organic growth
DESCRIPTION
Knowing our true organic growth rate is important It represents how well we are converting historical investment into wealth It tells us where we should invest in the future (which product, what customer, which supplier relationship, what sales channel)TRANSCRIPT
4 Ways to growwww.gfbridge.com
Contact Andre Gien [email protected]
Management ideas from BLUE HAWK Financial Performance –Week 3
Only 4 ways to achieve organic growth
Current Products/Services
New Products/Services
Current Customers
1.Customer penetration(sell more product to current customers)Price & volume
2.Product penetration(sell new product to current customers)Volume
New Customers3.
Market penetration(sell to new customers)Volume
4.Diversified strategy (sell new stuff to new customers)Volume
What are we good at
Growing existing customers with our current product portfolio ?
How do we measure this
Measuring sales from one period to the other does not cut the mustard
This period $41,311 Last period $40,816 Growth $ 495K ( 1.2%)
Conventional Wisdom Growth calculation
How did new customers and new products impact growth
New Customer growth $615K
New product growth $5,554
New customers
New products
$615 K
$5,554 K
Actual growth from existing customers and existing products
$35,142 Negative 14%
Real Organic growth shows a different picture
Knowing our true organic growth rate is important
It represents how well we are converting historical investment into wealth
It tells us where we should invest in the future (which product, what customer, which supplier relationship, what sales channel)
How much effort and cost do we spend on new stuff when the existing products and customers are declining ?
Average loss rate of new customers that stop buying within 6 months 35%
Why is organic growth good
Its with customers that we have already paid dearly to acquire
Its with products and services that we know
Good growth
Time to do some good
We want to be the best there is at organic growth
Cultural & skill development
Portfolio management
Customer portfolio management
Product portfolio management
Grow margins
Grow revenue
Product profit segmentation
Customer profit segmentation
Unit price per customer Product mix Customer mix
Product knowledge Specialization Pre call planning
Cross sellProducts previously purchasedCustomer trends
Market basket optimizationCustomers stopped buyingProduct trends
How
we
do w
hat w
e do
Week 4 we will focus on customer portfolio management
Good sales intelligence will
Increase sales by up to 5 % Improve margins by 2% Improve operational cash
flow 10% - 30%
If you only have a
hammer you will see every problem as a
nail
Want to improve sales and margins
But You don’t want to learn new software You know you wont have the time to use the new tool
properly and neither will anyone else The cloud is something you worry about when you want to
know if its raining or not.
You want the facts and you want them in ways that you can make a difference
Why not outsource your sales intelligence
We will:Install the required applicationsReview your data Determine
Where you can growWhere opportunities exist to sell more product to existing customers
(increase wallet share)Where you can improve your margins Where you are at risk
Provide you with a monthly portfolio reviewDeliver an action plan to get it done
Why not outsource your sales intelligence
Once off set up fee $700.00
$800.00 per month*Can cancel when ever you wish
Cost
*Up to 10,000 active products, larger data structures may be more
Results 1-2% margin improvement within 6 months5% organic additional revenue growth2x sales people productivity10% operational cash flow improvement with 12
monthsStart the
discussion [email protected] 925 323 2802
Join us for a free webinar
The 3 fundamentals to growing salesHow are our to performing customers behavingWhere are we making moneyCreating growth through cross salesFor Sales mangers, CFO’s and Business leaders• Wednesday June 11 at 3.00 AM ESThttps://www1.gotomeeting.com/register/181213608• Friday 13th June at 11.00 AM ESThttps://www1.gotomeeting.com/register/254626256
CustomerSwot.com - Individual customer growthEnabling salespeople to identify individual customer strengths, weaknesses opportunities and threats. Fully integrated reminders and CRM
Product and customer portfolio optimization | Analysis | Design | Implementation|Growing revenues and margins by knowing how your customers behave
Financial Statement excellenceTransforming static financial statements into a management dynamic management system that drives strategy focused on profit cash and returns
Performance consulting
GFB Service Portfolio Passion for Intuition powered by Evidence
Rapid improvement of profit, cash and returns with enduring cultural impact
Contact
Andre Gien
925 323 2802
Andre is our Evidence Wizard. He combines the Passion of intuition with the Power of Evidence to weave amazing stories that reveal the secrets and treasures that are locked within your business.
He has deployed the evidence based management discipline in over 150 different companies releasing more than $500 million in value and more importantly, demystifying the complexity for thousands of people.
Andre's favorite quote:
"If you change the way you look at things, the things you look at change"