This simple approach might seem simplistic, and yet... Even if the email data result of a company is conditioned by many parameters, it is the turnover of the company that conditions the entire final result. But what conditions the growth of sales? We can consider two major sources at the origin of the growth of Sales.
The first cause of an increase in Sales is the growth or not of the market in which the Company operates. With the help of market studies and meetings with experts, an investor will be able to have an informed and informed view on the growth of these markets and the megatrends associated with them.
The second source of growth is the commercial performance of the company and therefore its sales organization. Indeed, the sales organization of the company, and its performance, whatever the maturity of its market is a lever of growth. Thus the investor can activate this lever of improvement of the sales organization to maximize the opportunities for value creation. Henry ANGLEYS recently published an article on the subject of the impact of a sales organization on the valuation of a company. Based on our experience, an investor can also anticipate the improvement of the value of his company. And all this is possible by auditing his sales organization.
We consider that there are 2 types of commercial audit that are particularly valuable for investors. The first is to be carried out during due diligence for one (VC/CPL Audit), and the second (360PLUS Audit).
This ratio is very revealing of an organization's ability to retain its customers vs. gain new ones, and especially at what cost. As Henry Angleys points out, the value of the ratio makes it possible to categorize the level of commercial performance of a company. In cases where the company is mainly effective in retaining its customers, its growth will be closely linked to that of the market. On the other hand, if the company turns out to have a very agile sales organization, capable of winning new customers at a lower cost (low CPL), then the growth in value of the company will be less dependent on that of the market.