Resilient Growth Consultants

How to re-earn growth in industrial goods?

Thinking about how to build revenues and profits growth further organically? Is doing so an effort worth making?

A recent CEO survey by BCG shows that 14% of companies are managing to expand sales growth and increase margins very significantly through the exceptionally high and rapid changes in the world. Their secret is to constantly

improve their revenue growth management system so that it becomes resilient over time.

So, what kind of results can you expect through investing in a resilient revenue growth system? Here is some interesting data. 👇🏻

The study Key learnings from the champions of topline resilience,(Olivier Dallemagne, Resilient Growth Consultants, previously at BCG) reports the following statistics on the benefits of investing in a resilient growth system, compared to industry peers:

– Up to 100% increase (x2) in net sales margin by Sales person

– +5 to +20% increase in winning proposals

– +6 to +11% increase in the share of total consumption by customers

– +0.5 to +8% Price increases beyond inflation recovery

– +15% to +30% price premium on low carbon solutions

Mature companies that combine their efforts until they have fully modernized their revenue management system, manage to maintain growth rates of up to 15%-25% annual organic growth. This despite economic changes and crises.

Why your results may vary

Of course, it would be great if chief commercial officers or their consultants could guarantee you these kinds of results.

Here is why your mileage may vary

Only 30% of companies continued to invest in their commercial approaches in order to deal with the most fundamental changes in business relationships in the short and medium term, while the remaining 70% preferred to adapt to short-term changes such as the risk of recession and the need to recover inflation.

And that’s where the trouble starts: the pricing power of industrial companies is much lower than it was during COVID. So it’s more important than ever to earn the customer, especially in the face of changes such as digital and AI, which are changing the relationship with B2B buyers, or their priority to secure sourcing of genuinely low-carbon materials.

At the same time, the actions of sales staff often fail to win back customers’ willingness-to-pay.

1.        Sales teams don’t focus on the most promising growth initiatives.

Sales reps often repeat actions that they have always been used to doing, but which no longer generate growth. To remedy this, the data available in the company is full of unexploited treasures, such as the growth potential of certain small customers, or the possible recurrent income in a given sector of activity.

2.        Sales actions add little value for the customer.

How many teams are still trying to launch ‘blitz’ campaigns with their distributors when demand slows down, or price campaigns when they need to raise prices? B2B buyers are becoming more professional and expect sales representatives to provide immediate added value, such as solution to enhance productivity gains and make their sustainability business case more profitable

3.        Not earning the willingness to pay of customers.

By relying too heavily on price-over-cost measures, or setting prices too opportunistically, we end up losing highly profitable market share to competitors deemed fairer or with a more attractive offering. Offering a better differentiated product is often a guarantee of success.

4.        Too much emphasis on pricing, not enough on revenue and profit management.

Pushing price for price’s sake jams many a commercial machine. Price becomes the most profitable lever when companies combine it with the optimal allocation of volumes to demand.

On a more positive note, when someone asks for insights to improve commercial effectiveness, they are well on their way towards a highly successful change in commercial approaches that will pay dividends for years. 🚀

Want to learn more about Resilient Revenue Growth Management systems? Schedule a call with me Resilientgrowthconsultants.com 📍

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