Step 10 · Revenue & Profit

Revenue Is Only Good When Customer Value Is Real

Revenue comes from customers who keep getting value. Profit is what is left after the cost of winning and serving them.

01 / 07 · Customer Value

The customer's work improves.

Step 10

Revenue & Profit

Make sure the customer succeeds, so that revenue renews, grows and becomes profit.

  1. What did we earn?
  2. What did it cost to acquire and support the customer?
  3. Will the customer renew?
  4. Can we serve more customers profitably?
Learn Advanced Metrics
CAC — Customer Acquisition Cost
What it costs to win one customer.
ACV — Annual Contract Value
What one customer pays in a year.
LTV — Lifetime Value
What a customer is worth over the whole relationship.
Sales cycle
How long it takes from first contact to purchase order.
Pipeline coverage
Potential sales compared with the sales target.
Margin
What is left of revenue after the cost to deliver and support.
Renewal
The share of customers who keep paying.

Do

  1. Follow: Customer Value → Purchase → Revenue → Customer Success → Renewal / Expansion → Profit.
  2. Count the effort it took to win the customer.
  3. Count implementation, support and ongoing service cost.
  4. Track renewal, expansion and profitability.

Avoid

  • Don't chase revenue the customer gets no value from.
  • Don't expand before the customer has adopted the product.

ResultA customer who renews, and a business that profits.

Learn More
  • Revenue math

    Customers, proposals, qualified opportunities, meetings and outreach needed to reach a target.

    Reverse funnel · Your conversion rates · Pipeline coverage

  • Unit economics

    CAC, ACV, gross margin, sales cycle, payback, renewal, expansion and lifetime value.

    Measured inputs · No borrowed benchmarks · Scalable only if LTV covers CAC

  • Land → Adopt → Expand → Renew → Refer

    The journey continues after purchase: adoption, success metrics, reviews and renewal.

    Adoption before expansion · QBRs with evidence · Expansion isn't always right

  • Lost opportunity analysis

    Lost is not failure if the learning is captured.

    Reason · What we learned · What should change

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