Your Guide To Revenue Marketing In 2021
When it comes to marketing, professionals usually have a wide variety of techniques to choose from.
Moreover, many different types of marketing can be grouped into either online or offline marketing. Same as sales.
And all of these different categories and sub-categories of the tactics marketers can use are incredibly effective when used right.
Without the proper knowledge about a particular marketing technique, it is almost impossible to create an effective strategy using that tactic.
Consequently, marketers should first learn the necessary skills and acquire enough knowledge to start using a particular marketing tactic.
The same is true for revenue marketing which is now a widespread marketing technique used by businesses to drive revenue with a completely new approach.
Here’s your guide to revenue marketing in 2021.
What Is Revenue Marketing? 💁🏻♂️
So, what exactly is revenue marketing?
Revenue marketing is a holistic approach to achieving marketing and sales goals.
Revenue marketing enables marketers to create somewhat of a continuous feedback loop between sales data and marketing data.
Essentially, revenue marketing lets marketers prove return on marketing investment through a holistic approach.
With revenue marketing, marketing itself becomes rather a part of driving revenue than a necessary but not entirely meaningful budget expense.
Revenue marketing is known for its ability to drop sales-ready leads to the top of the funnel, accelerate sales opportunities in the funnel, and measure marketing by contribution to pipeline and revenue, among other things.
The holistic approach is front and center when it comes to revenue marketing.
In addition to all of that, revenue marketing is considered a customer- and evidence-driven type of marketing. It relies a lot on data and metrics, especially the ones you get from customers.
That’s precisely why customer support is so essential for revenue marketing.
Another thing to consider about revenue marketing is that you may have to kill some of your traffic to gain revenue.
This is not something many marketers are ready to do. Still, your willingness to kill some traffic in favor of revenue will be instrumental in the success of your revenue marketing strategy.
What's The Major Change From Traditional Marketing? 🧐
One of the most important things you should understand about revenue marketing is that it is quite different from traditional marketing.
Revenue marketing is unique in the way it combines sales, marketing, and support to pursue and achieve the goals you set yourself.
In essence, revenue marketing is about letting the customers run your company instead of the managers.
By focusing specifically on your customer metrics, support, and everything related to your audience, you indirectly give the power of managing your company to your customers – and that’s the key to successful revenue marketing.
That being said, traditional marketing could also be considered a part of revenue marketing.
Some experts section the revenue marketing journey into four distinct stages:
- Traditional marketing
- Lead generation
- Demand generation
- Revenue marketing
These stages help you structure your revenue marketing strategy.
- Traditional marketing is pretty much exactly what it sounds like. For companies at this stage, budget is significant, while customer experience is often secondary if not forgotten altogether.
- Traditional marketing strategies could lack the necessary lead generation elements to work right, leading to much smaller revenue.
- Lead generation is the stage where your marketing is focused on sales instead of leads.
You could have underdeveloped customer profiles, preventing you from personalizing your marketing efforts and reaching more potential customers.
You could be focusing on data but in a somewhat limited way which prevents you from getting the most out of the metrics you possess.
Demand generation is almost entirely based on a strategy that plays a key role here.
Marketing becomes central for revenue, but sales and marketing could be working against each other instead of working together. You could also still be lacking good customer profiles to be used for marketing and sales.
Revenue marketing is the stage where all three – sales, marketing, and customer support – come together.
All your marketing processes become predictable, scalable, and repeatable, which means you can apply various techniques and get the best results from them.
From reporting to content development to campaign planning, anything can be done in revenue marketing.
Is Your Company Primed For Revenue Marketing? 👏🏼
When it comes to using revenue marketing, most B2B companies will benefit from the technique.
An excellent way to understand whether your company is primed for revenue marketing is by asking such questions.
- Is your company selling SaaS or fully online services?
- What percentage of your marketing budget do you spend on software?
- Does your CMO use an all-in-one or API connect several tools?
- Do you have a CRO (chief revenue officer) at your company?
