• The Link Between Trust and Revenue

In each relationship, if a level of trust is not realized and retained, then the revenue flow to your organization can be diminished or even end.

Sales & Client
If Sales does not prove the product/service is the best for the client at this time, then the client does not make the purchase (Revenue Flow ends).

Sales & Operations
If Operations does not deliver as sold, this may make the sales person more conservative in his/her approach to the next client (Revenue Flow decreases). It may also influence the client’s decision not to purchase again (Revenue Flow ends).

Operations & Customer Service
If Operations does not prove to Customer Service that it can rectify problems, this leads Customer Service to find alternate ways to satisfy the client, which sometimes leads to discounts and/or refunds Revenue Flow decreases or ends). If Customer Service does not prove to Operations that it has a thorough knowledge of operations and can rectify issues, then Operations takes on the job of issue management and reduces the time spent on delivering the product (Revenue Flow decreases).

Customer Service & Client
If Customer Service is unable to renew the customer’s trust in the product/service, the client may demand discount or refund (Revenue Flow decreases or ends).

One action an organization may take when it notices a decrease in revenue flow reduction is to conduct a root-cause analysis to determine which entity is most responsible for the present revenue challenge: Sales, Operations or Customer Service. Once the organization identifies the division, it invests in improving or revamping that division. After improving or revamping, the organization may notice an upward trend in revenue, but at some point the trend of revenue decrease begins again. How does an organization avoid this cyclic trend of revenue flow decreasing or even ending?

First the organization needs to value each entity equally and then create a space for healthy trusting relationships to be forged among entities. Healthy trusting relationships are formed among entities, when the following exists:

  • Respect for the role each plays in the revenue flow chain
  • Two-way communication about the expectations, needs and support of each entity
  • Burdens of trustworthiness are equally shared in each interaction
  • Agreement to resolve conflicts in a timely and constructive manner

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