The choice to increase sales revenue is not to be taken lightly. Businesses and leaders can go about it in several different ways like adding to the pipeline, launching new products or services, upselling clients, training your team and more. While each of these activities improve sales revenue, a disjointed effort will not provide the returns you want. To succeed, focus on the areas and people who matter and employ a measurable strategy to achieve your strategic objectives.
Establishing and delivering on sales revenue targets
1. Establishing And Delivering On Sales Revenue Targets
The choice to increase sales revenue is not to be taken lightly. Businesses and leaders can go
about it in several different ways like adding to the pipeline, launching new products or services,
upselling clients, training your team and more. While each of these activities improve sales
revenue, a disjointed effort will not provide the returns you want. To succeed, focus on the areas
and people who matter and employ a measurable strategy to achieve your strategic objectives.
Set Targets
Set up key performance indicators (KPIs) to understand and measure your progress toward
your objectives. Discuss your KPIs with your team to find out what works and what doesn’t.
Once you determine your KPIs, ensure they have meaningful targets to know whether you are
meeting your goals or not.
Now that you have measurable targets in place, sort out your KPIs by priority and focus your
efforts on the KPI that provides the greatest impact. Conduct research to ensure the financial
viability of the KPI before coming up with a long-term target. Now, you can work backwards and
set a more incremental target for shorter time periods. With the target set for your most
important KPI, follow the process with the rest of your current KPIs.
Align KPIs
Once you are done setting your targets, review the KPS you have created and the link between
internal and external KPIs. Your businesses resources and budget will determine whether you
have the capacity to achieve your targets so if you fall short or your team is placed under undue
stress, adjust the pace of your strategy or set more realistic goals. Divide those goals amongst
your team members and distributors and help and motivate them to achieve it.
The targets are usually on the higher side and push you to achieve them, but I have always
used that as motivation to work smarter and harder. It does not always make sense to target,
organically or otherwise, the entire territory. Look at your distribution network and select the
areas you would like to target.
Unlike most people, my strategy was to target neglected areas to go beyond my KPIs. Instead
of following a familiar path, I focused on 3G sales and data usage while posted in Bulandshahr.
Since 3G was a new phenomenon, new customer acquisition increased and old customers
migrated in droves. Even better, the ARPU rose as well thanks to opting for the right strategy.
The initial phases would require establishing the business would it would pay off in the long run.
Plan Strategy
Business leaders need to understand the difference between revenue and profits. If you know
how to increase profits, your business is likely to prosper. A regular customer base to sell your
product or service is not a guaranteed recipe for success. To increase the money coming in, we
can increase the number of customers and average revenue per user or price. Increasing your
sales revenue requires a well thought out strategy to help you market and optimise your profits.
Plan well and learn the tactics that will allow your business to be profitable.
When deciding upon your strategy, question how you could achieve the target. The parameters
you have to look into and the strategy to get off on the right foot. There are many things you
could do to increase revenue but setting a strategy is paramount. Evaluate your current situation
internally and externally and create a strategy that aligns with your revenue goals. With a
2. strategy in place, design a framework to you execute it. Examine the details during
implementation, the people needed and marketing required. Your framework needs to support
any contingency and enable the sales team to function smoothly.
Prioritise and Balance
Your staff are what will make it possible for you to achieve your targets. The right people in the
right roles are central to your execution. Make sure that your team has the necessary skills and
knowledge to perform at peak levels. Ensure they have anything they require, whether it be
data, role allocation, relationships or training. Above all, ensure your team is aligned with your
strategy and motivated to achieve it.
You need to maintain a careful balance between revenue, profit and cash flow to run a stable
and prosperous business. It might be easy to focus on one aspect to measure progress but their
significance is tied to each other. Having adequate cash flow covers expenses and profits are a
good sign too but also set up a sales pipeline with enough new revenue for a sustainable future.
Reduce wastage and optimise efforts to improve process efficiency and achieve targets.
Analyse processes and find out whether they improve sales or help your customers.
Importantly, continually implement change to improve functional effectiveness and improve your
team performance.
When you set out to increase your revenue, make a concerted effort on all fronts. If any area is
weak, it will throw your other operations out of order and hamper your ability to grow. Monitor
every aspect of an ongoing basis and align them to your strategy. Once your plans have been
implemented, track your progress to stay on the right track and take advantage of every
opportunity offered to reach and exceed your targets.