When you look at RevGen as an ecosystem vs by channel, you force yourself to look at the bigger picture, think strategically and look at the long term effects of your decision.
If your return on revenue is positive – great! Keep going.
If your return is breakeven or negative and it’s NOT intentional – then you may have a:
• business model issue
• tactical issue
• execution issue
• personnel issue
• offering issue
A few questions to consider from experience
• Are your offerings in alignment with the market needs?
• Are you selling enough units per month?
• Do you need to shorten the sales cycle?
• Are you selling enough but the pricing is just too low to make a significant impact on revenue?
• Do you lack backend offerings to add more value to the customer once they buy your initial product?
• Are you spending way too much on growth and have room to cut the bloat? (This by the way is the easiest/first thing some people do but usually not the best first decision)
• Are your working on the right activities?
• How quickly is the team implementing new ideas?
NOTE: these questions are a starting point for you to dig into and identify the true blockers that are harming your return on revenue.
Once identified, I recommend you look at your options through a holistic lens of how 1 decision will affect other parts of your business.
If you find out your pricing model is broken
and you’re underpricing,
I suggest you align your prices to your positioning, operations/fulfillment, business model, and market trends.
That being said,
you can just raise the prices,
call it a day
and you may end up being good!
But that’s a note on balancing
strategic thinking vs. over analyzing decisions
which we can debate over at another time 🙂