Recession Buster #2: Deep Diving into Your Monetization Potential

We’re now zeroing in on the topic of monetization. As you know, monetization is all about extracting revenues and profits from your products, services, software, and data. It is also about addressing your revenue leaks, minimizing cost-to-serve, and increasing sales and profits. How do you get started when you are entering a recession? You start by responding to these eight questions below. Frankly, your board might already have sent strong messages that better monetization is required. They might have already asked your executive team these questions:

1. Is your product packaging strategy still relevant in the current environment?
2. Are you really leveraging your entire portfolio of products, features, and add-ons?
3. Are you giving away too much for free?
4. Have you developed a path to cross-sell and up-sell your customers?
5. Are you limited by your current billing system and not able to fully monetize your benefits?
6. When is the last time you increased your prices?
7. Do you understand the features that bring no value to the customers and make your product over-designed?
8. Are you focusing enough on customer adoption of your solution and specific action to boost your share of the wallet?

These are questions to answer in a matter of 2-3 weeks. It is now all hands-on-deck to fully monetize your potential and become even more relevant in your customer operations. That means increasing your revenue flow while focusing on bringing more value to your customers. That is quite a challenge when you think about it.

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This work must be done in a collaborative fashion with the sales, revenue operations, pricing, product, and packaging teams. It needs to be based on current data and on pipeline projections given by your customer base. If you do not know how to do this, bring an expert in. Tie your customer insight program to this effort. It is a fantastic opportunity to repackage your offer, get rid of the features and add-ons that are no longer relevant, and simplify your offers to the market. You might also need to move away from your current packaging strategy and move to a new strategy that gives more options to customers like a good/better/best package. The goal is to prevent customers from churning and to walk them up and down your packaging spectrum. At the same time, you might have to beef up what is in your various packages to increase perceived value.

As you improve your monetization potential, you also need to communicate to customers and prospects that you are focused on simplifying their operations and bringing additional value to support them during the upcoming recession. Your communication campaigns must be 100% focused on solving customer pains and increasing their financial results. And to accomplish that, you are strengthening your value proposition, delivering greater value in your packaging, and improving their return on investment. While we increase our monetization potential, it must be done with the increased impact on the customer business in mind. The more successful they are, the more successful we are.

Bio

Dr. Stephan Liozu (www.stephanliozu.com) is the Founder of Value Innoruption Advisors (www.valueinnoruption.com),  a consulting boutique specializing in industrial pricing, digital business, and value models, and value-based pricing. Stephan has 30 years of experience in the industrial and manufacturing sectors with companies like Owens Corning, Saint-Gobain, Freudenberg, and Thales. He holds a Ph.D. In Management from Case Western Reserve University, and has written several books, including Dollarizing Differentiation Value (2016) and Value Mindset (2017).