Did you know that revenue generation isn’t just the responsibility of your sales team? In fact, all departments—including marketing, customer success, revenue operations and even finance—play a role in driving the growth of your business.
So, if you want to ensure that your B2B company is profitable, it’s essential to have a strong revenue generation strategy that empowers each department to contribute to the bottom line.
But what is revenue generation exactly? And how do you improve your revenue generation process without sacrificing the customer experience? Good questions! And we’re going to answer them in this blog post as we look at:
- The meaning of revenue generation
- Examples of revenue generation tasks for sales, marketing, customer success, finance and revenue operations teams
- 7 profitable strategies your business can implement to start generating more revenue
What is revenue generation?
Revenue generation is the process of creating and capturing sales opportunities for a company. This process can involve various activities such as identifying market segments, setting pricing strategies and converting leads to customers.
Without an efficient revenue generation process, your business may fail to attract and retain new customers. In the B2B world, this process can be even more complex, as sales cycles tend to be longer and involve multiple decision-makers.
Which teams are responsible for revenue generation activities?
Revenue generation isn’t a task reserved for one specific team within a company. Instead, it’s a collaborative effort between different departments, including marketing, sales, customer success, finance and revenue operations—with each team having specific responsibilities and tasks.
You probably already know that the sales team is responsible for generating revenue. Sales Development Reps (SDRs) do this directly through prospecting and closing deals. But they also play a crucial role in this process by:
- Identifying and targeting the right leads based on an understanding of their pain points and how the company’s solutions can address them
- Proactively reaching out to leads through cold calling, emailing, networking and other lead generation activities
- Building and maintaining relationships with clients to increase the likelihood of repeat purchases
- Conducting product demos with potential customers
- Tracking and analyzing sales performance data to improve processes and strategies continually
Your marketing team’s role in revenue generation is just as crucial as the sales team’s. They generate demand for your product or service, increase the flow of high-quality leads and create brand awareness. Ultimately, your marketing team aims to guide potential customers through the initial stages of your sales funnel and convert them into qualified leads by:
- Creating content such as blog posts, whitepapers, case studies, and webinars to attract and educate potential buyers
- Launching marketing campaigns, often in collaboration with the sales team, to drive leads and conversions
- Conducting market and competitor research to inform go-to-market strategies
- Building and maintaining relationships with key industry influencers and partners to increase brand visibility and credibility
- Tracking and analyzing lead conversion rates, website traffic and other relevant metrics
The customer experience can make or break any company’s revenue generation efforts. The customer success team takes ownership of ensuring a positive customer journey that supports and contributes to revenue growth by:
- Providing onboarding and training to ensure customers are fully using your product
- Building strong relationships with clients to encourage loyalty and retention
- Collecting customer feedback and making suggestions for product improvements
- Recommending new products or services based on customer needs and interests
- Working with the sales team to upsell or cross-sell additional products and services
The finance team often isn’t thought of as directly contributing to revenue generation. But they play a crucial role in helping your company make informed decisions about pricing, product offerings and investments. For example, finance contributes to revenue growth by:
- Analyzing and forecasting financial performance so the company can set realistic revenue goals
- Providing insights on pricing strategies and identifying new revenue streams
- Conducting cost analyses to maximize profitability
- Ensuring compliance with financial regulations and minimizing financial risk
- Using financial data to drive decision-making and optimize revenue generation efforts
Revenue operations (RevOps) is an emerging business function becoming increasingly crucial in data-driven B2B companies. If your business has a RevOps team, you know their main priority is to identify and eliminate any roadblocks to revenue generation. To achieve that goal, the RevOps team will perform tasks like:
- Aligning the message and strategy of all go-to-market teams to ensure consistency and optimize revenue generation
- Implementing sales technology, such as customer relationship management (CRM) systems, to improve accuracy and efficiency in revenue forecasting
- Going beyond traditional lead scoring methods to understand the ideal customer profile (ICP) and determine the signals that indicate a lead is ready to buy
- Optimizing pricing and packaging for maximum revenue and profitability
- Analyzing data and presenting insights to inform decision-making for the whole revenue generation team
7 strategies to improve your B2B revenue generation process
Generating sustainable revenue sounds like a no-brainer for any business. But it can often be a challenge for B2B companies that sell complex or high-value products to other businesses.
So, you may need to experiment with different strategies and tactics to find what works best. Here are 7 revenue generation strategies that can help your business boost profitability.
Strategy 1: Use exegraphics to better understand your ICP
Your ideal customer profile (ICP) is a crucial component of any revenue generation process. Why? Because understanding who your ICP is helps you focus on the leads most likely to convert into customers and bring in revenue.
Unfortunately, many businesses have trouble accurately defining their ICP because they rely on superficial information like company size, annual revenue or industry. But does that type of information tell you whether a particular lead is actually a good fit for your product or if they’re ready to buy it anytime soon? Not really.
By using exegraphics—data and insights on the characteristics, behaviors and needs of your best customers—you can more accurately define and target your ICP. When studying a company’s exegraphics, you might find that your best customers tend to have a specific pain point in common when they buy from you, like a need for better data security due to new compliance regulations and a small IT department.
With that information, you can better target similar companies in your outreach efforts and tailor your messaging to address their specific pain points. The only problem is that finding this type of data can be tedious and time-consuming as it’s not readily available in one centralized location.
