Calculating ROI of a revenue intelligence platform
by Andy McDonald
Businesses are recognising the need to change their approach to growth and, for many, this starts with adopting a revenue operations (RevOps) model.
RevOps has been on the corporate agenda for some time, but rapid changes to how we all work, buy and sell have fuelled the need to accelerate this transformation.
A revenue intelligence platform can aid the transition toward the sales data-driven decision-making that underpins a RevOps model.
So, how does this translate into a measurable ROI?
With a revenue intelligence platform, there is the potential for B2B businesses to significantly improve their sales velocity. Even marginal gains, such as a 1.5% increase in close rate and deal size, and a 5% increase in pipeline, can result in a multi-million-pound return.
For a business with a sales cycle of 180 days, and an average deal size of £50,000 across 3,000 opportunities, this would mean an additional £9.46M in revenue per year, or £26,000 per day.*
And customers of Cloudapps have experienced up to:
- 24% increase in win rates
- 12% average revenue growth
- 93% forecast accuracy
But with various options available, and shrinking budgets leaving very little room for error, it’s essential to pick the right solution – a solution that will contribute to ROI in the following ways:
Accelerated sales process
A revenue intelligence platform can provide rich insight into the health of your pipeline. How likely is a deal to close? Is it being managed in the best way? Is there an opportunity to upsell or cross-sell?
Businesses with a revenue intelligence platform can help sales reps save hundreds of hours otherwise spent on qualifications, and free-up up to 60% more time to convert sales. Profitable deals are identified and moved through the pipeline quicker, meaning more deals close and more revenue is generated. Companies should also look for solutions that can provide granular insights into each deal and help sales reps to identify what they need to know to maximise deal potential and convert quickly.
Solutions can also be scaled to unlock a new level of insight into the performance of teams, divisions or regions.
Reduced cost of sales and training
Many revenue intelligence solutions are capable of highlighting whether a deal is going well or not. Still, businesses should seek a solution that goes a step further, providing insight into why.
Armed with this intelligence, and best practices shared across the team, reps are more likely to close deals. Not only does this mean more revenue for the company, but reps are also more likely to hit their targets and remain motivated, boosting staff retention.
Tailored coaching and training are also proven to reduce onboarding costs. Our client IRIS Software Group achieved a 20% decrease in time spent onboarding new recruits, an area which many businesses are struggling with in the new hybrid environment.
Accurate profit-generating decisions
Most organisations lack the tools and data insights to accurately assess the deals in their pipeline, resulting in low levels of forecast accuracy. But regularly achieving your forecast delivers stability to the business and creates the predictability required for growth.
A revenue intelligence platform will unlock, synthesise, and learn from the actionable, real-time sales intelligence hidden in CRM and other tools used in your business every day to attain the highest levels of forecast accuracy available on the market today.
With a clear picture of the direction of the business, leaders can make informed choices in key areas such as resourcing and recruitment. Now more than ever, businesses cannot afford to waste money and making cost-effective decisions is vitally important.
With the right revenue intelligence platform, businesses can grow by boosting productivity, increasing operational efficiency, and unlocking new levels of forecast accuracy.
Yes, there is an upfront investment, but the best solutions yield a quantifiable return in a matter of months not years, in addition to a deeper understanding of your business – and greater control over the direction it is heading in.
To discuss the ROI your business can expect from a revenue intelligence platform, contact us:
To download our eBook, Revenue Intelligence: How your business can succeed in an economic downturn, click here.
Sales velocity = (number of opportunities × average deal size × win rate or conversion rate) ⁄ sales cycle length
3,000 x 23% win rate x 50,000/180 days = 191,661/day
3,150 (5%) x 24.5% (1.5%) x 50,,750 (1.5%) = 217,590/day
Delta = 25,929/day x 365 = £9.46MTags: Andy McDonald revenue intelligence