Prior to COVID19, corporate revenue pipelines converted 34% of leads into opportunities, 33% opportunities into offers, and 17% of 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. Extraordinary in their simplicity, and extraordinary in their power to transform revenue production and output.
Consider for a moment the result of improving each of those three conversion metrics by just 1% each. If you could lift your 34% lead conversion to 35%, your 33% opportunity conversion to 34% and your 17% offer conversion to 18%, you would improve your overall revenue pipeline 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 power of 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.
But you need to be careful. Because just as small positive increments can result in much larger overall gains over time, small negative ones can similarly accumulate over time, possibly culminating 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.
We call it RSO or Revenue Systems Optimisation, and base it on our Marginal Gain implementation model.
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.