A technology client was outpacing the industry’s revenue growth (94.8% vs. 90%) but sought to understand what strategies they needed to implement to increase revenue to $50 million annual recurring revenue (ARR) by 2026. To achieve this growth, the client aimed to confirm foundational components of their future state strategy related to product line priorities for actionable execution plans.
The client’s goal is to become the premier provider of educational assessment technology, seeking to better align investments with financial and student learning outcomes. The client’s marketing function lacked essential skills that would enable marketing programs to build and nurture a community of referrals and prospective buyers.
The client chose to partner with Alexander Group to transform marketing for long-term revenue growth and to develop scalable strategies to accelerate community awareness, engagement and pipeline. Working closely with the client, Alexander Group focused on key go-to-market pillars and comprehensively evaluated alternate coverage models, sales and marketing organizational design, job role clarity of critical functions, sizing and deployment needs, and sales/marketing process requirements to enable metrics for Marketing and Sales.
As part of the current state review, Alexander Group analyzed existing segmentation and product/service offers and gained qualitative input through 21 interviews conducted with executives, field team members, and clients. We also reviewed the client’s CRM, lead generation, sales enablement and product roadmap capabilities.
During our evaluations, Alexander Group uncovered illuminating insights into the client’s current marketing state. The first point of interest is that the client’s Sales and Marketing to Total Revenue ratio was half that of the industry average (15% vs. 33%). Yet, this represents a significant missed opportunity for growth if additional investments are made with appropriate returns.
Additionally, 50% of the client’s expansion revenue was from one-time, non-recurring fees while 20% of its revenue represented true cross-selling.
Sales and Marketing to Total Revenue was 15%
(vs. 33% industry average)
Expansion revenue from one-time, non-recurring fees was 50%
Revenue from true cross-selling was 20%
Using the insights uncovered during Alexander Group’s evaluation, the client anticipates that it will achieve its goal of being the premier provider of educational assessment technology. This engagement will also enable them to better align marketing and commercial investments with target market outcomes.
Alexander Group understands your revenue growth challenges. Since 1985, we’ve served more than 3,000 companies across the globe. This experience gives us not only a highly sophisticated set of best practices to grow revenue—we also have a rich repository of unique industry data that informs all our recommendations. Aligning product, marketing, operations and finance efforts behind a successful sales organization takes insight and hard work. We help the world’s leading organizations build the right revenue vision, transform their organizations and deliver results.