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The Evolving Landscape of Sales and Revenue Planning: A Holistic Approach for Success

May 02, 2024
2 min read

Traditional sales and revenue models are undergoing a significant transformation. With the rise of digital commerce, subscription-based services, and changing customer behaviors, organizations are rethinking their approach to sales and revenue planning. A recent analysis by Stephen Hurrell, Director of Research at Ventana Research, sheds light on the need for a more holistic and nuanced approach to managing sales and revenue in the modern business landscape. Read on to learn expert recommendations on how organizations should position themselves for success in 2024 and beyond.

As organizations navigate the complexities of digital commerce, partner management, revenue performance, and subscription management, it has become evident that a one-size-fits-all approach to sales and revenue planning is no longer sufficient. Hurrell's insights emphasize the importance of adapting to the evolving nature of sales and revenue streams, taking into account the diverse range of products, services, and customer engagement models that are now available in the market.

However, Hurrell believes that by 2025, only 1 in 10 organizations will recognize the need to pursue a unified approach to plan for omnichannel buyers and mixed revenue models. The remaining organizations will face a reduced ability to hit corporate revenue goals.

One of the key points highlighted in the analysis is the impact of subscription and usage-based products on the traditional sales paradigm. The shift from one-time transactions to recurring revenue models has necessitated a re-evaluation of incentive compensation plans, fulfillment processes, and customer engagement strategies. The example of a subscription-based software provider struggling to introduce self-service purchasing for existing customers serves as a stark reminder of the unintended consequences that can arise from failing to align sales processes with the evolving business landscape.

Hurrell's phrase, "Not all revenue and sales dollars look the same," encapsulates the essence of the changes occurring in the sales and revenue ecosystem. It reflects the need for organizations to recognize the diversity of revenue streams, customer buying behavior, and engagement models. Moreover, the article underscores the critical need for a comprehensive sales and revenue planning strategy that takes into account the multifaceted nature of modern business transactions.

The call for a more holistic approach to sales and revenue planning resonates strongly with the current challenges organizations face. The traditional, simplistic incentive compensation plans and quotas have become inadequate in accommodating the diverse buying channels, pricing structures, and engagement models of today's B2B and B2C landscapes. To thrive in this rapidly evolving environment, businesses must adopt a more nuanced and comprehensive approach that aligns sales processes with the intricate dynamics of modern commerce.

In conclusion, Hurrell's analysis serves as a compelling reminder of the imperative for organizations to embrace a more sophisticated and holistic approach to sales and revenue planning. As businesses navigate the complexities of digital transformation, subscription-based services, and changing customer behaviors, it is clear that a fundamental shift in mindset, processes, and technologies is necessary to thrive in the modern marketplace. By acknowledging the diverse nature of revenue streams and sales channels and by rethinking incentive structures and fulfillment processes, organizations can position themselves for success in the evolving landscape of sales and revenue planning.

  • Sales Planning
Kelly Arellano, Senior Content Marketing Manager at Xactly
Kelly Arellano
Senior Content Marketing Manager

Kelly has over 10 years of marketing experience in demand generation and content marketing. She was born and raised in the Bay Area and enjoys sports, going to the beach, golfing, lifting weights, and playing with her three littles.