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Organic Growth
The document outlines four strategies for achieving organic growth: customer penetration, product penetration, market penetration, and diversified strategy. It emphasizes the importance of understanding true organic growth rates and utilizing sales intelligence to manage customer and product portfolios effectively. Additionally, it promotes a service for outsourcing sales intelligence that aims to improve margins and operational cash flow, providing a roadmap to increase revenue sustainably.
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Organic Growth
- 1. 4 Ways togrow www.gfbridge.com Contact Andre Gien agien@gfbridge.com Management ideas from BLUE HAWK Financial Performance –Week 3
- 2. Only 4 waysto achieve organic growth Current Products/ Services New Products/ Services Current Customers 1. Customer penetration (sell more product to current customers) Price & volume 2. Product penetration (sell new product to current customers) Volume New Customers 3. Market penetration (sell to new customers) Volume 4. Diversified strategy (sell new stuff to new customers) Volume
- 3. What are wegood at Growing existing customers with our current product portfolio ? How do we measure this Measuring sales from one period to the other does not cut the mustard
- 4. This period $41,311Last period $40,816 Growth $ 495K ( 1.2%) Conventional Wisdom Growth calculation
- 5. How did newcustomers and new products impact growth New Customer growth $615K New product growth $5,554
- 6. New customers New products $615K $5,554 K Actual growth from existing customers and existing products $35,142 Negative 14% Real Organic growth shows a different picture
- 7. Knowing our trueorganic growth rate is important It represents how well we are converting historical investment into wealth It tells us where we should invest in the future (which product, what customer, which supplier relationship, what sales channel)
- 8. How much effortand cost do we spend on new stuff when the existing products and customers are declining ? Average loss rate of new customers that stop buying within 6 months 35%
- 9. Why is organicgrowth good Its with customers that we have already paid dearly to acquire Its with products and services that we know Good growth
- 10. Time to dosome good We want to be the best there is at organic growth
- 11. Cultural & skill development Portfolio management Customer portfolio management Productportfolio management Grow margins Grow revenue Product profit segmentation Customer profit segmentation Unit price per customer Product mix Customer mix Product knowledge Specialization Pre call planning Cross sell Products previously purchased Customer trends Market basket optimization Customers stopped buying Product trends Howwedowhatwedo
- 12. Week 4 wewill focus on customer portfolio management
- 13. Good sales intelligencewill Increase sales by up to 5 % Improve margins by 2% Improve operational cash flow 10% - 30% If you only have a hammer you will see every problem as a nail
- 14. Want to improvesales and margins But You don’t want to learn new software You know you wont have the time to use the new tool properly and neither will anyone else The cloud is something you worry about when you want t know if its raining or not. You want the facts and you want them in ways that you can make a difference
- 15. Why not outsourceyour sales intelligence We will: Install the required applications Review your data Determine Where you can grow Where opportunities exist to sell more product to existing customers (increase wallet share) Where you can improve your margins Where you are at risk Provide you with a monthly portfolio review Deliver an action plan to get it done
- 16. Why not outsourceyour sales intelligence Once off set up fee $700.00 $800.00 per month* Can cancel when ever you wish Cost *Up to 10,000 active products, larger data structures may be more Results 1-2% margin improvement within 6 months 5% organic additional revenue growth 2x sales people productivity 10% operational cash flow improvement with 12 months Start the discussion agien@gfbridge.com 925 323 2802
- 17. Join us fora free webinar The 3 fundamentals to growing sales How are our to performing customers behaving Where are we making money Creating growth through cross sales For Sales mangers, CFO’s and Business leaders • Wednesday June 11 at 3.00 AM EST https://www1.gotomeeting.com/register/181213608 • Friday 13th June at 11.00 AM EST https://www1.gotomeeting.com/register/254626256
- 18. CustomerSwot.com - Individualcustomer growth Enabling salespeople to identify individual customer strengths, weaknesses opportunities and threats. Fully integrated reminders and CRM Product and customer portfolio optimization | Analysis | Design | Implementation| Growing revenues and margins by knowing how your customers behave Financial Statement excellence Transforming static financial statements into a management dynamic management system that drives strategy focused on profit cash and returns Performance consulting GFB Service Portfolio Passion for Intuition powered by Evidence Rapid improvement of profit, cash and returns with enduring cultural impact
- 19. Contact Andre Gien agien@gfbridge.com 925 3232802 Andre is our Evidence Wizard. He combines the Passion of intuition with the Power of Evidence to weave amazing stories that reveal the secrets and treasures that are locked within your business. He has deployed the evidence based management discipline in over 150 different companies releasing more than $500 million in value and more importantly, demystifying the complexity for thousands of people. Andre's favorite quote: "If you change the way you look at things, the things you look at change"