Content Matters

Discussing best practices in marketing automation, content marketing, and demand generation
Looking Backward to See Forward

Use Revenue-Cycle Metrics to Provide Accurate Performance Forecasting

One of the more impactful strategies in marketing automation leverages revenue-cycle metrics to provide amplified performance visibility. Revenue cycle metrics harvest historical data to identify the overall quantity of opportunities created per number of leads generated, across all marketing channels, on all platforms, and at every stage of the sales cycle.

Instituting this content-driven, multi-touch attribution model provides improved visibility to trends over time, an earlier understanding of the revenue pipeline, and the ability to more accurately predict conversions from stage to stage of the buying cycle. Mining this historical data on a regular basis reveals important metrics that allow projections for each distinct marketing channel, with increased rigor and improved predictive performance.

All of these measurements speak directly to ROI, with the top performance metrics being (1) conversion rates at each stage of the revenue cycle (prospect to lead, lead to sales lead, sales lead to opportunity), (2) revenue per lead generation campaign, and (3) overall sales productivity (measured by the value of deals and their speed to close). Quantifying these conversions over time produces improved predictive performance projections, driving revenue growth and validating forecasts against actual performance.

Accurate conversion metrics also reveal an ongoing visibility to the real costs of customer acquisition. Tracking actual customer acquisition costs alongside conversions over time results in more precise marketing-driven performance metrics, providing comprehensive visibility into both marginal and cumulative conversions. These conversions result in a constant which enables marketing to provide significantly more accurate, predictive performance forecasts. Incorporating revenue-cycle metrics as a key marketing strategy answers the question, “If the marketing budget increases by X%, what exactly does that translate to in increased revenue dollars?”