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GoToMarket Revenue Growth Strategies 2013

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The playbook for revenue growth in 2013

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Page 1: GoToMarket Revenue Growth Strategies 2013

GoToMarket Revenue Growth Strategies for 2013

The Playbook for Revenue Growth

Tough Questions to Consider Planning for 2013 -------------------------------------------------------------------------- How does your brand rank? Do your sales KPIs outperform the competition? What new sources of revenue will be developed in 2013?

Page 2: GoToMarket Revenue Growth Strategies 2013

Revenue Strategies for Growth

Ephor Group | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046

Revenue Growth Strategies for 2013 While resources constraints do exist (both talent and capital are the two primary reasons managers cite for slow growth); in 2013 as the market further bifurcates into leaders and laggards the biggest barrier to growth is a company’s reputation and its availability of a portfolio of solutions to ensure a pipeline of future recurring revenues from its customers. The market will be bifurcated into market leaders and laggards as capital is limited to the best brands in each sector. In today’s capital constrained market, having a revenue model that outperforms competitors and strategics is a requirement for software and service companies. Did you know that? 6 out of 10 businesses will be gone by 2014. Only 1% will return 10X ROI to employees and

founders. Today, buyers buy from brands. Did you know that

brand leaders outperform the competition 3 to 1X. Barriers to Revenue Growth by the Numbers Revenue Success KPI Metrics:

Overcoming Resource Constraints

History has proven that during difficult economic climates, leaders can create significant wealth by taking full advantage of opportunities at the expense of their underperforming counterparts.

Strategies for Revenue Growth Expansion: 1. Utilize brand endorsers to improve your

brand’s reputation.

2. Actively participate and increase investment in your top 2 communities (create a referral ecosystem).

3. Productize services into branded solutions and create industry pre-configured solutions.

4. Use strategic partners and 3rd party agents to generate new business.

5. Initiate co-marketing programs with strategic alliance partners.

6. Leverage LinkedIn and other social campaignsfor referrals and lead generation.

7. Be known and recognized as a business which is a “receptacle” of talent and capabilities (via agents, alliances, acquisitions).

While resource constraints limit growth, as the famous quote says, “Hope is Not a Strategy.”

Knowing precisely where the organization is headed, and having all employees “rowing in the same direction” is a key success attribute of enterprises that create wealth. Defining the major milestones of the operating plan and financial forecast for 2013 is critical such that all employees know the extent of the progress (or lack thereof) and whether they should “row harder” or celebrate.

Page 3: GoToMarket Revenue Growth Strategies 2013

Revenue Strategies for Growth

Ephor Group | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046

Beating the Odds When You Expand Did you know that expansion is risky?

85% of expansion plans fail to achieve ROI within the first years. 2 out of 3 of expansion plans are abandoned within six months.

Effective managers aren’t cowboys; they are methodical managers of risk. At every turn prudent managers reduce risk before making any significant investment or action.

For example, presale new products or to new markets to ensure cash flow profitability. Tackle the right risks first such as confirming Demand & Pricing Elasticity before spending any dollars on marketing

or operations. When risks are removed, value is increased. Not all risks need to be removed, simply the most uncertain coupled with the most costly. All plans are partly right and partly wrong; experimentation and intelligence is the pathway to success. The amount risked should be limited to the cost of the prototype and initial design. Effective management is all about constantly identifying risks and finding creative ways to mitigate them. Two paths of expansion: 1. Risky Path:

a. Spending dollars on sales & marketing without beta or trial clients. b. Hiring sales personnel without validating the market needs with pilot clients. c. Implementing “on the ground” operational oversight in the form of branch managers without established clients

and partners.

2. Strategic Path: o Implement cross functional team using existing current resources to validate the market need, create beta

clients and partners. o Leverage Intelligence from beta or prototype clients and partners for “on the ground” needs including, but not

limited to user feedback on sales, service, distribution. Also, confirm the size (#,$) of the demand by customer segment and product mix.

o Achieve the 3 R’s: Recurring Revenues, Raving Fans, and Repeatable Routines before formally expanding with “feet on the street” in new markets.

Revenue Growth Strategies

Effective B2B growth strategies require capital efficient programs to reach qualified buyers.

“Feet on the street” models are legacy thinking. Multiple lead sources are required to be capital efficient. Multi-tiered distribution is key. Referrals from partners, alliances, and communities will generate the majority of new clients.

Page 4: GoToMarket Revenue Growth Strategies 2013

Revenue Strategies for Growth

Ephor Group | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046

Revenue Growth Strategies

#1. Portfolio Solutions Expansion. For established market leaders, growth is a factor of expansion (both geographic and solution).

Portfolio Solutions CRM example Portfolio Solutions IT services example

#2. Alternative Distribution Channels. Identify and sign strategic channel partners and strategic alliances to validate multiple “routes to

market”.

#3 Portfolio of Revenue Sources (Cost Per Lead $). Cost of $1.00 of Revenues Varies by Channel: Portfolio of Marketing Lead Sources Reduces

Program Costs:

Page 5: GoToMarket Revenue Growth Strategies 2013

Revenue Strategies for Growth

Ephor Group | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046

Why Ephor Group? Whether you are looking to expand into new markets, roll out a new product/service, or simply seeking to accelerate sales growth; identifying active revenue opportunities is key to prioritizing your sales resources. The status quo for many organizations is a siloed approach – marketing buys contacts, sales buys leads and this results in duplication of information while wasting precious time, resources and productivity. But the difference between a weak brand and a branded sector leader can be seen in the operating performance of the company. Outcomes created working with Ephor Group: Validated GoToMarket strategy for revenue growht beyond

organic direct sales with account intelligence at its core. The “New Economy” will no doubt challenge the best of minds and businesses. Accelerating revenue growth starts with actionable intelligence about your target market. Our experience had taught us that a “holistic” expansion of revenue sources creates the most effective outcomes, while creating the foundation for long-term wealth creation. Of course, expansion is never easy, and does not happen overnight. With Ephor you get…

Experienced Team

Deep industry expertise as investors & operators in software and BPO services. Expertise includes strategic expertise and GoToMarket specialists.

Relationship Approach

Senior partner supported by team of specialists. Fully integrated service to our clients.

Strong Advisory Capabilities

Strong institutional relationships providing both distribution and useful capital.

Advice based on comprehensive industry and deal experience and knowledge.

Focused Strategy

We only work in areas where we have created wealth, and know the industry dynamics and players.

We are highly selective. We select two (2) companies per year.

Integrated Services

Go-To-Market coordination of programs for revenue growth. | Grow beyond organic. GoToMarket Research | Identify top opportunities before competitors. Expansion Strategies: Portfolio/Global/Distribution. | Multiple “Routes to market.” M&A Intelligence Research Services | Know before you go. M&A Corporate Development | Acquisition operational integration. Useful Capital | Growth capital advise on corporate strategy.

Page 6: GoToMarket Revenue Growth Strategies 2013

Revenue Strategies for Growth

Ephor Group | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046

Ephor Growth Services Snapshot