Revenue is a financial result of your organisation’s activities. The variables that most influence this result are strategy, research and development, marketing and sales, and production. A business monitoring and controlling system identifies opportunities and weaknesses in these four areas.
In strategy you decide over your value proposition, market positioning, customer targets and pricing. All four decisions significantly impact revenue growth, customer lifetime value and customer acquisition costs. Hence, tracking the latter three metrics will show you relatively quickly whether you need to adjust one or several of your strategic decisions.
Your research and development function translates your value proposition in a marketable product or service. The output greatly affects customer satisfaction and gross profit while the former metric has a significant impact on your revenue growth and customer retention rate. Tracking customer feedback, net promoter score, retention rate and production time provides you with the information to set the right priorities in your research and development function.
Your marketing and sales activities create a link between your organisation and your customer. Hence, they play a decisive role in your revenue growth. Tracking lead-generation-rate and conversion-rate of different sales and marketing employees provides you with the necessary insights to assess their efficacy but also again the strength of your strategy.
Your production function determines the temporary scalability of your organisation. Hence, the function can be a limiting factor in revenue growth. Tracking capacity utilization helps you in deciding when to hire additional employees or invest in product development for greater scalability.
We can assist you in reaching your revenue targets to attract new investors or to bootstrap your startup.
Find out how you can set up a business monitoring and controlling system by yourself in three simple steps business activity monitoring and controlling system