Research Reveals the Top 5 Revenue Growth Technologies

Highlights

  • CRM software is cited as the most important revenue growth technology by the highest growth companies. However, this group's design and use of CRM software differs from their lower growth peers. The data found what separated the most and least effective growth technologies was less about the actual technologies and more about how they were designed and implemented.
  • The data revealed three factors that heavily influenced technology effectiveness. They included managing a technology strategy, measuring ROI, and operating a technology Center of Excellence (CoE).
  • The highest growth companies were 2.8 times more likely than their lower growth peers to plan, procure, operate and refresh software applications pursuant to a technology strategy and roadmap. And their strategy paid off. They achieved 26% higher user satisfaction and 36% higher technology ROI.
Johnny Grow Revenue Growth Consulting

Research performed for the Business Growth Report set out to answer two revenue growth technology questions:

  1. Which technologies are most effective in accelerating revenue growth?
  2. How do the highest growth companies manage technology differently than lower growth companies?

Our first goal with the research survey was to identify the most effective company growth technologies. So, we asked survey participants to identify their top applications and rank their effectiveness on a scale of 1 to 10. The survey questions were designed to surface the most effective growth applications, not the most popular. The results are shown below for each growth archetype.

Top 5 Revenue Growth Technologies

The biggest disparity among growth archetypes was the effectiveness of artificial intelligence (AI). The highest growth companies (the Best in Class) ranked AI effectiveness 37% higher than the combined average of the Median and Laggard cohorts. That's a significant separation so we drilled down further.

When correlated with related survey questions it became apparent that lower growth companies were more often in the early stages of AI deployment. They were quite often in proof of concepts. That differed from the highest growth companies were well past the days of trials and prototypes and were actively scaling their AI technology.

Two other data patterns surfaced.

First, the Best-in-Class archetype highly rated several types of innovation applications. They were often organized in RevTech stacks. They included market intelligence apps, white space analysis apps, Voice of the Customer, crowdsourcing, social listening and tools that convert data into insights. Lower growth companies tended to rank far fewer apps in this category.

Second, Customer Relationship Management (CRM) software and Marketing Automation Platform (MAP) software were scored as the most effective growth software applications. However, when we viewed the data by growth archetype, we surfaced some unexpected results.

CRM and MAP applications were rated as both effective and ineffective by large numbers of respondents. As expected, the Best-in-Class were consistent with high marks while Medians and Laggards delivered more inconsistent and far lower scoring.

When correlating the data with other factors such as user satisfaction and technology ROI, it became clear that application effectiveness was less about the application and more about how it was designed, implemented, and measured.

See the related post, The 5 Most Effective Revenue Growth Technologies for more analysis on each of the top apps.

Growth Technology Management Best Practices

Technology is more than tools. To understand why some companies make incredible gains with technology while others struggle, the survey posed questions to understand how growth technologies are managed.

The findings were correlated by growth archetype, and three findings most separated the highest growth companies from the lowest.

1

Technology Managed Pursuant to a Strategy

The data showed that the highest growth companies (i.e., the Best in Class) applied a documented and active technology strategy to plan, procure, operate and refresh their software applications 2.8 times more frequently than their lower growth peers (i.e., the Medians and Laggards).

Technology Strategy

When we correlated respondents that apply a technology strategy with software user satisfaction and ROI measurement, we found that those with tech strategies achieved 26 percent higher user satisfaction and 36 percent higher technology ROI, on average, when compared to those without.

Research shows companies that manage their software portfolio with an active technology strategy achieved 26% higher user satisfaction and 36% higher technology ROI.

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2

Growth Technology ROI

The data reinforced the adage that you can't manage what you can't measure. While only 18 percent of all respondents consistently measured ROI for their software investments, a whopping 74 percent of that cohort was the Best-in-Class archetype. That's a 5.6 times difference between the growth leaders and their lower growth peers.

Technology ROI
3

Technology Center of Excellence

A technology Center of Excellence (CoE) centralizes scarce and high-demand technical skills so that they can be leveraged across the company. CoEs achieve a force multiplier performance effect by disseminating skills, insights, best practices and services.

The survey asked about CoE adoption, and the results are shown below.

Technology Center of Excellence

Only 24 percent of respondents operated a technology CoE. However, that cohort was disproportionately made up of the top growth companies. In fact, the highest growth companies operated a technology CoE 2.4 times more frequently than all others. That's a significant variation that should not be lost on companies looking to better leverage business growth technologies.

And one other point. The research also found that 39 percent of the Best-in-Class archetype operated their technology CoE as part of a Revenue Operations (RevOps) business model.