Revenue Analysis

How accurate is your organization’s sales strategy? Are you aligning your strategy with actual sales-force results that describe specific revenue streams? Many organizations base their strategic allocation of scarce resources on high-level, year-to-year comparisons of top-line revenue instead of taking into account the critical components of their revenue streams.

Strategic Dynamics’ approach to revenue analysis gives you a more comprehensive understanding of your revenue by dividing total revenue into four distinct components and evaluating the contribution of each to overall sales. The four components are:

• Conversion revenue – total revenue from customers who did not purchase in the previous year (also commonly referred to as new-customer revenue)
• Penetration revenue – total increase of revenue from customers who purchased in the previous year
• Retention revenue – total repeated revenue from customers who purchased in the previous year
• Churn revenue – total amount of revenue lost from customers who purchased the previous year

We generate reports that visually compare how well an organization acquires new customers, services repeat customers and incrementally sells to those repeat customers. This information, based on actual sales results, serves as the foundation for how a company defines its sales strategy and sets its regional and individual territory goals.