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Complex revenue growth deciphered in one simple quadrant

Complex revenue growth deciphered in one simple quadrant

Business Development

Roochira Sakarwal

Roochira Sakarwal

28 May 2019, 09:49 — 6 min read

Background: Over the years the one question that has rattled the minds of many business owners and professionals in sales alike is, ‘what are the ways to increase revenue?’ While myriad strategies like aligning your sales and marketing, focusing on customer relationships, expanding offerings, building an evergreen brand and so on can help you achieve business growth, sticking to some good old golden rules (which we often ignore!) can ensure undisrupted flow of revenue. Wondering what are they? Read this article by Roochira Sakarwal to know the four simple strategies to grow your revenue.

Being a marketing consultant, I’m frequently asked on how many clients I can bring in, how much revenue I can promise and so on and so forth. My basic marketing strategy is very simple and straightforward, everyone seems to know it but very few seem to follow. The four quadrants of growth.

The four quadrants of high growth are effective strategies that enable companies to generate massive revenue and growth. This model divides a company’s total addressable market into two parts. First vertically into two sections of customers and non-customers and then horizontally into two parts based on products, existing and new products respectively.

 


Quadrant 1 - Sell existing products/services to existing clients (up sell)

The first quadrant is all about selling existing products to existing employees. Your goal should be simple. Get them to buy more of what they are already buying.

This is the low hanging fruit but most companies think that it’s already in place with project managers and Business Development Managers (BDMs) and tend to overlook this very important area. Every issue is an opportunity to provide a solution to clients and eventually sell more. A Project Manager will not do it as their focus is on delivery not sales. Front end sales are usually measured on new logos and tend to get ignored it as well. It requires an expert with proper planning and strategy. Having said that, once you have earned enough revenue from the first quadrant, your aim should be to sell some of your other products to these existing customers.

 

Quadrant 2 - Selling new products/ services to existing clients

Since you already have a relationship with your existing clients, it’s easy to sell other services. Again an area overlooked by companies as usually the focus is to acquire more logos. When we make a sale, we are at the peak of trust from our client’s end and selling other services is relatively easy. But again, over the time it is only natural to lose some clients and the smartest way to overcome that is by filling the gap with new clients.

The four quadrants of high growth are effective strategies that enable companies to generate massive revenue and growth. This model divides a company’s total addressable market into two parts. First vertically into two sections of customers and non-customers and then horizontally into two parts based on products, existing and new products respectively.


Quadrant 3 - Selling existing products/ services to new clients

This is where most companies focus their entire energy. If you have existing case studies and strong history of selling those services; it helps gain trust of the new client and sell products/ services. An important aspect which is ignored is to get referrals from existing customers to get the new logos. This can only happen if you focus on Quadrant 1 and 2.

Quadrant 4 - Selling new products/ services to new clients

Now imagine that you are successful and are selling and winning clients like never before. But a point will come when the market will be saturated and that is when you need to take a step ahead and venture into a new market segment and launch new products. This is by far the most difficult area but still a lot of focus is given, a lot of money spent with very little returns. I’m not saying that you should ignore it, but to be cautious where you spend your limited marketing budget can help you in the long run.

Companies that follow a strategy along with these four growth quadrants are always ahead of their peers. Reason being, segmentation makes it easier to develop the correct strategies for your clients and to win them over.

This way each strategy is tailored to fit the shoes of every client. And if you have the right service and right product custom-built for the right customer, you can close your deals faster and better. However, it is not just the strategy that needs to be different. The systems, processes, people in each quadrant together determine how successful your approach will be.

 

Interested in reading more articles on business development? Check out our other articles here:

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Image courtesy: Shutterstock.com

To explore business opportunities, link with me by clicking on the 'Connect' button on my eBiz Card.  

 

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views, official policy or position of GlobalLinker. 

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Roochira Sakarwal

Managing the Kitchen menu for Pets and Humans, oversee the chefs, conducting events at the cafe

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