That’s where Rev comes in. Our AI-powered Sales Development Platform can quickly analyze your current customer data and gather insights into the characteristics and behaviors that your best customers tend to display when they’re ready to buy. This data helps you better understand your ideal customer profile and identify and target similar companies for your outreach efforts.
Strategy 2: Invest in demand generation marketing
Demand generation (aka demand gen) involves creating content that attracts the attention of your ideal customer, builds brand awareness, and drives demand for your product or service. Despite being a long-term investment, demand gen can significantly impact revenue generation.
Not only does demand generation bring in new leads, but it also helps with lead nurturing—turning those leads into paying customers. By creating valuable content targeted towards your ideal customer, your target audience will see your brand as a thought leader in the industry and be more likely to do business with you.
Demand generation activities can include content marketing to attract and educate your target audience, using search engine optimization (SEO) to improve visibility on search engines and running targeted advertising campaigns. Learn more by reading our demand generation marketing guide.
Strategy 3: Leverage the power of social proof
In his book Influence, Robert Cialdini discusses the power of social proof—the idea that people will mimic the actions of others to fit in or feel safe. In the B2B world, this translates to potential customers being more likely to buy from a company that has proven success in the form of customer reviews and case studies.
Think about it. As a potential customer, you are more likely to trust and believe in the capabilities of a company that has glowing reviews from other companies like yours or has a case study outlining how they successfully solved a problem for a past customer.
So, how can you leverage this to improve your B2B revenue generation strategy? First, ensure that you have a system for collecting and showcasing customer reviews, whether on your website or through third-party review sites.
You can also work with your customer success team to gather and publish case studies highlighting the successes of your past clients. These types of social proof can go a long way in building trust and credibility with potential customers, ultimately leading to more sales and revenue generation.
Strategy 4: Empower your customer success team to generate revenue
While the customer success team’s primary focus may be on retention and advocacy, they also can have a significant impact on revenue. But if you want to maximize their potential for revenue generation, it’s essential to provide them with the necessary data and resources.
Access to customer data such as account health, churn likelihood and renewal dates can help the customer success team prioritize accounts and proactively address potential risks. And by equipping them with that information, your customer success team will better understand how to upsell and cross-sell to current customers.
You can also encourage direct collaboration between customer success and sales. In a recent interview, the Chief Customer Officer of AppsFlyer shared just how much of an impact the customer success team can have on revenue generation.
By empowering their customer success managers to identify customer support qualified leads to pass to their sales team, AppsFlyer was able to generate over 300 million dollars in revenue from their existing customers in less than four years!
Strategy 5: Master psychological pricing strategies
When was the last time you noticed a price ending in “9” or “99”? Chances are, it was recently. Why? Because this tactic, known as charm pricing, is one of the most commonly used psychological pricing strategies.
Psychological pricing refers to any pricing strategy that uses psychological tricks or techniques to influence customer behavior and drive sales. Along with charm pricing, other examples of psychological pricing strategies include:
- Prestige pricing: Setting a high price to convey luxury or exclusivity
- Comparative pricing: Comparing your lower-priced products to higher-priced products
- Bundle pricing: Offering a discounted price for purchasing multiple products at once
While these pricing tactics may seem subtle, they can actually be effective in driving sales and revenue growth. However, it’s important to use them ethically and make sure they align with your company’s values.
Strategy 6: Create the environment of a high-performing SDR team
Whether it’s funding a training program or providing the latest sales technology, investing in your SDR team can help better equip them to close more deals from high-fit accounts. It’s also important to continuously gather feedback from them to improve and fine-tune your messaging, value propositions and lead scoring criteria.
Another way to support your SDR team is by creating a warm lead handoff process between marketing and sales. This process ensures that the leads passed over to your SDRs have already shown interest in your product or solution or are showing signs of being fit and ready to engage.
It’s also crucial to audit your sales pipeline regularly to ensure that your SDRs spend their time on the right deals and target the best-fit accounts rather than wasting time on low-fit leads. For more tips like these, check out our post on 12 steps to build a high-performing SDR team.
Strategy 7: Prioritize sales and marketing alignment
It’s unfortunately common for sales and marketing teams to operate in silos, with little communication or collaboration between the two. As a result, quality leads fall through the cracks, marketing feels their efforts aren’t translating into sales, sales feels like they are constantly starting from scratch with few qualified leads and revenue growth suffers.
Sound familiar? If so, it’s time to get these teams on the same page. Because when sales and marketing teams align their efforts, they can create a streamlined approach to generate leads, nurture them through the sales funnel and close more deals
But how do you go about coordinating your sales and marketing teams? It begins with breaking down silos and fostering open communication and collaboration. You can achieve this through regular meetings, joint goal setting, creating shared metrics to track progress, and using the same tools and systems to track leads and sales data.
Sales and marketing alignment is also one of the core goals of a revenue operations team. So, a transition to RevOps at your organization (if you haven’t already) can also play a crucial role in hitting revenue targets by bringing together all the revenue generating teams and aligning their efforts.
Driving consistent revenue growth can be a challenge for B2B companies. But by understanding each team’s role in the revenue generation process and aligning their efforts, you can ensure everyone knows how to contribute to achieving revenue targets.
It also helps to empower your teams with the tools and technology to make revenue generation activities more effective and efficient. For example, Rev’s Sales Development Platform helps you better understand your ICP and the signals that indicate when they’re ready to buy. This information lets you identify and target high-value leads and close deals faster.
Want to see how Rev can improve your revenue generation plan? Contact us and request your free ICP audit!