Revenue Architecture Defined
We define Revenue Architecture as the process and product of planning, design and construction to deliver sustainable revenue performance. “Revenue Architecture”
Rev-en-ue noun: the return or yield from any kind of property, patent, service, etc.; income. Ar-chi-tec-ture noun: the process and product of planning, design and construction. “Revenue Architecture”: The process and product of planning, design and construction for sustainable revenue performance.
The 12 Dimensions of a World Class Revenue Architecture
These 12 dimensions are critical success factors for sustainable revenue performance. These are marketing and sales best practices that form the building blocks of a revenue architecture that you can tailor to align with your business architecture.
Value to Market
Terms & Conditions.
Channels & Partners
New Market Value
Sales & Marketing
Process & Systems.
Partners and Agencies
Web & Digital Channels
Collateral & Media.
Tools & Enablement
|People & Talent|
Website & Channel Management
Management & Coaching
Descriptions of Each Dimension
Explore each of the Revenue Architecture dimensions and download the infographic.
Market Strategy involves looking for existing and potential markets, considering geography, complementary markets or unrelated sectors. The process involves an assessment of the attractiveness of different markets considering factors such as size, growth, profit potential, barriers to entry and ability to compete. A map of each market opportunity on a matrix of business attractiveness versus current capability helps select the markets with the highest potential to create superior customer and business value. Elements include; Value to Market, Segmentation, Commercial Use-cases, Competitive Advantage, Product Rationalization.
Commercialization is the process of making products and services market ready. Bringing a product to market involves brand positioning, advertising and sales promotion elements needed to drive adoption in the market. Considerations include defining adjacent offerings, designing the customer engagement process and marketing and sales ‘value chain’ and establishing the terms and conditions for the commercial offerings.
The Go-to-Market Model is the process of using internal and external resources and channels – including marketing and sales organizations, partners and distributors – to engage the market and deliver offers to customers. After defining the market and developing the commercialization approach, go-to-market is about choosing the right distribution and marketing channels and promotion approach. Elements include defining the distribution model, support and services, promotion and marketing campaigns.
We have identified 12 dimensions or a world class revenue architecture which summarize critical capabilities across sales and marketing. Companies who actively assess and manage marketing and sales capabilities realize sustainable revenue growth and performance. Diagnostics reveals capability strengths and weaknesses with sufficient granularity and analysis to help focus revenue strategies. Assessments identify the 20% of enhancements that deliver 80% of the impact and how effective marketing and sales capabilities compare with best practices.
Marketing operations increase business efficiency and agility by activating marketing performance management, strategic planning, budgeting, professional development, and marketing / revenue systems and data management. The function enables change and development in the marketing organization and includes, demand generation practices, alignment of Marketing and Sales, and business area support. Marketing Operations enables best practices, processes, infrastructure, and the reporting of marketing impact.
Sales operations support revenue strategies by helping the sales organization run effectively and efficiently. Sales operations is an established data-enabled process to help make decisions and support effective selling. Elements include; sales enablement, process development, sales training (included under People and Talent Dimension), process adoption and compliance, Ccommunications, analytics, management & reporting, forecasting and administration, vendor management, and compensation plan management.
People and Talent
We separated the People and Talent Management dimension because developing the capabilities, knowledge and activities of salespeople and marketers as well as business leaders is a core gating factor in revenue performance.The motivation and enthusiasm of revenue producers is the lifeblood of creativity, focus and revenue success. A business must have the broad skills and specialist resources to deliver integrated sales and marketing. The dimension includes managing human resources, recruiting, retaining, developing, and rewarding people.
We focus this dimension on an integrated platform to support revenue execution – across both marketing and sales. There are many specialized technologies that support specific marketing and sales capabilities and we have grouped these broadly into four categories (noting that some platforms incorporate multiple elements): CRM, Marketing Automation, Data Management, and Business Intelligence. Some of the functions included in revenue technology platforms are; Monitoring and analytics, sales and opportunity management, account based marketing, closed loop tracking and tag management, data and list management, conversion optimization, web integration, landing pages, campaign management, email marketing, advertising, search engine optimization, search engine marketing.
Acquisition programing is the integrated process of planning and designing customer acquisition programs. Often viewed as a marketing-led process, we highlight acquisition programming as an integrated capability that requires tight alignment of both marketing and sales. Acquisition programming involves segmenting the audience and developing targeted personas to more fully understand the buyer, defining the lifecycle of the customer, content maps and the steps in the buy-sell process, crafting a campaign architecture that defines the content, media mix, workflows, automation elements and direct inbound and outbound sales strategies required for an effective program.
With the acquisition program clearly defined, Marketing Execution defines the role the marketing organization plays to drive demand generation activities, manage websites & channels, engage communications, public relations, analyst relations and apply technology resources for campaign and program execution. Marketing execution involves the day-to-day activities of the marketing team to generate marketing qualified inquiries (MQI) and marketing qualified leads (MQL) for sales conversion.
Sales Execution is the day-to-day process of customer relationship management and good selling. It involves effective deal qualification using tools like BANT, SCOTSMAN and opportunity management across the multiple stages of the sales process, account management to maintain and deepen client relationships – expanding through colonization and crop rotation – the footprint in strategic accounts, and front line sales management & coaching to drive conversions and revenue performance to plan.
Performance Management is often separated across sales and marketing. We grouped this dimension into one in order to focus on the shared revenue responsibility across marketing and sales. The rise of the CRO – or Chief Revenue Officer – embodies this principle. Performance Management is about optimizing conversion performance (both macro and micro conversions) across each stage of a continuous closed loop customer lifecycle. The capability involves leveraging data insights, managing and optimizing campaign and funnel performance and driving lead stage and deal velocity – aligning the process of marketing and sales.