Thank you for joining us today as we continue on from last week with Driver 4: Revenue Strategy with a further analysis of important strategies and components.

Any strategies you develop to grow revenue must fall within one of the other formula components.  If you analyse this further, each of the four remaining components relate back to the revenue strategy activities as follows:

New clients = marketing and sales
Transaction frequency = product, marketing, sales and client relationship management
Average sale = product, marketing, sales
Margin = operations and delivery


With the ‘squeezing the orange’ revenue strategy, if you focus on margin only, you can only squeeze the orange until it runs out of juice. But with a 5 dimensional Revenue Growth Strategy, the growth in revenue can be exponential.  The math of the revenue model is outlines below:

You can see that small increments in each component have an exponential impact on the result.

The focus is to develop strategies in each of the growth formula components and then drive the activities to produce the revenue results.  For each strategy, the activities must make the improvement exponential ✗.

Some key strategies in each of the activities include:




Operations and delivery

Client Relationship Management

To summarise, your revenue strategy must:

  1. Focus on strategies to increase and improve each component of the Revenue Growth Formula: new clients, transaction frequency, average sale, and margin.  Remember, small improvements in each component produces significant improvement in results
  2. Implement these strategies by allocating resources to achieve results in each of the components of the revenue activities: product, marketing, sales, operations and delivery, client relationship management
  3. Ensure your strategies are always structured to enable exponential improvement and leverage

Please join us next week as we wrap up part 8, the business plan. In the meantime, if you would like help with any of these steps, please call us on 61 7 3833 3999.