Simple Reality - Transaction Price to Transaction Quantity
It is common for many innovators to become so caught-up in their idea, that they forget to do (or avoid doing) some simple due diligence around the revenue realities they will face.
What are the Simple Revenue Realities your business faces as you work to monetize the value you create?
aka: How realistic are your revenue goals?
Here is a simple tool to help you efficiently think through some of the very basic considerations that will ultimately determine your revenue outcomes.
Let's Get Started
Grab a coffee, side-step any distractions (make it a priority) and ...
We have also made it easy to think through Acquisition Scenarios (revenue production) on the Quick Funnel Projections tab.
A smart founding team developed a break-through in applying Artificial Intelligence to help auto dealers generate more revenue from first-time car buyers, post the initial sale.
Why Stop There ...
With the above in mind, they next want to get a sense of the realities around their customer acquisition efforts ... so they used the Quick Funnel Projections tab.
They carefully noted that achieving 10% Prospect-to-Lead conversion rate, compared to a 20% conversion rate (a 50% reduction) ... would require they increase their Opportunity-Win-Rate by 100% (from 25% to 50%) in order to still hit their revenue production goal.
This highlighted the critical-importance of truly understanding their target customers and effectively communicating their (real) value advantages.
In either scenario, successfully increasing performance at each stage of the funnel ... contributes significant improvements to top-line revenue production.
How Does the (your) Story End ?
Well the story isn't over. In part, because of the clarity that resulted from using this simple tool, they exceeded their 12-month revenue goal.
The added clarity increased their confidence and as a result ... they were intentional with their priorities and consistently fine-tuned their approach along the way.
How will your story end?
Perhaps better and more optimistically stated ...
How will you write the next Chapter in your story?
Using this simple tool will help you ... or perhaps someone you know.
Simply download the Excel worksheet or click this link for the Google sheet.
Get on the Same Page, Get in the Same Room
With our Rethink Your Pricing - Strategy Summits your leadership team will be best positioned to evaluate recent / current market performance and the outlook of your short/long-term strategy.
Why a Summit?
After years of working with our clients in a number of different ways, we have proven this more aggressive and accelerated approach to helping clients make smarter and more confident critical business decisions related to value monetization, offerings, pricing, sales, marketing, discounting and more.
We have already conducted over 275 summits with a wide range of software and technology companies around the world ... from small innovative startups to large established Fortune 50 market leaders.
Raise The Bar, Do Not Settle
Many of our clients have decided to plan 2, 3 or 4 of these critical review and planning sessions in advance (e.g. semi-annually, quarterly).
Being Proactive Matters
If you want to Rethink Your Pricing, avoid blind-spots, unnecessary challenges and delayed or diminished market performance ... contact us today to confirm fit and availability!
1. Trust - Can your company and its employees be trusted to really deliver what you promise ?
2. Effectiveness - Will your product or service really produce the results they need ?
3. Time - How long will it take to implement or receive what they are buying ?
4. Simplicity - How complicated will it be to implement or use your product or service ?
5. Cost / Price - How much will they have to pay to get what they want and need ?
It is important that owners and management lead by example and promote a customer focused culture - one that is aware of what really matters at every customer touchpoint in the sales and delivery process.
Effectively Communicate Your Value Advantages
Achieving your full market potential and sustainable success demands that your entire organization clearly understands and consistently communicates your value advantages. Having a clear and factual understanding of your value advantages, may be your most powerful asset when it comes to winning new business and retaining current customers.
Three key factors for building a strategy based on your competitive value advantages :
1. You have to factually know what your value advantages are.
2. You have to know and understand the primary needs and wants of your customers.
3. You have to clearly communicate your value advantages in a language that your customers
will relate to their primary needs and wants.
Many companies go to market in manner that is convenient to their organization and with little to no regard for their customers' wants or needs.
Additionally, few companies remain aware of how alternatives and competitors are impacting customers' buying decisions.
Furthermore, many companies don't know what their value advantages are (or are not fully leveraging them) - and in reality some are disadvantaged and don't even realize it.
Are your new customers contributing to your growth or are they merely replacing the customers you are losing to your competitors?