Revenue Growth Methodology
The Revenue Growth Methodology (RGM) is a management method used to accelerate the rate of revenue growth, so that B2B companies can grow faster than their industry and competitors. It accelerates revenue growth by getting the functional strategies of sales, marketing, and solutions fully aligned to the CEO’s growth strategy for the company.
“I was skeptical that we could take a different approach to our pricing strategy. You showed us an alternative that should enable us to extract more revenue per product based on the value of our products/services provided to our customers.” – Chief Executive Officer, IT Services Company
The Revenue Growth Strategy is where the direction for the company’s go-to-market approach is defined. It draws insights from competitors and customers and uses those insights to choose which markets to compete in and what strategic advantages to develop. A strong Revenue Growth Strategy puts the company in the best position to win in the marketplace by properly allocating people, money, and time to generate profitable growth from the commercial engine.
Sales strategy defines how you will hit the growth objective by aligning resources to the top market opportunities and building a predictive system to consistently achieve your goals.
A successful sales strategy provides an operating plan for a company’s sales teams, to ensure execution of the revenue growth strategy. Leverage the plan to allocate resources in the most effective and/or efficient manner, so that teams can grow revenue from new and existing customers. The sales strategy optimizes the sales function to achieve revenue growth objectives consistently.
Marketing is virtual and digital in 2020 and beyond. That means it’s even harder to get in front of your prospects because the digital channels are more crowded than ever with competing messages. Revenue Marketing can shoulder more work in building the pipeline, but it also needs greater investment to contribute to profitable growth. Learn from the market leaders where to identify cross-functional savings, new efficiencies, and fresh innovations to fuel your marketing results and take share. Leave the market laggards to continue to just stare.
Buyers have more power than ever, have lower switching costs, and are under increased pressure to demonstrate value. Most companies have adopted a Customer Success approach in order to proactively demonstrate value, increase renewals, and identify (and in some cases pursue) cross-sell and upsell opportunities. In a recessionary environment, retention is the new growth, and market leaders are leveraging their Customer Success teams to make the number from their existing customer base.
Although marketing and sales are important functions to create market push, many companies overlook the impact on packaging and pricing to create market pull. Many companies leave value on the table because they treat pricing and packaging as an afterthought.
Pricing is one of the most important levers market leaders utilize in their Go-to-Market strategy, particularly in relation to the product lifecycle where one might consider penetration pricing or price skimming based on business objectives and market conditions.
While frustrating and friction-filled customer experience still exists, no company sets out to deliver a poor customer experience. Over the past decade, many companies have undertaken customer experience initiatives and they regularly measure and monitor customer satisfaction scores, Net Promoter scores, and customer feedback. However, market leaders go a step further: they can directly connect customer experience – and the moments within a customer’s journey – to revenue growth. In short, market leaders have figured out how to monetize CX.
As customer demands and expectations continue to shift, companies must constantly review their talent, to ensure they have A-players in customer-facing roles. Furthermore, they must create the right performance conditions to ensure these individuals are enabled to deliver the right experiences along the customer’s life cycle.
In 2021, companies will continue to be physically distanced from their customers and prospects. Virtual appointments, sales presentations, meetings, negotiations, etc. will continue. Many companies will interpret the rise of “virtual” as the need to initiate or double-down on digital “transformation” – but beware the broad and amorphously defined digital transformation. In 2021, market leading companies will be clear-eyed about their digital maturity and laser-focused on select digital evolutions that drive Marketing, Sales, or Customer Success outcomes. Market leaders integrate these digital deployments under their Revenue Growth Office, to ensure interlock with the commercial functions.
Companies who struggle with capability gaps in sales and marketing often miss growth targets. SBI created Knowledge Services to provide sales and marketing teams with an efficient, scalable way to improve capabilities. On-demand learning modules show teams exactly how to execute critical go-to-market processes, step by step — practices that have been proven and honed over hundreds of successful revenue growth projects. By learning and executing these key processes, your sales and marketing teams will significantly increase the probability of making their number.