Modern marketers need to be on top of today’s marketing trends. If you keep up with what’s new, you’ve probably heard of a new marketing strategy called ‘revenue marketing.’
Revenue marketing is a buzzword you may have come across, particularly in the B2B industry, especially these past few years. If you hear it for the first time, you may be wondering if it’s just another name for familiar things. Besides, hasn’t marketing always been about revenue? So, why the fancy name?
In this article, we’re sharing everything you need to know about revenue marketing, its benefits, how to create a winning revenue marketing strategy, and the best practices used.
Revenue Marketing: What Exactly Is It?
Revenue marketing refers to the methods used for lead generation. Some support product launches, while others help increase brand awareness. However, with revenue marketing, all hands are on deck to increase the revenue generated by the business.
In short, revenue marketing uses different methods and channels to build marketing campaigns that increase lead generation and sales.
Revenue marketing also links your marketing plans to your revenue objectives. It also identifies the proper channels that result in revenue growth.
Moreover, instead of focusing on traditional metrics, such as cost per lead or cost per click, revenue marketing focuses more on revenue-centered metrics like return on ad spend or cost per acquisition. To know more about key revenue marketing metrics, hop over to here.
Benefits Of Revenue Marketing
1. Customer-Centric Marketing
Traditional marketing methods boost demand by making services or products more appealing and valuable. Meanwhile, the script of a revenue marketing campaign focuses more on what your target customers want.
In general, revenue marketing answers the question ‘What do customers want from a product?’ and builds on that. It also determines what would make customers likely buy your product, even non-products like user-friendly websites and customer service response, to impact the chances of conversion.
Revenue marketing focuses on cultivating stronger and long-term customer relationships, which can help drive consistent sales.
2. Better Decision-Making
By focusing more on revenue, you’ll know what marketing method works and what doesn’t. If a marketing channel seems costly, you can look past the vanity metrics and judge success on whether or not it brings in revenue.
With revenue marketing, you can make better decisions in terms of higher revenue and return on investment marketing investment using reliable data instead of letting metrics that don’t impact your choices.
3. Improves Team Alignment
Your marketing and sales department seems may often be at odds. For instance, your marketing team may focus more on raising brand profile and awareness, whereas your sales department is more concerned with individual changes. Thus, efforts from these departments often work in opposition and result in unsatisfying outcomes.
However, revenue marketing puts these two teams in tandem, allowing them to see on the same level with a singular focus—your customers. By getting your marketing and sales team members on the same page, you can align your goals and outcomes for better revenues.
4. Boosts Goal-Setting For Increased Revenue
You prioritize revenue goals instead of prospects, potential demand, or leads with revenue marketing.
By tying success metrics to revenue generation from particular sources, you can create revenue-oriented goals rooted in the reality of your current sales instead of based on predictions of a potential customer’s actions.
Steps In Creating A Revenue Marketing Strategy
By now, you should know the benefits of revenue marketing, so you may want to try your hands at it. Here are the steps needed to get you started:
1. Understand Your Customers
First, understand your buyer deeply. This step involves figuring out their wants and needs and mapping out a buying cycle.
To learn more about your customers’ wants and needs, you need to do your homework. You must generate detailed customer personas and other forms of market research to learn more about your buyers and map out their needs.
Once you’ve understood your customers’ needs, you also have to evaluate their buying cycle. This buying cycle stands for the series of stages that a buyer goes through when purchasing a service or product. Understanding your customers’ buying cycle is critical to aligning your sales and marketing efforts and supporting the buying process.
The exact buying cycle will differ from one business to another. However, you can loosely model it from your marketing and sales funnel.
The bottom line is that you must understand how your buyers go through the three key stages of buying: awareness, consideration, and decision.
Once you’ve fully understood your customer, you can move forward with the next step.
2. Align Your Marketing And Sales Team
Most businesses today still have disconnected marketing and sales departments. This may be due to several factors, including fluctuating market dynamics, office politics, and a distributed workforce that works onsite and remotely.
However, alignment between your marketing and sales team is the holy grail in terms of revenue marketing. Aligned teams can work more effectively towards revenue-based marketing and perform better. You want to ensure that you achieve and maintain a solid marketing and sales alignment.
For this to happen, your marketing and sales teams must understand each other’s objectives, goals, and key performance indicators (KPIs), alongside the common purpose of generating and converting leads together.
Do your salespeople and marketing team know their ultimate goal and are working towards it? If not, you should consider running a series of workshops or group events to drive this home. Are each team’s KPIs aligned? If not, they should brainstorm and establish them together and set and track joint KPIs.
After discussing customer behavior and KPIs, you should also plan for a usual strategy agreement. This way, everyone on the team knows what to do at every stage in the customer funnel. In addition, you must also ensure smooth and seamless communication across both teams, minimize errors, and eliminate data silos. Thus, you can use workflow management and customer relationship management tools to achieve a reliable communication channel with real-time updates on the marketing campaign in the long run.
3. Execute A Winning Campaign
This is the step that both your marketing and sales team should be comfortable with—the execution of marketing strategies.
Armed with knowledge and data, you can create and distribute campaigns. The execution of the aligned marketing campaign should ensure that every member of the marketing and sales team is up to date with customers’ progress within the sales funnel.
Efforts should be executed strategically and reach out to the customer through different channels, based on the data they gained from step one and the planned actions in step two.
From this point, you should already be executing automated email marketing and creating search engine optimization content for every customer journey stage, pay-per-click, and other B2B marketing strategies that both your marketing and sales team planned. Note that with the right technology, these can be automated easily.
4. Monitor, Analyze, And Improve
With any marketing campaign, the last step of the cycle is to measure and analyze the results of your efforts. At this stage, you’ll know what works, what doesn’t, and what needs improvement in your findings.
In general, you need to track two types of revenue marketing metrics:
- Tactical Daily Metric: This gives an overview of the impact of your marketing-sales alignment and your revenue marketing campaigns
- Strategic Overall Metric: This documents your marketing campaign’s contribution to overall business profit and revenue growth.
Regardless of the KPIs you choose to measure and analyze, ensure that the marketing and sales teams have access to these data to guarantee effective measurement.
Revenue Marketing Best Practices
Revenue marketing aims to create a predictable, scalable, and repeatable process that delivers sizable revenue outcomes. Hence, here are some tips on maximizing your efforts and making revenue marketing work for you.
1. Use The Right Tools
Don’t underestimate the power of technology and automation tools while scaling. With a good tech stack, you can effectively align your marketing and sales team closer while simplifying campaign execution.
When choosing the right tools, consider possible integration with your existing technology software. Moreover, you need to consider the various features, particularly in helping you measure KPIs and data sharing.
2. Document Your Strategy
A documented revenue marketing strategy provides you with a guide for your future activities. It allows you to experiment constantly and discover new results findings. This helps you stay updated with optimized and new strategies.
3. Always Focus On Your Customer
Remember, none of your revenue marketing strategies will work if you don’t focus on your customers. After all, the main goal of your marketing strategy is to solve your customers’ pain points. If you keep solving customer issues, revenue will surely follow.
Takeaway
As you can see, revenue marketing isn’t just another hype buzzword that amounts to nothing. It’s here to stay, and its importance will only continue to gain traction in the increasingly data-reliant marketing landscape.
Revenue marketing will help transform your marketing journey and strategy, re-align your current marketing structure, and ultimately improve revenue generation.
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