Revenue Operations. Stephen Diorio
Читать онлайн книгу.
demographics are also playing a big role in this change. About 10,000 baby boomers turn 65 every day, according to Forbes.39 Millennial buyers, on the other hand, were raised on Google search and digital channels and expect to do all or most of their buying 100% online; 83% of millennial B2B buyers expect e-commerce to keep them more informed about product choices than ever before.40 Most (55%) of millennial B2B customers today would prefer to buy a complex solution without engaging a sales rep at all, according to Gartner.17And when they do ask questions, they want fast and complete answers. “Today, half of the working population was born after 1977,” says Jaime Punishill, CMO of Lionbridge. “That's important because the only information paradigm they've known is defined by Google – which is fundamentally an ask-response paradigm. They don't want to sort through big menus or wait for answers. They simply want to ask the question using Google, or voice search, or a human if need be.”33 This is forcing sellers to fundamentally shift the way content and websites are organized from a manual classification scheme to more data-driven response management paradigms based on how buyers search and ask questions. To adapt, sales enablement teams are shifting to a response management paradigm that uses AI to track and anticipate the questions customers ask and make it faster to provide a contextual answer by a sales rep, service rep, chatbot, or a voice-activated device.But if the experience is bad, it can be fatal. Almost 60% would stop doing business with a B2B vendor based solely on a mobile experience that's difficult to use.40 This has elevated the customer experience to the primary goal in selling. This primacy of the customer experience puts pressure on managers to better manage the end-to-end commercial process rather than a few parts or stages of it. Managers struggle to coordinate revenue teams, management systems, metrics, and platforms into a more unified customer experience. It puts a premium on systems and procedures and processes that improve speed and agility, as well as personalize customer experience and connect channels.
The speed and cadence of business is faster. The cadence of customer communications has accelerated as conversations have moved from face-to-face to digital channels. There is less time to rest and regroup between calls. Sales velocity has become so fast that revenue teams and the executives who direct them require real-time customer intelligence and selling guidance. The managers and operations professionals we surveyed rated visibility of customers, seller effectiveness, account health, and pipeline health as the four top drivers of the performance of “4D” (distributed, diverse, digital, and dynamic) revenue teams.
Selling has become more capital intensive. The executives we spoke to told us the key to leading a revenue team in the twenty-first century is more about managing selling systems and less about managing salespeople. As selling has become more digital, it has also become more capital intensive. The capital and operating components of the growth investment mix have both changed significantly in the past 30 years. For example, the commercial technology portfolio – or the sales and marketing technology stack – has grown to represent a large component of growth investment mix and sales and marketing operations overhead. Worldwide spending on customer experience (CX) and relationship management (CRM) software grew 15.6% last year as 81% of marketers say they will compete completely on the basis of CX, according to Gartner.16 The Duke CMO Survey reports marketers are now investing more money in Customer Relationship Management than they are in Branding.4 In all, the average enterprise now has invested in over 20 selling tools.36 Smaller cloud-based businesses use over 30 on average to support selling.26For the first time, as mass media declines in reach and privacy concerns make third-party media more untenable, at most firms more of the operating budget is being spent on “owned” digital channel infrastructure than on “paid” media (digital or otherwise).161 As a by-product, businesses are investing over 10% of their marketing budgets on advanced analytics to find ways to monetize the valuable customer engagement, seller activity, and product telemetry data this digital selling infrastructure creates. These commercial systems need to be managed more like capital equipment than discretionary expenses if they are going to generate real revenue yields. All of this puts pressure on managers to rationalize, streamline, connect, and monetize the growth technology portfolio to generate greater financial returns from these assets and to better enable scalable and predictable growth. “Connecting the dots” across the increasingly complex and expensive technology ecosystems that support revenue has become a basis for competitive advantage.
Selling is more data driven. A revolution in advanced sales analytics and Artificial Intelligence (AI) – fueled by rich new customer engagement, seller activity data, product usage data sources, and increased investment in analytics – is changing the way companies grow and create value. Advances in AI and a growing portfolio of AI-enabled selling tools are making data-driven selling possible. The benefits of this are faster information flow, better allocation of selling resources, and more visibility into pipeline, account, and opportunity potential. Advanced analytics are helping managers improve the performance of every aspect of the go-to-market system. Such tools will be the primary drivers of growth, competitive advantage, and value creation in the next 25 years. These changes amount to a Copernican revolution in selling, where every action and activity is centered around customer data.
The pivot to 4D selling has changed the economics and the architecture of selling. The massive and continued shift to remote work, hybrid work, and work-from-anywhere practices by both buyers and sellers has made digital, data-driven, dynamic, and dispersed selling teams a primary channel to market. This has changed the economics of field sales by shifting dollars from travel and real estate to more scalable training and technology investments. It has also significantly altered long-standing assumptions about sales force emphasis, roles, workloads, selling costs, and the mix, nature, and cadence of engagement needed to convert prospects into customers. This has every organization rethinking geographic-based territory definitions, quota assignments based on face-to-face calling patterns, and labor-intensive coverage models. Readjusting the “architecture” of your commercial model to reflect these new dynamics can reduce selling costs and improve seller performance significantly with no additional investment.
Managing customer lifetime value has become a primary focus as businesses chase recurring revenues. A business with recurring revenues is worth more than one that must sell their offerings to their customers one at a time repeatedly. So it's no surprise that most boards (53%) are pushing their CEOs to repackage their products and services as subscription pricing models, usage-based models, or cloud-based offerings, according to a report by CFO Magazine.50 Almost every business (90%) that sells “on-premises” technology, equipment, or software is moving to a cloud model, according to Gartner.17 Any business that can pull it off – including industrial firms like Honeywell, automotive firms like Audi, and infrastructure like Flexential – is trying to move to recurring revenues. Moving from selling products to selling subscriptions and SaaS solutions requires significant changes to the way you “go to market.” It shifts the focus of selling from hunting for new customers to building more loyal customers and expanding relationships with them. It has increased the importance of growing customer equity and lifetime value as a driver of firm value. It has also forced organizations that engage customers – sales, marketing, customer experience, and support services – to find ways to work together collectively as one revenue team.
Growth has become a team sport. There are 18 strategic levers that grow revenues, profits, and firm value, according to academic research compiled by the Marketing Accountability Standards Board.7 These growth levers reside in different parts of your organization. They include the ability of IT to move information quickly, the ability of service teams to build customer equity, and the ability to deliver a superior digital channel experience. They also include the effectiveness of sales and marketing channels, the engagement of customer-facing employees, and the perceptions of innovation that your product team creates in the marketplace. No single organization or leader controls all 18 of these growth levers. Our analysis shows they are distributed across sales, marketing, customers success, product management, and sometimes information technology. When we add it up, none of these traditional job functions controlled more than a quarter of the levers of growth. And critical new pieces of the growth equation – such as customer analytics and managing digital channels – are