Stage 2: Revenue strategies
In most cases the total revenue target can be divided into multiple categories,
each with their own specific characteristics and challenges. For example
recurring revenues, such as maintenance and renewals may have a high degree of
predictability, high dependence on customer satisfaction and require a low level
of selling effort.
In contrast, new sales to new names may have the biggest marginal impact on
profitability. But they may appear to be difficult to predict in terms of
effort, pricing, timing and win rates. They require a high level of skill in
controlling the selling cycle and without insight it can be difficult to isolate
skill issues from external factors such as the economy.
Channel sales may have a low direct cost and require low consultative selling
skills effort but deliver wide variances year on year.
Identifying these streams, their inter-dependency and relative volatility is a
critical task in creating Consistent and predictable revenue.
The second stage in the Blueprint is to categorise these revenues and
determine the relative ranking and priority.
What share of the total revenue target should each category contribute?
Go to next step:
Selling Processes