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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 [email protected]
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 [email protected]
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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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
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The Components of Revenue Growth:The Revenue Equation
1 3
2 4
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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
[email protected](212) 600-0235
Corey TorrenceManaging Director of Blue Ridge Partners
[email protected](917) 593-6844
For more information, a copy of this presentation, a copy of a related Executive Briefing or to Register for the next webinar, contact:
Stay tuned for our next webinar!