As June 30 looms, securing revenues will force organsiations to behave in two very different ways. Those that are on budget and have every faith they’ll meet the June 30 target. Then there will be those who are behind and continue to scramble to secure business.
Organisations, which fall into the later will regurgitate a series of short term tactics with the hope they now amazingly work to secure the sale. The problem here is that they didn’t work for the past 10 months, so why expect anything different now?
The most common tactic applied now will be to offer a discount to “sign the contract before June 30” and secure the business for this years budget.
Organisations may need to do that to keep the doors open, but what happens come July 1… what will the organisation do differently to perform better, and ultimately improve revenue next year?
Maybe the best option is to invest those short-term tactics into resetting next year’s revenue budgets. Not every business may be able to afford this, but the focus is to find a “solution” and hit July 1 with a bang!
Some reasons to consider this;
• Hammering out some marketing “incentives to buy”, just reinforces your seller priority not your buyer need
• Dropping the price to close the sale (often known as the Drop-Close), only sets the expectation that you’re desperate and the customer is likely to expect that service and “value” going forward
• Not everyone deserves either or both of the above. If you do need to deploy the above, ensure you are micro targeted with your audience, offer and perceived value
As you keep one eye on the present, the other must be looking towards the next 1 – 3 years. In 12 months you don’t want to be forced into these same survival tactics do you? In fact, something to consider is what did your organization do during the same period over the past two years?
Traditional solutions would focus on improving the following;
1. Create more leads
2. Improve sales people selling skills
3. Increase the customer product mix
These are but a few questions that DO NOT help an organisaton define its revenue performance maturity.
New age solutions would focus on pinpointing the root cause to poor revenue performance by improving insights into;
i. How many leads are needed
ii. What are the end-to-end conversion rates
iii. What does the entire buyer journey look like
iv. Where is revenue being lost
All of the above and more must be modelled of your ideal buyer profile. One thing is for sure, if your organisation is one of those who are behind and continue to scramble to secure business for June 30, then your overall business success is at risk.
Managing that risk could be viewed with efforts remaining high, as too the desire to improve yet it is most likely to be managed as separate business units. Unfortunately effort, desire and working in silo’s hinders progress.
For those wanting to learn more about improving revenue performance, we have hand picked the following insights for consideration;
• Secrets to converting Sales Opportunities
• Secrets to generating Quality leads
• Secrets to managing the Buyer Cycle
• 3 Secrets to improve Revenue Performance
• Secrets to building a Revenue Engine®