Parker Revenue Growth Strategies

Why Is Revenue Growth So Important?

Mar 10, 2023

Revenue is the engine that drives the growth of an enterprise and is vitally important when assessing the health of a business. When Parker Revenue Growth Strategies is engaged by a business owner or board of directors, our first question is, “Tell me about comparable sales growth in the company, is the business growing or has it plateaued”?

During the revenue assessment process, we review the following components of revenue:

  • The right people must be in the right positions so the culture is clearly defined around smart revenue growth {not at all costs}.
  • A concise and clear business plan must define the growth categories of business based on industry research.
  • Competitive advantage is what makes a company’s products or services more desirable to customers than that of competitors.
  • Define the target customer around a group of customers that a firm plans to reach with marketing efforts.
  • Connect the 4 Ps of marketing, product, price, place and promotion with the sales process.
  • Category management and product mix should be aligned around ethnicity, diversity, geographic areas, customer demand and seasonal demands.
  • Good revenue versus bad revenue exists when management in its haste to increase sales decides to adopt revenue growth practices with low margin/high volume sales that can decrease margin percent and dollars, which collectively can wreak havoc on profits.
  • In today’s inflationary environment, pricing strategies and pricing elasticity are critical to understanding the ‘break’ point before customers balk at paying higher prices for particular products.
  • Technology, social media and ecommerce are drivers for increasing revenue. Data must be transformed into meaningful information that drives decision making in a ‘New York’ minute.

Competition is utilizing new technologies and information to aggressively focus on growth opportunities in the marketplace to drive revenue, increase profits, satisfy consumer needs and most importantly improve value creation and shareholder return on investment.