Shareholder value and corporate profit in a company are arguably driven by revenue growth. There’s not a CEO anywhere that will tell you otherwise. Whether short or long term, that accounts for three quarters of total shareholder return (TSR). It’s absolutely necessary, but has to be profitable.
There are a wide variety of variables that must be taken into account to drive revenue when going to market. From customer insights and sales to pricing, branding and marketing. In the recent past, many companies have cut costs to focus on efficiency, and though productivity has been up in the majority of cases, they’ve quickly reached a point where their returns are diminishing.
Some companies are heading down an entirely different route, and doing so with much less risk attached. Commercial functions are being transformed, with short-term revenue growth and long-term profit assured. This is their ‘go-to-market’ strategy.
This ‘revolution’ might be termed as a wave of technological and customer-driven change, and whilst the fundamentals required for go-to-market excellence hasn’t changed, new possibilities are being created.
Three areas of change have contributed to the disruption and heightened competitive pressures that affect virtually every global industry today. They are technology, customer pathways and the ability for companies to navigate a more globalised world, allowing them to compete on a level playing field with almost anyone else across the globe.
The ability to drive profitability and growth is within reach for those who have the foresight and ambition to grasp the opportunities afforded them.
Of course, any new go-to-market strategy means that the pricing, branding, sales and marketing areas of a company need to be reassessed and adapted as required, in order to exploit the new possibilities while navigating a fast-moving landscape. Every commercial area has the potential to contribute significant growth and margin because a good go-to-market strategy exploits tactical, short-term victories to fund broader commercial transformation over the medium term.
Such an approach needs a dedicated and aggressive response if value is to be maximised, and there are many examples of its success. The resulting benefits are powerful in this age of difficult growth, creating substantial value for shareholders.
What is your company’s current go-to-market strategy? Does it have the ambition to increase its top line by up to 20 percent more than current projections? Leaders have to understand that ignoring the benefits could be fatal to their business.
Take the time to assess every area of commercial capability and determine which areas give the biggest near-term opportunity. If done correctly, initial success should follow, but rather than rest on your laurels, expand your efforts quickly. It’s important to understand that several waves of activity could be required to meet your objectives.
However, even if it takes years to reach any strategic goals, the process will fund itself if the right go-to-market strategy has been put in place. There will be numerous challenges ahead, of course, but if leaders are bold enough to grasp the nettle, it will lead to a competitive advantage.