Are Kids with Lemonade Stands Smarter Than Many Sr. Business Leaders Today?
500 Studied Companies Will Make You Wonder About the Answer & Reveal Secrets to Success Too
Even kids who run lemonade stands know that “paying customers” are what matters most in business. Paying customers and of course “Mom’s super sweet lemonade” make or break the piggy bank on hot summer days.
Most people in any free enterprise market know revenue generation is priority #1 to every business, even non-profits; but it seems to go unnoticed by many senior business leaders. Maybe this is because many senior leaders get their attention caught up too much on the “lemonade stand” and not the “cash generation process”.
We know leaders responsible for revenue growth have the task of not only sustaining the business but also growing the business. To complicate the equation, businesses must balance sales with margin so an acceptable profit exists and the business can exist and hopefully grow.
The lemonade stand is often lucky because Mom and Dad, who often supply free labor too, fund the cost of goods sold.
In business there are rarely such luxuries and it is serious; people’s lively hoods and families depend on the results leaders bring to company’s bottom lines.
Bottom line, this means that both revenue and margin are vital measurements to success for a business. No matter what, the fact is, businesses must grow or else they will die. Growth means revenue generation from sales to customers, so profit is made and instead of the piggy bank, the real bank gets dollars added to the business account.
When lemonade stand owners grow up, they find that for businesses, maintaining the right methodology and selling system with small and large groups of people is an “art trying to be crafted into a science”. This statement was made at the end of January, 2013 by the CEO of a billion dollar Dallas based publicly traded company stated to his 5 dozen critical revenue generation people. This group of 5-dozen people is personally responsible for $1.5B in sales. * Based on internal studies from C-Level Marketing & Sales
Think about the consequences senior business leaders face with their decisions impacting these 5-dozen people in a company with over 1,500 employees.
When it comes to making important decisions for revenue growth that has the right profit at the bottom line, the amount of challenges and resistance faced will be countless.
This is why leaders often turn to something they consider safe or proven by others when they are challenged with growing a business. It’s a known fact that many revenue growth initiatives these days take the form of buzz word programs as seen in the popular “sales force effectiveness” term.
This can be good or bad for companies depending upon the behavior change in the people. Some companies choose a favorite or “most logical approach” to sales growth; from a sales and or marketing book, article, publication, e-system, IS system, software, speaker or other expert focused on selling and or marketing.
A look at Gartner, Wall Street Journal, Fortune and Business Week over the past 2 years indicates a substantially high failure rate for revenue generation programs in North America and Europe. **
Looks like too many leaders are missing the mark for their revenue and margin goals and the economy cannot bear all the blame.
Why is that? Where do things go wrong? What should be done different? How can leaders grow revenue and margin simultaneously? Why is it hard to grow sales people? What works for others?
Commissioned studies conducted from October of 2009 to November of 2012 with 500 US based companies show striking benefits for 3 specific revenue generation strategies that produced an increase in sales people’s performance by an average of 34% increase in total sales volume per sales person.
*** Based on internal studies from C-Level Marketing & Sales
These same studies highlight 5 key mistakes many of the companies have in common for the failed and lack luster results in revenue growth.
5 Key Revenue Generation Mistakes
- Lack of accountability in management and performance management due to lack of executive alignment
- Poor understanding and execution of various metrics and KPI within the company
- Reliance on a CRM to solve problems with no real strategy and tactical plan
- Silo selling models and tenured sales people stifling needed progress and change
- Poor understanding/identification of buying market and the methods to contact and sell them
3 Revenue Generation Strategies That Work
- Direct selling campaigns by sales & marketing team with social media support tactics (credited not only with revenue gain but also with shortening sales cycles & eliminating competition)
- Reinforced sales management and sales coaching with customized curriculum (deployed for more than 9 months with consistency and metrics)
- Targeted customer research combined with multiple messaging campaigns for buyers and key influencers (raised the quality of selling opportunities and effectiveness of sales people’s time)
Are you a player in revenue generation for your company?
How will you impact your business today? What is going wrong in your revenue generation process? What core strengths can you capitalize on in your revenue process? There are leaders who are either decision makers or key influencers in business, which one are you and what will your role do to grow substantially?
Will your lemonade stand survive?