Preventing Loss & Boosting Sales with Revenue Marketing
The phrase “revenue marketing” and “revenue-focused marketing” are the newest terms in the B2B world, and they may appear to be buzzwords. However, understanding what is meant by this umbrella term offers many advantages. This article looks into revenue marketing and provides some strategies and examples to help you make significant success in your business. In addition, it will assist you in focusing your ideas on actual results and allocating your marketing resources where they are most needed.
Revenue Marketing Definition
According to its definition, it is the holistic process of finding particular marketing channels that offer revenue growth and managing resources to optimize ROI from all marketing operations.
Companies utilize revenue marketing to generate predictable revenue growth. When done correctly, this method integrates marketing and sales around a single goal by establishing a constant feedback loop between sales data and marketing data.
What Is the Significance of Revenue Marketing In 2021?
When most classic sales and marketing books were published, operating sales and marketing in silos worked fine. In the old approach, marketing produced leads and then passed them on to sales to close. However, B2B purchasing is becoming increasingly self-directed. As a result, these two fundamental parts of the business must provide comprehensive, contextual, and valuable assistance to customers across their whole lifecycle. As a result, the funnel has gone through various changes.
To be clear, this does not imply that sales representatives should begin cold-calling leads that are at the top of the funnel. Instead, it means they’re aware of what’s going on throughout the funnel and may utilize it to their advantage.
Marketers may no longer consider the work done when a lead has progressed to the contemplation or intent stage. Instead, they generate collateral to help the business succeed.
The three most important advantages of revenue marketing
Here are three significant ways this method can add value to all parties involved:
- Sales understand which prospects are ready to buy and have all of the information they need to clinch the deal.
- Improving ROI, marketing learns which campaigns, channels, and messaging generate money in addition to clicks or leads.
- Last but not least, the consumer is always sent the most up-to-date information. It helps them to go through the funnel faster or make a decision to abandon sooner.
We’re sure you’ll agree that these advantages are well worth battling for to gain some advantage. However, according to B2B specialists, just around half of the marketers believe they have the authority to cooperate with sales or that they share their objectives.
Who do you think will win if 100% of business buyers have moved on from conventional B2B purchasing cycles and only 50% of firms’ sales and marketing teams collaborate to serve today’s buyers?
Revenue Marketing Strategies
In four straightforward stages, you can create a plan for strategies that help you use this method.
Read on if you want to be one of the winning teams in today’s B2B marketplace. But then, it’s time to figure out how to make revenue-focused approach work for your business.
Implementing this plan is unlikely to need scrapping all you’ve done thus far and beginning over. Instead, it provides a chance to evaluate your marketing and sales activities to verify that they effectively increase revenue.
Here is a revenue marketing approach in a four-step procedure.
1. Know Your Audience
The first step in your revenue marketing plan is to have a thorough grasp of your target market. It entails determining its requirements and charting the purchasing process.
You must perform some heavy lifting to have a thorough grasp of the customer’s requirements. To map customers’ demands, you can use comprehensive buyer personas or any other type of marketing research. The “Jobs to be Done” (JTBD) framework is a recently popularized framework that you might consider adopting.
The JTBD structure is fantastic because it pushes you to consider the most critical thing you need to know about your buyer: their goals. So what is the task to be done in JTBD lingo?
It indicates that the product or service assists the client in completing the task. To put it another way, the customer can “hire” your product or service to do the task.
You must assess your customer’s purchase cycle after having a good knowledge of their needs or the required task.
When consumers buy a product or service, they go through a series of steps called the buying cycle. To align your marketing and sales activities to assist their purchase process, you must first understand the buying cycle.
While each company’s buying cycle is unique, you may use the marketing and sales funnel as a starting point for mapping the buying cycle. But the essential thing is that you understand how your consumer travels through the main stages of the purchasing process:
2. Align marketing and sales
The second step in revenue marketing strategy is to align marketing and sales. Unfortunately, nearly half of sales and marketing executives believe their teams are still out of sync. In the year 2021, yes. So, how do you make yourself aligned?
Consider where you are now and where you want to go in the future. Then, answering the following questions will help you focus on the areas where you need to improve to align marketing and sales:
- Do marketers and salespeople have a clear understanding of their ultimate goal? (Hint: it generates income.) Is that something they’re working on?
If not, consider holding a series of team events or seminars to emphasize the point.
- Are the sales and marketing both aware of one other’s KPIs? Are they on the same page when it comes to their own KPIs?
