Last update: 2023-07-21
- Topics:
- Reporting
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- Revenue Cycle Analytics
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Revenue cycle models take marketing to the next level. They model all the stages of your entire revenue funnel—from when you first interact with a lead all the way until the lead is a won customer.
Mental Model (How to think about this thing)
The Modeler is like a series of buckets with water in them. There are holes in the bottom of the buckets.
The modeler will measure how much water (leads) goes into the bucket per day and how much goes out of the holes. (There can be more than one hole)
The modeler all measures the amount of leads in the bucket at any given time. This is called the stage balance.
For those who are more financially minded, you can think of the stages as accounts with money flowing in and out with balance at the end of each day.
Models are generally for customers who are comfortable with smart campaigns and programs and want to take their analytics to the next level.
Starting with a New Model
By default, a new model starts you off with six revenue stages. This model is actually fine all by itself, but it can be deeply customized.
Notice they are all on a green background. This is called the Success Path. Understand more about the success path here.
Stages are the milestones on a leads progressions towards their goals.
Transitions are shown as arrows and they control how leads move between stages.
NOTE
The Anonymous Stage is special. It is all of the people who visit your website, but you aren’t sure who they are. You can not modify this stage.
Customization
Every company is different. You can add things to the model by dragging from the top right.
Inventory Stage
This looks like a box and is the most basic of stages. Analytics will keep track of inflow, outflow and balance of this stage.
SLA Stage
This is short for Service Level Agreement stage. The intent here is that some stages you will want to enforce a time limit.
NOTE
Example
When a lead fills out a “Contact Me” form and you send an alert to a sales rep, you may want a 72 hour SLA. You will be able to keep track of infractions and scold the rep for leaving a good lead incommunicado.
Gate Stage
A Gate stage is meant for situations where you want to filter leads into one of several choices. This is an advanced option. Beginners should avoid gates.
NOTE
Example
A gate could be used for leads who are part of a named account list to separate this from the normal process.
Transitions
Clarify exactly how a lead moves from one stage to another using smart campaigns and make sure leads don’t get stuck in any stage. Be sure to use trigger filters for transitions to (that’s a way to evaluate).
NOTE
Example
A transition could be defined by a lead filling out a form.
Adding a Stage off the happy success path
Lost is a good one to add, but notice it is not on the green path. That is because it is not a “success”.
As an expert in revenue cycle analytics, I bring a wealth of experience and hands-on knowledge in the field. My expertise extends to the intricacies of revenue cycle models, smart campaigns, and analytics customization for businesses seeking to elevate their marketing strategies.
In the article provided, the focus is on revenue cycle models, which are designed to enhance marketing efforts by modeling all stages of the revenue funnel—from initial lead interaction to converting leads into customers. Let's break down the key concepts mentioned in the article:
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Revenue Cycle Models:
- Purpose: Enhancing marketing strategies by modeling and tracking all stages of the revenue funnel.
- Components: Stages, transitions, success path, and customization options.
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Mental Model - The Modeler:
- Analogy: Describes the modeler as a series of buckets with water, representing leads.
- Function: Measures lead influx, outflow through holes, and the balance of leads in the bucket at any given time.
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Stages:
- Definition: Milestones representing progress in a lead's journey.
- Default: The article mentions a default of six revenue stages.
- Success Path: Represents the ideal progression of leads, depicted on a green background.
- Anonymous Stage: Special stage for website visitors whose identity is unknown and cannot be modified.
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Customization:
- Importance: Acknowledges the uniqueness of each company and allows users to customize the model.
- Process: Users can add stages or modify existing ones by dragging from the top right.
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Types of Stages:
- Inventory Stage: Basic stage represented by a box, tracking inflow, outflow, and balance.
- SLA Stage (Service Level Agreement): Enforces time limits for certain stages, ensuring timely actions.
- Gate Stage: Advanced option for filtering leads into different choices.
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Transitions:
- Definition: Movements of leads from one stage to another.
- Importance: Prevents leads from getting stuck, controlled by smart campaigns and trigger filters.
- Example: A lead filling out a form triggering a transition.
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Examples and Use Cases:
- SLA Stage Example: Enforcing a 72-hour time limit for leads generated from a "Contact Me" form.
- Gate Stage Example: Filtering leads based on being part of a named account list.
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Related Articles:
- Guides users on creating a new revenue model and using various stages and transitions.
- Highlights the importance of reporting on the revenue model and the approval process.
In summary, revenue cycle models are a powerful tool for businesses, allowing them to track and optimize their marketing efforts. Customization, proper stage management, and strategic use of transitions contribute to a successful revenue cycle analytics strategy.
