The Lead-To-Revenue Performance Framework Explained

THE LEAD-TO-REVENUE PERFORMANCE FRAMEWORK EXPLAINED Lead to revenue management (L2RM) is an approach to running and designing a company's marketing and sales programs based on their impact on revenue. A true, automated L2RM system can be a difficult framework to implement, but understanding the components of the system is half the battle. Below, we will explain the L2RM framework and suggestions for a smooth implementation. The Lead-To-Revenue Life Cycle Explained Marketing Service Sales Creates awareness of the brand Reaches out to buyers and its products Generates and/or finds customer leads Builds customer retention Nurtures those leads to build trust Increases the value of each buyer and get them into the buying phase Generates revenue Brings the nurtured leads through the sales process *Forrester Research Challenges Of Implementing A Lead-to-Revenue Management System Organizations focusing on marketing- attributed revenue face several distinct challenges that make a complete L2RM system very difficult to implement. Common challenges include: The explosion of social media and mobile device connectivity means that businesses need to be present and active in many different online locations. A HUGE NUMBER OF CUSTOMER INTERACTION POINTS Determining where a lead first interacted with the brand can be incredibly difficult. MARKETING TACTICS USED BY ORGANIZATIONS Website 100% Trade shows, conferences (in person) 99% Public relations 95% Sales enablement 95% Email marketing (campaigns) 93% Webinars, webcasts 93% Content marketing (white papers, podcasts, etc.) 92% Seminars and other events 92% Search engine optimization 92% Channel enablement 85% Industry group sponsorships and support 84% Video marketing (YouTube, website,etc.) 82% Telesales-telemarketing (internal or external) 80% Newsletters 80% Analyst relations | 79% Microblogging 74% Blogging 72% Community marketing (includes discussion forums) 71% Online advertising (banner ads, pop-ups, etc.) 71% Paid search (sponsored-paid placement) 68% Print advertising 61% Embedding social bookmarks and links 48% Virtual events or virtual trade shows 40% Mobile marketing | 22% Despite much effort from some of the top companies in the world, no organization has yet created a fully integrated L2RM platform. Instead, the L2RM framework is a collection of tools that measure data at various points in the marketing machine, many of which overlap or cover the same bases in different ways. THERE ARE A GREAT DEAL OF OVERLAPPING L2RM TOOLS Marketers need to expend great energy learning these tools and weaving data between them all to create a coherent campaign snapshot. *Forrester Research Tips For Implementing An Effective L2RM Solution Implementing an L2RM model into an in-motion business can be a challenge, but there are some big tips to keep in mind to help the process go smoother ENCOURAGE STRONG RELATIONSHIPS BETWEEN DEPARTMENTS: L2RM systems require collaboration between sales, marketing, and service. Weak relationships can inhibit a marketer's ability to implement effective lead-to-revenue management processes and improve marketing outcomes. Only 12% of tech marketers reported a very strong relationship with sales. 46% reported having a weak or mixed relationship with sales. 2 CRAWL BEFORE YOU RUN: While there is an incredible amount of automation tools and advanced reporting software available, an L2RM system is a paradigm shift in the way many approach their marketing and sales. Take a good look at your current marketing maturity, automate what is already in place, and build the machine out slowly. DEFINE YOUR L2RM PROCESS: L2RM requires gathering and measuring data from multiple marketing and sales points and making crucial decisions with it. You must have a process in place to avoid making costly oversights with incomplete data. UNDERSTAND YOUR BUYER PATH INSIDE AND OUT: The L2RM process must match the customer buying process. You might have multiple inbound funnels, funnels that intersect at a certain point, or a single customer interaction point. This will shape the process steps in your L2RM system. *Forrester Research Marketo SOURCE: *FORRESTER RESEARCH, INC., AUTOMATING LEAD-TO-REVENUE MANAGEMENT, DECEMBER 9, 2011.