Managing your sales and revenue streams is vital at every point of your business lifecycle. At first, your subscription business is trying to ensure that you have enough revenue to sustain the business, then you want to optimize and grow your revenue streams. As your business matures, new products or services may be added to grow those streams. But through every step of the way, your sales performance management platform needs to be able to provide you with the valuable insights to help you drive sales and revenue to ensure that your teams are meeting the ever-changing metrics of your business.
Start-up businesses need to maintain a laser focus on new business acquisition, targeting the choicest subset of their prospect universe–despite the strong temptation to chase everything and anything.
Start-up businesses leverage their SPM platform’s Revenue management solutions to:
- Automate, or execute on demand, calculations for individual models or all models.
- Define complex sales prediction rules against any data set, such as customer profiles and interactions.
- Align your sales team and their compensation to your customer engagement model to ensure the start-up investments are not lost due to inefficiencies across the broader team.
Growth businesses need to focus on retention, retention and retention. If you can’t keep existing customers, the initial investment is quickly lost.
Growing businesses, leverage SRM solutions to:
- Model sales actuals, plans and forecasts based on any number of business hierarchies and across any number of metrics, such as annual contract value (ACV) and total contract value (TCV).
- Segment revenue actuals, plans and forecasts based on any number of revenue streams, such as existing monthly recurring revenue (MRR), new MRR, and net MRR churn.
- Directly tie your compensation dollars to your core business metrics to deliver maximum results across both the acquisition and retention of your customers.
Maturing businesses must optimize their land-and-expand strategies to maximize the lifetime value of their customers. The keys to driving new revenue streams and creating the right level of visibility lie in their principal areas of growth and how services are being used. Part of your critical success at this stage goes beyond the sales team to also include customer support and customer success.
Maturing businesses leverage SRM solutions to:
- Leverage a library of pre-built sales and revenue-related forms, reports and dashboards, including scenario analysis, sales to revenue waterfall, pipeline change and prediction result reports.
- Roll forward and optimize prediction models from period to period.
- Conduct what-if calculations based on any number of sales and revenue configurations.
Why does your Sales Performance Management platform require a Revenue Management element?
In the subscription economy, your ability to drive long term value from your customer engagements is core to every measurement of your business (LTV, CAC, etc.). By bringing together the ability to better understand the top line revenue contributions in your business with how you’ve invested your go-to-market resources (marketing, sales, account management, customer success, etc.) you will ensure that you can effectively lead your team through the complex transitions from early stage startup to a mature subscription economy business. You’ll be able to easily determine how revenue moves through the different stages of maturity, as well as assess what level of customer engagement investment is required to deliver optimal results. You can optimize sales team behaviour by determining the most effective sales activities.