Revenue Marketing: What It is and Why It Matters?

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91% of marketers believe that marketing decisions they make will have a positive impact on revenue. Are you among them?

We understand the primary goals of Internet marketing: generating new leads and business. Online marketing generates revenue, so we use online channels as a marketing strategy.

How can marketers create a successful online marketing strategy directly tied to their revenue targets?

We’ll help you if you need help knowing the answer. In this article, we’ve outlined the steps to plan a successful revenue marketing campaign.

What is Revenue Marketing?

 When we talk about revenue marketing, we’re talking about a marketing method used for lead generation. Some marketing campaigns are implemented to increase brand awareness or support a product launch, but revenue marketing puts all hands on deck towards increasing money generated by the business.  

Let’s go into more detail about revenue marketing.

Revenue Marketing

Revenue marketing is a process that uses different marketing channels and methods to boost sales and customer acquisition. Marketing plans are linked to revenue goals through revenue marketing.

When implementing a Revenue Marketing plan, you would focus on your revenue goals instead of your business objectives. If, for example, the goal of the business is to get 10,000 new customers, but the revenue goal is to make $150,000 extra than the previous quarter, then a revenue marketing campaign would look at all the different ways to generate that $150,000, ideally by attracting 10,000 or more new customers.

Revenue Marketing: Benefits

Marketing efforts can be divided into four main categories: traditional marketing, lead generation, demand generation, and revenue marketing.

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It is the order in which many companies approach marketing. The traditional marketing strategy is to build your brand first, generating recognition for you and your products to drive sales.

Lead generation comes next. 

Marketing teams will look for high-value leads more likely to act and generate sales. The next step is demand generation, where marketing and sales teams create multichannel campaigns to bring interested B2C or B2B buyers onto your website or sales platform.

Revenue marketing aims to increase lead and demand generation by linking them to specific metrics, making them reliable and repeatable. When revenue marketing is implemented effectively, it offers three main benefits.

Customers are more focused

Traditional marketing is about increasing demand for products and services by enhancing appeal. Revenue marketing focuses on what customers want.

What are the customers’ expectations? What would encourage them to purchase more? Buy less? What other factors — like the speed of the customer service response or the ease of navigation of websites — affect the likelihood of conversions? Revenue marketing can drive sales by focusing on long-term relationships with customers.

Improved Team Alignment

The marketing and sales teams often have differing views. While marketers are concerned about raising brand awareness at large, the sales team is more focused on individual conversions. The efforts of these two teams can work against each other, frustrating both goals.

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In contrast, revenue marketing helps bring these teams together with a single focus: the customer. Companies can align goals and outcomes by getting everyone involved up front, from the sales and marketing teams to the C-suite sponsors.

Setting better goals

Revenue marketing is a way to prioritize revenue over leads, prospects, or potential demand. It’s easier to set goals based on the actual sales volume rather than predicting future customer behavior by tying success measures to revenue generation from specific sources.

The Key Components in Revenue Marketing

  1. Customer data acquisition
  2. Alignment of stakeholders
  3. Process definition
  4. Technology implementation
  5. Results Management

Customer data acquisition

First things first? Data acquisition. Why? The more information businesses have about their customers, the better they can develop marketing and sales strategies to drive action. Effective acquisition begins with permission – make sure that customers know what is being collected and why – and get up to speed on data analysis tools capable of deriving patterns from real-time data.

Alignment of Stakeholders

Due to the size of revenue marketing campaigns, companies must also ensure that all stakeholders are on board. It’s essential to take the time to meet with team members who are relevant and develop a strategy that gets everyone on board. It provides a road map for the future and sets a collaborative tone from the start.

Process Definition

Next, the process: How will you achieve your goal, and how can you accomplish it? Discussions often revolve around marketing campaigns, demand management, and targeted marketing.

Technology Implementation

Technology is essential to effective revenue marketing. From mobile apps and social media websites to email newsletters, IT staff must be involved as soon as possible. It’s important to involve IT staff in the process as early as possible to identify software and services that can assist companies in achieving their revenue marketing goals.

Results Management

Last but not least, Effective results management. It is essential to identify the key metrics that you will use to determine success, such as sales totals over a certain period or revenue growth from year to year. Consider how these metrics can inform your revenue marketing efforts in the future.

Develop an Effective Revenue Marketing Strategy

You need more than just a plan to generate revenue. It would help if you had a strategy. Do you need help figuring out where to begin? Our 4-step process will guide you through the entire process.

