Maximizing Revenue Realization from TM Sales

The client

In the course of working with members of our Treasury Sales Benchmark, our team noticed that many banks struggle to see the actual revenue generated by their deals.  Sales officers estimate revenue when they “book” deals, but how much of that estimate becomes income?  Many banks do not know because they lack a system that links their booked sales data and account analysis billings.  Deal performance estimates typically come from manual audits that consider only a fraction of the deals made each year – frequently less than one sale per month.  To address this problem, the GCI team recently worked with a Top 20 US bank to develop systems for measuring booked sales performance.  Our goal was to show revenue realization for the vast majority of deals without any IT development or substantial staff time commitments from the bank.  

The insights

The GCI team developed an algorithm that systematically matched booked sales reporting to billing data on account analysis.  The resulting data showed the “leakage” between booked and actual revenue to be 35 percent, compared to the bank’s prior estimates of less than 10%. We identified a number of patterns across sales staff, client segments and products that allow the bank to target client follow-up to improve revenue realization. 

The impact

When we completed our audit, we identified nearly $10 million per year in booked revenue leakage and an associated half million per year in misapplied incentives.  With visibility into deal performance, we believe most banks will find similar, substantial opportunities.  Most banks can move quickly to reduce these deficits. But first they need to realize the problem exists.