Revenue leak happens every minute of every day.
Companies struggle to capture revenue they've worked hard to earn. Opportunities vanish, deals fall through, and business walks out the door.
At Clari, we get a 360-degree view of revenue leak. With over $4 trillion under management, our revenue database is packed with data points that tell a story of missed opportunities and growth barriers. Clari Labs found the average annual leak is 14.9% of total revenue.
How do you stop leaks and run revenue more efficiently?
Today, let's look at 3 ways your company can identify and plug revenue leaks. Plus, see how a major healthcare life sciences company used this playbook to capture more revenue.
Let’s get into it.
1. Conduct a revenue leak assessment
To stop revenue leak, you have to identify where it’s coming from.
When Clari walks into a new company, we kick off with a thorough revenue leak assessment. An end-to-end look at the revenue process and where there are gaps.
With this assessment, we spot all types of revenue leak:
- Leads that never get touched
- Accounts that go stale
- Opportunities that slip
- Commits that don’t close
The end product is a report. An in-depth look at where revenue is leaking and why.
Equipped with this report, the team starts taking proactive steps to seal leaks and prevent them in the future.
Action Item:
Know your leaks. Whether you work with a partner like Clari, or conduct an internal investigation at revenue leak, the goal is the same. Sweep every inch of your revenue workflow. Find the leaks where revenue’s flowing out.
2. Keep an eye on every deal
To avoid future revenue leak, you need governance.
Governance is putting the right systems, the right instruments, and the right rigor in place. Strong governance stops revenue leak and protects your workflow.
When I bring up forecasting, a common question follows. “Buyer behavior changes all the time. Doesn’t this make revenue inherently uncontrollable?”
My response: Forecasting is hard, but not impossible.
Top operators put in place:
- Integrated revenue technology
- Expansive data analysis
- Rigorous systems
With modern tools and governance, you can achieve a laser-accurate forecast every single quarter. You can know where every deal is headed and how to move it along.
Action Item:
It’s time to update your revenue governance. Define clear KPIs and hold reps accountable. Empower teams with real-time data and analytics tools. Establish policies around deal approvals, pipeline management, and data-driven decisions.
3. Use RevTech to name your number
To forecast with pinpoint accuracy, take advantage of modern technology.
Clari recently partnered with a major healthcare life sciences company. They have an omnichannel strategy, long sales cycle, and multiple partners. It’s a complicated business.
Hours after turning the system on, we predicted their quarterly revenue at $1.6 billion.
How accurate was our prediction? Within $100,000.
This level of precision is only possible with modern technology. Leveraging the latest in machine learning and AI, paired with the largest revenue database on the market.
Importantly, 99%+ forecasting serves as a safeguard against revenue leak. When you name your number each quarter, revenue leak has nowhere to hide.
Action Item:
Pair modern technology with revenue-specific data. This combination unlocks a level of revenue precision you can use to plug leaks and grow your bottom line.
Are you ready to protect your revenue?
Don’t let leaks drain your numbers quarter-after-quarter.
With a proactive approach, you can stop revenue leak in its tracks and put deals where they belong — in the closed won column.
Here’s the playbook:
- Conduct a revenue leak assessment
- Implement rigorous governance
- Leverage machine learning and AI
Nail this playbook, and you’ll be well on your way to stopping revenue leak and building a legendary career in revenue.
Keep innovating,
Andy Byrne
CEO, Clari