Businesses use various systems to run smoothly. They have systems for paying bills, hiring, firing, and producing goods or services. These systems help businesses grow efficiently.
However, when it comes to making money, many businesses don’t have a clear system. They rely on different groups of people working randomly and inconsistently. Marketing tries to get the company’s name out and generate leads, while the sales team generates its own leads and follows up on marketing leads. Often, no one focuses on opportunities within the current customer base, causing companies to miss their revenue targets repeatedly.
Marketing expert Matt Heinz surveyed a few thousand Chief Marketing Officers (CMOs) and found that 62% missed their recent quarterly goals, and 58% are on track to miss this quarter’s goals. This matches other research showing only about 10% of companies consistently meet their revenue targets.
The problem is that most companies lack a system for generating revenue. They need a Revenue Generation System.
What Is A Revenue Generation System?
A Revenue Generation System is a set of processes, methods, and tools designed to create steady, predictable, and scalable revenue growth. It involves coordinated efforts from marketing, sales, and customer service teams to ensure all necessary steps for revenue growth are covered.
A complete Revenue Generation System focuses on four main areas: strategy, tactics, campaigns, and technology. It helps businesses cut through the noise of today’s crowded market, delivering messages that engage potential customers effectively.
Where Do You Get A Revenue Generation System?
There are two main ways to get a Revenue Generation System: build it or buy it.
- Building It: This involves understanding all the necessary elements, creating, testing, optimizing them, and training everyone on how to use the system. This is a lengthy and complex process.
- Buying It: You can work with companies that provide a proven system, helping you install, test, optimize, and train on it. This is similar to how the Entrepreneurial Operating System (EOS) works, where experts help companies implement the system.
What Should You Look For In A Revenue Generation System?
A good Revenue Generation System should include the following components:
- Strategy:
- Personas: Detailed descriptions of your ideal customers, including demographics, psychographics, and digital behavior.
- Big Story and Messaging: A compelling and clear story to grab attention and engage prospects within seconds.
- Differentiation: Clear reasons why customers should choose you over competitors, highlighting what makes your business unique.
- Buyer Journey Mapping: Understanding how prospects make purchase decisions to tailor marketing and sales efforts.
- Goals and Expectations: Aligning your strategy with the company’s growth goals and ensuring they are realistic and attainable.
- Investment: Ensuring your budget aligns with your growth expectations.
- Tactics:
- Marketing tactics like video, email, social media, paid ads, organic search, webinars, and website optimization.
- Sales tactics like video, lead scoring, nurturing, social media outreach, and improving sales processes.
- Customer service tactics like videos, emails, promotions, and building a FAQ knowledge base.
- Campaigns:
- A series of coordinated tactics delivered in an omnichannel, personalized manner.
- Campaigns should support your big story and be planned and optimized over time to achieve the best results.
- Technology:
- A technology platform that integrates marketing, sales, and customer service.
- Utilizing first-party data, automation, and analytics to drive decisions and optimize performance.
What Should You Expect From A Revenue Generation System?
A Revenue Generation System should provide:
- Concrete Steps and Tools: A repeatable process with specific action steps and tools like persona worksheets, buyer journey models, and planning guides.
- Business Outcomes: While results will vary based on your company, industry, and how well you implement the system, you should see improvements in lead generation and revenue growth over time. Setting realistic expectations and allowing the system time to gain traction is crucial.
How Much Does A Revenue Generation System Cost?
The cost of a Revenue Generation System depends on whether you build or buy it.
- Building It: Expect to spend around $100,000 over two years.
- Buying It: Budget approximately $120,000 to $200,000 over a year, depending on your goals and market competition.
Investing in a Revenue Generation System can significantly increase your revenue. For instance, an additional investment of a few hundred thousand dollars could potentially add millions to your top-line revenue over a few years.
In summary, a well-designed Revenue Generation System can transform your business by creating consistent, scalable revenue growth. While it requires investment and effort, the long-term benefits make it a valuable strategy for any company aiming to grow its revenue.
