Resilient Growth Consultants

Crisis Buster: Elevating Revenue Quality to Manufacturing Production Standards

This newsletter is written for manufacturing executives who want to protect their revenues and margins in the face of economic setbacks, but even more so for those who want better medium-term growth for their company, their teams and society, without losing sight of global constraints.

So let’s stop gambling when it comes to protecting income in manufacturing.

Non-quality linked to production is very often less than 1%, whereas non-quality linked to price and sales very often amounts to several tens of percent, even in the best companies.

Over the years of helping manufacturers, I’ve come to realize that quality on production lines is managed at a much higher level than sales management and the commercial construction of margins.

But why is this so?

This discrepancy boils down to the misconception that sales, marketing, and pricing are more art than science, quite contrary to the engineering science guiding production management.

Bungled it again, didn’t you Watson? Classic! It is the main source of many ills and business growth crises.

Indeed, revenue management demands the science of the engineer for pre- and post-sales service preparation. The direct customer interaction, the performance of the salesperson during the meeting, is the “art” aspect. But remember, haphazard preparation can erode significant value!

So what can you do?

Manufacturers who have run out of revenue growth will breathe new life into their teams and their business with 9 Proven tactics here.

Realizing reliable growth doesn’t have to mean quick fixes or short-sighted tactics. Longer-term strategies can ensure robust growth, respecting people, planet, and offering superior financial performance, notwithstanding economic conditions.

Here are five profitable long-term strategies:

1. Prioritize Customers and Channel Partners:

Cross-referencing transactional data with sector databases can guide you to serve those offering growth potential, up to 30% higher than competitors.

2. Enhance Engagement Quality:

Better allocation of sales efforts and personalized offering elevate conversion rates up to 30% and reduce sales cost by half.

3. Better anchor the price by differentiating it with precision

Rigorous A/B testing demonstrates that prices can be improved by 5 to 8% compared to a baseline in .Ai driven, without jeopardising volumes.

4. Create recurring revenue by embedding service in the product offering.Manufacturing companies that do this generate additional revenues of around 5 to 8 % on services and 2 to 5% on the cross-selling of additional products.

5. Adopt an End-to-End Approach:

Aligning right people, tools, objectives, processes, and workflows for maximum growth impact.


The most resilient champions of growth here combine these five strategies progressively, which can amount to 15-25% additional growth when all aspect of revenue growth come together vs. the baseline, no matter what economic conditions are.

Their choices are visualized as a system of 5 data-driven actions. Once these aspects combine, their business thrives at exceptional levels of growth, no matter what economic conditions are.

Why results can vary and look like a game of chance. 📊

For successful transformation, an orchestrated alignment of components is key: Well-defined objectives, the right team, effective tools, and apropos strategies.

 

👇🏻However, pitfalls abound:

•  Hasty Transformations:

Disarrayed and lacking key component integration; viz. strategic business plan, IT system activations, workflows, and methodologies.

•  Vague Change Management:

“Why are we changing?” echoing in perpetual meetings isn’t conducive. Solution? Apply agile for proof-of-concepts.

•   Muddled Commercial Organization:

Managing data without understanding its application or improving processes in absence of customer relations insight is futile.

•  Unclear Change Governance: Directionless navigation breeds chaos.

On a cheerier note, manufacturers rigorously implementing commercial approaches akin to their production floor are the ones who thrive even in downturns.

Let’s connect! 🚀

Olivier

P.S : Don’t hesitate to reach out, sans sales pitch:

1. Like this article – receive a free ebook

2. Share & comment – get a free business leverage points assessment

3. Drop a message at olivier.dallemagne@rgconsultants.be 📍

4. Call me directly at +32 493 900 481

 

I’m here so you can decide when my team’s services can best serve you.

#revenuequality #manufacturingstandards #businessgrowth #resilientgrowth #productionexcellence #performancemetrics #businesstransformation

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