Revenue Growth is the focus of an incredible volume of marketing technology, bloggers, and goto market prognostication. Its an ever present challenge for every company that survives startup, and for many underfunded startups as well. Revenue in the business world is not funding within this definition.
The sources of revenue we need to look at are:
- Current Products for New Customers
- Current Products for Existing Customers
- New Products for New Customers
- New Products for Existing Customers
Sounds simple and easily mapped into a 2x2.
Why is this relevant?
We are incessantly bombarded with digital messages as a function of Reach, Frequency, and Volume supported by claims of great accounting, tracking, and performance management. Not a surprise, yet so disappointing that the majority of Marketing Technology has shifted toward bean content, accrual accounting, and financial performed related to asset value and ongoing investments in same. Missing in this equation is the buyer, their preferences, imagery, emotion, thoughts, and sensual physicality. A perfect resolution the sensory deprivation afforded us by a life online. Or behind a keyboard, but I digress.
At the H2H or Human to Human level is an important little function called Account Management. Sounds boring, yet in fact it has many challenges. Like most human activity, it is fraught with potential, is uneven, imperfect, and messy. Thats right, people are messy, or as I discovered many years ago with 3 kids under the age of 4, life is gooey. For now lets stick to messy.
Now here's a dirty little secret the Marketing Technology and Social Media community don't want you to know.
Account Management performance excellence can drive as much as 33% more revenue without landing a new customer logo. Not sexy, yet powerful growth nonetheless. And not only that, the benefits of this type of growth are astounding. The term associated with that level of organic account growth is Trusted Advisor.
Organic growth from achieving Trusted Advisor status (account management excellence) produces:
- 9X greater likelihood of being called first for a new opportunity
- 3.5 times greater share of wallet (SOW)
- 4X longer customer tenure
And there is more in terms of pricing power, positive word of mouth, and reduced cost to service. All in all, that spells Profits!
As so many marketing investments more towards the historical advertising norm o 2% ROI, marketing and sales executives need be more selective with their investments. Deliberately investing Time, Effort, and Money in creating Customer Loyalty moves straight to the bottom line, increases EBIT, improves P/E, and grows business value stakeholders insist on.