Host Neeta Bidwai discusses strategies for identifying and transitioning from bad revenue to good revenue for sustainable business growth. Bad revenue is defined as deals that seem beneficial short-term but pose long-term costs, often characterized by missed targets, slow growth, high churn, and excessive customer concentration. The discussion emphasizes the importance of understanding customer value, segmentation, and willingness to pay in order to transition to a good revenue model, which promotes long-term benefits, reduced churn, and profitable customer relationships. The episode outlines practical steps for businesses to reassess their pricing strategies, segment their customers, and reevaluate contracts to align better with market demands and customer needs. Neeta advises companies to undertake these actions sooner rather than later, especially if they find themselves in a bad revenue sinkhole, to achieve a more sustainable and profitable business model.

Highlights:

00:13 Defining Bad Revenue and Its Signals

00:50 The Path to Good Revenue

01:41 Breaking the Bad Revenue Cycle

01:56 Strategic Framework for Revenue Recovery

02:30 Deep Dive into Pricing and Segmentation

04:02 Exploring Customer Value and Pricing Strategies

05:01 Leveraging Customer Segmentation for Growth

10:10 Raising Prices Wisely

13:51 Timing and Strategy for Pricing Adjustments

Resources:

LTV analysis & ideas for consideration

Pricing & monetization framework

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Where to find Neeta:

https://www.linkedin.com/in/neetabidwai/

Where to find Good Revenue:

https://dfnstrategy.com/goodrevenue 

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