Cultivating a Revenue Mindset for B2B PMs
back with a “5 minute Friday” audio edition
key concepts I cover in this snippet:
why a B2B product team has to have a revenue mindset
how B2B PMs operate differently (and closer to revenue) than B2C PMs
different dimensions of revenue (generation, preservation, health)
revenue generation is about winning deals / landing accounts
revenue preservation is about user activation / stickiness
revenue health is about reducing serving costs / charging a premium
the challenges of connecting to revenue and why it matters accountability-wise
you might find this summary visual handy
I’d love to hear from listeners about their attempts at connecting their product areas to company-level revenue metrics - please chime in via comments👇. And if you enjoyed this post, please consider subscribing.
further reading / references
this post was a response to questions raised by readers of Product Onions
another episode on the accountability bar for PMs is The Product Paradox
here is my go-to framework for Connecting B2B Products to Revenue
childish drawing / interpretation
Cultivating a Revenue Mindset for B2B PMs
it's nearly impossible to be metrics-driven without data :o
but, qualitative feedback can be a good alternative - getting direct customer (buyer and user) feedback, either through live research or async surveys, with questions about what constitutes value, what features are must-have, and what is critical to completing the workflow can provide signal as well
you could also build usage / value reports within the product and then talk to your users about the results they're seeing (not seeing)
Personally, I prefer a structure like Impact Mapping to identify the team-specific work on Outcomes of a given segment, to help them identify their contribution to company-level metrics without getting lost in waiting for lagging indicators to change (any typically not as a result of their actions).