Business Plan Specialist
Call
425-347-4678
for Consultation
Addressing Revenue Leaks
by Rick Van Ness June 6th, 2006
Why hire OneAccord? To help identify and execute sales and marketing initiatives to capture more market share.
Add up the sales of all the competitors in your market. That is your total market size. Your portion is your market share. All the rest is lost due to lack of product that matches customer’s needs, or the customer doesn’t have a way to buy (channel not covered), or you actually compete but lose the sale to your competitor. This slide suggests opportunities.
To increase revenue, think about initiatives in five areas:
(1) Product – how much of the market does your product or service address? Initiatives here target product specs (form / fit / function) and expanding the offering to provide the whole solution (including accessories, service, training, etc).
(2) Channel — how often is product/service offered for sale to end user? Initiatives here might address the sales presence in a geography, a customer segment, or an individual sale. Alternate channels (direct sales, partners, internet sales) might provide valuable initiatives.
(3) HitRate — the percentage of wins due to price differentials, technical support, perceived value differentials, delivery schedules, guarantees, ease of doing business, etc.
(4) Price – actually a key factor in HitRate, but it is so important that it is useful to highlight and actively manage this separately. Initiatives might be adjustments to capture value, or new pricing options such as “pay for performance” or “unbundled pricing”.
(5) Market — mostly driven by macro economic conditions and affects all competitors. This is usually outside your control, although some political and legal initiatives would fall into this category.
Ultimately, it is all about initiatives. The sum of your initiatives is your strategy. You can tie the revenue of every business to sales and marketing initiatives.
This article is seventh in a series by Rick Van Ness about successfully deploying new business initiatives to grow revenues. Previous | Next
GrowthConnection,
LLC
Seattle, Washington
(425) 347-4678
©2006 GrowthConnection, LLC