Review these 3 key tips to ensure that you have a strong foundation for success and start the year off right.
Existing Customer Revenue Plan
Determine how much of your target revenue you expect will come from existing customers. Create a list of revenue by customer in 2015 and sort in descending order. Take the top customer tier representing 75% plus of total revenue and specifically forecast 2016 expectations for each. Create columns for flow-through, up-sell and cross-sell revenue. Make sure that you have activities in your CRM that will support your introduction, development and sale of new revenue from each existing customer relationship. Meet monthly to see if you are on target with expectations. If you need to, you can adjust your new business plan to make up deficiencies but you need to recognize any potential shortfalls as early as possible.
Top Tier Customer Retention
You can not afford to lose your most valuable customers. Do you have specific relationship programs in place to ensure that you understand their ongoing and potentially changing needs, their level of satisfaction and that you are consistently delivering value?
You might consider creating a Platinum Service Program. Introduce it to your customers and use it as a differentiator in your credentials presentations. Get customer agreement on key metrics, review meeting frequency and agenda and their quality/service level expectations. If you have a bandwidth issue create a Gold Service Program for your mid tier customers that keeps in touch and delivers a subset of the Platinum Program value.
Review your retention success over the last 2 years to understand your expected level of attrition. When you forecast 2016 you will have to increase your new business targets to accommodate for this loss. Too often this aspect of planning is overlooked and the year's goals are understated.
New Business Checklist
Now that you have a strong customer plan, you can calculate the new business revenue requirement to gross up to your annual 2016 plan. Calculate the number of new accounts that are required based on a reasonable estimate of average first year revenue. Take into account the average number of months that new customers will be with you through 2016. If a new customer is expected to contract for $20k on signing you might have to reduce the first year revenue to $10k based on a 6 months of business.
Take your average close rate to see how many prospects are required in your opportunity pipeline. If your target new business revenue is $1MM with an average contract of $10k, you will need 100 new accounts. You will need 400 prospects if your closing rate is 25%.
You can deepen your accuracy by applying this process to customer value segments, key geographies or product/service categories. As you review your market penetration rates you can determine your best prospect targeting strategies.
Become Sales Effectiveness Experts
You have agreement on the plan. You have defined a set of sales strategies and processes to support your efforts. You have the energy and commitment from your team to succeed. What can go wrong?
The biggest reason for failure is not having the tools in place to know if your sales process is being consistently executed. The second largest contributor to under-performance is not having insight into the sales effectiveness of your strategies at each opportunity stage. We have written about these important issues and suggest that you read "Best Sales Call Ever" and "Increasing Sales Performance" for more information and direction.
Give me a call to discuss your specific needs and situation. 1.866.420.9755