Today's corporate revenue pipelines convert an average of 34% of leads into opportunities, 33% of those opportunities into offers, and 17% of those offers into closed sales; for an end-to-end conversion of 1.92%. Viewed another way, corporate revenue production systems fail almost 98% of the time.
In what other key business process would a failure rate like that be accepted? No CEO would allow their supply chain or the manufacturing plant or their finance function to fail 98% of the time. Yet when it comes to marketing and selling - because those are the two areas responsible for our revenue production systems, that tragic level of performance is accepted. Sometimes it's even celebrated!
But - in those appalling poor conversion statistics, lie extraordinary opportunities for improvement.
Think for just a moment what might happen if we were able to improve each of those three conversion metrics by just 1% each. If we lift our 34% lead conversion to 35%, our 33% opportunity conversion to 34% and our 17% offer conversion to 18%, and you improve our overall revenue system yield by 12%. Do that two years running, and our system yield - and our revenue output go up by 25%. Without even touching our sales price!
Welcome to the world of Revenue Conversion Optimisation and Marginal Gain Theory; the science of using advanced data analytics to identify specific points in the revenue pipeline where small - sometimes barely even visible, changes to elements in the process can drive disproportionately large increases in total revenue output by virtue of the simple but incredible power of compounding. Just like compound interest.
But you need to be careful. Because just as small positive increments can result in huge overall gains over time, small negative ones can similarly accumulate over time and culminate in disaster. What's worse, because they're small you often can't see them, so they eat away at your business over time - like a cancer. Until one day, you see or feel the lump - but by then it's too late.
Revenue Systems Optimisation
All our consulting services are aimed at one objective: driving better and faster conversion through the length of the revenue production system; through the pipeline.
We call it RSO or Revenue Systems Optimisation.
The first step towards creating revenue is to generate demand. Then that demand needs to be converted into leads, which are then converted into opportunities, which are in turn converted into offers and ultimately into sales.
The final step in the closed loop revenue system is to retain and grow those customers once they've been won. Rinse - and repeat!
Our consulting services are aligned to the way that real-world revenue creation process works and to the way buyers buy - in other words, to the buyers journey.
Just click on the buttons to explore our RSO services and how they might add value to your revenue production systems.