What does revenue delivery mean?
Revenue delivery refers to how your company turns its revenue-generating activities into actual money in the bank through streamlined and automated financial processes. It’s the combination of tools, processes, and teams that handle customer payments and convert them into business earnings.
It includes how a business does…
- Getting more business
- Adding to their accounts
- keeping them for a long time
- handling tax, payment, and
- data protection rules at the same time.
Your revenue distribution infrastructure links your front-office and back-office data so that financial tasks can be done automatically and better. Streamlining the payment process will help your business better control its cash flow, cut costs, and make more money.
Parts of an infrastructure for delivering revenue
An effective revenue delivery system quickly turns your business’s revenue drivers into real money and correctly reports this information.
To do this, you need to get approved leads, move them quickly through the sales funnel, get them to pay on time, keep them long enough for them to make you money, and follow all the rules about money.
So, the following parts make up your income delivery infrastructure:
Execution of GTM
How you get your goods to market is the first piece of the puzzle, even though it doesn’t directly relate to making money. The rest of the steps will depend on your go-to-market plan: finding, targeting, and buying potential customers.
You must set the stage before you can think about the rest of your income-delivery infrastructure. Among these are:
Putting the product, marketing, and sales teams together
Figuring out who your target audience is, dividing them into groups, and coming up with messages that will appeal to each group
Boosting your value proposition and making your goods stand out
Making the most of your contact channels to get in touch with possible customers
It’s hard to make money if you can’t get approved leads into your pipeline. Without them, you won’t be able to sell well or get paid. The first half of the battle is making a good GTM plan.
Sales and Operations
When it comes to making money, sales speed is critical. What does the buying process look like once an approved lead enters your sales pipeline?
To make your revenue distribution infrastructure work, you need to get rid of any extraneous problems in the sales cycle by:
Putting together sales support tools that teach potential buyers and lower objections
Using a consistent sales qualification strategy (like MEDDIC) to give leads a good look
Putting together a sales playbook to help workers sell things
Putting quote-to-cash and CRM data entry on autopilot so sales reps can focus on making sales
An integrated method is the most important thing here when bringing in money. To ensure you get paid and report correctly on your earnings, your CPQ and CRM must be able to talk to your bills and accounting software. As you go through the steps of turning closed deals into running profits, different systems slow you down, causing problems and being inconsistent.
Paying for things
Payment management is getting paid for things, keeping track of that money, and reporting on it. When selling to businesses, payment cycles can be long and complicated, especially when there are a lot of items to buy or payments that need to be made repeatedly.
It should be easy for customers to pay through your revenue delivery system, which should get rid of any payment barriers.
Providing different ways to pay
- Automating the billing and invoicing process, which includes figuring out taxes and changing currencies
- Setting up a subscription management method to get regular streams of income
- Streamlining the dunning process to lower the number of days sales are outstanding and the costs of bad debt.
- Connecting your accounting and CRM tools so that financial information is correct and up-to-date
Setting up security steps to stop fraud and fake payment declines
This is when customers don’t pay for or renew their subscriptions because they forgot or couldn’t. It’s a big problem for SaaS businesses. Data from Gong shows that it accounts for 20% to 40% of their total churn.
You need to make it easy for customers to pay and make sure they keep their payments up to date if you want to get more money. This means making it easier for people to pay by giving them various payment choices and sending them automated emails before the due date. You should also automate your billing process to cut down on the number of missed or failed payments.
Keeping track of revenue
Under ASC 606 (or IFRS 15 for international companies), companies record revenue when they receive it, which is when they meet their customer’s contractual obligations. This principle of revenue recognition has a significant effect on how businesses generate revenue.
Your system for bringing in money should be simple:
- Please keep track of performance duties and whether they’re met.
- Find the prices of transactions and assign them to each duty.
- Don’t forget to record income correctly and on time.
Give thorough reports on income for checking and following the rules.
The bottom line is that you need transparent systems and processes to track, record, and report your income correctly. This is important for accounting reasons and lets you look at how well you’re doing and make choices based on data for future growth.
Getting Along
Managing the delivery of income means taking care of all kinds of compliance. In addition to following the rules and agreements specific to how your business makes money, you must also follow data privacy laws when dealing with private customer information.
- Financial compliance means correctly reporting your sales income and following different local rules, such as PSD2 in Europe.
Tax compliance means paying taxes and keeping records of them everywhere your customers are.
Data privacy compliance means gathering, saving, and keeping personal information safe in line with GDPR and other rules.
Internal compliance means ensuring that all your workers follow your company’s rules and that your business meets its customer obligations.
Controlling your cash flow properly is an essential part of following the rules. If everything works perfectly to bring in money, but you don’t set aside enough for taxes (or don’t do it right away), you aren’t bringing in enough money.
Customer Happiness
It’s not the end when you get your first payment from a new user. They need to make you at least three times what you paid for them to be profitable. They must cover your acquisition costs and give you enough money to pay your workers and grow your business.
Customer success is crucial because it’s the only way to turn finished deals into customers who buy from you again.
In short, it includes the following ways of making money:
Keeping and growing revenue by upselling, cross-selling, upgrading, and renewing subscriptions to raise the total value of each customer.
Customer satisfaction means paying attention to what customers say, considering their comments, and acting quickly to fix their issues.
Churn reduction means finding people likely to leave and taking steps to keep them from doing so.
Buyer help: offering the best onboarding and customer support to ensure your product is adopted and used successfully for a long time.
