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Do you have the most efficient revenue model for 2012?
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© 2011 Ephor Group | 1 (800) 379-9330 | www.ephorgroup.com | 5353 W Alabama Suite 300 | Houston, TX 77056
Strategies for Growth in 2012 eBook
Strategies for Growth “In this slow growth economy, there will be bifurcation between leaders and laggards;
the best revenue strategies will outperform the competition,
and win the war for profitability.”
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Effective B2B growth strategies require capital efficient programs to reach qualified buyers.
“Feet on the street” models are legacy thinking. Multiple lead sources are required to be capital efficient. Multi-tiered distribution is key. Referrals from partners, alliances, and communities will generate the majority of
new clients.
Legacy Thinking Revenue Strategy for 2012 Outcome of New Revenue Management Practice
“Feet-on-the-Street” Direct Sales Multi-tiered Distribution Lower Cost of Client Acquisition
Outbound Marketing Inbound Marketing Lower Cost of Sales Pipeline Creation
Lead Generation Partner Generation Referral based opportunity introductions.
Outbound Telemarketing Market Research Intelligence integrated into ongoing routines.
Market to Enterprises or SMBs Market to Niche Verticals Specialization = Improved Margins.
Strategies for Growth in 2012 eBook Focuses on Revenue Management Best Practices for B2B technology and solution providers.
> Revenue Management is the application of proven methodologies & processes guided by Management Science reporting to improve Profitability.
Revenue Management Best Practices for 2012 and Beyond include:I. Have a lower cost of sales than your competition.
II. Have a capital efficient pipeline generation and revenue model.
III. Utilize Technology: CRM, Social Media, & Marketing Automation
IV. Multi-tiered Sales Distribution Compensation:PRM, Agent, Alliances, Partners, Account Managers, Sales Personnel
III. A Portfolio of Sources and Mix.
IV. Management Science reporting to provide visibility and proactive actions: Pro-Activity of the 3 C’s: Cash, Clients, Contracts.
V. Asset Management ensures a lower cost of customer acquisition and higher ROI for spend.
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Questions Answered by Revenue Management
What are the most effective
strategies for revenue growth?
Do you have the right portfolio?
Are brand assets generating leads?
How efficient are you compared
to competitors?
How engaged are employees?
Mediocrity will ensure failure!
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Lenders, Bankers and Investors want comfort and visibility with the
financials delivered on a routine basis.
Executives require visibility and insights into daily performance
and profitability to effectively lead.
“Revenue Management is a recommended strategy for companies that want to grow through a
portfolio of distribution sources.”
“Revenue Management insures budgeted pro forma forecasts are made into business
realizations.”
Revenue Management Best Practice: Portfolio Management “Feet-on-the-street models are legacy thinking.
Today’s wealth creating enterprises succeed with a few key sales personnel at the top of the pyramid supported by word-of-mouth recognition, referrals and inbound marketing lead generation. And the majority of a firm’s new clients should come from Alternative Distribution.”
Benefits of a Portfolio Strategy include:i. Lower cost of client acquisition ii. Greater NLTV (net lifetime value)iii. Predictable sales forecasting and budgeting because of
the team CHOOSES and proactively manages.
Cost of $1.00 of Revenues Varies by Channel:
Portfolio of Marketing Lead Sources Reduces Program Costs:
Revenue Waterfall Management = Greater Profits:
> How does your cost of client acquisition compare to competitors? Email us at Ephor for a complimentary report for your industry sector.
Benefits of Management Science reporting:
Questions Answered by Management Science: Where to Focus to improve Cash, Revenues, & Profitability.
Whom needs help? i.e. which employees or partners are underperforming. Which clients need attention.
Where to focus resources.
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A case study:Management Science Drives Performance:
Outcomes also included: Improved Revenue Per Employee by almost $10k
per month employee. Increased NLTV per client 2X.
Management Science helps overcome operating gaps. Managers often work in relative isolation from the market trends and leaders Managers also often lack access to key information.
Too often, financials are not providing daily operating indicators to guide day-to-day employee priorities. Management Science provides the basis for predictable, sustainable business execution and ensures that managing growth and expansion financially ties to operations.
Legacy Thinking versus Revenue Management:
Operations(Financial)
Sales (CRM)
Client
Opportunity
LEAD
NewProspect
CRM
Client Management
Upsell
Operations
Alignment Upsell
NewOpportunity
from a Partner’ Client
MAPPINGOpportuni
ty
The Business Case for Revenue Management:Sync CRM and Financials to sync marketing and sales, and thus financial performance.
Conversion Rate from Lead to Close
Channel
Referral
• Crowded marketplace• Too much advertising• “Committee Buy”• Resource constraints• Buyers require Immediate ROI
from a Branded Leader
Partners
Direct
Marketing is Hard
Partners Matter• Reputation = Lower cost of sales• Use of best practices from both organizations
Team Management is Key
Origination• Provide expertise and service • Must be committed to client outcomes
Revenue Management
Direct
CRM
Client Management
Upsell
Operations
Alignment Upsell
NewOpportunity
from a Partner’ Client
MAPPING
Opportunity
Strategies for Growth Objective = Lowest Cost of Client Acquisition
Go to Market Development & Implementation of Brand Assets Development & Implementation of Marketing Assets Marketing Asset Performance & Management Science
Revenue Development Profiling & Targeting Lead Development Probability Based Selling Sales productivity = Management Science reporting
Alternative Distribution Identification & Development of Channel & Partnering Relationships Development & Implementation of Channel Partner Support Programs
Productization of Services Product Development definition and service delivery standards Distribution venues by product
Acquisition & Integration M&A Corporate Development Transaction Services Integration & Operational Conversion
© 2011 Ephor Group | 1 (800) 379-9330 | www.ephorgroup.com
Valuation Arbitrage
Fit
NLTV
Final Thought:
“Perform Businesses” must put the:
Right Skill, Right Process,Right Time,Right Client, Right Cost, and Right Quality
to create the:
Right Results.
1-800-379-9330