The Revenue Enablement Institute Outlines a Blueprint for the 21st Century Commercial Model
Research shows how new buying realities are driving B2B organizations to transform their commercial models in response to pressures to sell remotely and better leverage technology
WESTPORT, CT, November 11, 2020 —A newly released research study reveals the pressure to sell remotely, digitally and profitably in the wake of the pandemic-induced recession has forced B2B organizations to transform their commercial models and reimagine their growth technology portfolios. The results of the study lay out a blueprint for transforming sales, marketing, and service to make selling more digital, virtual, data-driven, and accountable: The 21st Century Commercial Model.
To help a new generation of growth leaders transform their commercial models in the face of these obstacles, a team of the world’s leading academics, executive practitioners, and experts in sales and marketing at the Revenue Enablement Institute has published an in-depth 62-page analysis which:
- Identifies a “perfect storm” of six demographic, economic and business trends that are transforming sales, marketing, and service as we know it today;
- Proposes a new framework – the Revenue Enablement Ecosystem – designed to help business leaders unlock the potential of their large investments in sales and marketing technology and advanced analytics to accelerate revenues, increase profits and create firm value; and;
- Profiles 100 technologies that are converging to enable this transformation by connecting growth technology, data, and content assets to the five ways enterprises create growth and value: delivering better channel performance, resource allocation, people management, measurements, and “product channel readiness”.
For decades, the sales and marketing technology stack has been a universe of technology assets revolving around a central system of record of sales – namely CRM,” reports Stephen Diorio, Director of the Revenue Enablement Institute and an author of the report. “After 30 years the return on selling assets – people, data, technology, and content – still falls below managers’ expectations, and even further below their potential to create firm value by any financially valid measure. Deploying 21st century innovations in a 20th century management framework has led to results – in terms of Return on Assets, Return on Investment, sales productivity, and performance – that are unsatisfactory to sales and marketing leaders, and undecipherable to CEOs and CFOs in most cases.”
The study shows that successful growth leaders are taking a “top down” approach to managing their sales and marketing technology portfolio by knitting together these technologies into technology ecosystems – or federations – that have the greatest potential to create value and higher returns on their technology, content and data assets. These include connecting to dots across the enable digital selling platforms, integrate learning and development into a closed-loop process, and using AI to provision algorithmic resource allocation, decision-making, and measurement models.
A full 80% of the 100 technologies identified in the report are enabled by advanced analytics, AI, and Machine Learning. Collectively, they represent the core components of a “revenue operating system” that that will turn legacy investments in CRM, digital marketing infrastructure, and the customer data they create into selling outcomes that grow revenues, enterprise value, and profits. “Digital technology – notably the advent of advanced analytics and AI – offers tremendous potential to improve the productivity, engagement, speed, and visibility of sales, marketing, and service teams. Over the past 35 years we’ve seen sales and marketing technology generate real value. But overall, it has never fulfilled its immense promise to accelerate sales growth and create firm value,” says Len Ferrington, Managing Director of Summit Partners who is on the Faculty of the Revenue Enablement Institute. “This analysis strongly suggests that is about to change as a new generation of technologies converge to dramatically increase the return on selling assets.”
At its core, this new model for selling creates value by unifying and monetizing customer data and insights at the center, while enabling and automating cross-functional sales, marketing, and service workflows the at the edge. “The trends outlined in the analysis are forcing business leaders to reimagine their technology stacks and go-to-market models around platforms that aggregate, orchestrate and deploy customer engagement data rather than CRM as an administrative system of record.” Reports Chris Hummel, a Managing Director of the Institute, and a co-author of the analysis. “This is creating a Copernican revolution in how companies will generate revenue and harness the full potential technology and analytics to accelerate profit growth.”
Owners, CEOs and growth leaders can get full access to the full 62 pages research report and an analysis of 100 technologies that are converging to define and enable the 21st Century Commercial Model at the Revenue Enablement Institute web site at www.revenueenablement.com
About the 21st Century Commercial Model Study
To help growth leaders transform their commercial models to adapt to the new buying reality, a team of leading academics, experts and practioners in the field of Revenue Enablement and sales management to conducted an in depth analysis of buying behavior, business models and technology trends. This comprehensive effort included qualitative interviews with 112 senior sales and marketing leaders, sales managers and effectiveness professionals as well as quantitative surveys 150 sales leaders and effectiveness professionals and 352 marketing executives between March and October 2020. In parallel, the research team evaluated over 3,000 technologies to identify 100 technologies that are converging to define and enable the 21st Century Commercial Model that is more digital, data-driven and measurable in the face of changing buying behavior and underperforming growth assets. The final report outlines three technology federations – or ecosystems – with the greatest potential to accelerate revenue growth and increase the returns on selling assets. These include connecting to dots across the enable digital selling platforms, integrate learning and development into a closed-loop process, and using AI to provision algorithmic resource allocation, decision-making, and measurement models. You can get access to the report at https://www.revenueenablement.com/product/the-21st-century-commercial-model
About the Revenue Enablement Institute
The mission of the Revenue Enablement Institute™ is to educate and arm CXOs – a new generation of growth leaders – with the state-of-the-art management tools, skills, capabilities, and practices they will need to accelerate revenue growth and adapt to the new buying reality. Our faculty of academics and experts are actively working with owners, CEOs, and their growth leadership teams to develop research, education, and solutions to help them to blend their sales, marketing, and service teams into a high-octane growth machine. You can learn more about The Revenue Enablement Institute at www.revenueenablement.com
Contact: Stephen Diorio, (203) 912-8172, [email protected]