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What We Can Achieve Together
Research performed for The Marketing Transformation Report surfaced the most impactful marketing benchmarks.
Understanding industry conversion measures can improve campaigns, offers and acquire more and higher quality leads at a reduced cost per lead.
Our sales performance research acquires dozens of sales benchmarks by industry.
For example, sales win rate is a high impact metric. When filtered by industry and extrapolated, revenue architects can calculate how even small improvements to sales win rates deliver a significant revenue uplift.
Customer Service Metrics
The Customer Service Excellence report surfaced activity benchmarks such as Speed of Answer, First Contact Resolution and Cost Per Incident. But the data value increases when activity measures are correlated with performance results such as Customer Satisfaction, Customer Lifetime Value and Cost to Serve.
Many times, you can accelerate results by fixing the weakest areas that deliver the biggest uplift. The challenge is knowing what areas are weak and how much uplift can be gained. Industry metrics help with this challenge.
Benchmarks show what good looks like. They bring context to performance measures.
For example, if your sales win rate is 46%, is that good? Well, not if the average for your industry is 48.5%. And multiplied by the volume of deals this could be a significant deviation that would otherwise go unnoticed and unresolved.
Revenue and other performance metrics do a few things. First, they provide a relative comparison to identify where the company stands and most needs to improve.
Second, they enable predictive analytics. Many managers like to apply pro forma models to show how a 1 percent improvement in any key performance indicator (KPI) impacts revenues or profits.
Other clients with KPIs below the industry median may prefer to see the revenue impact of improving their performance to the median level. Knowing the financial upside impact allows the company to know how much they should invest in programs to achieve that upside.
No decision to use the company's limited resources should go unmodeled. Without benchmark data, you don't know what the results should be, don't know where the finish line is, and don't know when to stop spending because the investment is greater than the payback.
A sales manager dashboard shows a salesperson with a win rate equal to 45 percent. That may be interesting, but it is not insightful or actionable. Instead, present that information along with sales benchmarking data that shows the average win rate for this industry is 49 percent, so that the sales manager knows the salesperson is below par.
Also include a predictive analytic that shows the revenue impact if the sales win rate is elevated to the industry average. Show correlations, such as that this salesperson performs an average of 6 activities per sale opportunity, while successful sale opportunities incur an average of 14 activities. Now you have an insight and can act. Facilitate action by creating links from the metric to Playbook Plays, such as a Play that shows the methods to increase sales win rates.
Benchmark revenue management often starts with marketing performance data.
For example, a marketing dashboard shows that marketing delivered 44 leads to the salesforce during the month. Maybe interesting, maybe not. Instead, advise that marketing leads delivered to sales contributed 15 percent of the sales pipeline and 18% of won revenues.
Then supplement the performance metric with an industry benchmark that shows the average marketing organization delivers 23 percent of the sales pipeline while Best-in-Class marketing organizations deliver 51 percent. Now you have insights, and urgency, and can choose to act.
A customer has a net promoter score (NPS) of 40. By itself that may be interesting but not very actionable. Showing NPS trend helps a little. But why does the score even matter? What does any particular score even mean? NPS becomes actionable when we correlate it with other factors that are proven to drive important objectives such as revenue, customer lifetime value (CLV) and customer retention.
Compare NPS and churn history. If your customer history shows that customers with an NPS score of 20 are 2X more likely to churn you have new learning. If the history shows that an NPS score of 70 correlates with customers that are 2X more likely to make repeat purchases, you have a measurable upside for action. Or if history shows that an NPS score of 80 results in customers having 2X higher CLV than customers with a score of 40, you have an actionable journey to pursue. Every company has this data. Few companies know how to use it.
Johnny Grow has been acquiring business growth benchmarks for over a decade. Our benchmark consultants have created a unique niche in using market research to acquire revenue-specific metrics and apply qualitative analysis to reverse engineer the actions that delivered the top results.
We supply industry measures to provide a relative comparison of where the company stands and most needs to improve. There is no need to reinvent the wheel. Replicating the proven processes of industry leaders is the most direct, cost-efficient and low risk method of accelerating revenues.
We have the industry data. We are well versed in uploading it to CRM technologies such as Salesforce and integrating it with dashboards and reports. We are experts in using it to drive actions that improve business outcomes.
Benchmarking for Revenue Growth Starts Here
If you are looking to benchmark revenue management and similar performance measures, we have some options.
Visit the Growth Analytics Insights Hub for best practices, research findings, supporting technologies and expert recommendations.
Or for professional help, use the form below to schedule an introductory call with one of our benchmark consultants.