A multitude of capabilities are responsible for driving commercial excellence. These include, but are not limited to: go-to-market model, channel partner programs, sales process design, account management, marketing practices, sales enablement, and analytics support. The importance of these capabilities depends on your industry of operations, and the competitive landscape in the underlying geography.
As organizations operate in the digital mode today, each of these capabilities is driven by a digital component in addition to a people and process component. So, for example, reinventing your channel strategy calls for digital capabilities for your channel partners, new incentive structures, as well as training programs that can align your brand identity to the experience delivered to your end customers.
At Nextrday, we have helped our customers achieve commercial excellence by understanding the output of their commercial capabilities and helped them boost their profit margins by several percentage points.
In industries where businesses compete on pricing or customer experience, commercial excellence is a key element in achieving better margins and driving growth. This is the case with businesses limited by production constraints (consider energy, chemicals, or manufacturing, or retail industries) as well as with ones that aren’t (SaaS platforms, for example). According to a comparative survey by McKinsey, better commercial capabilities help businesses achieve 4.7 points better margins and 1.9 points higher earnings.