Set SMART revenue goals

To reach your revenue goals, you have to make them! If you need clarification about how to start making them or need guidance on how to set them so they’re effective for marketing campaigns, let’s talk about how to set measurable goals.

Read more: How To Start A Pet Blogging And Make Money Online.

The team responsible for the campaign should understand and agree on your goals before you begin implementing online marketing strategies. To do this, make sure that your goal is SMART. It means it is Specific, Measurable, Attainable, Relevant, and Time-based.

Let’s review an example to refresh your memory on how SMART goals relate to setting revenue goals for marketing campaigns.

Imagine a marketing department for a business that generates \$10,000/month through traditional and online marketing but would like to increase revenue by boosting digital campaigns. 

They set a target to double their income. Although doubling your revenue is a worthy goal, there must be a basis to show you how to achieve it. The team can use some terms to clarify their path and make the goal smarter.

Read more: How To Start A Pet Blogging And Make Money Online.

Instead of marketing teams having the goal “Double Revenue,” they can restructure it to “Through an online marketing campaign, we aim to double revenue within six months using channels selected based on ROI data.”

This goal is specific, measurable, and relevant to the task. Although doubling your revenue may seem like a lofty goal, SMART objectives can be changed. They are a guideline to ensure that you reachable goals.

Audit current marketing ROI and website

You can use marketing analytics software to track the number of visitors, leads, and sales generated for each channel. For example, HubSpot’s Marketing Hub offers marketers the tools they need to measure their digital marketing campaigns. It includes website metrics.

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Analytics tools are essential for determining the ROI of your online marketing campaigns. You can customize these tools to only track metrics that are important to you.

You can use your revenue goals as inspiration for your internet marketing strategy. The metrics you will find helpful vary depending on your business goals. Some benefits include SEO metrics and ROI from pay-per-click (PPC), blog conversion rates, and social media engagement.

These metrics will show you where your marketing efforts rank on Google, the number of people who click on your ads or offers from your campaign, whether your content is helpful to your readers, and what your audience thinks about your brand.

Read more: Best Sales Tools to Boost Your B2B Sales.

If you want to earn money through a particular marketing channel, continue to monitor and refine your strategy using the core metrics of that channel. You can estimate your conversion rate by combining your analytics with data on your monthly revenue.

Research to identify actionable steps

Research is always helpful if you need help deciding what steps to take in your plan.

You may need more time to do extensive research. You can find out what works for other companies by doing some research.

We’ve already discussed how data can be used to help you build an online marketing strategy. If you are still figuring out where to start, you can refresh your memory on the essentials of writing a marketing strategy. You can start with this article.

Downloading a report by a company that has used revenue marketing is another option. HubSpot, for example, offers a study that details the revenue marketing strategy for a campaign and highlights key points of the report.

You can also look at case studies to see how a marketing plan from the bird’s-eye view looks. The directory of case studies has been organized by industry, company size, and company goals, so you can find the case study you need to illustrate your plan.

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Remember to research how SEO can assist in making better marketing decisions. Look at the keyword data and competition to determine how much money and time you should spend on pay-per-click to reach your goals.

Research can also help determine if your lead tracking and generation practices are up-to-date. Online marketing tools such as email and blogging can be used to convert leads into customers.

Research is needed to understand how marketing efforts work together and how a chronological plan should be structured.

All together

It’s now time to put everything together. Once you have an idea of your current return, set realistic revenue goals, and know more about the methods and channels you want to use, you can start putting it all together.

As you build your internet marketing plan, remember that each step should be based on revenue goals. For example, if you plan to use Ads in your campaign, your team should understand why this method will help reach your revenue goals.

It would help if you also ensured your content would resonate with the audience. The blog posts you create should be helpful to your readers. Keyword research can help you determine what they are looking for. Social media content, on the other hand, needs to engage their followers.

Read more: Digital Media Buying 101: What It Is, How It Works? And Platform To Use.

When planning your internet marketing strategy, you should outline the metrics that will be used to determine success. What software will you use to measure revenue? What will you do with the revenue that you earn?

After you have completed your marketing plan, all you need to do is write your marketing report or case studies based on the findings. Your report may become a valuable piece of content for your next revenue campaign.

Realizing Revenue Goals

Revenue marketing is a combination of sales and marketing to create campaigns that go beyond lead generation and demand generation and link campaigns to a reliable and repeatable ROI.

What’s the best bet? Start by creating a strategy that will help you identify sales opportunities. Identify leads who are ready to convert. Create metrics for your campaign efforts and revenue outcomes.

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