Revenue runs your business, so it’s critical that you keep your chain of sales revenue unbroken. Every time a link in your revenue chain breaks, your business must make up for it with more time, more effort and more resources – all to sustain the same level of income.
The reality is that for many businesses (including yours), their sales revenue chain is broken and in need of repair. Not only do broken links sap more exertion and energy from your bottom-line growth, but they also open up opportunities for your competitors to steal a sale from a non-converting lead or a non-renewing customer.
Here are two major ways to repair your sales revenue chain and get your business back to performing its best:
Your Lead Universe
The first critical link of your sales revenue chain is the quality of your overall lead universe. Without leads, your business doesn’t close sales, so it’s important to keep a constant watch on the lead generation aspect of your revenue chain. After all, without revenue, you’re out of business.
Having Enough Leads:
Before you ramp up your demand generation program, it’s important to know and understand your company’s lead consumption rate. Every business has a different rate according to industry and sales cycle, but most B2B companies fall between using 300 to 600 leads per month, per rep. Once you identify your lead consumption rate, strengthen this link in your revenue chain by building a demand generation program that meets or exceeds your given rate.
Cleanliness Of Your Data:
When it comes to leads for your business, quality always outperforms quantity. Investing time and resources in a low-quality lead that doesn’t convert into a sale is a waste, whereas your time would have been better spent on a high-quality lead more likely to generate revenue. The quality/quantity factor is why a clean lead database with only accurate and precise sales leads is critical to repairing and strengthening this link in your sales revenue chain.
When you remove bad data from lead databases, expect to see your conversion rates increase. One Invenio® client increased conversion rates by 33% – imagine the boost those results could have on your revenue.
Your Sales Team
The second essential link in your sales revenue chain is personnel-driven: Without hiring and training the right sales team for your business, your revenue chain breaks down due to high turnover, lack of expertise or a poor bonus and compensation structure.
Fielding The Best Team:
Hiring the right salespeople for your business is not a task to be taken lightly. After all, your sales team is responsible for the most important aspect of your business: creating revenue. When companies experience high turnover and attrition rates in their sales force, it has a major impact on their bottom line due to missed revenue opportunities.
Instead of continuing this pattern of attrition, look for these three critical characteristics when hiring your next salesperson:
- Mental aptitude – Does he or she have a firm grasp on your business goals and capabilities? Does the candidate think light on his or her feet?
- Aggression – Does the candidate go after a lead aggressively? Is he or she driven to meet challenging sales quotas? Does he or she persist after a lead even while handling objections and concerns?
- Logic orientation – Is he or she a critical thinker? Does the candidate create logic-based arguments and sales pitches? Does he or she make metrics-driven sales decisions?
For one Invenio client, hiring according to these three characteristics (among other variables) reduced the company’s sales personnel attrition rate by 49%. Not only did this reduced attrition rate save the company on administrative and hiring costs, but it also meant smoother sales cycles and increased long-term revenue.
Training Your Team Of Sales Experts:
Appropriately training and developing your sales team is just as important as making a more selective hire. Not only do training activities help your team accomplish more, but they also increase employee retention.
However, you can’t just implement a sales training program and expect it to continue producing solid results for years to come – you need to continuously improve and innovate your sales training. Keeping your development program sharp requires a Measure-Analyze-Improve approach.
You need to consistently measure each aspect of your training program, analyze how well each facet of the program is performing and finally improve under-performing aspects of training. The Measure-Analyze-Improve approach also helps you identify which salespeople need to ramp up their training faster. For example, one Invenio client that used the Measure-Analyze-Improve approach reduced its time-to-sale by 14% while simultaneously increasing its retention rate.
Strengthening your sales revenue chain isn’t just a matter of reinforcing a single link or a few short-term tactics. Rather, you need to maintain every link from top to bottom to ensure that revenue generation flows consistently.
Need to reinforce other weak links in your sales revenue chain? Click below to download a free guide from Invenio Solutions® and discover how to strengthen your sales pipeline for a steady stream of customers.