With the global economy showing signs of recovery, most of the organizations are looking at revenue growth. Most of the large organizations (like SAP, Uniliver,etc) are looking at achieving double digit revenue growth for 2010.
The questions to ask are :-
- Should these large organizations be happy with a double digit revenue growth (read 10-12%) ?
- Is this the best that they can do ? If yes, why is that so ? Is their size restricting them from doubling their sales every 2-3 years or are there other reasons ?
- Is is possible for these large organizations to achieve 25-30% year-on-year growth in their revenues ? How ?
The answer to these questions is that it is indeed possible to achieve a 25% y-o-y growth for these huge organizations.
Let us see what can help these organizations to achieve this level of growth:
- First things first. The leaders should be absolutely believe that a 25% growth in revenue is possible. Without this absolute belief, everything else will fail.
- They need to continue to re-define their markets. Intel did so by reaching out to the end-consumers directly. Apple did so by entering the mobile handset space.
- Re-define how they sell. The world around us is changing and that at a very rapid pace. The way we sell should also change to keep up with the times. The organizations would really do well to
- Add a new sales channel
- Identify ways to help customers reach you
- Un-complicate their sales organization
- Improve selling process. My experience is that improved efficiencies in the sales processes alone can add another 1-2% in revenue growth. Continuous process improvements in the sales processes is absolutely essential.
- Provide exceptional customer service. No company can keep growing without keeping their customers happy. If there is only one thing that an organization can do out of this list, it should be to provide exceptional customer service levels. This is the MOST IMPORTANT STEP in the sales process.
I strongly believe that each of the above can add 1-2% to the revenue growth by itself, but if done as a combination can drive the business to a 25-30% growth. The state of economy does matter to a certain extent. But, if your product/service adds value to your customers, you can still maintain the growth despite bad economic conditions.
One thought on “Double digit revenue growth”
It was helpful to understand about the various ways in which you will be able to attain revenue growth in double digit.
To value add on your second point re-define their markets in other words diversification, it is essential for an organization to think of various other markets if they tend to saturate with their customer base.
Dell was the number one hardware company in the year 2005-2006, by its direct model while in the same time IBM sold off its personal computer business to Lenovo. It looked as tough IBM caved away from competition then, but when you look at it now, IBM understood that the computer hardware industry was an oligopoly industry and an saturated business for them, they moved to a different market of solution providers and actually became the market leaders of it. Today when HP also moved to the direct selling model and took the first place from Dell, Dell is presently considering to move to the solution providers market, while they are 3-4 years slow to respond and act.
Net Net, understand the customer base and act in time to move to other markets before someone else takes your market share.
It is also for the reason that the cost to maintain an exsisting customer is more costly than to get a new customer, that you will have to find alternative markets / research spending on new markets.
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