“Leak” is bad. Just ask the Titanic.
Or the homeowner who hears drip-drip-drip just as their head hits the pillow.
However, a revenue leak is more insidious than a hole in a boat, because it can be a lot harder to spot.
Ok, maybe I’m getting ahead of myself. First, let’s talk about what a revenue leak IS.
It’s revenue you should be making, revenue you spent time, money and effort to generate, but it just slipped through the cracks.
And most organizations have a whole lot of cracks.
Reps spend more time updating (and cursing) the CRM than selling? That’s a crack.
Marketing hands over a bunch of emails with no context or material? That’s a crack.
Forgot to follow up after the lead said they’ll get back to you? You bet your commission that’s a crack.
There’s no giant hole with an iceberg sticking in.
But the amount of revenue leak could fill an ocean.
Data suggests, companies leak 14.9% of their revenue every year.
That’s a solid chunk of change. That’s valuation-changing revenue.
That’s the difference between “Let’s celebrate” and “Could this belt tighten any further.”
So is it all doom and gloom? Should you just throw in the towel?
No! For one thing, it’s a really nice towel.
For another, it is entirely possible to plug this leak with just a little bit of effort (and technology).
Not only that, but the rewards for doing so are incredible.
Even in tough economic situations, companies that successfully plug revenue leak come out stronger than ever.
So let’s talk about how to do it… but not here. Head on over to the RevCG entry in the Glossary for that.