To keep customers coming back, your revenue delivery system should have ways to track how customers interact with you, spot buying signs, and automate renewal processes (for example, sending timely reminders for contract renewals).
Reporting and Making Predictions
Bringing in money is closely linked to growth. To find out how to improve the way you bring in money, check on the financial health of your business, and think about what the future holds for it, you need to track, report, and predict revenue success.
The following revenue measures should be shown in real-time in your reports:
- MRR sta”ds for “monthly recurring “evenue.”
- Annual recurring income, or ARR
- Rate of turnover
- Cost of getting a new customer (CAC)
Valuecustomer’sstomer’s whole life
This way, you can see how well your process for delivering revenue works, spot trends and possible problems early on and make choices based on data to help your business grow.
Problems that SaaS companies face with bringing in money
SaaS companies may still have trouble bringing in money even if they have the best systems. Here are some of the most common problems:
- Managing subscriptions and bills can be challenging. Software companies use a mix of tiered, usage-based, and flat-rate subscription models, which are hard to handle because each customer has their billing structure. As their customer base and list of products and services grow, it gets more challenging for them to handle their subscription billing.
Problems with integration. If one part of your RevOpsdoesn’ttack doesn’t work with you, you’ll have trouble reporting, getting paid, and getting quotes to cash quickly.
They do not correctly recognize income. A lot of the time, subscription businesses get paid upfront for a month or a year of access to their goods. Automation is needed to report this income correctly”, which” is “earned” throughout the subscription (not when they get paid).
They are not choosing to churn. As was already said, SaaS companies lose a lot of customers because of payment problems they could easily avoid. They can keep track of credit cards that are about to expire and failed payment attempts with the help of a tool for recurring billing.
Loss It’sevenue. It’s common for SaaS companies to lose money by accident because of leaky product catalogs (where customers can see what they didn’t pay for) or human error (like a customer service rep giving a refund without changing the payment system). SaaS companies lose millions of dollars without a way to spot and fix strange payments or changes.
How a strategy for bringing in money can help
An income delivery strategy is a long-term plan for dealing with these problems. Using methods, systems, and tools that make quote-to-cash management, customer success, reporting, and forecasting easier will help your SaaS business.
To come up with a good strategy:
- Figure out your goals for delivering revenue.
- Think about the goals you have for your business and how bringing in money fits into those goals.
- Here are some examples:
- Increasing customer lifetime value and removing places of friction will make the business more profitable
- Putting renewals, upgrades, and upsells on autopilot to cut down on forced customer departure and keep more than 100% of net income.
Please set up a customer portal so they can change their subscription payments without contacting your support team.
Setting clear goals will help you direct your strategy and decide which activities will directly and instantly help you make more money and deliver on your promises to the bottom line.
Know the steps your customers take to buy.
Make customer’s customer trips to find points of contact and possible problems. This will help you come up with ways to improve their experience and make more money at the same time.
Check your current ways of bringing in money.
Look at the tools, systems, and processes you already have to see where they could be automated or better integrated. This will help you make a better system that requires less work and fewer mistakes.
Set up the right tools and systems.
Pick DevOps software that works with the ones you already have and takes care of managing and making money automatically. First, it would be best to consider CRM, CPQ, billing/subscription control, and accounting tools.
Besides that, look for tools that make other tasks more manageable. Three main types are sales training platforms, document automation software, and revenue intelligence tools that AI powers.
Get your team ready.
Your team needs to know how important it is to bring in money and what they can do to help. Teach them how to use new systems and tools well, deal with customers, and spot buying signals and growth possibilities.
Advantages of a Strategy for Bringing in Money
A well-thought-out plan for turning B2B prospects into customers and keeping them is your best tool for making more money, growing CLV, and building a subscription business that can grow.
A plan for bringing in money that business’s business’s goals with the needs of your prospects and customers can help you:
Better performance. By automating and streamlining manual chores, you can reduce mistakes and speed up the time to close deals, manage compliance, and balance your books.
You have reduced both intentional and involuntary turnover. By automating payments and focusing on customer success, you can cut your churn rate by a considerable amount.
Better experience for customers. Customers happy with your revenue delivery process are more likely to renew, upgrade, or suggest your product It’service.
It’s better to predict. Once all the systems that handle money share the same information, you’ll always have the most up-to-date picture of how your business is doing. With revenue software’s accurate and real-time reporting, you can make choices based on data affecting your top-line and bottom-line profits.
More money you’ll in. You’ll make more money from new and old customers if you fix common problems in the delivery process and implement good revenue management. Plus, you’ll keep more of that money because you’ll be running your business more efficiently.
What to Expect From a Good Infrastructure for Delivering Revenue
A good revenue delivery plan should not only lead to the above improvements in efficiency, profitability, and customer satisfaction but it should also:
- More sales in less time
- Better results with conversions
- Being able to grow (both your business and the methods)
- Better prediction of sales
- Better talking between offices and essential people
- Less trouble with tax obligations
- It is less expensive to follow (and not follow) the rules
Higher rates of customer engagement and happiness
Remember that the machinery you use to bring money should help growth, not slow it down.
If it’s hard for you to get your products to market, connect your workflows, and figure out how to make money, you should look into an all-in-one revenue delivery.
If you’re a big company with complicated needs, you might need to hire a team to build, deploy, and manage the connections between all your systems. But that only works if you are willing to work on the job for a long time and have the money to do so.
That’s likely that you’re what you’re looking for. The most likely thing you need is a platform that can handle everything, from quotes to payments to continued subscription billing.