If not, now is an excellent time to establish KPIs together and brainstorm ways for the teams to assist one another in maintaining the KPIs. Then, set and track shared KPIs even better.
- Are the marketing and sales on the same page regarding the client persona, the job at hand, and the customer journey?
If not, collaborate with them to reach an agreement since this will provide a consistent and comprehensive client experience.
- Is data easily shared between sales and marketing?
If not, construct the required procedures, data definitions, systems, and tools to establish a continuous feedback loop.
3. Implement collateral and marketing initiatives
It is the section that your marketing staff should be pretty familiar with. The most important thing to remember is that everything in this stage of revenue marketing should be influenced by stages 1 and 2. To build effective marketing campaigns for your purchasers, you should leverage every data you can acquire from sales and consumers.
Create and distribute your material and campaigns using information from sales and consumers. That is, generate content and SEO for each stage of the buyer journey and automate email marketing, pay-per-click advertising, and any other B2B marketing technique that works for you.
4. Analyze and improve
Finally, evaluate and quantify the outcomes of your activities. The results will reveal what works and what needs to be improved.
In general, you should keep track of two sorts of marketing metrics:
- First, to record your contribution to sales and profit growth, use strategic “big picture” revenue metrics.
- Tactical, day-to-day program analytics to get a better picture of the effect of your campaigns and the alignment of sales and marketing.
Whatever metrics you choose to assess and evaluate your activities, make sure that sales and marketing data are linked for accurate assessment.
The Reasons for Failure
When it comes to sales and marketing not functioning together, there are two primary causes.
The first is a lack of top-down leadership. For example, the CEO may favor sales above marketing. Or perhaps the CEO tolerates sales and marketing not cooperating for whatever reason: ignorance, a lack of drive, or fear of confrontations.
The lack of coordination between these two is the second major factor. The executives are putting pressure on you, but the sales or marketing leader (or neither) is willing to work with you. On the other hand, maybe they don’t play well with others or are inexperienced and don’t know any better.
Linking marketing and revenue
As previously stated, marketing has traditionally been connected with the generation of leads and the subsequent distribution of those leads to the sales team. As a result, the marketing department is reduced to a cost center with its objectives. The sales staff is the sole one responsible for converting leads into income. Even though the final goal and subject are the same, both teams’ aims stay on different plates. The objective of the marketing team used to be restricted to generating leads. In many situations, sales teams would protest that the leads generated by marketing were not good enough.
It is necessary to change the attitude of the marketing and sales teams to think more holistically. The proper metrics must be provided to vice presidents to relate their operations to revenue and move their attention away from lead generation. Rather than individual and team duties, a culture of communal duty and accountability must be developed.
Instead of focusing on team-specific activities, such as “which, high-quality leads generated by the marketing team,” we can take a more granular approach to examine which leads were sourced through which particular channels, keywords, campaigns, and so on. The revenue marketing strategy may be repeated to obtain comparable results repeatedly, depending on the channels and combined campaigns that helped produce the most high-quality leads. It aids in the scalability of successful methods and the elimination of failing ones.
The Revenue-focused Team and The CRO’s Function
A new middle-level manager – the Chief Revenue Officer – results from the massive shift in focus of the marketing and sales teams from lead generation and conversion to generating revenue jointly. Naturally, the CRO is in charge of all elements of revenue production, including the combined performance of sales and marketing personnel in their revenue marketing strategies. So it’s not only a more revenue-focused version of a sales and marketing vice president, but a more revenue-focused managerial role that continually analyzes new revenue-generating prospects and provides strategies, as well as the resources, to bring in the money.
The CRO’s position will be largely data-driven, and he will be the one pulling strings to make the figures make sense. A data analyst, a VP, demand generation specialists, a creative marketer, and a technical/product marketer will make up his team.
With time, a complementary office culture in which revenue marketing and generation will be a shared duty will form a revenue-focused team as a whole, with the CRO leading the activities and implementing steps to optimize efforts.
A Better Prospect with Revenue Marketing
When you move your focus away from leads and toward customers, you’ll see that product education, stakeholder involvement, and brand affinity become more essential revenue drivers. Marketers should start shifting their attention away from conversion gimmicks like “Funnel Optimization” and into areas that generate value, solutions, and eventually customers.
Don’t worry; fundamental strategies (such as high-quality landing pages) remain essential. The argument is that marketing must go beyond simply converting traffic at a high rate and instead seek to understand better why consumers buy. Your one-of-a-kind solution must empower people, which is possible through revenue marketing.