After you understand whether your company is suitable for revenue marketing, you will face the complicated transition itself.
Here are some challenges you can encounter while transitioning to the revenue marketing philosophy:
- You could set yourself up for failure by choosing the wrong channels to focus on. Run several tests to identify which channels work best for you (i.e. which ones get the best results) and continue working with those channels or, at least, focus on them more and invest in them more.
- You could have no idea about what you are doing and lead your team to chaos. The best way to avoid this is by setting achievable and realistic goals for every aspect of your revenue marketing, including sales and customer support. This both gives you a better picture of the situation and organizes your team.
- You could be spending too much and getting too little in return. Carefully assess what your budget is being spent on and how expenses could be reduced – if they should be at all. Remember that revenue marketing doesn’t require you to focus solely on your budget or make it a priority, but you should still be smart about it.
- You could be ignoring the three essential Rs. While you may have other priorities, you should still remember about the three Rs: reputation, relationship, and revenue. Balancing these three is the key to transitioning to revenue marketing successfully and then using it to your advantage and success.
Your Company Probably Isn't Using Revenue Marketing To The Fullest 💁🏾
But even as you transition to revenue marketing, there could still be a huge problem in front of you – your company is probably not using revenue marketing to its fullest potential.
As mentioned earlier, there are four stages of revenue marketing. Knowing how to identify which stage your company is on is essential for understanding how to move to the next stage and then reach the final step.
The only way you can identify which stage your company is currently on is by running an audit and carefully assessing all the aspects of your current sales, marketing, and support strategies.
If you notice that any one of the three isn’t in line with others, it probably means that your company is not yet at the final stage.
To move from one stage to another, try to eliminate the problems that every step has.
For instance, if you are at the traditional marketing stage, focus more on customer support and develop your customer profiles for sales and marketing.
If you are on the lead generation stage, don’t ignore leads in favor of sales, build customer profiles even further, and so on.
Taking The First Step Is Good, But Not Enough 👈🏽
Many marketers choose to start their revenue marketing campaigns by creating skyscraper content i.e., the content you create based on what already exists by taking the topic and improving your content marketing.
However, even though such content can be very effective, you should still assess how impactful it will be when it comes to revenue.
Skyscraper content can be beneficial for generating traffic, but it could be next to useless for your revenue.
That’s why you need to go further and think about such things as content marketing in general, content optimization, persona optimization, and UX and UI, among other things.
Moreover, all of these should be used with the data you possess to implement them correctly for revenue marketing specifically.
Remember that content optimization is directly related to content marketing.
When you create a piece of content to publish as a part of your revenue marketing strategy, you need to make sure that it is correctly optimized before you publish it. For instance, images need alt text while articles need keywords.
Persona optimization is an integral part of creating customer profiles, but it can be applied to content marketing and sales and marketing.
Such profiles or personas can be used for target audience segmentation which, in turn, helps you personalize your marketing efforts. Personalization, in turn, leads to a better UX or user experience.
However, UX and UI also require a different approach which means you need to dedicate enough time and resources to them specifically rather than only thinking about them as a part of something else.
UX and UI directly influence your customer support which is one of the three key elements of effective revenue marketing and should be a priority for you.
How To Sell From Support? 📝
Because revenue marketing requires you to work with sales, marketing, and support simultaneously, having an appropriate approach to such marketing is essential.
That’s why you can try making your support team into sales associates of some kind. In other words, your customer support agents could help you get additional sales.
Of course, doing this will require some time, and you need to pay special attention to training your support team to become sales associates. However, it will be worth it in the end. Here are some statistics to prove it:
- Customer support agents who are also sales associates are perfect for transforming one-time customers into returning clients. According to The National Law Review, acquiring new customers can cost five times more than keeping the ones you already have. Moreover, according to DestinationCRM, when you reduce your customer defection rate by 5%, you increase your profitability by 25-125%.
- Customer support agents who act as sales associates can also help you improve customer experience, which is essential for customer retention rates and for revenue marketing particularly. According to Oracle, 89% of customers switch to competitor companies after poor customer experience.
