Many companies might be familiar with the concept of revenue marketing, as it’s also widely used. However, it’s important to note that it takes a bit of work to be put into action and it can be quite complex. Fortunately, it’s a lot easier to do so with the help of marketing analysis tools because companies can generate all the data they need to utilize in revenue marketing. There are several steps that companies need to take before implementing a revenue marketing strategy.
Consumers
Most companies tend to have some sort of time-bound revenue goals, such as quarterly or monthly. However, many new businesses tend to not have those types of goals, which is why it’s important for them to set revenue goals as soon as possible. Once a company has a revenue goal, it can use the number to calculate how many new consumers the business will need every month. The monthly revenue goal needs to be divided by the average revenue the company gets for each new customer to get the number of customers it needs to acquire each month.
Leads
After a business has defined the number of customers it needs to acquire each month, it’s time to start focusing on the number of leads it’s going to need, so it can turn them into customers. To get that number, companies will need to get the average website leads to consumer conversion rates. The conversion rate is simply the number of leads that end up taking the action that a business wants them to take while on the business website. For example, if a company invests in cold calling efforts to generate new leads, it’s not easy to figure out the precise number of leads that are going to be needed. However, many businesses still have a ratio between the number of appointments and closed sales that have been generated. If a company doesn’t have a way it can calculate its conversion rates, there are plenty of tools and platforms that can help in that regard, and then, the number of new monthly consumers needs to be divided by the conversion rate to figure out the lead generation goal of the business.
Website Traffic
Finally, to increase revenue, companies need to calculate how much website traffic they’ll need as well. To do that, first companies need to figure out the conversion rate for website visitors into leads. Simply looking at the overall website traffic numbers isn’t helpful in determining that rate, which is why companies also need to set up lead tracking. That way, they’ll be able to track the sources of their leads, the people working with them, and where those leads are in the sales or marketing journey. If those numbers aren’t available, companies can simply look up the average website visitor to lead conversion rates for their industry. Then, companies have to divide the lead generation goal number by the website visitor to lead conversion rate. They have to figure out the number of website visitors they need to generate.