Reach - how many people can we contact and how can we make that number grow? ecrm and acquisition slides - LTV. not all customers are created equal
Value - of each stage in the pipeline, how many prospects are at each stage and how much are they likely to spend? helps with forecasting. RFM
3: Conversion - ensures continued progress throughout each stage in the sales cycle. Measuring the rate they move through - identify any bottlenecks and where. Automation and triggers
4: Velocity - measuring the time taken to become a customer. Chris's slides on conversion window
5: Return - good reporting will show costs against the return brought in
RPM accomplishes this by ensuring that only qualified sales leads are passed from the Marketing Department to the Sales Department, ensuring that time is focused on the leads that are most likely to close.
Revenue Performance Management has different implications for differentdepartments within the organization. For the Marketing Department, itensures that marketing efforts are not wasted because all leads are eithernurtured or followed up by the Sales team. More importantly, it elevatesthe stature of the Marketing team within the organization. When marketinginitiatives can be measured and their effect on the bottom line can bedemonstrated, the Marketing department is seen as a revenue generator,not a cost center. In short, when marketing moves from magic to science,the Marketing department earns a seat at the Executive table.
organizations see a higher return on their B2B marketing investment and are able to achieve predictable revenue growth.When an organization implements a Revenue Performance Managementsystem, the Sales team is able to focus time and energy on the leads that aremost likely to convert into customers. It no longer needs to waste resourceson unqualified leads or, even worse, ignoring leads from Marketing in orderto generate its own. When the Sales department’s resources are used moreeffectively, friction with the Marketing department
RPM helps businesses better forecast long-term revenue. Whether you are private or public, investors want to understand the future. RPM lets executives form a relatively accurate picture of sales much farther into the future than ever before. By observing interactions at the beginning of the buying process – for example, lead quality based on type of content consumed – some businesses are able to determine not only a relatively accurate forecast six quarters ahead, but they can determine where that revenue is going to come from
RPM helps business optimize resource allocation. By better understanding which initiatives have the most revenue impact at each stage of the revenue cycle, decision makers can begin “What we’re trying to do is correlate some reasonable patterns of behavior that will tell us how things are going to happen. We want to track that behavior and understand what that is typically turning into from an actual dollar revenue perspective six quarters down the road. It’s the equivalent of going from driving using the rear view mirror, to driving with GPS.” ~Dr. Christopher Boorman: Informatica“Is Marketing Really a Revenue Engine?” Dreamforce 2010 presentation, Dec. 7, 2010 Figure 1. Based on Eloqua research, RPM adopters grow faster and weather economic downturns better than their peersWHITE PAPER > REVENUE PERFORMANCE MANAGEMENT 4 doubling down on the right campaigns and cut those that may feel good but don’t drive the business. For example, foreseeing a potential revenue shortfall two quarters ahead, executives may decide to shift dollars towards ‘quick win’ campaigns that tend to accelerate opportunities but result in smaller average deal sizes.
its not something that you do in arrears - after the campaign - it is the whole process - from start to finishThe Sales and Marketing departments have the same goal – revenuegeneration – and should be structured to ensure that they are alignedto pursue this goal together• There is no sales funnel that exists separately from a marketing funnel– it is all part of one large Revenue Cycle• With emerging technologies, it is possible to measure and rate differentmarketing and sales initiatives• Once companies learn to measure revenue through every stage of thecycle, they will be able to forecast their revenue generation
involves mapping the journey and finding opportunities
involves content strategy and developing contact strategy
triggers (including behavioural), segmentation and dynamic content
reviewing, learning and continually optimising the program.Every organization will want to set up specific metrics for success, but theoverall goal is to measure the ROI of your sales and marketing efforts. Hereare some of the key metrics for tracking this:• The number of leads generated• Lead counts at each of the different stages of the revenue cycle• Conversion rates at each of the different stages of the revenuecycle• The speed at which leads progress through the revenue cycle• The percentage of revenue sourced by marketing efforts
Revenue Performance Management & Email – a Powerful Duo by Kath Pay