- Customer support agents acting as sales associates can also help you set up automation in such aspects as email marketing, for example. According to Campaign Monitor, automated emails drive 320% more revenue than non-automated emails do.
So You Have a Lead Score, So What? 🗒
An essential part of revenue marketing is the so-called notion of GIGO, which stands for “garbage in, garbage out.”
GIGO is an approach where the quality of the input directly affects the quality of the output.
In other words, what you get as a result of your marketing can’t be better than what you had invested into it.
However, the concept of GIGO is applied chiefly to data processing rather than marketing itself.
Revenue marketing heavily relies on data-driven decision-making, so when you use GIGO to it, you get the rule of always collecting and processing quality data to get equally high-quality results from your analysis of it.
A/B testing and channel analysis both require you to use GIGO, which will help you get more accurate results and make more rationalized decisions which, ultimately, will lead you to more impactful outcomes.
Another aspect to consider is attribution.
Attribution plays a key role in revenue marketing but is notoriously one of the most difficult steps in the process. Revenue attribution is about matching a specific marketing output to the revenue you get from customers.
Revenue attribution allows you to see better and understand the relevant data you need for revenue marketing.
In addition to that, it helps you prove your return on investment or ROI and optimize your budgets and your work.
It is an invaluable aspect of revenue marketing that you must always keep in mind and apply correctly.
Take A Hard Look At Your Stack 👀
Understanding and knowing how to use revenue marketing is one thing, but applying it to your strategy is an entirely different process.
That’s why you need to have the right tools to help you execute all the processes related to every stage of revenue marketing, from planning to development to the execution itself.
As mentioned earlier, revenue marketing will require you to kill some traffic in favor of revenue. This is also reflected in the tools available to you.
Many old-school tools will prioritize traffic while new-school tools prioritize revenue instead.
For revenue marketing, new-school tools are your go-to.
For example, a tool like Oktopost is a great place to start. Oktopost helps you manage your social media campaigns by providing you with a variety of features. It’s perfect for B2B companies, but B2C marketers can also use it effectively.
With effective social media campaigns, you will drive customer engagement which increases sales and average revenue per user.
When choosing the right tools for your revenue marketing efforts, ask yourself such questions:
- What tools have revenue tracking capabilities?
- What tools are designed explicitly for revenue data?
- What tools are designed explicitly for attribution, and how do they play with each other?
Great Tools And Ideas Don't Use Themselves 💁🏻♀️
Lastly, you need to remember that having the right tools for your revenue marketing is not enough – you should also have qualified people to use them.
CROs (Chief Revenue Officers) and CMOs (Chief Marketing Officers) are the ones that come to mind immediately, but what is the difference and why both are important?
CMOs are responsible for various marketing operations, while CROs have a much broader scope of what they work with.
CROs work with revenue-generating activities and processes that include anything from traditional marketing to revenue marketing.
They drive and manage revenue streams, though CMOs can also potentially have revenue targets.
As you transition to revenue marketing, you should make a variety of changes in your company.
You might have to spend more on software and train support personnel in sales. Moreover, you will also have to give marketers more authority to manage products.
One last thing you should do is personify your company and your customers.
When you have these two personas, you will compare them to see how much they are compatible and how likely your customers will purchase from you.
To sum up, using revenue marketing for your business can be incredibly efficient and effective if you know how to use this kind of marketing correctly.
Remember that learning the right skills and acquiring the necessary knowledge will help you start using the marketing technique effectively.
After reading this article, find out more about revenue marketing by researching it.
You can also check out such resources as The Revenue Marketing Book or The Marketing Book Podcast episode with Debbie Qaqish who wrote the “Rise of the Revenue Marketer” book.
In other words, learn and practice to perfect your skills.
This article was written by Gregory V Chapman. Gregory is passionate about researching new technologies in both mobile, web and WordPress. The professional custom writing service confirm Gregory’s expertise in tech. Gregory is in love with computer science so he would be glad to help students with this discipline as well.