These are truly challenging times. To adapt to this new normal, COVID-19, you are likely rethinking your go-to-market strategy. Companies need to reallocate go-to-market resources (people, money, and time) in order to capture opportunities in the short-term, as well as the long-term. As companies are being faced with making these tradeoff decisions around coverage, there has never been a more critical time to leverage data.
Learn more about how market leaders are adjusting to new selling motions in a COVID-19 world in today’s webinar at 12 pm ET to become well equipped to nurture accounts and determine how to best reallocate resources to drive revenue growth and productivity.
Historically, revenue plans and expectations have been influenced by traditional segmentation methodology. Revenue plans are typically built from a top-down assessment of last year’s number, but that is no longer relevant in a disrupted market. Turn to hyper-segmentation to help drive decisions. It provides an unorthodox, “moment-in-time” perspective that helps you gauge the impact of COVID-19 and identify areas that are less impacted and/or experiencing growth.
Allow Revised Revenue Planning to Influence Coverage Principles
Executives need to leverage data to rethink scope. Scope will influence how you ultimately think about coverage principles as it pertains to making your revised number. By having a granular understanding of where your revenue will come from, and if the goal is realistic, you have a better chance of achieving your revenue target. Use data to revisit the commercial levers that impact coverage.
- Industry: Which industries and segments have the highest propensity to buy right now? For example, airlines have certainly fallen out of scope for many companies as a result of COVID-19. Use an “outward-in” point of view to understand the total addressable market in each segment. “Outward-in” is best described as understanding the market, their needs, and how they want to be served, which will allow you to better align your sales motion.
- New Logos: Should the focus be on obtaining new customers?
- Existing Customers: Should the focus be on existing customers? Reducing churn and extracting renewals from the existing base is even more crucial when revenue from new logos is disrupted. By tending to that existing customer base, companies can also find areas to upsell and cross-sell customers.
Use the Road Model to Prioritize Coverage in the Short-Term and Long-Term
It can be easy to lose sight of prioritization during a disruptive event or crisis. By utilizing the ROAD coverage model, you can reallocate resources towards areas that will drive the most revenue for your company. It allows you to think about coverage opportunities in the short-term and long-term.
- R – Retain: Which customers should I work to retain moving forward? They are the base of existing revenue. Remember that retention is the new growth strategy.
- O – Opportunistic: Which customers have a low spend and low potential?
- A – Acquire: Which prospects have a heightened propensity-to-buy due to the pandemic? Which prospects can be converted to high-value customers?
- D – Develop: Which customers have a high spend and high potential?
Right-Size Headcount Based on Coverage Principles
Executives need to identify optimal sales coverage in order to effectively capitalize on the account prioritizations outlined by hyper-segmentation outputs. Optimal coverage is an essential input for achieving company-wide objectives. While many companies will ultimately take a hit to headcount capacity due to COVID-19, other companies will need to increase headcount to fulfill newly presented opportunities. Optimal headcount is also a necessary contingency for territory planning.
Putting It All Together
Long story short, best practice tells us to let data influence coverage decisions during these trying times. Revise your revenue strategy using a “moment-in-time” perspective to capitalize on short-term opportunities during abnormality. Use a real-time lens to help you reallocate resources towards the customers, prospects, and verticals that can drive the most revenue for your company right now. And after prioritizing specific accounts, right-size headcount to align with revised objectives. Companies that successfully adapt their coverage and identify short-term and long-term opportunities will have the upper hand when society returns to normal.
Join our webinar today at 12 pm ET for best practices on how market-leaders are covering their accounts in a COVID-19 world.