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Value Drivers: Recurring Revenue Streams
May 26, 2021
Value Drivers: Strength of Customer Base, Brand and Value offering
Selling your business? The strength of your customer base and brand can help drive your value up.
Recurring revenue stream, customer retention and value offering in project-related businesses are core components for predictable sales and positive top-line growth. When it comes to customer retention, a well-defined brand and value strategy is essential to growing your base of loyal customers, while also attracting new ones.
For example, CHV Group recently worked with a project-based company in the field of capital equipment installation. This particular company had inconsistency in revenue, due to an insufficient pipeline of customers.
Integrating a business development team with a long term strategy made the company much more consistent, allowing the performance and brand to remain focused on thinking 2-3 years ahead with systems in place to both retain and attract customers.
In a separate case study, we worked with a business that had excellent customer growth. However, the product mix was heavily influenced by the gross margin of individual products and, thus, diluted the overall bottom line.
Another thing to consider is the quality of growth. When in doubt, always opt for profit growth, rather than sales, if you plan on selling or exiting your business.
Want to talk more about potential ways to improve your Recurring Revenue Streams? Contact our team today at CHV Group!
Creating a Learning Culture within your company or business is a great way to grow the skillsets of your employees. In short, a learning culture can be found in an organization that promotes the development of staff, a healthy collaboration between teams, and employs constructive feedback loops. Purpose is a word that comes up a lot in today’s job culture. While it is important to the individual, purpose means something different to everyone, and shouldn’t be used as an ideology in a business. A lot of business lectures and seminars will talk about having a ‘purposeful culture’ but we prefer to instill a learning culture. Not every person is able to find a job in which they find purpose. In a learning culture, almost everyone has a desire to grow and learn new skills. A learning culture requires a plan to cultivate the right mindset and skillset, but it produces happy and committed employees, which increases the value of a company. The characteristics of a successful learning culture are closely linked to the ongoing strategies employed by the organization to motivate learning. Want to learn more about building a Learning Culture within your company? Reach out to the experts at CHV Group for a free consultation
According to a McKinsey study, companies that combine creativity, analytics, and purpose are growing at twice the rate of companies that only use one or two of those factors. While creativity has been used in marketing for years, data analytics have also become an integral part of successful business campaigns. Now entering the fold is the concept of “purpose”. Purpose is a new addition that can represent the overall mission of the company or product. One of the key takeaways from this study shows that “In the period 2018–19, companies using just one of the capabilities—either creativity, analytics, or purpose—saw an average growth rate of more than 6 percent. Adding a second component saw growth rates climb to more than 7 percent. For those that employed the full triple play, growth rates climbed to more than 12 percent.” Contact the Team at CHV Group if you would like to learn more about how to incorporate the concepts of creativity, analytics & purpose into your organization! If you would like to read the full McKinsey study referenced above, click here!
