“Revenue Generation” is not nearly as complex and hard as everyone makes it sound.
The more companies do the wrong things and make sure they measure all those wrong things, the more complex and chaotic generating profitable revenue gets.
We need to focus and measure the outcomes for 6 steps along the Revenue RoadMap and not invest in things that are not supporting these 6 outcomes. Once we focus on and measure these six as parts of a “whole,” we can start making changes in one outcome to see how that changes the amount of leverage (positive or negative) from all outcomes. (Example – sometimes doing less of an outcome but doing it better is a home run for all outcomes).
This is what the 6 look like on the Revenue RoadMap.
Let’s review each of the 6 and their individual outcomes.
1) Investigate – suspect investigates the seller, and seller investigates the suspect. Both are investigating using profiles or criteria to determine a rough fit that justifies step 2. The outcome is someone that looks like an ideal buyer (profile) who is looking at the seller to see if the seller might meet the buyer’s criteria.
2) Qualify Early – after the investigation is the determination that this is an ideal buyer who will commit and invest resources to clarify and solidify that the seller’s engagement offer seems likely to solve the buyer’s business problem (for a fee that delivers adequate value to both). The next steps are expensive so all of the necessary buyers must commit to clarifying and solidifying the problem in order for the buyer and seller to review the value of the solution to justify the investment.
3) Qualify Late – is a conceptual sell conversation where the seller and the buyer agree in concept that there may be a match, which justifies the Joint SOW. The suspect agrees they have the problem that the seller appears to uniquely solve and will invest in a Joint SOW to validate that is true. Seller agrees that what the suspect is looking for is something seller can do and wants to do. Finally, the seller is prepared to lead the Joint SOW process to arrive at clarity and a go-no-go decision.
4) Solidify – is the Joint SOW process where both parties reach clarity, understand the other and arrive at a SOW (where both parties have clear responsibilities) that upon execution will get the prospective buyer the outcome they require, and seller gets credit and compensation for the work or they jointly decide this will not work.
5) Close / Contract – is the result of the Joint SOW that is turned into a contract executed by both parties.
6) Delivery – is the process of delivering on the SOW contracted for consistent with the terms and conditions, executed by both buyer and seller.
Each of these 6 are simple. Measuring them is easy – the outcomes were achieved or they were not achieved.
Managing marketing and sales is as simple as measuring outcomes.
Marketing produces the following outcomes:
- The right number
- Of the right type of lead
- At the right time or it doesn’t
Sales outcomes are:
- How many Joint SOW (Qualified Prospects) signed contracts
- How long from Joint SOW kickoff to contract
- Average gross margin from signed and delivered contracts
IQSCD is different, not complex and simple to execute for those willing to create the discipline and display the integrity to stick with it – “Revenue Generation” is that simple!