I Love a Success Story!
I recently had my semi-annual coaching session with the CEO of one of my favorite clients. What a great year his company had!
They are in the IT services space. Sixty percent of their revenue is realized through recurring contracted services; the balance is from project work. They do a lot of things right, but last year they committed to do three new things and do them with focus and rigor.
Account Managers would regularly ask for referrals.
Referrals within the account so they might spread their relationship network.
Referrals to identify great people that might be a fit in their company.
Referrals to executives in other companies where there might also be a fit for their offerings.
- They reported weekly on how many referrals were requested and how many were fulfilled.
Opportunity landscape analysis.
- Account Managers built a map for each existing customer.
- What parts of their service offering were in place and where was the white space?
- What made sense to explore?
- They reported on cross-selling opportunities.
- They moved from time-and-materials pricing to value pricing.
- They put better project management focus in place.
- They involved the account managers in the proposals and project management process.
Given these three initiatives, with metrics in place, what were the results?
Annualized run rate on the top line increased by 65%. Holy smokes!
67% of new business (new logos) came from referrals.
59% of cross-sell opportunities closed.
Project revenue margins significantly improved.
Account managers made 40% more in performance incentives.
The secret sauce?
Measurement and reporting.