Assessing Revenue Engine Performance
Email this postRevenue growth is frequently the most important driver of company earnings, cash flow and valuation. Therefore, it is essential that a company’s “revenue engine” operate at high levels of performance.
Client Case Example
Consumer Marketing Services Company
The revenue performance of this company’s international division was significantly underperforming competitors in their industry. We assessed their revenue engine and recommended a new growth strategy and prepared an actionable implementation plan. Our supporting financial model demonstrated a growth rate that would allow them to begin capturing market share. The CEO believes our recommendations can also be applied to their US operations.
A revenue engine consists of dozens of interrelated components: go-to-market strategy, product/service design, direct sales force, channel partners, phone center, Internet sales, pricing strategy and mechanics, sales incentives, management tools, billing practices and much more.
This complexity can make it difficult if not impossible for most company leaders to identify specific reasons for poor performance or to determine whether the revenue engine is capable of higher revenue levels. Furthermore, these company leaders typically have an “inside-out” view of the revenue engine, but the most powerful insights require an “outside-in” view—through the eyes of current customers, former customers, lost prospects, channel partners, competitors, etc. Most executives have limited vision from an “outside-in” perspective and are therefore not fully able to self-diagnose their performance issues.
We are specialists in quickly understanding how a company’s revenue engine operates and identifying the most powerful levers for improving performance. We use a set of proprietary methodologies to assess revenue engine performance: 100 Behaviors of High Performing Revenue Engines™, The Nine Voices of the Market™ and Data Probes that analyze selected data and performance metrics. These tools provide valuable perspectives, insights and hard data to help determine the changes that would result in improved revenue performance.
Revenue Engine Assessment Approach
Our methodology is organized into 3 strategic steps that identify the areas for greatest improvement
We normally complete our diagnostic and deliver actionable analyses and findings in five to six weeks. Once top priorities for improvement are identified, we are ready to provide targeted, deeper analysis and assistance with execution on the performance gaps.
For more information about our work in assessing your revenue engine’s performance please contact us.