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What Is Revenue Capture? Three Critical Inflection Points

When we talk to customers and prospects about the main sales performance management (SPM) problems that they want to solve, conversations inevitably come back to one place: Revenue operations.

This operational focus on revenue efficiency is something that Intangent calls ‘revenue capture.’

Introducing the revenue capture lifecycle

Revenue capture coins the outcome of what chief revenue officers (CROs) and their peers identify today as revenue operations—the coordination of operations across sales, marketing, and customer success to maximize results.

According to Aberdeen and SiriusDecisions,
companies that sync marketing, sales, and customer success
increase annual revenue 2.8X to 3X.

The revenue capture lifecycle, then, refers to the journey that buyers travel throughout multiple touchpoints owned by the three departments involved in revenue operations:

1. Marketing

2.Sales

3. Customer Success

Together, this team owns how leads are acquired and why they convert, how prospects become customers, and how customers are enabled.

The more that revenue organizations coordinate planning, programs, operations, and reporting across all functional areas, the more likely they are to increase revenue. According to SiriusDecisions and Forrester, streamlined revenue operations increase 15% more profits and 71% higher stock performance.

Critical inflection points in the revenue capture lifecycle

Regardless of the exact term used for this concept, conversations lead me to believe that executives agree that CROs have the greatest impact—and produce the most revenue outcome—when they focus on three inflection points in the funnel:

1. Demand Generation: With effective lead conversion, marketing teams increase lead response rates up to 10X, according to Outreach. Improved conversion increases sales pipeline.

2. Deal Structure: This is the elephant in the room. Top performing sales reps maximize value for company and customer by effectively structuring proposals—and low performers don’t. That’s why companies using CPQ technology to optimize quote-to-cash are 7.6X more likely to close deals, according to Aberdeen.

3. Cross Sell & Upsell: CROs reduce their overall cost of sales with effective customer enablement, because cross-sell and upsell is five to 25 times more cost effective than customer acquisition, according to Bain.

How can companies optimize revenue capture?

But how do companies unlock revenue capture? We’ll explore that and much more in this blog series, which will cover:

A fresh approach to revenue capture will equip revenue teams to meet—not miss—their targets, which has unfortunately been the case the last 10 years, according to CSO Insights.

 

sources

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