Sales Revenue Management  

Sales Revenue Management

It's the numbers game in sales. Revenue management is analyzing the targets v/s actuals.

Sales Revenue Management

This pages gives the overview of the Sales Revenue Management function. It provides a high level view of the business objectives, key business questions and success drivers.

Business Objective for sales revenue management

Maximize Sales Revenue. This objective is top-line focused.

Key Revenue Management Business Questions

  • How much is the sales revenue generated by which channel and product?
  • How much is the leakage between lead generation to interest of purchase by Customer to final purchase?
  • Given the past trends, what are the projected sales numbers?
  • How the sales numbers stacking up to the competition performance?
  • What has been the sales trend, over last 12 months OR period to period comparison?
  • How much is my sales pipelines and what sales numbers it will lead to?
  • What is the sales case size patterns?
  • How much time it takes to close a sale from the start pint?

Sales revenue management business drivers

  • Sales force Density (Sales Lingo- 'Number of Feet per street')
  • Geographical spread ('Number of streets')
  • Sales force Productivity ('Number of sales achieved per pair of feet')
  • Sales velocity ('Time Taken between the first contact and sales closure')
  • Sales Strike Rate ('Ratio between initial contacts made to final sales')
  • Sales Pipeline (In-progress sales)
  • Consistency and Predictability of sales performance

Scope of chapter on Managing Sales Revenue

Most of what we do in an organization supports sales revenue. The objective of this piece of revenue management is to focus on coverage, density, productivity and velocity of sales efforts only. The other factors like sales compensation, sales campaigns, sales channel management, products managements, sales process management etc. will not be covered in this chapter. This chapter is devoted to plain management of sales numbers, which is the key target of head of sales OR his direct reports. it is generally the head of 'business unit' who is more bothered about the sales profitability and unit P&L.

Sales Revenue management is primarily focused on ensuring that the sales machinery is fully lubricated and functioning at maximum rate given its design. If there are problems with the design it-self (like sales compensation, sales force profile), it’s a separate and associated topic. As most of the performance factors are interlinked, wants to set- boundaries around the scope of this chapter.