Marketing can be classified broadly into four categories: Traditional marketing, Lead generation, Demand Generation, and Revenue marketing. Usually, the first focus of all companies is to build a brand i.e. generate recognition for their name and products. This is called traditional marketing.
Next, they focus on Lead Generation, where marketing teams look for high-value leads that have a chance of contributing to sales. Demand generation comes next. It is a combined effort of the marketing and sales team to create multi-channel campaigns that attract B2C and B2B buyers.
Revenue marketing is what comes next. Let us take a brief look at What is Revenue Marketing?
Revenue marketing is a holistic marketing approach that aims at identifying specific marketing channels that guarantee revenue growth and ensure maximum ROI.
How is it Different from the Marketing We have Seen Till Now?
Before revenue marketing became a thing, markers were used to generate leads, qualify them and send them to the sales team. Their job would be done as the sales team would pursue the leads. Here the sales team would focus on the leads that have a higher probability to close.
On the contrary, revenue marketing is a completely different approach where the sales and marketing team work together and follow a comprehensive approach to scale up lead and demand generation.
Why is Revenue Marketing Important? What Makes it So Different?
The importance of revenue marketing lies within its primary goals:
- It focuses on a solid and smooth sales process via the sales funnel.
- It gives importance to strategies that have a higher probability of success
- It involves a holistic approach where the marketing and sales team constitute the revenue-generating center.
- Due to its very specific approach, this approach has a willingness to kill traffic in order to generate revenue.
Benefits of Revenue Marketing
If implemented effectively, revenue marketing offers three key benefits
An increased focus on customers: Traditional marketing usually focuses on finding ways to boost demand by creating curiosity and appeal for its products and services. Revenue marketing, on the other hand, focuses predominantly on what the customer wants. What does the customer want from the product? What changes can you bring that will make them want to buy more? What other factors contribute to conversion? Do service response and website navigation play any role in it? These are the questions that a revenue marketer constantly asks.
A diverse team working together: In traditional marketing, the role of the sales team begins where the marketer ends. They are usually at odds with each other because marketers look to raise brand awareness whereas the sales team is concerned with the specifics of individual conversions. More often than not, their efforts have a chance to work against each other. In revenue marketing, they all work together. They both have a singular focus, that is the customer and what he wants. They work towards a common goal.
An improved and specific goal-setting process: In revenue marketing, the one and only goal is to generate revenue. By testing different channels and ways to generate revenue that boost customer acquisition and sales from specific sources, it is easier to create goals that are realistic rather than based on a notion of potential customer action.
Tips to Create a Successful Revenue Marketing Strategy
Revenue marketing requires creating a significant shift in your marketing team’s focus. It will also affect the company’s overall objectives and revenue growth. The approach encourages aligning goals and action plans with other teams like sales and finance. Here are some tips that will help you create an effective revenue marketing strategy.
Understand your Target Audience and their Buying Cycle: For developing an effective revenue marketing strategy, it is not enough to simply identify your target audience, you need to understand their needs and determine their buying cycle. It will give you an exact understanding of where to make specific moves to influence them at every stage. This will help you come up with impactful communication strategies .
Bring your Marketing and Sales Team Together with a Single Goal: Revenue marketing can only be successful if the marketing and sales team put effort together into developing coordinated campaigns after closely scrutinizing the buyer’s behavior, profile, and buying cycle. Inputs from both teams are equally important. In order for this to happen, they must have common objectives, Key performance indicators (KPIs), and other critical aspects of the operation.
The insight that different teams offer one another will only help understand the audience better. Working together also helps in taking a qualitative measurement of the impact the marketing strategies have made so far and making necessary tweaks.
Implement Suitable Marketing Campaigns: Revenue marketing cannot perform to its maximum potential if no other form of marketing is done. So there is a need to implement other digital marketing strategies alongside to increase brand awareness while improving lead generation and conversion rates.
Maximize Performance Monitoring and Budget Allocation: Being a combined effort by different teams, there is more of a need to analyze the performance of the campaigns periodically and make necessary adjustments. It will only give a clearer picture of what works and what doesn’t. As a first priority, there should be constant monitoring of all the crucial metrics that cover all daily activities apart from the overall revenue metrics.
Most companies follow the old marketing structure even today. There is huge importance given to creating brand awareness. Running a business requires proper planning and keeping yourself updated about the recent developments in the finance world. As revenue marketing proves to be highly effective, it may be time for you to look into your marketing system and develop an effective revenue marketing strategy.
Do you want to transform the marketing journey of your business? If you do not know how, then you need the right team in place. You can always consult a digital marketing agency that will help you align your goals and objectives to benefit revenue marketing.
