Businesses use various marketing strategies to generate and increase revenue consistently. Both conventional and digital marketing strategies consider marketing as a cost center. But revenue marketing, unlike other marketing strategies, considers marketing as a revenue center.
The goal-oriented approach drives customer acquisition and increases revenue using widely used digital marketing channels and techniques. Also, it emphasizes marketing and sales teams working together as a unified team. While adopting revenue marketing, companies have to prioritize revenue goals over business goals.
They have to define the revenue goal by deciding the amount of revenue to be generated in a specific timeframe. Based on the preset revenue goals, multichannel digital marketing campaigns are planned and implemented. The marketing team identifies and combines the channels and strategies that will accomplish the revenue goal by boosting customer acquisition and sales conversions.
5 Essential Components of Revenue Marketing Strategies
1. Customer Data Acquisition and Analysis
In the age of big data, no business can boost marketing and sales activities without leveraging real-time customer data. The customer data collected from various sources help businesses make marketing and sales strategies in increasing revenue.
It makes businesses make customer data acquisition and analysis an ongoing process. Companies invest in data analytics solutions to get actionable insights gathered by analyzing a large amount of customer data.
2. Team Alignments
As noted earlier, sales and marketing alignment is one of the core principles of this marketing strategy. But businesses can implement better marketing and sales strategies by involving many stakeholders.
The stakeholders must make strategies collaboratively based on preset revenue goals. Collaboration helps companies to make roadmaps for stakeholders to achieve goals as a unified team.
3. Marketing Channel and Strategies Identification
While adopting this strategy, an organization can leverage many digital marketing channels and strategies. But some channels will be more effective than others in increasing revenue consistently.
Stakeholders must identify and combine appropriate marketing strategies together. Also, they must plan the marketing activities and personalize marketing messages based on real-time customer data. The process set by them will help the business achieve predefined revenue goals.
4. Communication Digitalization
Businesses these days generate, nurture, and convert leads by sending marketing content digitally. They need new-generation tools to send personalized and targeted messages to a large number of leads in a short amount of time.
A business must instruct its IT department to procure the digital tools and solutions required to automate multichannel messaging. Investment in the right technologies is essential to run marketing campaigns successfully without escalating costs.
5. Result Monitoring and Measurement
It requires sales and marketing teams to use digital marketing strategies that generate revenue. But the data-driven approach emphasizes the measurement of marketing campaigns using important metrics like marketing ROI, cost per MQL/SQL, and time to ROI.
These metrics help teams understand if their choice of marketing strategies is generating the desired amount of revenue or number of sales over a specific period. Also, they can boost the outcome by stopping ineffective marketing campaigns and launching more effective marketing campaigns.
5 Important Benefits of Revenue Marketing for Companies and Startups
1. Sales and Marketing Alignment
Marketing teams focus on generating more leads, while sales teams focus extensively on converting individual leads into customers. Revenue marketing makes sales and marketing professionals work as a unified team and focus on a single goal – revenue generation. The sales and marketing team alignment helps businesses increase conversion rates and meet preset revenue goals.
2. More Qualified Leads
While generating leads, marketers gather a wide variety of information about prospective customers. They can make it easier for the sales team to evaluate and score leads by sharing insightful customer data. The sales team can leverage the data to speed up lead conversion. Hence, this strategy helps businesses attract and nurture qualified leads.
3. Customer-Centric Approach
Conventional marketing strategies make the sales team connect with prospective customers at various stages in the buyer’s journey. The sales team usually does not contribute towards increasing the number and quality of leads. When sales and marketing teams work together, it becomes easier for professionals to understand the performance of individual marketing campaigns based on revenue.
4. Customer Retention and Loyalty
Revenue marketing models make the marketing team engage leads by sending marketing content when they are interacting with the sales team. Also, the marketing team continues sending marketing content to leads after they become customers. The ongoing marketing communication helps businesses retain existing customers. Many companies these days implement marketing strategies to drive customer acquisition and retention at a time.
5. Higher ROI
Revenue marketing makes sales and marketing teams identify the marketing channels and techniques that generate more revenue than others. Hence, businesses can control marketing costs by investing only in revenue-generating channels. The decrease in marketing costs helps businesses reduce customer acquisition costs and increase profits.
3 Major Challenges in Implementation
1. Resistance to Change
Collaboration and digitalization are essential prerequisites to this strategy implementation. Organizations must prepare executives and managers to embrace many operational and technological changes.
Also, they must revamp existing strategies and implement fresh strategies to manage changes successfully. Companies cannot switch from conventional marketing to this form of marketing successfully without changing mindsets and managing changes.
2. Lack of Sales and Marketing Alignment
In a conventional marketing environment, marketing and sales teams work independently. They do not discuss strategies, share actionable insights, or discuss new ideas. But the alignment of sales and marketing is one of the key components of this form of marketing.
At present, many organizations do not synchronize marketing and sales activities. Also, many companies find it challenging to make marketers and salespeople focus on a single aim simultaneously.
3. Legacy Processes and Tools
Revenue marketing does not require businesses to change existing digital marketing channels. But the methodology focuses on designing new processes driven by cutting-edge technologies. Hence, no company can implement these strategies successfully without replacing legacy digital technologies.
It must invest in new-generation technologies and make employees leverage them fully. In addition to investing in the latest digital communication tools, an organization must train and prepare employees to use the new tools regularly and efficiently.
In addition to considering marketing as a revenue center, revenue marketing focuses on the seamless alignment of sales and marketing activities. Many companies and startups these days switch from conventional marketing to revenue marketing to get higher ROI. They use different models to generate more sales-ready leads. But a business can achieve preset revenue goals only by implementing a proper strategy and finetuning it based on real-time results.