Apply Yourself to Factors That Drive Factory Automation Revenue Growth

High Market Volatility and Subsequent Economic Uncertainty Can’t Keep the ‘Factory Automation’ Industry Down!

The ‘Factory Automation’ economy is poised for continued growth and more innovation even with an uncertain overall economy. Advances in AI, robotics, IoT, unique machines, smart sensors and traceability will enhance the capabilities of automated systems necessitating continued investment! The integration of 5G technology will enable even faster and more reliable communication supporting real-time data exchange, remote operations and overall efficiencies.

DRIVE SALES REVENUE:

Even with a volatile or uncertain market you can get a head start on building a great bottom line by turning your attention to key factors that influence and drive sale revenue to the ‘Top Line’.

Here are some critical factors for generating ‘Top Line’ revenue in the factory automation market.

TAKE CARE OF YOUR REVENUE SOURCES:

• Make sure your Top Customer Accounts think as highly of you as you do of them. Make it a priority to meet with them and get their feedback. Visit the plant where your products or machines are operating. Survey the operators actually using your equipment for their feedback too. Everyone is a customer!
• Don’t be anxious about problems. Problems are really opportunities. Correct anything that is not right.
• Secure your place in future CAPEX plans. Don’t wait to be invited!
• Evaluate your current process for generating Sales Revenue. What do you see or know that needs a tune-up or possibly a reset?
• Establish KPOs (Key Performance Objectives) that drive revenue. Measure them to monitor progress. Timing is everything so measure progress soon and often.
• Ensure your Sales Team is engaged, showcasing their skills and working with the Best Accounts.

ORGANIZE REVENUE GENERATING OPPORTUNITIES:

• Effective revenue generation requires an understanding of the subtleties and dynamics of the automation industry together with the critical factors that influence financial success. Challenge what you know for a better result.
• Use a quantifiable system that objectively assesses the quality of opportunities in the pipeline or actually quoted.
• Understand that the Best Opportunities are those most closely aligned with your company core competency and experience. Ensure your team knows these application too and are working on well-matched projects.
• Review your pipeline. Make an assessment that reveals alignment with core competencies and impact to the ‘Top Line’.
  • The objective here is to rinse the pipeline of any opportunities that do not align well with your core competency and experience or projects simply not ready to become active. Ensure you are focusing on what works best.
  • If you invested in making samples or a Proof of Principal study – revisit with the prospective customer for feedback.
  • Is a product demonstration needed? Demonstrations should be an event to open up access to additional individuals that have an interest in your solution.
  • Rinse out poor quality projects and assign to long term follow-up or delete them altogether. 

PREDICTING INBOUND ORDERS:

• Experience the ‘Power of Predictability’. Be excellent at predicting incoming revenue.
• Forecasting is very important! Accurate forecasting is even more important! The ability to deliver an accurate forecast is a critical skill. Ensure key people responsible to produce sales can objectively predict incoming orders.
  • Apply objective forecasting methods. If you do not have an objective method then work with someone that does.
  • High confidence forecasting will increase your visibility to incoming sales revenue.
  • The forecast will reflect how well the ‘sales producing team’ is engaged in the best accounts with the best applications aligned with your core competencies.
  • Measure plan-to-actual orders booked, sales cycle timing, lead conversion rate, win rate, number of new customers, pipeline velocity and the like.

LEVERAGE FINDING & WINNING:

