Quick Take: How to Track Revenue Performance

In this Quick Take episode, we're tackling how to track revenue performance for maximum results.

From understanding the key metrics to utilizing the right tools, you'll be equipped with a comprehensive understanding of how to effectively manage your revenue and make the best decisions for your business.

LINKS:

Matt Sunshine

The Center for Sales Strategy

Transcript

Matt Sunshine: 0:05

Welcome to Improving Sales Performance, a podcast highlighting tips and insights aimed at helping sales organizations realize, and maybe even exceed, their goals. Here we chat with thought leaders, experts and gurus who have years of sales experience from a wide range of industries. I'm your host, matt Sunshine, ceo at the Center for Sales Strategy, a sales performance consulting company. Today, in this Quick Take episode, we're tackling how to track revenue performance for maximum results. From understanding the key metrics to utilizing the right tools, you'll be equipped with a comprehensive understanding of how to effectively manage your revenue and make the best decisions for your business. With that, let's get started. One of my favorite topics to talk about is revenue performance, and revenue performance is an essential metric for businesses of all types, and in order to track revenue performance effectively, you really need to understand a few things and how they all work together. So the first thing that you want to make sure that you understand is what are your key metrics to revenue performance in your business? Is it the understanding what type of revenue, so sourcing by revenue type, or is it understanding the revenue volume? Or is it understanding the revenue score? Is it understanding the revenue velocity? Is it understanding the revenue churn? Is it an activity. Is it activity based on revenue? You want to really study the revenue on revenue. You want to really study the revenue, not what. You want to really dive into that revenue performance. We can have a whole nother conversation about the activity required to get the revenue, but we want to, for right now we want to say what are those key metrics for understanding the revenue? Is it revenue per product, right, or there's lots of different ways to do that, okay. The second thing is you really need to have a. You need to develop a consistent way or consistent process to track revenue, right? So you want to identify your revenue sources and then you want to record your revenue volume. Really important that you're doing this consistently. You're doing it the same way every week or every month or every quarter. Whatever your cadence is for looking, you need to have that cadence. But once you understand what are the revenue metrics you're going to be looking at, then we need a process for tracking that revenue.

Matt Sunshine: 3:10

And then the third thing to do, once you have your key metrics identified and you're tracking them correctly, is make adjustments. Right, you make adjustments based on revenue performance. You might be increasing the amount of revenue that you need to see coming from each source. Or you might start saying, okay, we're seeing an increase here and a decrease here. You might want to look into that. You might think about expanding your customer base. That's a lever that we can pull. Okay, it's not that we're going to get more from the customers that we currently have. We're actually going to expand the customer base. Or you could another lever you can pull is changing your price, your pricing terms right, or changing your rate card, or changing the terms of the deals that you make. Those are the levers that you can pull, those are the adjustments that you can make.

Matt Sunshine: 4:12

And again, I just want to restate it because I think it's important First thing we want to do is understand what the key metrics are for our business. Then make sure that we have a process in place to track that revenue, willing to make the necessary adjustments that need to be made based on the revenue performance that we're tracking. And then we want to implement revenue driving strategies. Right, we we want to then go OK, it's really good that I understand what my, what my key metrics are and I'm tracking them correctly and I'm making all the adjustments I need. But I need to be really forward thinking and have some revenue driving strategies, and that could mean looking at the way we're doing marketing and optimizing our marketing strategy around the revenue expectations, or adjusting our products or our service offerings based on the way we're seeing revenue impact them.

Matt Sunshine: 5:14

If something's not selling, if there's no revenue attached to a service, do we really need that service? Or if there is revenue attached to it, can we accelerate that a little bit? And if something is not as successful or you see an opportunity again I mentioned this earlier maybe changing the pricing model? So those are some things that you can do when putting in a forward thinking strategy. So, to wrap this up, make sure you implement a tracking process, utilize the best tools and the right tools to analyze your data, to analyze your data, and once you have all this in place, you can implement revenue driving strategies that will help you both take control of your business, but also take your business to the next level. For this year and for years to come, this has been Improving Sales Performance. Thanks for listening. If you like what you heard, join us every week by clicking the subscribe button. For more on the topics covered in the show. Visit our website, thecenterforsalesstrategycom. There you can find helpful resources and content aimed at improving your sales performance.