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STAGE 2: REVENUE STRATEGIES
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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 Top Line Abundance.
The second stage in the TLA Blueprint is to categorise
these revenues and determine the relative ranking and priority. What
share of the total revenue target should each category contribute?
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