Revenue Adjacent Growth, or “Revenue-Adjacency,” is a growth strategy closely connected with and bolstered by Revenue-verification. Revenue Adjacent Growth can be described as increasing the success of a business (often a marketing and/or advertising agency) by the specific means of proving the monetary value of services delivered to its clients.
By receiving clear evidence of great revenue returned from a campaign, advertisers can be encouraged to continue to increase their investment in marketing and advertising with a clear explanation of the expected monetary benefit of doing so. This allows the agencies to increase the size of their retainers, retain their clients for longer, and increase the duration of the campaigns they’re managing while advertising businesses have a self-evident reason to invest due to their proven positive return on a known good investment. Operating “adjacent” to their client’s success by focusing on the impact on client revenue, agencies grow as their clients are successful, and their clients are happy to contribute to agency growth as it comes only when they are successful. Revenue Adjacent Growth benefits advertising organizations and agencies equally; Revenue Adjacent Growth is mutually beneficial.
The Converifai platform allows agencies to more easily benefit from Revenue Adjacent Growth by ensuring the revenue associated with new customer acquisition is attributed to the campaign that leads to the client. As well, Converifai ensures that advertising is credited with the full lifetime revenue of those new customers, not just their first purchase.
The benefit of attributing lifetime revenue means that total revenue correctly attributed to advertising is much more accurate and often significantly greater, allowing Revenue Adjacent Growth to have a more significant impact.
Passive Revenue Adjacency
A less forward approach to Revenue Adjacency is achieved by increasing the availability of revenue-correlated advertising data and using its availability to explain performance retroactively, encouraging increased investment in the areas where the returned revenue was greatest. This “Post-Analysis” style growth strategy is made significantly more impactful for most organizations when revenue is made the focus of the analysis.
Active Revenue Adjacency
A more forward approach to Revenue Adjacency is achieved by putting in place specific milestones, goals, and performance targets ahead of the start of a new strategy, campaign or client account, Active Revenue Adjacency becomes available as a growth strategy. Ensuring performance targets are associated with increased media buys, additional services, the removal of discounts, and milestone-based performance bonuses, the momentum of increased performance can be predetermined to ensure continued growth towards even loftier goals.
For businesses, this means faster and ever-increasing growth with fewer negotiations along the journey to slow things down. This predetermined growth also allows for crucial partnerships, like the one with an Agency of Record, to intrinsically benefit when the business is successful, ensuring a strong relationship that continues to be mutually beneficial to both parties over time.
For Agencies, Active Revenue Adjacency through predetermined performance targets ensures that going above and beyond for each client account has a direct benefit, solidifies client relationships through a mutual accountability to revenue-based performance, and allows the agency to scale grow in a way independent of new client acquisition.
