Rivers begin as a tiny stream. Other streams meet this stream and grow. On reaching the plateau, the river widens. What is true of rivers is also true of our revenue streams. Unfortunately, we attempt to create one big river from a single stream. Most businesses are focused on generating only one source of revenue. These businesses leave a lot of money on the table. They also miss out on opportunities to delight the customers.
Let me give an example to elaborate. Interior Designers are generally approached by the customers when they want to furnish a newly acquired property or when they want to renovate an older one. The routine process is that the designer gives an estimate of the cost and fees to the client. The client makes a decision, and the order is secured or lost. People only do interior work twice or thrice in their life. Once an order is lost, there is very little probability of ever getting any other assignment from that client again.
The only revenue the interior designer is focusing on is the fees. However, if the designer studies the client's decision-journey, they would notice that the customer needs several services:
Checking whether the developer has handed over the premises as per agreement.
Conceptual design based on requirements analysis.
Detail design.
Execution of interior work.
Regular maintenance of the furniture.
Reassessment of the changing needs of the customer and recommend alterations.
Renovation
Apart from these services, the customer has many other requirements. Some of these include pest control, housekeeping, painting, etc.
Most of the services are part of the design process of an interior designer. Others can be easily provided by collaborating with other service providers. These services improve the top line of a business and de-risk it. The designer gets to engage the customer regularly and strengthen the relation.
Metrics:
Study your buyer's journey.
Map it with your business process.
Identify steps that can be monetized separately.
Identify the products and services that the customer needs during the lifecycle.
Find partners to provide these services.
Take ownership of the buyer's journey.
Remember, the river gets its name from that original small stream. You will never lose your identity even when you add these revenue streams.
Subodh
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