In the 21st Century, “Revenue Science™” is a must have just like Quality, Lean and Six Sigma were 20th Century must haves for intentionally-successful leaders.
“Revenue Science™” brings new roles, new rules and new tools that must be applied by every organization that plans to survive and thrive in this constantly changing world.
Businesses are like the people in our lives. They are always changing but still guided by the laws of science and the human spirit.
Twice a month for the next year stand-alone pages from a new eBook will be revealed to guide those who want to win The Revenue Game in today’s complex and transitioning world.
Each page from the eBook is a step along the Revenue RoadMap that shows traditional leaders (CEOs, COOs, CFOs, Sales and Marketing) and now the CRO (Chief Revenue Officer) how to predictably grow profitable revenue regardless of market changes.
This is page 21 with 4 more to come. Join us in a new world of “Revenue Generation” by becoming a member of the “Revenue Science™” community. Share with us your feedback, experience, challenges, and observations or just come along to observe and learn.
New Tool – Cost Per Sales Hour is part of the Revenue Science™ metrics. Sales is no longer viewed as magic performed by those born with the right DNA. Marketing will never again be OK when “50% works, but we don’t know which 50%.”
When you ask CEOs what their Cost Per Sales Hour is, not one even knows how to figure it out. To measure the Cost Per Sales Hour, start with the definition of selling (since that is what we will measure). Sales is moving a DEAL forward. Deal is the key word – anything not focused on a DEAL is marketing, customer service, administration or something else, but it is NOT selling.
How many hours do sales persons move deals forward per week? The most common number is in the area of 1 hour per week. The person may work as many as 50 or even 60 hours to actually sell 1 or maybe 2 hours.
The hard cost of fielding sales people like salary, fringe benefits, travel, training, commission / bonus support services, etc create the total cost per person which normally comes out to $3,000 to $5,000 for every hour of selling (each organization is different), and if you had a full time 40 hour per week of selling (moving deals forward), they would cost at least $520,000 per month.
Today there are hundreds of ways to reduce the cost and greatly increase the results by applying Revenue Science™ metrics. Just imagine if the top 20% of your sales team could sell 400% more (go from 1 hour to 4 hours), and you got rid of those sales people not producing. Just think what would happen and how much fun it would be to work in such a high-performing organization. Learn and apply Revenue Science™ metrics to cut your cost by 50 or 60 or 70%, while you watch the top line explode.