to go from hero to goat overnight. There are many culprits. Maybe a hot product comes out a year before your competition can respond, and this advantage provides a temporary revenue lift.
But sales effectiveness programs provide only temporary revenue lifts like this. A Revenue Growth Methodology allows you to make your revenue growth target every quarter, and every year. How? It does not depend solely on execution. It blends strategy with execution masterfully.
/3 Grappling with an Unrealistic Revenue Goal
Some organizations target revenue goals that are simply unrealistic, given the difficulties associated with sustained growth. Industries, companies, and products have life cycles. When markets mature, growth slows until innovation stimulates new demand. Sales effectiveness programs don’t take that consideration into account. As a result, they fail to deliver above-average revenue growth.
Top-producing executives implement a Revenue Growth Methodology that takes all factors into account, including where an industry, company, or product is in its life cycle. They question whether growth will come from attracting new buyers to a product for the first time, or taking share away from a competitor. The answer to that question alters your approach to growth, and is one example why a Revenue Growth Methodology is far superior to traditional sales effectiveness programs.
/4 Falling Behind Industry Growth
Your company’s revenue growth rate is constrained by the growth of your industry. And your industry is growing revenues at a faster rate than you are. Moreover, sales effectiveness programs focus only on sales, so they cannot generate revenue growth that exceeds the industry rate. In contrast, the Revenue Growth Methodology focuses on product, marketing, and corporate strategies together with the sales strategy.
This holistic management method enables companies to grow faster than the industry rate.
/5 Trailing Competitors
Your competitors are growing revenues faster than you are. Gains in market share are key to growing revenues. This is especially true if you are in a mature market. But growth that comes from taking share away from competitors is the hardest type of growth to achieve. And it’s typically the most expensive. In comparison, growth from general market expansion is much less expensive because competitive retaliation is low.
Sales effectiveness programs alone do not deliver revenue growth by taking share from competitors. The Revenue Growth Methodology considers markets, products, competitors, and go-to-market approach altogether. This comprehensive portfolio of benefits enables organizations to generate revenue growth from share gains.
Have expectations gone up and left you wondering if you can make your number? Here is an interactive tool that will help you understand if you have a chance at success. Take the Revenue Growth Diagnostic test and rate yourself against SBI’s sales and marketing strategy to find out if:
- Your revenue goal is realistic
- You will earn your bonus
- You will keep your job