Would you like to be able to predict how much your business will receive over the next few months? It seems to be something very difficult, especially in times of economic crisis, but believe me, having a predictable income is not impossible! And we’re going to show you in this article how you can get it. Read on to learn more!
There is a methodology, widely used by companies, which helps not only to keep receipts predictable, but also to achieve healthy growth, gain a loyal customer base and make more effective decisions.
Although the term is self-explanatory, if you’ve never come across it, you may not know what it means.
Predictable revenue is nothing more than forecasting a company’s revenue for a certain period of time.
The idea behind the methodology is to be able to make the most accurate forecast possible, using strategies and methods to reduce the chance of errors.
Thus, predictable revenue has become a great methodology that uses prospecting and sales management strategies, which can be applied to companies of different sizes and from different segments.
What are the benefits of predictable revenue?
The main advantage of predictable revenue is precisely the predictability of revenue, which can be very interesting to make the business more sustainable, in addition to helping in decision-making.
In addition, the company also guarantees a continuity of earnings, after all, for the duration of the contract, the customer will pay a recurring monthly amount.
And unless there are cancellations, revenue becomes more predictable by knowing exactly how many customers are active and how much they pay.
In this scenario, other advantages that this methodology can bring are:
Lower Customer Acquisition Cost, as the focus is on the loyalty of current consumers
Greater Lifetime Value
Opportunity to sell additional products and services (upselling and cross-selling)
Greater customer loyalty
How to apply predictable revenue in your company?
To be able to use the predictable revenue methodology in your company, you will need to review some internal processes so that your application offers good results.
Next, see what must be analyzed and executed to use the strategy.
Define your business persona
It is essential that you know who is the ideal consumer for your solution.
Just knowing how to identify this profile, your team will be able to validate the contacts it will make.
After all, it is very important that the pre-seller is able to identify if that is a lead that is worth passing on to the next stage of contact or if the interaction should be discontinued.
Create a contact list
Once you know what type of customer your company is looking for, it’s time to start prospecting. At this stage, the focus is on creating your own lists with contacts of potential consumers.
Thus, every contact that is established, the lead is classified and inserted into the appropriate list, identifying which business opportunities are more assertive.
It is important that this step is carried out very carefully, as only those leads that meet the requirements and characteristics of the “ideal customer” should be kept in the list, or the company will run the risk of establishing a negotiation process, which involves investment of resources and time, with an unprepared contact.
Finally, after all this prospecting and “sorting” process, it is time to pass on the contacts already prepared to the sellers.
It is at this stage that, in fact, predictable revenue can become a reality for your company, as the more leads that become customers at this stage, the greater will be the business’ revenue.
As this methodology is more used by recurrently used solutions, the predictability of the financial return starts to be part of the company.
We hope these tips help you to have predictable revenue for your company. And we take the opportunity to invite you to learn more about Geartech BR by visiting the other pages of our website, especially our blog with information and tips!