Establishing A Defined Revenue Target For Marketing Accountability
Okay, so we’ve heard about inbound marketing and the sales funnel. We know they provide great return on investment, and lead management, but, you want to go deeper. You know Enterprise Inbound Marketing Companies like Kuno Creative and Bulldog Solutions offer revenue performance management services, but, you’re a small to mid-sized business, and anything over $2500 a month will kill your budget.
In this article, I am going to share with you how to calculate what percentage of revenue marketing should be help accountable for generating. You read that correctly … marketing should be, and can be help accountable for more than a brands visibility and a company’s reputation.http://businesscenter.eloqua.com/roi-calculator/
Introducing Revenue Life-cycle for Small Business Enterprise.
Strategic Inbound Marketing is about integrating marketing to drive prospects and lead through your sales funnel. Revenue Performance Management looks at the speed of conversation from phase to phase, and monitors the behavior of your leads. Over time you can predict each set of behavior with buyer personas.
Once you accomplish this, you simply need to focus on improving the lead nurturing processes of slow decision-makers. Doing this you will know how many leads you need to reach X dollar amount. Armed with this measurable impact on top-line revenue, you can better forecast revenue.
Now, let me simply this further.
The CEO of a 2.5 million-dollar companies says to the VP of Sales or Director of Sales, “This year we want to grow revenue by 10%”.
- Sales will be responsible for generating $250,000.
- Marketing will be responsible for generating 25% of the defined-revenue target. $62,500
- Figure out your average profit on a closed deal. For this sample company we will assume it is $12,500.
- Divide average profit from closed deal into marketing defined-revenue target. 5
- Therefore, marketing most generate 5 leads that close. In order to achieve this scientifically we need to know how many leads marketing most generate in general. So, we work backward from close.
To get accurate numbers, you will need the following:
Of course, when you optimize your sale funnel process with Revenue-Driven marketing your visitor are more targeted and qualified. And, your visitor counts go up faster.
If you have questions, comments, and ideas about Revenue-Driven marketing are my funky math, people let us know via the form below.[contact-form-7 404 "Not Found"]