A typical revenue-drive cycle of lots of businesses goes thus- Look for New Customers- Try hard to close them- Provide Product or Service- Receive payment and repeat cycle.
While these businesses will be very effective in their outbound and inbound sales approach of bringing and selling to new customers, they will also be spending more money to fund their revenue tank. And in the long run, the income generated would be less compared to the effort put in to drive the revenue. Why? Because selling to new customers is expensive.
Ok, wait. I’m not saying looking for new customers is bad because you need new customers to widen your customer base. A bad approach when looking for new customers is when there is no effective strategy to RETAIN them. And you can only retain these new customers if their journey during their first customer experience with your business is SUCCESSFUL.
At the end of the day, your customers are paying you for the services that you can provide. But, how will they pay you over and again, emphasis OVER AND AGAIN, if their journey with you is not successful?
Is it not true that the blood of a business is revenue (money)? But the source of the Revenue is your Customers. Just like your body needs the supply of blood to stay alive and your heart needs to stay healthy to be able to supply blood to the body, you also need customers which is the heart of your business to keep revenue flowing in your business. When the source is carefully taken care of, there will be a continual flow of blood (revenue).
A lot of businesses are so focused on making the sales so as to drive that they forget about the satisfaction of the customers but Revenue isn’t the only thing that matters (I said it!). Your business is nothing without customers who love being your customers and are happy to pay for your service.
There is a misconception in today’s business world – The Sales Team drives revenue meaning, the sales team makes the customers pay.
Every business has a sales team. No matter how small or big the company is, there must be at least someone responsible for driving sales. But is Sales really responsible for driving revenue? Not entirely.
Instead, all parts of the business are collectively responsible for the business making its sales. Sure, Sales will hold meetings, write proposals and negotiate with the customers to close the deal. Truthfully, these are very important activities that need specialized training and people to do, but there are lots of activities that need to be done for sales to take place and these activities are centered on the customers. For example: R&D need to determine a market (customers) need and innovate a solution to fit that need, Product Development must develop and manufacture or deliver the product or service for the customers, Marketing must make prospective customers aware of the solution, Support must help the customers identify and overcome problems, and so on. Therefore, without any of the above that are for the customers, what then would our sales team sell? Or should we say, without the customers who will the Sales team sell to?
This means that the ability to drive the revenue is not entirely done by the sales team, but it is the product of efforts put together to ensure that the customers have a wonderful experience during their journey with a company that drives the revenue. This is therefore to say that customer success (which provides a long term system of revenue inflow) is not an after-sale offering but a whole Customer Journey from which sales is just a fraction.
To put in a sentence, Revenue does not come from Sales, but from Customers.
The moment businesses can take the focus away from just selling their products/services (to drive revenue) to making sure that customers have a successful journey, the quest for revenue drive will be easier and productive.
The most successful revenue-driven businesses are those who ensure the continued happiness and success of their customers. Customer success helps increase your customer happiness and retention, increasing your customer loyalty and eventually your revenue.
This is to say; For effective revenue drive, Sales is Important, but Customer Success is important-er!