In 2024, achieving revenue growth while decreasing sales costs hinges on transforming operations and taking advantage of the smartest technology. So it’s no surprise that forward-thinking companies are turning to Revenue Performance Management to align teams, streamline operations, and maximize revenue. At its core, Revenue Performance Management connects traditionally siloed teams (like Sales, CX, Solutions, and Marketing) to create a harmonious union that optimizes every prospect and customer interaction. It uses data for insights to boost productivity and ROI, and makes the most of technology to improve processes and refine efforts. The end result? Reduced operational overhead and maximized revenue growth – in fact, companies can expect 19% faster growth with an aligned revenue engine.
Yet, with any transformational change comes challenges, and putting a complete Revenue Performance Management strategy into place can be tricky. In this blog, we look at some key strategies and best practices that may help your company realize the full potential of Revenue Performance Management, keeping in mind the main pillars of Revenue Operations: Insights, Enablement, Operations, and Technology.
Old World vs. New World
In the past, sales, marketing, CX, and other teams worked as separate entities. Sales teams had targets and KPIs that were usually disconnected from the goals of other teams and this misalignment resulted in missed revenue opportunities and a disjointed workforce. Marketing, for example, would work to a target that covered the entire US, while East and West Coast sales teams would work to their own separate targets.
Revenue Performance management, however, connects these traditionally siloed teams with aligned goals. The workforce – not just sales – are linked to compensation plans with a connected target. This creates a revenue engine, with different teams connected via the same incentive structure – maximizing revenue and supercharging opportunities for growth.
Focus on your people
It comes as no surprise, therefore, that Revenue Performance Management requires not just a seismic shift in strategy, but a shift in focus too. Customers are at the core of this change, with a renewed energy towards process and product – but its drivers are your people.
That said, connecting traditionally disjointed teams can be a significant challenge and complicated to implement. To create alignment, it’s important to define key goals and strategies across your workforce, determine team structures, and get previously siloed teams to focus on revenue growth together.
Take advantage of actionable insights
At the heart of all this is data. Data is everywhere – particularly when it comes to sales, marketing, and customer-facing teams. The key is to use data to form actionable insights, so you’re always improving your business processes. Think carefully about the metrics that matter to your business, and use data-driven insights to supercharge growth.
Spend time on performance planning
Once you’ve worked out the metrics that count, it’s time for performance planning – a key driver of any Revenue Performance Management strategy. Keeping in mind people, product, and processes consider:
- Sales forecasting
- Compensation planning
- Pipeline management
- Sales coaching
- Budgeting
And how you will measure success via KPIs and targets.
Boost productivity with continuous optimization
It goes without saying that your newly aligned workforce should be as productive and effective as possible. Revenue Performance Management is not just focused on growth – but on streamlined operations as a driver of boosted profits, too. This can be achieved by modernizing tools, automating tasks where possible, and getting more from your revenue teams. Smart software, designed with revenue performance management in mind should form part of your strategy.
Think about CX as a revenue driver
In the past, CX was thought of as an operating expense, not a revenue driver. A true Revenue Performance Management leader sees things differently. In this new world, CX drives revenue through customer retention, expansion, and the creation of customer advocates.
Make Revenue Performance Management work for you
As with any major change, it can be tricky to get started. But no matter where you are in your RevOps journey, Leaptree can deliver the tools your company needs to drive your Revenue Performance Management transformation. The result is streamlined processes, transformed operations, and more revenue. Talk to us to find out how our Revenue Performance Platform can help you meet – and exceed – your goals.