The Four Key Components to a Sales and Revenue Strategy
Whether it’s marketing, social media or sales and revenue, having a clear strategy with specific objectives that align with business goals is the best way to achieve desired and successful results.
Before we delve into the intricacies of a sales and revenue strategy, let’s first define the two terms. “Sales” is the total number of units of a product or service you sell, and “revenue” is the total amount of money generated by these sales. In return, a revenue strategy is a plan dedicated to maximizing both short- and long-term sales performance. Developing this type of strategy is imperative for growth in revenue and success in your business.
There are four key components in establishing a successful sales and revenue strategy: strategy, structure, people, and process. These four must be in alignment with one another to yield the desired results.
Yes, the first component of the revenue strategy is strategy. What we’re talking about here is a specified sales strategy to effectively help reach your revenue goals.
Some samples of sales strategies include how are you going to market, and will you be penetrating new markets? What market opportunities or weaknesses do you plan to take advantage of? Are there certain competitors you plan to take out, and if so, how? What changes to the industry do you plan to leverage? Relationship selling and cultivating relationships with already loyal customers is another sales strategy beneficial to some businesses.
The critical aspect of creating a sales strategy is making sure it’s specific and measurable, as this drives how you execute the strategy and later determine if the strategy was successful.
The structure is the framework put in place to hold up the strategy. If a solid structure doesn’t exist, the sales strategy has little to no chance at success. To make sure an adequate structure is in place, review the strategy and note the requirements needed at each step.If your strategy is focused on fostering existing customer relationships, do you have the necessary tools to do so? This could require implementing a new CRM (customer relationship management) software, or offer incentives to existing customers for future purchases. A structure can also include making sure the sales team has the material and information they need to sell effectively.
People are the most important element of sales, and also one of the most overlooked! Having the right people in the right roles with the responsibility of selling the products and services is crucial to meeting your revenue goals.
Here, you must recognize whether people have the necessary skill and knowledge to be efficient in their roles. If the strategy requires additional knowledge or training, is the business capable of providing it? It cannot be emphasized enough how important people are to the sales and revenue growth of any business.
What does your current sales process look like? Knowing what we know now – after going through and defining the strategy, the structure and people – what areas of the sales process can you improve to better implement sales tactics?
Without having good processes in place, your sales efforts may reach a dead end and revenue growth will become stagnant. Fortunately, having the process as the final key component of the sales and revenue strategy offers a clear insight into how it can be improved. The processes must align with the strategy and structure, and empower people to sell more efficiently and effectively.
Growing a business’s revenue requires more than just a handful of efforts; it’s a process in itself that needs precision and alignment across four main components. If the four do not share communication and lack objectives, a business has very little chance of growing their revenue.