Insurers and brokers face a potentially more serious problem than a Royal Commission or any of the risks highlighted by recent industry reports published by the Big Four accounting firms or other industry analysts.
It's never been more difficult to win and retain customers. Nor has it ever been more important to be good at it.
For some time now, the Big Four and mid-tier professional services firms have enjoyed meagre - if any, organic fee growth. Most expansion having come by way of acquisitions of or mergers with other firms. If firms aren't able to reacquire the dark arts of rainmaking, they will be highly exposed in the event of a significant downturn or other shock.
The Challenger Sale introduced the concepts of rational drowning and emotional impact, and how to use them to shake buyers from their comfortable status quos. Used astutely, they're powerful tools in engaging and persuading prospects.
Perhaps we need to be asking a different question?
If a 0.5% improvement in revenue conversion can double profitability and valuation - the same effect as reducing costs by 34% or increasing sales prices by 25%, but with nowhere near the associated risks or costs, why aren't more CEO's even thinking about it?
Organic revenue growth can be well worth the wait.
Organic growth doesn't usually get CEO's and investors too excited. It takes time and required patience and discipline. It mightn't be as sexy and take longer to arrive than the acquired variety, but it’s less risky, less costly and way more valuable in the end.
Lies, damned lies ... and analytics
Are big data, sales analytics and AI really having that much of an effect on revenue performance and results?
Moneyball and revenue management
Revenue production in the age of hyper-competition
How to make certain your CRM project fails.
Less than 2% of sales opportunities convert to sales, meaning that the average corporate pipeline suffers from a 98% attrition rate. Analytics and AI hold the keys to unlocking significant opportunity which would otherwise be lost through that attrition. We've called it Black-Light Revenue; hidden from view until the right light is shone on it.
All organizations measure sales, but this is an historical measure that does not enable you to change behaviour ahead of time to drive improved growth. What are the revenue metrics captured on your balanced score card that are enabling you to drive the growth you are after and giving you predictive insight into that future?
The compounding effects of small changes in conversion, velocity and recycling coupled with the complex nature of interactions between risk factors and drivers within means that seemingly insignificant improvements or deteriorations in performance can deliver hugely disproportionate overall effects on sales.
Businesses viewing marketing and sales as integrated components in a machine that systematically produces sales versus widgets, dramatically improve the consistency and predictability of their sales results - as well as the sales revenue outputs.
For decades, the "Hollywood Formula” has spelled out in precise detail how long each scene needs to be, how many explosions, how many plot twists and all the other elements need to be in place at just the right time in just the right order with just the right level of intensity – for success to be“a given”. Sales leaders can follow a similar formula.