RevenueAnalysis

The Science of Sales: Revenue Analysis

It is wrong to suppose that if you can’t measure it, you can’t manage it – a costly myth.
W. Edwards Deming
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Revenue Analysis

Sales is often called a numbers game, to which can be said
"Yes, but which numbers?"

Numbers do lie, and they rarely lie still.
The problem for most companies is their analytics tend to be conducted by:

  • inexperienced sales operations professionals, or
  • business intelligence professionals with no sales background
  • way of backward looking single variable data sets
  • people out to "prove a point" (bias)
  • proxy - intelligence yet no insight - output simply raises more questions
  • analysts without prescription for correction
  • consultants lacking proven playbooks
  • people with no skin in the game, just the report
  • people focused on analysis, not performance outcomes

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Do you Qualify for Help?

This might seem like an odd question, after all, shouldn't we try to help everyone?
Not really!

The reality is that many companies are so committed to the status quo, afraid of change (for many reasons), and paralyzed from irrational exuberance (hopium) or from uncertainty as to how to proceed, that we cannot help them.
Unfortunately, many prefer to rearrange the deck chairs while the Titanic sinks.

The people and companies we will help know that to move forward, they must:

  • Stop fighting Gravity
  • Answer some hard questions
  • Get the Data based on the Science of Sales, not Emotion
  • Commit resources to making the change
  • Stay the course until the results are in

Common Diagnostic Errors

Common errors in diagnosing sales revenue problems include:

  • Collection Errors: Gathering data not supportive of accurate diagnosis, typically lagging financial not diagnostic
  • Interpretation Errors: You've collected the right stuff, algorithms incorrect in determination
  • Quality Errors: Sample size, frequency, granularity, aggregation, or accuracy may be off

Symptoms of Sales Organization Problems

Typical indicators of issues in building a successful organization are:

  • High involuntary and voluntary turnover rates
  • Hiring account managers to hunt for new clients
  • Hiring hunters that can't and won't hunt
  • Lack of productivity, activity, and profit
  • Inconsistent sales process
  • No sales process
  • Lack of Accountability
  • Weak sales funnel
  • Lengthening sales cycles
  • Product Managers on every call or demo
  • Expensive Compensation without results
  • High cost of Sales
  • More…