“Leak” is a bad word. Just ask the captain of the Titanic.
Or the homeowner who hears drip-drip-drip just as their head hits the pillow.
However, a revenue leak is a little more insidious than a hole in a boat, because unless you look very carefully, it can be really hard to spot.
Ok, maybe I’m getting ahead of myself. First, let’s talk about what a revenue leak IS.
It’s revenue you should be making, revenue you spent time, money and effort to generate, but it just slipped through the cracks.
And most organizations have a whoooole lot of cracks. Like a gaping (w)hole.
Reps spend more time updating (and cursing) the CRM than selling? That’s a crack.
Marketing hands over a bunch of emails with no context or material? That’s a crack.
Forgot to follow up after the lead said they’ll get back to you? You bet your March commission that’s a crack.
No, there’s no giant hole with an iceberg sticking in.
But the amount of revenue leak could fill an ocean for sure.
We tend to keep things a little light here in the Wingman Glossary so if you want the heavy knowledge-bombs, head over to our blog post on this topic. The truth is, according to the smart people over at Clari Labs, companies leak 14.9% of their revenue every year.
That’s a solid chunk of change. That’s valuation-changing revenue. That’s the difference between “Let’s celebrate” and “I wonder if this belt could tighten any further.”
So is it all doom and gloom? Should you just throw in the towel?
No! For one thing, it’s a really nice towel.
For another, it is entirely possible to plug this leak with just a little bit of effort (and technology).
Not only that, but the rewards for doing so are incredible.
Even in tough economic situations, companies that successfully plug revenue leak come out stronger than ever.
So let’s talk about how to do it… but not here. Head on over to the RevCG entry in the Glossary for that.
TL;DR - Revenue leak is the itty bitty drips and drops of revenue that most companies lose because of a number of factors, including poor handoffs, delays, missed red flags and more, that compound to become a BIG problem by the end.