How to Prevent Revenue Leakage: Essential Tips
Leakage is never a good thing, is it? The very term sounds like it’s something to be avoided at all costs. However, not everyone involved in business has a clear idea of what causes it and, most importantly, what can be done to prevent or put a stop to it.
This article explores the topic from a bird’s eye perspective to give you some insight into what you might be missing. Stay tuned for answers to the following:
- What does revenue leakage even mean?
- How do I determine whether my revenue is leaking?
- What do I do if I spot a leakage in the end?
- How can software like an Outlook to Salesforce plugin help me in revenue leakage prevention?
What Is Revenue Leakage?
This awe-inspiring term refers to losing potential revenue because you’re missing an opportunity. It applies whenever a business leaves its money on the table in a situation where it could bill the customer instead. There are a number of reasons why this can happen, all reviewed in a nutshell below.
What Causes Revenue to Leak?
As has been mentioned above, the extent to which you can keep your revenue under control is largely determined by your ability to stay in the know of what’s going on and respond quickly to changes.
If we were to name the top three reasons why revenue leaks, they would be the following:
- Inadequate pricing, i.e. underbilling your customers.
- Failing to make use of existing leads.
- Missing opportunities with existing customers.
This might sound like a lack of keen judgment for someone doing business, but don’t be hard on yourself if you feel like you’ve made the mistakes. After all, today’s world is so rife with information it’s easy to miss something. Leads and clients emerge one after another only to remain unreached. This is where a powerful CMS should come into play.
How to Keep Leaking Revenue in Check
An advanced content management system or CMS, such as Salesforce is the ultimate tool for collecting and analyzing sales information. It’s the place where you can keep your sales records as well as customer data and details regarding your leads or potential customers.
One problem with Salesforce is that it can take ages to enter the necessary data. The good news is that you can synchronize it with your email software such, as Outlook, in order to ensure automated data capture. Revenuegrid is an example of how you can have the data on your potential and existing customers at your disposal just based on your emails. What remains is to look closely at the beautifully structured stats you get and infer what can be improved.
Understanding Is the First Step
You’ll be able to grab great opportunities when you learn to truly analyze your sales data. Bring this moment closer by installing a Salesforce/email plugin like Revenuegrid. Populate your CMS with up-to-date information you can rely on to make some decisions you’ll never forget.