Unlocking Hidden Revenuein Current Customers

Webinar: August 26, 2014

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Today’s Presenters

Carter Hinckley is a Managing Director with Blue Ridge Partners. He has more than 30 years of experience in sales, senior management and consulting – all focused on helping firms grow sales more effectively. Most of his experience has been in the software, technology and financial services industries, working with firms in transition due to acquisition, product maturity, or changing markets and channels. Before joining Blue Ridge Partners, Carter started, grew and sold a software consulting firm dedicated to helping firms use CRM and other software to increase sales. Previously he worked at Booz Allen and Merrill Lynch. He can be reached at chinckley@blueridgepartners.com

Corey Torrence is a Managing Director with Blue Ridge Partners. From strategy through implementation to executive management he has focused on achieving revenue growth and profitable bottom line results. For over a decade he served as CEO and other senior positions at several global marketing and technology companies. Prior to his corporate experience, he provided strategy and growth improvement services as a Partner with McKinsey and Company and other global consulting firms. He can be reached at ctorrence@blueridgepartners.com

Carter HinckleyManaging Director

of Blue Ridge Partners

Corey TorrenceManaging Director

of Blue Ridge Partners

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Sources of Total Shareholder ReturnTop-Quartile Performers, US S&P 500 (1990-2009)

Revenue Growth is Central to Value Creation

7%

58%

20%

15%

revenue growth

Revenue Growth

Cost Reduction

Multiple Expansion

Free Cash Flow Improvement

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5

Optimizing the Productivity of the Sales and Marketing Environment

e.g. Having an effective go-to-market

model, incentives,quality of supervision

CoreRevenue = xNumber

of CustomersAverage Revenue

Per Customer

Increasing Share of Customer Spend

Pricing Efficiently

Adding New Customers

Retaining ExistingCustomers

31

4

The Components of Revenue Growth:The Revenue Equation

1 3

2 4

5

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Steps To Increase Share of Customer Spend

Understand the potential in your accounts

Prioritize the opportunities

Create a plan and stick to it

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Understand the Potential in Your Accounts

Sample Components of the Fact Based Analysis:

» What is each customer’s total spend on the types of products or services you sell?

» Is the customer’s total spend increasing, decreasing, or remaining constant?

» What does the customer currently spend with your company?

» Is superior performance with some of your products and services masking poor performance with others when viewed at the aggregate level?

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Understand the Potential in Your Accounts

Sample Components of the Fact Based Analysis:

» What is each customer’s total spend on the types of products or services you sell?

» Is the customer’s total spend increasing, decreasing, or remaining constant?

» What does the customer currently spend with your company?

» Is superior performance with some of your products and services masking poor performance with others when viewed at the aggregate level?

Sales Rep Perception and Customer Reality

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Prioritize the Opportunities Identified in Step 1

Add support and maintenance

Offer more training

Sell more modules and new solutions

Add more users

Increase the frequency of use Increase the

duration of use

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Prioritize the Opportunities Identified in Step 1

Questions to Consider:» Who are your splitters?» What would it take to increase share of spend in each market segment?» What’s the ROI if you made that investment?

» Prioritize those accounts with a high likelihood to increase spend where you currently have a low current share of spend

» Pay special attention to “splitters” who have high satisfaction (based on Net Promoter Score for example) but low current share of spend

» Calculate the cost to increase share of spend including the resources you will dedicate to the effort

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Have a Plan and Stick to It

Questions to Consider:

» Where should the responsibility for developing and owning plans exist in your organization?

» How can you make your share of spend solutions on-going processes instead of one time events?

» What is your plan and cadence to measure the impact of the actions you take to see if your efforts are making a difference?

 

» Develop a plan for each prioritized market segment

» Work out the details for each prioritized customer within those segments

» Look for ways to implement multi-faceted solutions e.g. offer a loyalty program which includes requests for referrals in exchange for special pricing as volume increases

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Thank you for joining us today!

Carter HinckleyManaging Director of Blue Ridge Partners

chinckley@blueridgepartners.com(212) 600-0235

Corey TorrenceManaging Director of Blue Ridge Partners

ctorrence@blueridgepartners.com(917) 593-6844

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