Traditional business processes and operations are evolving. In fact, many of them are already completely obsolete. As digital transformation continues to change the way we do things and market forces keep throwing us curveballs, aligning teams toward a common objective is critical to success.
Nowhere is this more important than in sales and marketing. Gone UAE Phone Number are the days when sales and marketing could sit in siloed teams, only interacting when one needed something from the other. Today, sales and marketing must work closely together to achieve the company’s revenue goals.
That’s where revenue marketing comes in. This philosophy utilizes an objective, revenue-driven approach at all touchpoints within the sales funnel.
What is Revenue Marketing?
Revenue marketing is an approach to the sales funnel that involves aligning the marketing and sales teams toward a shared objective and ensuring they support each other in the achievement of that common goal. The goal, of course, is driving revenue.
At its core, revenue marketing increases revenue by establishing a closed loop of data and feedback between sales and marketing. It ensures that the responsibility to drive revenue is evenly shared and shouldered by both teams.
When you have a fully operational revenue marketing model in play, your strategy, operations, technology, and growth philosophy will enable your marketing team to:
Provide purchase-ready leads to the sales team
Accelerate the path through the sales funnel from awareness to purchase
Measure performance through predictable and relevant KPIs directly tied to revenue generation
The proof is in the numbers: A report by MarketingProfs found that aligning sales and marketing can improve your win rate by 38%.
The Evolution of the Sales Funnel
Up until very recently, the role of marketing was very clear: Generate brand awareness and provide lots of top-of-funnel leads for sales. After that, it was up to sales to lead the way down the rest of the funnel and close the deal.
But the purchasing journey, especially in B2B sales, is becoming far more complex. B2B buyers are taking more self-directed paths to purchase. When the sales funnel becomes less of a funnel and more of a winding buying journey, the role of marketing must shift to support the entire buying cycle.
The marketing funnel evolution comprises four main stages: traditional marketing, lead generation, demand generation, and revenue marketing.
1. Traditional marketing
In traditional marketing, there is minimal focus on revenue impact. If any metrics are tracked, they are tied to actions rather than bottom-line results. Click-through rates and website traffic might tell you how well put together your marketing materials are, but they provide little to no insight on marketing’s impact on the bottom line.
2. Lead generation
In a lead generation model, marketing’s core job is to provide as many leads to the sales team as possible. However, lead generation tactics are still a relatively immature approach to revenue growth because:
There is little focus on lead quality over quantity
The responsibility to close deals from the top of the funnel downward still lies solely with sales
Marketing may continue to bring in the same leads multiple times, even if the opportunity has already been disqualified
Sales teams waste time chasing and disqualifying high volumes of bad leads
3. Demand generation
Organizations at the demand generation stage take a huge step forward toward the revenue marketing model.
Marketing teams no longer simply place high volumes of leads at the top of the funnel for sales. They create marketing collateral for all stages of the sales funnel and support pipeline acceleration
UAE Phone Number
Marketing strategies that are laser-focused on generating high-quality leads from well-defined target audiences
Marketing automation systems in place that are integrated with the CRM
Metrics on revenue also begin to take precedence over activity-based marketing KPIs, including the amount of marketing qualified leads handed over to sales, how many of those progress to opportunities, and, ultimately, closed sales.
4. Revenue marketing
This takes all the activities, processes, and automation established in the demand generation phase and ensures that revenue generation is repeatable and scalable.
When revenue marketing is established, marketing can demonstrate their direct contribution to revenue generation. Even more importantly, they can forecast and predict their contribution to revenue in the future by tightly aligning their metrics with sales for the full sales funnel.
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