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Revenue growth is a company
responsibility . . .

. . . not just the sales department's responsibility.

Contact The CxO Group, LLC Now

www.thecxogroup.com

info@thecxogroup.com

call (972) 727-6880
 

HOW ARE THE REVENUE CAPTURE STRATEGY SERVICES DELIVERED?

• Half-Day, Full-Day and Multiple-Day Sessions

• Monthly, Quarterly and Annual Consulting Programs

• Onsite Retainer Consulting

• Hourly Conference Calls

• Private Workshops via Conference Call

• Long Distance CEO Coaching by eMail and Phone

 

Rick Erling is

is a Certified Revenue Capture Strategist, CxO Coach, and management consultant working with start-ups, privately held companies and Fortune 1000 companies in both the public and private sector.

 

 

 

 

 

Click now to learn more about The CxO Group Certified Revenue Capture Strategists

Sales and Marketing Linkage to the Balanced Scorecard

Do You Have an Integrated Revenue Capture Strategy or Are Just You Just Scaring Prospects Away?
by Paul DiModica, Editor, BDM News

• Are your sales costs increasing per sale?

• Does your marketing scare prospects away?

• Do you have products or services that no one is buying?

• Are your revenues down?

If so, then you may have a decentralized revenue capture strategy approach where your strategy, marketing and sales process are not aligned as an integrated revenue capture program.

In my previous life, before starting this company and others, I was VP of Strategy Worldwide for an $800 million public company called Renaissance Worldwide. This was the company that bought Renaissance Solutions, the consulting company owned by David P. Norton, author of The Balanced Scorecard.

As VP of Strategy, I worked for the CEO and the board of directors to evaluate and make appropriate recommendations on the revenue capture strategy, marketing and sales process of ten (10) operating business units we had. Our operating units included internet start-ups, acquired businesses, and organically grown divisions.

Using the balanced scorecard approach, I identified that many of our business units had a decentralized revenue capture process because their departments were not linked to a common goal or aligned symbiotically to each other. Not that the management teams were consciously trying to build barriers of cooperation between departments, but it occurred due to their individual corporate goals, compensation plans and the team members inability to understand the other department’s functional operational attributes.

This lack of functional operational interdepartmental knowledge and lack of alignment forced departments, even with good intentions, to work as business silos.

Most Important Benefit of Close
Integration of Sales and Marketing
according to Marketing-Related
Companies in the UK, 2007
(% of respondents)

Four Revenue Capture Truths Many People Ignore

1. Revenue Capture Strategy is based on research of what prospects will buy, not what you want to sell.
   
   Just because you bought a company, created a new offering, or spent $10 million on development to create the greatest widget in the world, it does not mean you have a market for what you sell.
   
   Buyers only care about themselves.
   
    
2. The marketing department ’s primary goal is to help generate qualified leads for sales . . . that’s it.
   
   Yes branding, third-party analysis research and beautiful tradeshow booths are important, but they are just tools to ultimately increase revenue.
   
   Marketing must have ROI or it is a wasted investment.
   
    
3. The sales department must sell new business.
   
   Yes, selling existing customers is important, but to grow top line revenue where you will not be dependant on your existing customer’s ability to buy . . . you need to hunt for new business as a premeditated approach. By focusing on the lifetime value of deals, you can reduce sales capture costs.
   
   Hunt Now or Be Eaten Later!
   
    
4. If your departments are not aligned together by goals, key performance indicators (KPI’s), compensation plans and parallel knowledge of the operational tasks of the other departments, then you have a decentralized revenue capture process.
   
    

   Revenue capture is a company responsibility . . . not just the sales departments.

Lead Generation Method Used
by Companies Worldwide, 2006
(% of respondents)

Take The Revenue Capture Strategy Scorecard Alignment Test

Here is a quick assessment of a much larger scorecard assessment we give to help you decide if your team is focused on revenue capture as an integrated group or if they are operating as independent silos.

1. Does your company create (or acquire) new products or services based on market demand?
   
   __Yes   __No

2. Does your sales team have separate sales quotas for business from existing customers and business from new prospects?
   
   __Yes   __No

3. Is your marketing department paid based on the number and the quality of their leads they generate?
   
   __Yes   __No

4. Are your sales quotas or targets calculated based on mathematical demand models?
   
   __Yes   __No

5. Do your senior marketing executive and your senior sales executive have a team metric then need to reach together? 
   
   __Yes   __No

6. Are your marketing managers paid based on corporate department sales increases?
   
   __Yes   __No

7. As a business to business company (B2B), does the marketing department report to the VP of Sales?
   
   __Yes   __No

8. Do the sales, marketing and strategy departments meet at least four times a year to discuss successes and failures to date and document action steps required by each?
   
   __Yes   __No

9. Does your senior management team assign specific measurable metrics to the strategy, sales and the marketing department managers and is their performance discussed at executive meetings? 
   
   __Yes   __No

10. Are your sales team members evaluated on how quickly they follow-up on sales leads given to them by the marketing department?
    
    __Yes   __No

11. Does your marketing department go on sales calls at least twice a year to understand the sales process? 
    
    __Yes   __No

12. Has your marketing team researched why prospects buy, why they don’t buy, and how your firm creates value? 
    
    __Yes   __No

13. Do you have a written corporate strategy for all department heads to review as needed as a corporate guideline? 
    
    __Yes   __No

14. Does the sales team have a written step-by-step sales process to guide the marketing department on what communication deceives they need create for each sales cycle step?
    
    __Yes   __No

Revenue Capture Strategy Scorecard Answers

Biggest Sales Challenges
according to US Marketers, 2005
(% of respondents)

Biggest Marketing Business Challenges
according to US Marketers, 2005
(% of respondents)

 

 

Contact The CxO Group, LLC Now

www.thecxogroup.com

info@thecxogroup.com

call (972) 727-6880

 

business growth strategy, business growth strategies, revenue capture strategies, revenue capture strategy