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A study by Bain and Company shows an alarming trend: the cost of sales and marketing is growing faster than revenues. Half of the companies surveyed experienced their sales and marketing costs rising faster than revenues. Ironically, when companies achieved high growth, their costs of sales and marketing, as a percentage of sales, remained flat or even declined.
This study, along with others, proves a fundamental shift in the B2B world: Buyers have dramatically changed how they buy, while sellers continue to sell as they always have.How do sellers adapt to the changing demands and preferences of the modern buyer while pursuing continuous revenue growth?
Through the Five Factors that accelerate revenue growth; these factors are:
Factor 1: Choosing your Ideal Market Focus
This first factor advocates that you select, market, and sell to the right industry segment for your unique business’ products and services. Of all of the five factors, this segmentation and focus has the greatest potential to increase or decrease your revenue growth. Read more.
Factor 2: Having the Right Sales Process
The old selling process is being replaced. Today’s buyers want to work exclusively with vendors who align their selling process to the buyer’s preferences. Buyers prefer to research and reach out to companies that the like. To capture the attention of this new brand of buyers, sellers must align their sales and marketing processes with their buyer’s expectations and preferences. Read more.
Factor 3: Viewing Sales and Marketing as a Single Continuum
To achieve high revenue growth, companies should perceive their marketing and sales efforts and departments as intimately linked. If your marketing and sales teams see themselves as a united force, at least 75% of your leads should be directly generated by marketing. Read more.
Factor 4: Leveraging Intelligent Data
With the overwhelming amount of data present in sales, you must be careful to only provide sales reps with intelligent data. Intelligent data is numbers and figures that enable sales reps to be relevant, engaging, and convincing in their interactions with buyers. The targeted capabilities of intelligent data enables your sales team to more effectively speak to leads and prospects, increasing the likelihood of their conversion into buyers. Read more.
Factor 5: Managing through Metrics
Most B2B companies today track some form of metric, but usually only in regards to sales departments. To generate revenue growth at a faster rate than costs, companies should invest in tracking the performance of their marketing campaigns. Factor 3 informs us that marketing is just as important, if not more important, than sales at generating leads and revenue growth. Read more.
In short, buyers are demanding more from sellers. They want a real partner that can ceaselessly add value to their own offering, enabling them to renew non-stop their own competitive advantage. In other words, they want to work with a top tier provider. This is no easy demand—which is why, for most B2B companies, the cost of marketing and selling is growing faster than revenues.
To fully learn how to best leverage these Five Factors to reduce your costs and grow your revenue, download our full whitepaper.