Do You Have an Integrated
Revenue Capture Strategy
Model or Are You
Just
Scaring Prospects Away?
By Paul
DiModica
-
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
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.
Four Truths Many People
Ignore
1) Corporate 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 the sales departments.
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e-Newsletter
Take
The Revenue Capture
Strategy Scorecard Alignment Test
Here is a quick assessment
of a much larger assessment
test we give to help you
decide if your team is
focused on revenue capture
as an integrated group or if
are they 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
Follow me on Twitter
@CEOStrategies
Scorecard Answers: 1. Yes;
2. Yes; 3. Yes; 4. Yes; 5.
Yes; 6. Yes; 7. Yes; 8. Yes;
9. Yes; 10. Yes; 11. Yes;
12. Yes; 13. Yes; 14. Yes
Subscribe to our
e-Newsletter
Leadership should be more
participative than
directive, more enabling
than performing. Mary D.
Poole
Rick Erling
President The
CxO Group, LLC and
Publisher of The
CxO News
www.thecxogroup.com
info@thecxogroup.com
(972) 727-6880
P.S. I always like hearing from you! Send me your ideas for the newsletter - or anything else to do with The CxO Group - at rerling@thecxogroup.com
Sincerely,
Rick Erling, President
Interested in a complete evaluation of your company strategy, sales, marketing, and financial performance? Our Revenue Capture Scorecard is a great place to start....
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