As we round out 2020 and begin to look ahead to 2021, the topic of revenue planning is surely at the forefront of conversations between your company’s leadership team and board members. While your annual revenue planning activities may focus on big-picture, strategic initiatives, it is important to think ahead to the future and how you may see your organization and industry shaped by data, analytics, and technologies. If any facet of the organization is best-equipped to provide insight into your company’s digital capabilities, it is Sales Operations. Now is the time to begin to think about how to position your company’s Sales Ops function as a strategic thought partner when it comes to digital strategies.
Many of your peers have seen a digital transformation in the way they operate as a result of the COVID-19 pandemic. SBI has seen many of these transformations first-hand and has reported on the key trends in our Annual Growth Strategy Report. In this article, we will explore what makes a successful Digital Transformation and how to prioritize the individual strategies.
Digital Transformations: Who Succeeds and Who Fails?
SBI found that in the B2B space, digital commerce accelerated more in 2020 than in the previous 10 years. However, 70-95% of digital transformation efforts fail. In SBI’s research and interviews of market leaders who have had successful digital evolutions, we found that Market Leaders are focused on agile digital Go-to-Market evolution, which reduces friction in the customer journey. In our interviews with over 1,300 CEO, we found that market leaders understand their capabilities and then align their digital strategies to the Revenue Growth Strategy.
Digital Strategies: Which Should Be Prioritized?
SBI has long relied on the Revenue Growth Maturity Model to help our clients benchmark themselves against their peers in order to understand their company’s effectiveness at acquiring and retaining customers. The RGMM is an assessment that helps companies identify gaps and level-set their organization to increase their chances of Making the Number. Through the 42-question evaluation, the RGMM measures capabilities across 8 functional areas to determine how you rank amongst your peers.
Recent trends have shed light particularly on the Digital component of the maturity model, which assesses your digital capabilities among 8 key categories. The digital maturity model assesses your organization and places it into one of 5 levels for each category. The maturity model is sequential. Companies must first, for example, establish level 2 digital capabilities before moving to level 3.
The digital maturity model assesses your company in the categories of:
- Growth Strategy and Interlock
- Customer Experience
- Sales and Customer Success
- Pricing and Packaging
- Digital Content
- Revenue Attribution
- Revenue Operations
- Virtual Selling and Enablement
The way you prioritize areas of focus for 2021 planning depends on the levels at which your company is ranked for each category. For example, it is necessary to focus on the areas where your company ranks as a Level 1 or 2 before moving on to address areas that are ranked as level 3 and up.
How to Ensure the Success of Your Digital Strategy
We’ve explored some of the key attributes that make organizations successful with digital transformation. We’ve also demonstrated how digital strategies can be prioritized in revenue planning activities. The next step is to take these insights and apply them to your organization.
First and foremost, complete the RGMM diagnostic tool to unlock insights on your organization’s strengths, weaknesses, and overall health across key areas of the business. Pay special attention to the insights gained from the Digital Maturity Model output. Review SBI’s latest research around Digital Strategy, and check out our latest blogs about digital customer experience and how to evolve your culture to prepare for your upcoming digital transformation. Tune in to SBI’s podcast to learn some tips from your peers on how they are leaning into their digital transformation. We recently interviewed veteran and market leader Chris Perry, President – Broadridge Financial Solutions, on the critical importance of digital transformation right now.
“Change is the law of life and those who look only to the past or present are certain to miss the future” – John F. Kennedy
“It is not the strongest of the species that survives, not the most intelligent that survives. It is the one that is most adaptable to change” – Charles Darwin