When it comes to building a sustainable pipeline, it’s important to identify and validate the program factors driving pipeline opportunities
As you’ll see in our Revenue Engineering framework, In the “Validate” phase, we prove the concept of sustainable pipeline performance and begin to engineer frameworks for implementation and scale.
This is the stage where you measure performance across pipeline creation to deal creation against revenue metrics leading to closed won to identify key factors driving pipeline. By doing so, we can optimize our pipeline creation processes and ensure that we’re focusing on the right factors to drive revenue growth.
If you’re looking to build a sustainable pipeline for your business, it’s essential to take a data-driven approach and validate your pipeline creation processes to ensure long-term success. By doing so, you can identify the key factors driving pipeline opportunities and optimize your revenue generation strategies for maximum impact.
While the “Validate” phase of the Revenue Engineering framework is critical for achieving sustainable revenue growth, companies often approach it the wrong way. Here are some common mistakes to avoid:
- Not taking a data-driven approach: Many companies rely on intuition or guesswork when it comes to validating their pipeline creation processes. However, this approach is not sustainable in the long run. Instead, it’s essential to take a data-driven approach, measuring performance across pipeline creation to deal creation against revenue metrics leading to closed won to identify key factors driving pipeline.
- Focusing on the wrong metrics: Even when companies take a data-driven approach, they may focus on the wrong metrics. For example, they may measure the number of leads generated rather than the number of pipeline opportunities created or the win rate from the source. Focusing on the wrong metrics can lead to suboptimal pipeline creation processes, resulting in missed revenue opportunities.
- Not optimizing pipeline creation processes: Once companies have identified the key factors driving pipeline opportunities, they need to optimize their pipeline creation processes. This optimization requires a continuous improvement mindset, where companies experiment with different strategies and tactics to improve their pipeline creation performance continually.
- Not validating sustainable performance: Finally, companies often fail to validate the sustainability of their pipeline creation processes. They may achieve short-term success but fail to sustain it over the long run. To avoid this mistake, it’s essential to validate the performance of pipeline creation processes over an extended period, aiming for sustained revenue growth.
To avoid these mistakes, companies must approach the “Validate” phase of the Revenue Engineering framework with a clear strategy, taking a data-driven approach, focusing on the right metrics, optimizing pipeline creation processes, and validating sustainable performance. By doing so, they can build a sustainable pipeline that drives revenue growth for their business.
Here are the key elements of the “Validate” phase:
- Validate proof of concept and ROI from revenue motions.
- Identify and validate program factors driving pipeline opportunities.
- Measure performance across pipeline creation to deal creation against revenue metrics leading to closed won to identify key factors driving pipeline.
The validation phase takes at least 12 weeks. The criteria for successful validation should be $100k in program sourced pipeline opportunity in a 31-day window sustained over three consecutive months, aiming for a 25% win rate from the source, leading to $75,000 closed won.
To calculate the success of the “Validate” phase, here’s the formula:
((Pipeline Opportunities Created x Win Rate) x Average Deal Size)) = Program Sourced Pipeline Opportunity
For instance, if you create 20 pipeline opportunities with a 25% win rate and an average deal size of $15,000, the program sourced pipeline opportunity would be ($75,000).
In conclusion, building a sustainable pipeline requires a data-driven approach to validate pipeline creation processes and optimize revenue generation strategies. By identifying the key factors driving pipeline opportunities and validating their performance, businesses can engineer frameworks for implementation and scale, leading to sustainable revenue growth. The “Validate” phase of the Revenue Engineering framework is critical for achieving these outcomes.
Learn More About Evron
We position B2B marketers like you to source more revenue with less friction. With GTM roles shifting to the right, marketers are challenged with sparking up initiatives that drives sales ROI, and having data to back the results. Current GTM and Demand playbooks don’t help today’s B2B marketers optimize for revenue outcomes. That’s where we come in. We develop roadmaps and campaigns, execute demand and ABM tactics, and design creative assets to fuel revenue results.
Discover more about Evron at evron.io. Join the GTM and Demand convo on our socials: LinkedIn, YouTube, Tik Tok. Listen to The A2B Series Podcast on Spotify, Apple, and YouTube.
We position B2B marketers like you to source more revenue with less friction. With GTM roles shifting to the right, marketers are challenged with sparking up initiatives that drives sales ROI, and having data to back the results. Current GTM and Demand playbooks don’t help today’s B2B marketers optimize for revenue outcomes. That’s where we come in. We develop roadmaps and campaigns, execute demand and ABM tactics, and design creative assets to fuel revenue results.
Discover more about Evron at evron.io. Join the GTM and Demand convo on our socials: LinkedIn, YouTube, Tik Tok. Listen to The A2B Series Podcast on Spotify, Apple, and YouTube.
Discover more about Evron at evron.io. Join the GTM and Demand convo on our socials: LinkedIn, YouTube, Tik Tok. Listen to The A2B Series Podcast on Spotify, Apple, and YouTube.