Are you sitting atop your 2020 Growth Goal?
It’s that time of year again. Are you thinking about growth? Considering how to grow and where to look for growth? Wondering how you will achieve your growth goal for the coming year? If so, you’re not alone amongst other B2B sales leaders.
It’s no secret that companies of all types and sizes, public and private, value growth. Growth is a glowing measure of health and prosperity for any business. Employees are attracted to work at companies that are growing. Customers choose business partners that are growing and thriving over those that are losing market share and shrinking. Investors often pick stocks based on the growth rate and growth prospects for a business.
Growth is what drives and leads the results for a business. According to a recent Gartner survey of senior business executives, growth is what CEOs have as their top priority for 2020.
And it’s no wonder. Companies are rewarded for growth. Employees are rewarded for growth. Shareholders are rewarded for growth. Growth drives enterprise value, even more so than profit margins. By some measures, growth is up to five times more important than profit margin in business valuations.
Growth is the path to a brighter future for almost any business. But how best to grow can be miscalculated, misdirected and misunderstood. If asked, many businesspeople would suggest that growth is best achieved by simply finding more customers and creating more products and services to sell to them.
However, fundamentally, this isn’t always the case. There are significant growth opportunities in the existing customer base, particularly in replenishment distribution businesses where a large base of customers makes frequent, repeat purchases of items from a massive product catalog. Oftentimes, serving up highly relevant predictive sales analytics is the fastest and easiest way for a business to achieve its growth targets.
Successful growth strategies always start with creating and delivering value to customers. In theory, value delivered translates to value returned in the form of payment for goods and services.
But how do you deliver more value to customers in businesses with incredibly high purchase volume like food service or electrical products distributors, for example? How can you - while delivering high value - ensure you are mining all the growth available from what you sell today to those you already do business with?
Your business very well could be missing opportunities with those who already know, like and trust your brand. Where can you sell more to your existing customers? More importantly, how do you identify where customer purchase volume is declining? Where are these gaps and opportunities today? Where might they be tomorrow?
‘Reducing churn’ (staving off competitive poaching of customer purchase volume) and filling in the ‘white space’ (cross-sell of your other products to a customer based on what they buy now as compared with ideal customers) are great places to start in your existing accounts. Remember, according to most studies, acquiring a new customer can cost five times more than retaining an existing customer.
Zilliant’s landmark Global B2B Benchmark Report determined that B2B manufacturers, distributors, and service companies miss out on anywhere from 4.5 percent to 16.1 percent of potential revenue from customer churn, which encompasses both declining purchase volume and complete defection to competition. Moreover, this report determined that companies miss up to 14.8 percent of revenue annually due to not effectively cross-selling products to existing customers.
Leading predictive sales analytics solutions are the best way to execute on these opportunities. By serving up highly actionable sales insights to sales reps, you stand to not only stop revenue leakage as described in the benchmark report, you can also point sales reps directly to the opportunities to grow wallet-share and reverse customer churn. By doing so, sales reps can be better prepared to have highly relevant conversations with customers as well.
Knowing where and how to grow is critical to achieving your growth targets for 2020 and beyond. Ensuring you capture every dollar and cent from existing accounts is the smart place to start and could be ‘easy money’ for you and your sales team. And getting the right guidance, technology, and support you need to harvest these opportunities is a great first step in the growth process.
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