Revenue Growth Strategy

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.

Market Segmentation


Segmentation provides a deep understanding of the market. It helps differentiate a company’s strategy from the competition, prioritize accounts, and align the strategy with buyer needs. As a result, companies can bring the strategy into alignment with the external market.


  • What It Is – Divide the broad target market into subsets of buyers who have common needs, priorities, and solution options.
  • Why It’s Important – Identifying markets where companies will have a competitive advantage will fuel the growth of the business.  Understanding these markets will help determine if and how a company can and should enter new markets.
  • How to Use It  – With Market Segmentation, only the markets that are attractive to meet the corporate strategic objectives will be the focus of the collective efforts. Mature, low-growth markets where products have little opportunity for differentiation will be de-prioritized. And by focusing on growth markets, the most effective opportunities will be captured.


Account Segmentation


Account Segmentation helps companies dynamically identify which accounts are most likely to buy in the short and medium term, as well as the right coverage motion for those accounts.


  • What It Is – Understand which accounts in the market are going to generate the most revenue over the shortest period. This frequently includes a ROAD model (Retain, Opportunistic, Acquire, and Develop) that maps each account on current revenue and potential revenue over a defined period.
  • Why It’s Important – Quantifying the potential, propensity to buy, and willingness-to-pay for each account will increase the sales and marketing ROI by aligning Customer Lifetime Value with Customer Acquisition Cost
  • How to Use It  – This is done by aligning the right number and type of resources with the best accounts. With accurate account segmentation, the executive leadership team will be able to provide intelligent strategic guidance to the commercial organization, including Marketing, Sales, and Customer Success.


Buyer Segmentation


Buyer segmentation is used to identify how companies make decisions, and how the individuals who make those decisions want to be served, so that they are pursued in the most effective or efficient manner.


  • What It Is – Understand how buyers in accounts and markets make purchase decisions.
  • Why It’s Important – Intimately knowing buyers’ needs and how they buy will allow companies to capture more value from the market. This will help companies determine the right Go-to-Market strategy for each customer
  • How to Use It – Buyer Segmentation enables companies to sell their solutions at more favorable price points and to differentiate their offerings from those of the competition.


Go-to-Market Coverage and Routes to Market


Companies must select routes to market which align to the Revenue Growth Strategy.  For example, if the goal is to improve the customer experience, this will influence the selection of routes to market. Likewise, companies targeting a low-value segment must identify a cost-effective route to market.


  • What It Is – Sufficiently and effectively cover markets. Select and optimize sales channels to support the revenue growth strategy
  • Why It’s Important – Covering the addressable market entirely will result in more revenue opportunities, aligning market segments with the right coverage approach aligns customer lifetime value and customer acquisition cost.
  • How to Use It – As traditional routes to market are being replaced with innovative ways to reach customers, the commercial leadership team must adjust plans on a regular basis to find the most effective and/or efficient paths to customers.


Revenue Growth Assessment


A Revenue Growth Assessment (RGA) will help companies assess and benchmark the revenue marketing, sales & customer success, customer experience, and packaging/pricing functions vs. emerging best practices.


  • What It Is – Identify and prioritize short and long-term revenue growth levers based on potential impact and effort level.
  • Why It’s Important  – Quantify the opportunities and develop the business case for each recommendation, so the commercial leadership team can decide and then execute on the right lever(s).
  • How to Use It – Develop execution plans that map what the Revenue Growth Implementation teams must do, in what order, to capture revenue growth.


Revenue Growth Plan


A Revenue Growth Plan (RGP) clearly documents the actions that a company will take to execute the Revenue Growth Strategy.


  • What It Is – A documented understanding of the revenue growth opportunity, and the plan for the Revenue Growth Implementation Teams (RGIT) to execute upon.
  • Why It’s Important – An RGP aligns the efforts of the RGIT, to increase the chances of success. The RGP is a living document that helps the RGITs adapt their approach dynamically based on new information.
  • How to Use It – Market-leading companies use the RGP to identify dependencies of the different strategies and drive interlock between and among the commercial functions.