If you’re like most business owners, you’re always looking for ways to grow your company. You may have tried various marketing strategies, but if you haven’t tried revenue marketing yet, you could be missing out on a big opportunity. Revenue marketing is all about generating more revenue for your business. It’s a holistic approach that takes into account all of the different factors that can impact your bottom line. From your pricing strategy to the way you interact with potential customers, everything matters when it comes to revenue marketing.
Revenue Marketing: Increasing Conversion Rates, Generating More Leads, and Driving More Sales
Revenue marketing is a term used to describe marketing strategies and activities that are directly tied to generating revenue. This could include things like increasing conversion rates, generating more leads, or driving more sales.
To be effective, revenue marketing must be closely aligned with the sales team and the overall business goals.
What is Revenue Marketing?
Revenue marketing is the act of using digital marketing channels to drive sales.
Companies use revenue marketing to increase revenue, using holistic, data-driven, and measurable approaches.
By aligning your revenue marketing and your sales team, you can make sure that your company’s growth is consistent and steady.
Breakthroughs are often the result of getting the definition right. If you’re responsible for acquiring customers, how do you define the thing you do in the best way?
While demand generation is useful, it generally stops short of what the customer actually wants and hands over leads to sales teams.
While growth marketing is all the rage for consumer-facing businesses, it doesn’t always include sales.
Growth marketing, when implemented without a plan, can lead to a disjointed marketing strategy.
While account-based marketing and experience are growing in popularity, they’re only really suitable for enterprise-size deals.
For B2B organizations, it is vital to have marketing and sales work together. Using revenue marketing is a great way to do this. This method helps increase both sales and business growth.
Revenue Marketing vs. Other Marketing Models
Here are a few ways revenue marketing differs from traditional marketing, account-based marketing, growth marketing, and revenue operations.
Traditional B2B Marketing
Traditional marketing has focused on the 4Ps: product, place, price, and promotion.
There is a serious lack of data tracking and few process in place for connecting the marketing plans to the overall business goals.
SaaS companies have long since moved beyond traditional marketing in favor of account-based marketing or growth marketing. This is because everything is measured on costs, activity numbers, and number of leads passed to sales. This shift has allowed for greater success and ROI.
Account-based marketing (ABM) is a strategy where marketing and sales work together to target specific accounts for their marketing efforts. Personalizing the messaging and content for each of these targeted accounts requires a close relationship between these two teams.
The main goal of account-based marketing is to generate more revenue for target customers in a much shorter amount of time. To do this, marketing and sales teams work together to create custom campaigns that engage these select groups of customers with personalized messaging.
Growth marketing is a technique employed by startups to quickly expand their customer base.
Growth marketing is a method of rapid experimentation with channels, messages, and audiences. It’s a constantly evolving strategy that aims to optimize your marketing budget by testing different messages and strategies.
It can help companies increase their customer base while only paying out a small amount of money.
The revenue operation function is centralized and brings together the previously separate functions of sales ops, marketing ops, customer success, and tech stack.
The RevOps organization is unique in that it consolidates all of the people, processes, and resources of the entire GTM organization under one roof. This allows for greater efficiency and coordination between teams, leading to better overall results.
Many organizations use revenue marketing tactics as the first step in their journey towards building a full-fledged, full-functioning RevOps team.
Benefits of Revenue Marketing
Revenue marketing has three primary benefits:
- Optimize the sales process
- Help marketing teams optimize ROI
- Deliver relevant communication to the customer
According to B2B Marketing Trends, only 50% of marketing professionals feel empowered to collaborate with sales or that they even share common goals.
There are two main reasons that marketing and sales teams don’t work together.
The first reason is the lack of initiative from senior management. The CEO and management team may not be on the same page when it comes to marketing and sales.
Maybe the CEO is ignorant or apathetic towards marketing and sales not collaborating.
The reason that sales and marketing teams aren’t collaborating is that the executive team is putting pressure on them from the top down, but the sales team is willing to collaborate with the marketing team.
Perhaps they just aren’t good teammates or are just green and haven’t learned the ropes yet.
Here’s my own revenue marketing failure story.
I was working as a sales rep at a fast-growing software company. We had been a self-serve product but started to form our sales team to cater to the demand for large businesses that had found us through inbound marketing.
The sales team was expensive and unproductive. A new CEO came in with a focus on building a large sales team, modeled after what he had seen work at another company. However, this created several problems. The CEO played favorites among the sales team members, tolerated the low quality of their metrics, and failed to demand ROI. As a result, the sales team was expensive and unproductive.
My requests to test before scaling up were ignored by my manager, who gave me “because I said so” reasons. This was very discouraging.
I was not as experienced in marketing as I am now and, as a result, I focused too much on generating new leads to collaborate with the sales team. If I had it to do over again, I would have spent more time building better relationships with the salespeople so that we could collaborate more.
In retrospect, I missed out on the opportunity to evolve into a true revenue marketer.
The CEO was allowed to keep his job, but he missed it. He was fired soon enough.
If your company is serious about switching to a revenue marketing model, then the initiative should start from the top down. However, if your company wants to try a grassroots approach, then you can start from the bottom up.
The key to getting someone to call you back is to really want them to. This could mean you!
Your entire marketing team needs to be on board and on the same page when it comes to your revenue growth. Make sure everyone understands your goals and is equipped to achieve them.
If you’re looking for ways to grow your business, revenue marketing is a great option to consider. It takes into account all of the different factors that can impact your bottom line and focuses on creating an excellent customer experience. By doing so, you’ll be able to increase sales, repeat business, and loyalty.