What is the one thing used to defined success for investors, Board members and executive leadership teams?
ANSWER: INCREASED ENTERPRISE VALUE AND REVENUE GROWTH
If you can increase revenue growth and enterprise value, almost everyone associated with the organization will be happy. It's like the expression in sports that winning cures all ills -- increased revenue cures (most) ills.
So, what's the secret to increasing revenue growth and enterprise value? No secret at all, really.
Sometimes we make things far too complicated in business. It's like Occam's Razor: that "the simplest explanation is usually the best."
The simplest explanation of how to increase enterprise value is that value comes from revenue growth and revenue growth comes from improving the revenue production process.
WHERE DOES REVENUE GROWTH COME FROM?
Try it! Ask someone, “Where does revenue growth come from?”
You will be amazed at the responses you get -- even from the C-Suite or senior sales and marketing people -- Ask: “Where does revenue growth come from?”
They might say...
"Price increase" ...
Here is the Right Answer: The 5 Revenue Growth Essentials
Let's break it down more. How about the sources of opportunities? What are they?
The Only 5 Sources of Opportunities
They are: Sales. Marketing. Partners. Referrals. Customer Success.
Beginning with Marketing, a world-class marketing effort provides 30% of qualified opportunities into the pipe.
The Sales organization has to generate its own sales opportunities to the tune of 40%.
Depending on the business structure and distribution, Partners can provide 0% to 50% but let's use 10%, as that's an industry average.
Referrals are 5% and Customer Success is 15%. The distinction with Customer Success is that opportunities come from post-sales implementation and support. These opportunities close in half the time and 2x the conversion rate compared to marketing qualified leads - a little known fact.
So, Why Does Producing Revenue Growth Remain So Difficult ?
So, if you can break down: (1) Enterprise Value; (2) Where Growth Comes From; (3) Where Opportunities Come From, why does organic revenue growth remain so elusive?
The short answer is "Gaps."
There are lots of areas for potential breakdowns or gaps within strategy, marketing, product/market fit, sales strategy, planning and execution and customer success.
Right now, you may be thinking about specific issues, such as "the quality of our leads is bad" or "our sales team lacks skills" or "our product/solution isn't good enough and our customers churn."
Maybe you have been treating Customer Success in a traditional sense, that is "Customer Success” was delivered via Professional Services (Onboard, Train, Deploy, Enable) and Customer Support (Tickets, Response and Resolution) but it has not become a source of new sales for you in terms of expanding, renewing, cross-selling or upselling your products, services or platform.
The truth is, your revenue generating efforts can break down or not be optimized in dozens -- maybe hundreds -- of areas. Time is moving. Where do you stand relative to your numbers? We can help!
The first half will soon be in the books with only six months to go to make your numbers. Where do you stand relative to the plan? Schedule a FREE 15-minute with me to learn how your organization can be optimized today.
Dunn Growth Experts also offers personalized Customer Success reports for organizations seeking to improve their customer experience. Simply fill out a short 26-question assessment, swipe your credit card through our secure payment system and within minutes, you’ll receive a custom 30-page report detailing your results, showcasing how you compare against your competitors, and what you can do to improve your Customer Success results.
Bob Dunn is the CEO of Dunn Growth Experts, an industry leading consultancy and online consulting provider. With 35 years of experience growing revenue, they offer fast turnaround and high-quality consulting for businesses and individuals. With a mission to help their clients meet and exceed revenue growth and value creation goals and expectations, Dunn Growth Experts has helped US and international organizations grow their success.
For more information about Dunn Growth Experts, please visit: www.dunngrowthexperts.com
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