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Revenue Performance Management: Making the Top Line Top Priority

REVENUE PERFORMANCE MANAGEMENT: MAKING THE TOP LINE TOP PRIORITY RPM is a strategy to optimize interactions with buyers across the revenue cycle and accelerate predictable revenue growth. THE MAIN PLAYERS: Two Teams, One Goal Pre-RPM, this is what the process looked like: The marketing team produced as many leads as possible, with little regard for quality. Marketing complained that sales didn't follow up on every lead. The sales team, meanwhile, complained that the marketing department was wasting their time with low-quality leads. Eventually, the sales team would get so fed up with the leads from marketing that they'd spend more of their time prospecting on their own, and less time on selling. Leads would get dropped in the hand-off between the two departments, and revenue would go down. The Magicians: Traditionally, marketers are thought of as magicians. They generate leads through a wide range of unquantifiable techniques: mailings, trade shows, emails, social media, etc. Because no one really knows how to measure their success in terms of revenue, they try to produce as many leads as possible. The Scientists: The sales department relies heavily on number-crunching, so their success is easily quantifiable. They know that revenue is generated by high-quality leads. The Leads: Not all leads are of the same quality. Some potential customers plan to buy right away, some just want to find out more about the product, and others just want a chance to win that free branded beach ball. WITH RPM, YOUR TEAMS ARE UNITED UNDER THE SAME GOAL OF GENERATING REVENUE. The following tenets are central to RPM • The sales and marketing departments have the same goal-revenue generation-and should be structured to ensure that they are aligned to pursue this goal together. • With emerging technologies, it is possible to measure and rate both marketing and sales initiatives. • There is no sales funnel that exists separately from a marketing funnel; it is all part of one large revenue cycle. • Once companies learn to measure revenue through every stage of the cycle, they will be able to forecast their revenue generation. TECHNOLOGY AND PERSONNEL Technology: RPM requires both a Customer Relationship Management System (CRM) and a Marketing Automation System (MAS). Personnel: In addition to new software, your company implements the following personnel. • Chief Revenue Officer: Maximizes revenue generation by overseeing every aspect of the revenue cycle, including marketing and sales. • CRM System: CRM software enables the sales team to better understand customers by managing data related to them. It tracks the sales end of the revenue cycle. Corporate Communications: Crafts the overall message of the company and creates all branding and imaging. Demand Generation: Attracts leads through inbound marketing (e.g., social media, content marketing) and converts them into leads by getting them to fill out a contact form. • Marketing Ops: Crunches the numbers and monitors the data. • MAS: Gives marketing departments the ability to create targeted, multi-touch lead generation nurturing campaigns, and score leads during each step of the process. Qualified leads are passed along to the sales team while the remaining leads continue to be nurtured. Sales Development: Verifies that the lead scoring is correct by engaging leads after they are passed from the marketing department but before they are given to the sales team. • Sales: Converts qualified leads into customers. • Customer Success: Services the ongoing needs of customers, ensuring that they return and refer other customers. Maximizing Revenue Remember, the end goal of RPM is to maximize revenue. So how will all of this help? The answer is simple: measurement. With all the systems and infrastructure in place, you are now able to measure the ROI of all your sales and marketing efforts. This means you should be tracking the following key metrics: • Conversion rates at each of the different stages of the revenue cycle CONGRATULATIONS! • Speed at which leads progress through the revenue cycle • Number of leads generated • Lead counts at each stage of the revenue cycle YOU ARE NOW • Percentage of revenue sourced by each marketing effort MAXIMIZING REVENUE! To dive deeper into the realm of RPM, consult the book Revenue Disruption revenue disruption by Marketo CEO, Phil Fernandez II FERNANDEZ Sources: Marketo Created By Fernandez, Phil. Revenue Disruption. Wiley, 2012. Print. Marketo Whitepaper: Revenue Performance Management Marketo COLUMN FIVE

Revenue Performance Management: Making the Top Line Top Priority

shared by Marketo on May 14
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Revenue Performance Management, or RPM, is a strategy that shatters outdated practices for B2B marketing and sales and provides the blueprint for a far more effective revenue process for companies big...

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