Phew~! That was a lot more than just the C.A.R.E. Methodology. However, I believe it was necessary to cover all of it to establish the foundation of a successful sales organization.
Troubleshooting Revenue Problems
As a final summary, here’s the revenue troubleshooting process I go through with new companies I work with. Considered from the perspective of common challenges and potential ways to address them:
#1 Top of Funnel (ToFu): I need more customers!
Even if you’re great at closing sales, it’s going to be a problem if you lack enough prospects to work with.
Marketing Challenges?
Are you capturing data and tracking the right metrics that will help you improve your processes?
Refer to the “Top of funnel” section under Funnel Optimization for some ideas.
Tips on addressing: Listen to your customers; focus on their problems and the tasks they want to accomplish, NOT your solution. Conduct some customer discovery; it will help you better articulate your messages to resonate with your audience.
#2 Middle-Bottom of Funnel (MoFu/BoFu): I’m having trouble closing leads!
Refer to the “Conversion rate between stages section” under Funnel Optimization for ideas.
#3 Length of Funnel: It’s taking me too long to close prospects!
Review and explore ideas for shortening your sales cycle.
#4 Poor Retention
You might be good at acquiring and converting prospects, but they’re leaking out the other side as quickly as you can put them in the bucket. This is reflected in high churn, and low customer LTV, which results in poor profit margins.
What could be causing it?
- Bad User Interface (UI): It looks terrible?
- Poor User Experience (UX): They get frustrated? Too many steps or hoops for the customer to go through before they experience that Aha! moment?
- Or perhaps you’re not delivering on your promise?
To address it: Pay special attention to your offering and explore how you can improve the experience. Quality testing, customer discovery, user journey mapping, and proactive experience design are some ways to do so.
Refer to Improve Retention/Competitive Defensibility for more ideas.
#5 Poor Unit Economics
Typically the result of a suboptimal business model or pricing. This is why it’s crucial to plan for revenue on day one instead of focusing solely on growth with the assumption that the revenue problem will resolve itself when you’re large enough. Snapchat serves as a martyr, teaching us the importance of this.
Distinguish between customers & users and focus on the customer. Test business models early. Examples include subscription, freemium, refills, pay-per-use, and licensing. Explore how you can build recurrency into your model.
Copy Checklist
To finish it off, here’s a checklist I use when reviewing websites, sales scripts, or outreach messages:
| ☐ You test: Is your copy about you or them (the prospect)? ☐ Gradualization | |
| CONNECT | ☐ Be likable: Communicating like a human? ☐ Build trust: Credible? Social Proof? ☐ Avoiding jargon. ☐ Using their language. ☐ Relating to their pains? ☐ So what test: Why should they care? |
| ASSESS | ☐ Qualifying them? ☐ Open-ended questions? ☐ Quantifying value? |
| RECOMMEND | ☐ Clear and specific offering. ☐ Addressing their WANTS. ☐ Relating Features to Benefits and Values (FBV). ☐ Addressing alternatives. |
| ENGAGE | ☐ Are you giving something to say YES to? ☐ Addressing objections. ☐ Reducing risks. ☐ Authentic urgency. ☐ Setting EXPECTATIONS? |
Here’s an example of how a basic application of the above can make an invitation to join you for a hike much more persuasive:
| Communication | Analysis |
|---|---|
| Let’s go on an ADVENTURE! We’ve been sitting in the office all week. | CONNECT • Communicating like a human. • Relating to their pain: In the office all week. • Their WANT: Adventure |
| What are your plans next Friday? | ASSESS • Qualifying |
| Instead of staying at home like any other regular weekend, let’s go out and breathe some fresh air, see some great sights. Show them a breathtaking picture of the place you’re going to visit. | RECOMMEND • Addressing the alternative. • Hone in on all emotions and senses. |
| Deepthi and Shi Chang are coming too. I’ve got everything planned out already, don’t worry about food, equipment, and the agenda. Just bring yourself. I’ll drive too, let me know by this Friday if you’re in as I only have 2 more seats left in my car. | ENGAGE • Social proof • Addressing objections • Authentic urgency |
As you can see, even without checking off every single box on the checklist, this is already a much more persuasive invitation compared to a simple “Hey, want to go hike Mount Garibaldi next Friday?”