Many of the conversations we have with potential clients center around generating additional revenue, and usually they mean generating additional or new leads for their existing offerings.
In short, the potential clients are comfortable with their products/services, feel they have defined their distinctive competencies well, understand their target markets, know who their competitors are and what they are doing, and are priced “right.” They want to generate added revenue and feel that the having more/better leads will accomplish this.
Drawing on our experiences, we are likely to steer the conversation away from the immediacy of focusing on new/more/better leads, to a conversation that helps us help them in achieving their revenue goals.
The first operational area we ask them about is their upsell and/or resell programs to their existing customers. It is well understood that selling to your customer base is more cost effective than getting new customers. So our first area of focus in helping them generate additional revenue is discussing their existing programs of selling new products and services to the installed base. We often find that these programs don’t exist and/or are ignored by the sales force e.g., the sales force isn’t compensated for additional sales to existing customers.
A subset of this conversation covers their customer service activity. Frequently the only contact an existing customer has with a company post-sale is with customer service. How they are treated and the impression that they build of the company weighs significantly on future additional purchases.
The second operational area we probe is their past, current and planned mix of promotional activity. We do not focus on budget allocation, but rather activity. Some observers estimate that 70+% of today’s buying activity occurs before a buyer contacts a seller. This means that the buyer is researching the customer; using the seller’s web site, social media, and peer reviews of the seller’s products before making any contact with the seller. We have found in some companies that the preponderance of promotional activity continues to be traditional efforts, i.e., print, direct mail, trade shows, etc. with lesser emphasis in social media content and activity.
Lastly we focus on the product/service differentiation and competitive price points. (See our blogs on Product Differentiation and Market Segmentation). We have found that many companies do not have a good competitive analysis and their competition has crept up on them, offering comparable feature/functionality at lower prices. This makes attempting to generate more/new/better leads for the existing product/service Is more difficult and in some cases unbelievable to new customers.
Once we have reviewed these three operational areas we, along with the client, are well positioned to lay out tactical plans to achieve revenue growth by generating new leads. In the process we have found that a surprisingly large percentage of the resulting revenue growth comes from internal reassessment and focusing, often eclipsing growth from new/better lead generation.
Call us today if you would like to discuss growing your revenue.