Your RPM (Revenue Performance Management) cycle drives your business – it’s your engine! You’re taking a stranger and, with care, turning them into a paying customer. Improving your RPM cycle is the way to streamline your business and increase sales!
Naturally, optimizing this nine-step cycle is a key to success. But let’s stop here. What are we even talking about?
OPTMIZATION is defined by the handy Oxford Dictionary as “Making the best or most effective use of a situation, opportunity, or resource.” In this case, we’re talking about reviewing our revenue performance management work so far, and making it better. This logically follows the step we covered in our last blog – measurement! Now that we have the numbers (closing rate, conversion rate, deals per rep, etc.), we can see where we fall short and make improvements.
Sounds easy, right?
Companies face common challenges when trying to optimize their RPM cycle (and they usually fall into four categories). Do any of these phrases ring a bell?
1. I already optimized my RPM cycle.
Optimization is all about finding parts of your process that are underperforming (or could be improved with a little attention). But this is not a one-time activity. Optimization is an ongoing process that deserves time each month. If your overall conversion rates go from 2.5% to 2.75% (a 10% increase), pat yourself on the back and keep it up! What other ideas could you test to make that a 40% increase? If you get to the point where each person who interacts with your company turns into a customer, you’re free to stop optimizing. Ha!
2. I don’t have the time to optimize.
How do you currently spend your time? If you’re solely focused on increasing your number of leads, you may be working too hard. By focusing your time on making the most of the leads you already have (optimizing), you could increase revenue much more quickly. Start by taking ten minutes each morning to look at your numbers (visits, leads, sales, conversion rates, sources, etc.). Does anything seem off? Do you feel like you could turn more website visitors into leads? Funnel some energy into that website. Voila – you’ve already started optimizing your RPM cycle in just ten minutes.
3. I already know what works and what doesn’t from experience.
Experience can be a trap. If you know that 2% of leads historically turn into clients, you may be suffering from the curse of knowledge. If you’ve always had a 2% conversion rate (even across multiple products and companies), this doesn’t mean that 2% is your maximum conversion rate. Keep reaching!
Challenge what you already know. What can you test that might change a number you’ve accepted as fact for months or years? This is a great question to ask yourself during your daily 10-minute optmization sessions!
4. One source is knocking it out of the park, so we’re good for now.
You may have one source that is carrying your lead generation. Although it’s great to have that killer source, this should raise a red flag. You need more than one reliable source, so you’d better get busy optimizing! What can you optimize to make other sources perform like the rockstar source? Are there opportunities to add new sources that may perform like the best one? Can you cut out sources that take time but don’t produce?
If you have one source bringing in most of the leads - you need to set aside time for optimization and bring in another source. If not, and your one source disappears – we shudder to think!
If any of these scenarios sound familiar (we’ve all faced them), then you still have room for improvement. Optimize! Click here to learn more about this seventh step of your revenue performance management cycle!