How to Create an Effective Revenue Marketing Strategy
While a meaningful contribution to revenue will always be essential and the end goal of marketing, some businesses struggle to align their marketing strategies with revenue as they grow. Traditionally, sales and marketing departments develop their departmental action plans to achieve this goal. However, with the desire to reduce expenses alongside the need for profit growth, many companies are now adopting a new holistic marketing approach known as revenue marketing.
According to Infinigrow, revenue marketing involves creating a meaningful shift in the focus of your marketing team and prioritizing overall business goals, especially revenue growth. With other departments such as sales and finance, this approach encourages alignment of goals and action plans, rather than teams working in silos. Plus, it requires more than traditional lead generation and other marketing initiatives that focus solely on brand awareness and recall.
Essentially, revenue marketing covers a mix of tactics, strategies, and technologies that help businesses achieve the following goals:
- Increase revenue potential
- Improve the return on investment (ROI) of the marketing process
- Align the top of the funnel with leads ready to sell
- Measure marketing success based on revenue contribution that is consistent and scalable
Revenue marketing differs from traditional marketing because it places more emphasis on results. That said, it relies heavily on data as evidence to support marketing budget allocations for various activities.
If you want to stay competitive in the crowded B2B market, revenue marketing may be the way to go. Here are some valuable pointers to guide you in developing a highly effective revenue marketing strategy.
1. Get to know the target audience and the buying cycle
Examining the specific needs of your buyers and determining their buying cycle are two of the first steps in developing an effective revenue marketing strategy. This way, you’ll know exactly where to make the right choices to influence them at every stage and come up with effective communication that would have the most impact.
Remember that buyer needs vary, especially for B2B companies. This can range from performing a task correctly to gaining in-depth knowledge of a subject. You should strive to know all the necessary details and describe their buying cycle, from raising awareness to getting them to buy to coordinating your marketing and sales efforts.
Consider using the marketing and sales funnel as a starting point to define the buying cycle. Next, you can proceed to develop various buyer personas, which include information about customer demographics and psychographics.
2. Align or integrate marketing and sales efforts
As mentioned earlier, revenue marketing aims to align and integrate marketing and sales efforts to develop coordinated campaigns.
To do this, make sure both departments are familiar with each other’s goals, key performance objectives (KPIs), and other critical aspects of operations in pursuing and converting leads.
Moreover, a common strategy will require them to collaborate and plan carefully after closely examining the buyer’s behavior, buying cycle and profile to decide on the appropriate actions to take at each phase.
Both departments can leverage customer relationship management (CRM) and workflow management tools to ensure seamless, smooth communications and real-time updates on campaign progress.
3. Implement appropriate digital marketing campaigns
Make it a priority to strategically focus your efforts on communicating with buyers through various channels such as digital marketing. Digital marketing strategies are important today because they increase brand awareness while improving lead generation and conversion.
The ideal digital marketing tactics will depend on your target audience and your buying cycle. In most cases, you will need to think of tactics appropriate for each phase of the buyer’s journey, such as search engine optimization (SEO), content marketing, email marketing, marketing pay-per-click (PPC) or whatever method works best for your business.
Likewise, it wouldn’t hurt to get insights from the sales team to get to know your audience or customers better. This way, you can also qualitatively measure the impact of your marketing efforts and make necessary changes to increase its effectiveness.
4. Maximize performance monitoring and budget allocation
Strive to analyze the performance of your combined marketing campaigns and make necessary adjustments where needed. This will help you determine what is working and what needs improvement. You can start by prioritizing tracking crucial metrics spanning day-to-day activities and overall revenue metrics.
Additionally, when you have a clear view of what works best, you can maximize and allocate budget to the marketing channels that would generate the most revenue. The approach will ensure that effective campaigns will receive adequate funding and have greater returns on investment in the long term.
Proper planning should be a crucial consideration when running a business. As one of the current B2B trends, it may be time to improve your company’s current position by developing an effective revenue marketing strategy.
Since revenue marketing primarily focuses on increasing revenue through a combination of strategies, tactics, and technology, it requires careful organization. This includes understanding the specific needs of your target audience and buying cycle, aligning your marketing and sales efforts, implementing appropriate marketing campaigns, tracking marketing performance, and maximizing budget allocations. .
When crafting a revenue marketing strategy, consider these great tips to establish one that’s solid and profitable.