When leaders think about how to apply Revenue Science™ to their organization, they freeze. Revenue Science™ is “organization wide” since in most organizations there is NO human who does not have a role in creating MORE profitable revenue, which makes Revenue Science™ look complex. If there is someone who doesn’t have a role in creating MORE profitable revenue, the leadership team and investors need to validate the role that human has to “keep” or “can.”
The same logic applies to all investments NOT human. What investments have no part of creating MORE profitable revenue should be justified, and those that are part of creating MORE profitable revenue should be the best combination of investment based on “Revenue Generation” outcomes.
When first deploying Revenue Science™, the leadership team doesn’t have the deep understanding or experience to manage all of the possible combinations. Trying to do so would scare everyone, make them sure they will fail, and cause the team to withdraw from the deployment.
There are always three critical Revenue Science™ metrics for both new deployment and the most advanced highly experienced CROs (Chief Revenue Officers). They are Sales, Margin and Growth.
Revenue Science™ will define these three differently than traditional thinking thus, enabling CROs to deploy with less resource and much greater returns (top and bottom line). Let’s take a look at what these really are and how to make them work for the organization.
Sales – Revenue Science™ teaches sales is not about sales persons, sales training, product messages or that traditional sales process. This traditional sales process is an element or subset of the process to create sales outcomes aligned to the business goals through an organization-wide “Revenue Generation” process.
The Revenue Science™ sales process starts with the 5 Question revenue strategy, develops an aligned strategy deployment model supported by a balanced resource investment in Marketing, Selling and Delivery. This revenue strategy combines the acquisition of new name high value accounts and strategic farming from current / past accounts. Each of these have different growth rates, cost of contract and delivery challenges.
The other two Revenue Science™ Metrics Margin and Growth present the “continuous improvement” framework. These two are always executed for the short-term (this year and next year) and deployed for the long-term. Since Revenue Science™ predictions for the long-term are based on the science, the decisions we make now and how the market reacts determines the future. Executing for the short-term is not only dangerous for the short-term but creates predictable long-term problems.
Historic myths suggest that Margin and Growth may be opposing goals, which Revenue Science™ debunks leaving CROs to build a revenue engagement model in a balanced organization. The result is increased Margins and Growth for today and the long-term.
The subject of a future post is the secret to making this achievable. The secret of long-term growth of all three is breaking the 20th Century Myth that success is about betting the competition. That myth only appears to be true in bubbles where the supply is restricted or for very low value (price driven) commodities. Customers never care about how or if we compete with other suppliers when the engagement gets them an outcome “better than any other option.”
In the 21st Century, those who apply Revenue Science™ will sell the most with the highest margin while continually growing. They will always find new ways to engage with customers who value working together for something “better than any other option.”