• Sales producing channels can significantly impact ‘Top Line’ revenue.
  • Whether your company uses direct sales, independent sales, distributors, online platforms, strategic partnerships or some combination, the efficiency and reach of these channels determine how effectively your products get to factory automation customers. Choose wisely.
  • Expanding and optimizing your sales producing channels will lead to increased sales and revenue.
• Ensure Your Sales Producers are Customer Centered People, and High Performance Minded.
  • They are the face of your organization. Looking the part is important. Performing the part is critical to success.
  • Being in front of your customers often with presentations, useful information or leading actual demonstrations create perceived value and customer confidence.
• The ability & willingness to offer specific customized solutions is a major ‘Top Line’ revenue driver.
  • Companies that effectively engineer their products or equipment to the unique needs of different sectors such as automotive, electronics, food and medical device will strengthen their proposals and win higher revenue based orders impacting a higher ‘Top Line’, and a larger market share.
• Avoid high risk projects by ensuring your sales producers are disciplined about the type of applications they deliver internally. Require well-written, fact based inquiries that reflect the necessary detail.
• Tools like a well-crafted vision statement, up-to-date collateral material, complete equipment manuals, possibly a refreshed product offering or website that clearly conveys your vision and application alignment are important.
• Coverage – determine how best to engage markets, new accounts or regions not currently covered.
• Exhibit in Trade Shows.
• Skilled sales producers are best at understanding customer needs, winning new orders and upselling products or services for increased ‘Top Line’ revenue. Investing in relevant sales tools, in-the-field training and personal development translates to higher routine sales performance and increased inbound order revenue.

MESSAGING & VALUE PROPOSITIONS THAT PRODUCE:

• Messaging should be relevant. Your website refreshed and updated.
• Proposal templates should reflect best case terms and conditions.
• Equipment manuals and product specifications should be reviewed to insure they are updated with product changes and enhancements.
• Quality and reliability are fundamental to gaining customer trust and loyalty. Automated systems that consistently deliver high performance and demonstrate reliability in demanding environments are more likely to secure repeat business and long-term contracts.
• Implementing stringent quality control and continuous improvement practices ensures that products meet exacting standards, thereby boosting revenue through customer satisfaction.
• Invest in a defined sales revenue generating process that attracts the best people and world-class customers. 
• Companies that produce high-quality automation systems at competitive prices will attract more customers. By optimizing production processes, reducing waste, and leveraging economies of scale, businesses can offer cost-effective solutions without compromising quality, thereby increasing their market appeal, order book and profitability.

KEY ROLE OF TECH SERVICE:

• Providing excellent customer support is crucial for maintaining relationships, growing loyalty and generating repeat revenue. Offering comprehensive after-sale services, including maintenance, training, and technical support ensures that customers can maximize the benefits of their automated systems. 
• Make sure you are showcasing your post sale support group for their experience and capability. These individuals are the face of your company in situations that can be challenging. Ensure Tech Service know their role, are properly trained for timely customer engagement and understand how best to accomplish their work.
• Read some field service reports from your best customers.
• Use your Tech Service team to train your sales producers in proper maintenance, trouble shooting from actual field experiences. 

STRENGTHEN THESE FACTORS TOO:

• Banking and Lending Resource Relationships; Strategic Partnerships; Key Supply Chain Resources.
• Visit your pricing strategy, terms & conditions and any policies that impact ‘Top Line’ revenue generation.
  • The pricing strategy directly impacts the ‘Top Line’. Know the boundaries of Purchase Price Flexibility (PPF).
  • Create a menu of options that work for your particular business depending upon the understood credit risks and strength of your order book and backlog.
  • Businesses need to find the optimal balance between pricing their products competitively and ensuring profitability.
• Be convinced your company is providing an exceptional customer experience which is crucial for revenue growth. Positive experiences foster customer loyalty and encourage word-of-mouth referrals, resulting in higher sales.
• Businesses should focus on aspects such as customer service, ease of purchase, and post-purchase support to enhance the overall experience.

Be ‘Top Line’ Minded and Aware. Know the upfront processes of your business where revenue growth begins.

In conclusion, generating revenue in the factory automation market hinges on a combination of factors including account development, technology innovation, well trained and professionally capable sales producers, customization, sustained predictability, quality everywhere, cost efficiency, excellent customer support, market expansion and strategic partnerships.

Companies that effectively leverage these factors will experience sustained growth and profitability in a highly dynamic and competitive industries like Factory Automation.

You are encouraged to visit the Focus and Services Pages of this website to acquaint yourself with our experience and services we deliver.

Thank you for your time and consideration!

For More Thoughts on Forecasting Best Practices.    LINK:  IMPROVE YOUR FORECASTING