A few years ago, in 2005 to be exact, I was tasked to improve a private company’s revenue & profits – I took the steps to evaluate their current structure in marketing and across the organization, to find a baseline. As a consultant, I improved their revenue by $6 Million (From $125 Million) – maximizing the house database.
I was then brought on board as a full-time VP, Marketing Planning & Analysis to improve the business even further. The baseline was $125 Net Revenue business, and the owners wanted to sell it. So, they needed to show the growth potential for the firm. The plan was to identify ways for this $125 Million company to hit $1 Billion in ten years.
I had started my plan based on what I called “Operational Excellence” – creating an environment, where the team does their job with no mistakes – similar to a 6 Sigma approach to marketing from product, to marketing, business systems and fulfillment and customer service including accounting and our back end sales teams. As well, as operational excellence on marketing lists, segmentation, creative, offer and an integrated tight contact strategy which include promotional marketing campaigns, transactional and triggered based campaigns.
After the initial $6 Million of revenue related to the marketing database, I drove $6 Million of incremental profits into the business, by maximizing our marketing touches, and removing unproductive lists and mailings. So, profits are up $6 Million more & revenue $6 Million.
I reviewed our business plan, and the issues with the BBB, and determined we could re-enter market in the Northeast & Canada. We fixed complaints and our selling process, and started new education events in Canada & the Northeast driving another $15 Million to the front of our business, and another $15 Million to our fulfillment and telemarketing centers. Now, we are up $30 Million + $6 Million in Revenue, and the $6 Million of profits.
Concurrently, my team and I put together more plans to maximize our CRM/ERP systems and integrate them. We established a business process flow that captured all points of contact with a customer and developed triggered and transactional touches for them including video fulfillment, driving millions of dollars of costs out of the business, and recognizing revenue immediately vs. waiting months for revenue recognition.
My team also developed an integrated contact strategy using emails in our marketing mix as well, as telesales (telemarketing) and direct mail, catalogs & PURLS for our customers. We created new mini-education services for our customers, and drove an additional $15 Million of revenue into the business (annually).
I drove this company to $175 Million in Net Revenue that year, and we pushed the envelope to increase profits while driving revenue growth so the firm could be sold. After the acquisition, the company CEO & President were let go, and started their own business in 2007.
I started as a consultant for the CEO & President of that last firm, and drove that company from $0 in revenue to $75 Million annually across the front end, fulfillment to the telemarketing floor in their fourth year – how’s that for exponential sales growth!
Exponential Sales growth to a Billion Dollar business is possible (if you have the right product (or potential product extensions), people and business processes, and you can do it by maximizing your existing portfolio and culture, creating flawless execution. This may not get you all the way to $1 Billion or maybe $10 Billion, but it allows you to maximize your potential. Further actions required may include acquisition, marketing channel integration, vertical supply chain management or new product ideas…
If you are interested in getting on your way to a $1 Billion or your next Billion, or even your first $10 Million, let’s check out your business growth lines, and if you have the ‘stuff’ to expand exponentially organically or not. Talk to me so we can identify the areas for your growth today.