Michael E. Gerber in his book E-Myth Revisited quotes:
“Organize around business functions, not people. Build systems within each business function. Let systems run the business and people run the systems. People come and go but the systems remain constant.”
Building structures and systems are foundational to the efficiency of any business operation. It is this uniform practice of getting tasks done that will imbibe cultures in a workspace and thereby decide the growth of the business.
Especially in sales and revenue management, which are the two strong pillars of building a strong business, having an organized approach is important.
In this article we deal with sales and revenue planning, the benefits of it, and the strategies to kick-start sales and revenue planning growth.
What is sales and revenue planning?
Sales planning is an integral component of an overarching revenue strategy, encompassing the design of sales objectives, targets, and quotas, while aligning them with the broader strategic vision to ensure a seamless and effective sales process.
Revenue attribution is a crucial aspect of revenue planning, as it helps businesses identify the sources and channels that contribute most to their earnings, facilitating informed decisions on resource allocation and investment strategies.
Sales and revenue planning helps bring a system and structure to your operations and aids in performance enhancement and growth optimization.
Benefits of Sales and Revenue Planning
Sales and revenue management are the core factors determining the success of a business. So here are a few benefits that will prove why businesses must bring in planning in these two areas.
- Accurate Budget Allocation
Incorporating revenue intelligence into the sales revenue management process provides valuable insights and data-driven foresight, enabling companies to make more informed decisions regarding budget allocation, market responsiveness, and strategic investments for sustained company growth.
- Better Sales Management
Charting the sales and revenue strategies will help companies to be better prepared to meet the requirements, stock the inventory to meet the seasonal demands, and thereby streamline sales management without any lag.
- Fulfill Company Objectives
Achieving the sales quotas and bringing in profitable revenue are the steps that eventually help in fulfilling the larger company objectives. Drawing the company objectives, setting sales quotas, and allocating revenue and resources cumulatively aid in driving growth and success.
- Effective Incentive Compensation
Knowing how you plan the sales process and the revenue management helps in building an effective incentive compensation plan. Having strong motivational tools like sales commissions and rewards will enhance sales performance, ensure quota achievement, and thereby boost company sales.
Streamlining the sales process and revenue management can have a positive impact on the overall performance and operations of the organization.
For further reading, check Apply our Advanced Sales Tracker to Revolutionize Sales Management.
How to Use Strategy to Kick-start Sales and Revenue Planning Growth
Having a sales planning guide and a revenue planning template will help you have a roadmap to enhance your company's productivity and growth.
Incorporating revenue operations and sales operations into this digital shift has not only streamlined routine tasks but also facilitated data-driven decision-making, optimizing business performance.
Gaining clarity of the actual numbers that determine the company's growth and ease of understanding these data through visual representations help management understand the situation from a 360-degree perspective and comprehensively.
These valuable insights and understanding empower companies to be confident in their decision-making, predict future trends and patterns as well and be better prepared to face the challenges.
If a small step such as sales and revenue planning can bring about a huge impact on the overall performance and growth of the organization, then think what bringing a digital transformation in the entire organization can do!
For further reading, check out the blog Unlocking Success: A Comprehensive Guide to SDR Compensation Strategies.
As mentioned, one of the biggest impacts that sales revenue planning brings is in enhancing performance and productivity.
In sales, the decisive motivational tool has always been sales commissions and rewards that sales reps become eligible for when they close deals and achieve their quotas, often calculated using a sales commission calculator.
Automating your incentive compensation and sales performance management brings transparency to the way the key performance metrics are determined and evaluated. This gives sales reps the clarity with which they must be working to close deals.
When sales reps are clear about what is expected of them, the set of responsibilities they must fulfill, and how they can improve their earnings, they reach a point of streamlining operations and achieving operational efficiency.