davezwickerconsulting
  • Home
  • Experience
  • Testimonials
  • Contact
  • Assessment Checklist
  • Messaging
  • Pricing
  • Sales Model
  • Revenue Model
  • Lead Generation
  • Sales Enablement
  • Performance Management

Assessment Part 4:  
Do you have a comprehensive revenue & profitability model?

☐ 12 month revenue plan:  Ties to the annual operating plan and projects the revenue contribution from your sales operation (monthly & quarterly revenue goals tied to individual sales targets for bookings, revenue, activations, add-on, average sales value & service mix).

☐ Profitability plan:  A model to measure & manage the profitability of your sales operation that includes cost of service delivery, gross margin on services, the cost of customer acquisition, average sales discounts & average deal value for new orders.

☐ Deal economics:  A measurement of the economics associated with an average deal that allows you to understand its average one-time and recurring revenue value, seat count, service mix and blended gross margins. 

☐ Cost of acquisition:  Metrics that measure the sales & marketing cost of acquiring each new customer using the gross margin dollars generated by a new service contract and expresses the acquisition cost either as a payback period (in months) or as a multiple of total lifetime customer value (total profits over the contract term).

☐ 3 year revenue and profitability model:  A multi-year model to ensure revenue growth and profitability track to your long term business plan (includes the rate of customer acquisition, one-time revenue & recurring revenue growth and is based on historical data or assumptions for sales productivity, average deal values, service mix, contract term and churn rate).

Complete Your Own Business Assessment Checklist
Powered by Create your own unique website with customizable templates.