Have your recent revenue growth initiatives run out of steam? Many companies have implemented projects focused on early-stage buyers — persona research, buyer journey mapping, content marketing, social selling, and mobile enablement, to name but a few.
Though well founded, these initiatives were tactics masquerading as strategy. Big money is at stake: A typical company spends 35 percent of revenue on product (11 percent), marketing (5 percent), and sales (19 percent). When it comes to revenue growth, spend must be considered in aggregate. With 35 percent of revenue at risk, functional misalignment is a deadly malady.
The snapback to this has recently been that the revenue-facing functions (product, marketing, and sales) are developing individual strategies and aligning each. The advantages to this approach are that it:
- Systematizes Revenue Growth.
This is the one common practice among the top 10 percent of management teams working at companies who consistently make their numbers.
- Links Internal Strategies to External Market Conditions.
This enables fast response to marketplace changes.
- Drives Functional Synergy.
The mere working together of aligned strategies forces departmental cooperation on a scale not achievable by respective staffs. This lowers customer acquisition costs and increases customer lifetime value.
How it Feels to Make Your Number
It has never been more important for the product team, marketing department, and the sales organization to work together, but it’s easier said than done. Turn to page 46 to learn the prescription for developing your 2016 sales strategy, with critical inputs from product management and marketing.