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

Episode Transcript

Matt Sunshine (00:05):
Welcome to Improving Sales Performance, a
podcast highlighting tips andinsights aimed at helping sales
organizations realize, and maybeeven exceed, their goals.
Here we chat with thoughtleaders, experts and gurus who
have years of sales experiencefrom a wide range of industries.
I'm your host, matt Sunshine,ceo at the Center for Sales
Strategy, a sales performanceconsulting company.

(00:27):
Today, in this Quick Takeepisode, we're tackling how to
track revenue performance formaximum results.
From understanding the keymetrics to utilizing the right
tools, you'll be equipped with acomprehensive understanding of

(00:48):
how to effectively manage yourrevenue and make the best
decisions for your business.
With that, let's get started.
One of my favorite topics totalk about is revenue
performance, and revenueperformance is an essential

(01:10):
metric for businesses of alltypes, and in order to track
revenue performance effectively,you really need to understand a
few things and how they allwork together.
So the first thing that youwant to make sure that you
understand is what are your keymetrics to revenue performance

(01:32):
in your business?
Is it the understanding whattype of revenue, so sourcing by
revenue type, or is itunderstanding the revenue volume
?
Or is it understanding therevenue score?
Is it understanding the revenuevelocity?
Is it understanding the revenuechurn?

(01:55):
Is it an activity.
Is it activity based on revenue?
You want to really study therevenue on revenue.
You want to really study therevenue, not what.
You want to really dive intothat revenue performance.
We can have a whole notherconversation about the activity
required to get the revenue, butwe want to, for right now we

(02:16):
want to say what are those keymetrics 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 reallyneed to have a.
You need to develop aconsistent way or consistent

(02:38):
process to track revenue, right?
So you want to identify yourrevenue sources and then you
want to record your revenuevolume.
Really important that you'redoing this consistently.
You're doing it the same wayevery week or every month or
every quarter.
Whatever your cadence is forlooking, you need to have that

(03:00):
cadence.
But once you understand whatare the revenue metrics you're
going to be looking at, then weneed a process for tracking that
revenue.
And then the third thing to do,once you have your key metrics
identified and you're trackingthem correctly, is make
adjustments.
Right, you make adjustmentsbased on revenue performance.

(03:24):
You might be increasing theamount 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 intothat.
You might think about expandingyour customer base.
That's a lever that we can pull.
Okay, it's not that we're goingto get more from the customers

(03:47):
that we currently have.
We're actually going to expandthe customer base.
Or you could another lever youcan pull is changing your price,
your pricing terms right, orchanging your rate card, or
changing the terms of the dealsthat you make.
Those are the levers that youcan pull, those are the

(04:10):
adjustments that you can make.
And again, I just want torestate it because I think it's
important First thing we want todo is understand what the key
metrics are for our business.
Then make sure that we have aprocess in place to track that
revenue, willing to make thenecessary adjustments that need

(04:33):
to be made based on the revenueperformance that we're tracking.
And then we want to implementrevenue driving strategies.
Right, we we want to then go OK, it's really good that I
understand what my, what my keymetrics are and I'm tracking
them correctly and I'm makingall the adjustments I need.
But I need to be really forwardthinking and have some revenue

(04:55):
driving strategies, and thatcould mean looking at the way
we're doing marketing andoptimizing our marketing
strategy around the revenueexpectations, or adjusting our
products or our serviceofferings based on the way we're
seeing revenue impact them.
If something's not selling, ifthere's no revenue attached to a

(05:18):
service, do we really need thatservice?
Or if there is revenue attachedto it, can we accelerate that a
little bit?
And if something is not assuccessful or you see an
opportunity again I mentionedthis earlier maybe changing the
pricing model?
So those are some things thatyou can do when putting in a

(05:39):
forward thinking strategy.
So, to wrap this up, make sureyou implement a tracking process
, utilize the best tools and theright tools to analyze your
data, to analyze your data, andonce you have all this in place,
you can implement revenuedriving strategies that will
help you both take control ofyour business, but also take

(06:00):
your business to the next level.
For this year and for years tocome, 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 coveredin the show.
Visit our website,thecenterforsalesstrategycom.

(06:21):
There you can find helpfulresources and content aimed at
improving your sales performance.