It’s easy for companies to fall into the trap of only seeking revenues through the same methods that they have relied on in the past. But, revenue strategy is all about effectively engaging communities.
Boosting revenues without hiring can be done by engaging prospects (buyers) and influencers (partners) through a multi-channel approach known as Alternative Distribution.
While markets are always consolidating and expanding, the erosion of the middle market (companies and consumers) presents an opportunity to acquire additional client segments, capabilities, teams and books of business.
A revenue growth strategy, like any effective military strategy or sports strategy, requires the following key success factors: intense focus, both offensive and defensive schemes, and a playbook for success built on time tested strategies deployed using effective tactics for today’s modern world.
Let’s start with focusing on communities.
Who you elect to target and your mindset for the targeting makes all the difference.
Audiences are groups you speak at. Communities are groups you have joined and engaged in an ongoing dialogue. Of course, “Communities” are not a new concept. From industry and online groups, to associations, to social and charitable memberships, we all have participated in communities. Engaging a community and being viewed as the “Go-To” in that community are effective modern tactics.
- For example, don’t target geographies; target professional membership groups either nationally or regionally such as SHRM, AHCA AICPA, NAPEO, American Staffing Association, etc..
Engage and participate by joining and sharing educational, relevant, targeted information (not promotional materials nor sales pitches) with key members and influencers (partners) that creates a “1 + 1 =4 scenario” (i.e. you and your partner naturally create an enhanced value-proposition for each other).
The benefits of community targeting include pricing elasticity, higher margins, greater market share, and better referenceability.
How many communities are you the “Go-To”?
Traditional sales planning relies on the fact that “new clients will resemble the old clients.” While this approach in prosperous times has some merit, it leaves out the significant potential of expansion and inserts the risk of marketplace changes. There are a number of strategies for expansion.
Offensive and defensive schemes for revenue expansion using the following tactics should be evaluated by all including:
Regardless of your strategy for acquiring new revenues, it’s important to also plan on growth via new buyers and new portfolio offerings.
Choosing the right channels and segments to target really differentiates the market leaders from the laggards. Leaders avoid “Trial and Error Management.”
Leaders also provide a portfolio. For example, Apple created multiple products: Macintosh, iPod, iPhone, iPad. For services, create both multiple solutions and add-on solutions.
When revenue strategies are deployed via alternative distribution, organizations can reduce risk, ensure efficient use of capital and resources, and provide forecastable results.
And lastly, an effective revenue playbook is an essential component to your revenue growth. This will include the revenue plan, strategies and multi-tiered tactics to acquiring revenues, and should be documented and implemented. Strategy, by definition, is the intersection of a desired future state and the action(s) designed to achieve that desired state. Creating a plan is great, but having the right team and resources is required to achieve your revenue goals.
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