One generative exercise for any CPG company to explore growing market share is hold a session where a team role-plays a wide array of alternative revenue models for a particular brand.
As far as the ground rules for this ideation session, any ideas should be welcomed – and the cultural antibodies of “how we have always done things” need to be silenced. This session will not only challenge your existing model and inspire new, profitable thinking, but will also unlock new avenues of growth the existing paradigm of doing business usually will not allow considering.
We know what you’re thinking: “our whole business is built around creating products and distributing them in certain channels by set, predictable methods.” Don’t worry. The feasibility of enacting one or more of these new growth areas can be vetted rigorously after the session. This workshop is for creating and surfeiting desirability.
Here are the eight revenue models to explore:
1. Unit Sales
2. Ad Fees
3. Franchise Fees
4. Utility Fees
5. Subscription Fees
6. Transaction Fees
7. Professional Fees
8. License Fees
Each of the eight models offers a multitude of ways to create sales or fees. Even thinking about your current model, take unit sales for example, with uninhibited gusto can lead you to discover new ways to drive sales, such as selling in different channels, creating a premium niche, displaying in different categories or departments, etc.
Once you have all of the output of the revenue model innovation exercise, your team can discern the most probable means to augment your existing revenue model. Whether the session yields a dramatic breakthrough or simply incremental growth that increases sales and brand value, this exercise is a worthwhile and cost-effective method of realizing more value within your current portfolio.
Jocelyn Atkinson and Michael Graber run the Southern Growth Studio, a strategic growth firm based in Memphis. Visit www.southerngrowthstudio.com to learn more.