INTRODUCTION
Revenue leaders in 2024 seek better ways to win the revenue game in their respective markets. To choose one strategy over the other, they often go through a painstaking decision-making process. In most revenue organisations, the decision-making process is mainly based on intuition and experience due to a lack of data-driven operations. By ensuring data-driven operations, revenue leaders can use data in the decision-making process to make informed and strategic choices that drive growth and maximize profitability.
The Role of Data in Revenue Performance
Clive Humby in 2006 referred to data as the new oil. True to his opinion, data in this digital age has become fuel for all business functions from which valuable insights are processed. Revenue leaders can optimise their organisations’ performance by processing and analysing revenue data. Data from revenue operations can provide valuable insights into customer behaviour,
market trends, sales patterns, etc. With these insights, revenue leaders can identify opportunities, optimize pricing strategies, target ideal customers, and craft effective marketing and sales plans to enhance their competitive advantage and stay ahead of the competition.
Building a Data-Driven Operations Culture
To leverage data in their decision-making process, revenue organisations must build a data-driven operations culture in their organisation. Here are some useful tips for building a data-driven operations culture in organisations:
● Data-driven culture starts at the top with leaders setting the expectation of data-driven decisions.
● Carefully choose metrics to drive data-driven culture and improvement.
● Integrate the data professionals within the business and ensure leaders have a basic understanding of data concepts.
● Address basic data-access issues promptly to foster a data-driven culture.
● Quantify uncertainty to make better decisions and encourage experimentation.
● Offer specialized training just in time when it is immediately relevant.
● Empower employees by enabling them to handle data themselves.
● Prioritise consistency over flexibility
Here are some of the technology tools for data driven decision making
1. Google Data Studio
It enables businesses to turn raw data into visually engaging and interactive reports and dashboards that makes it easier to extract insights and drive data-driven decision-making
2. Trendminer Analytics
It helps to Optimize Processes, Maintenance and Overall Profitability. Generate Valuable Insights and Quickly Impact the bottom line of your plant
3. Tibco Spotfire
Spotfire provides a comprehensive suite of data analysis capabilities, such as advanced analytics, predictive modeling, data visualization and preparation
4. Microsoft Power BI
It is an interactive data visualization software product developed by Microsoft with a primary focus on business intelligence
5. Minitab
This is a machine learning business analytics and intelligence tool. It also helps in statistical process control and quality analytics
KEY METRICS AND KPIS FOR REVENUE PERFORMANCE
1. Lead to opportunity ratio
2. Opportunity to closure ratio
3. Average profit margin
4. Lifetime customer value
5. Customer acquisition cos
In today’s B2B business landscape, data-driven decision making has become an inevitable tool to gain greater control over the direction of your business and the quality of your decisions. This is because your decisions are based on objective data, concrete evidence and results can be effectively measured in order to assess impact. It also fosters agility within an organization.
If as an organization you desire an ambitious growth, and you are not taking deliberate steps to leverage on data insights. Trust me, your monumental growth plans will be a mirage.