Modern marketers are using revenue marketing and ignoring vanity metrics that don’t move the needle. For this article, we shed light on revenue marketing and show you how to connect marketing activity with sales, both online and offline.
Marketers are always under pressure to deliver the best ROI and avoid being seen as a cost centre.
Luckily, there are proven models that will allow you to identify your best-performing channels and help you accurately measure campaign performance.
The key is to avoid looking at vanity metrics and focus on the number that matters: revenue.
Marketers need to justify why they’re spending money on various channels, and the revenue marketing approach can help.
For this article, we’ll discuss:
- How revenue marketing works
- Why you should stop focusing on vanity metrics
- Revenue marketing with Ruler Analytics
- The benefits of revenue marketing
Without further ado, let’s get started.
What is Revenue Marketing?
Revenue Marketing is the process of identifying the marketing channels that lead to revenue growth and optimising resources to maximise their ROI from marketing activities.
Once you understand how to identify the opportunities that directly drive ROI, your marketing function can become more accountable and transition into a high-powered revenue machine.
Rather than focusing on metrics such as CPC or CPL, revenue marketing allows marketers to hone-in on revenue-focused metrics such as CPA (Cost Per Acquisition) and ROAS (Return on Ad Spend).
Revenue marketing has continued to grow in popularity because marketers who embrace the model have a more significant impact on their organisations and have the skills to leverage the latest marketing technology and use it to drive bottom-line growth, predictably.
Stop looking at vanity metrics, focus on revenue
Just to prove just how vital revenue marketing is, we ran an experiment to show why the number of leads generated is usually the wrong number to look at.
We took a sample of 20 phone calls from a PPC campaign to track what the outcome of the calls was.
Of the 20 calls, 12 were poor quality, not qualified or unsolicited.
However, 8 of the calls went on to the demo stage.
3 of the leads that sat a demo were relatively low value and didn’t close into revenue. However, the remaining 5 calls were worth over £250 in MRR.
If we were to look through a traditional marketing lens and judge success based on the number of calls generated or conversion rate, there would have been nothing particularly special about this campaign.
But, if we look at it from a revenue marketing perspective, the campaign was a success.
Product Note: To perform this experiment, we used our marketing attribution software to track our website visitors on an individual level and utilised dynamic number insertion so that we can pinpoint each unique journey leading up to a phone call. Our leads are automatically sent to our CRM along with the relevant data such as keyword, landing page and first/last click source. This allowed us to track the performance of our PPC leads throughout the entire sales cycle and attribute revenue accordingly. To learn more about this, you can download our eBook on marketing attribution, or feel free to book a call with one of our attribution experts.
Revenue Tracking with Ruler Analytics
Putting together an effective revenue marketing strategy is a must-have for many marketers, but many find it a struggle to execute a solid process.
Most marketers report on the success of their marketing based on leads and conversions in Google Analytics.
This is good, but leads and conversions don’t always prove that marketing campaigns are impacting the bottom line.
With the help of Ruler Analytics, we can connect revenue from our CRM with marketing data in Google Analytics to track visitor’s multiple touchpoints to measure and attribute value accurately across the entire sales cycle.
Here’s how we’re utilising the revenue marketing model to measure the success of our campaigns.
Let’s dive in.
1. Anonymous visitors over multiple sessions and traffic sources
First things first, leads submitted by either form or phone call are captured using visitor level analytics.Ruler Analytics captures the lead’s contact details and marketing touchpoints. This includes the source campaign, channel, keyword used on a first or last click basis.
Ruler Analytics Conversion Report
2. Send marketing and conversion data to the CRM
The lead information is then sent from analytics into our CRM for the sales team to process. Each deal in our CRM has the marketing information sent from analytics passed along with it. This helps me create a better alignment with sales.
3. Revenue Data sent to Chartmogul
When a lead converts into revenue, we integrate the customer’s information, such as the revenue amount and marketing data, to a database. This data is then synced with our subscription and revenue system, Chartmogul.
In Chartmogul, we’ve set up custom attributes to capture the marketing data. It also connects directly with our payment processor. So, every month the revenue we’ve generated from each customer gets attributed back to its initial touchpoints. Allowing me to track and report on any subsequent sales.
4. Integrating with Google Analytics and other reporting tools
It’s worth mentioning, Ruler Analytics is a Google partner and enables you to see data for all of your online or offline conversions so that you can accurately track your marketing ROI. This data can be viewed within Ruler Analytics or sent directly to your Google Analytics account.
Ruler’s offline conversion tracking allows you to match leads to revenue and evidence which campaigns drove your most valuable offline sales.
You can learn more about that here.
The bottom line here is that we no longer need to assume how much revenue our content and advertising efforts are generating for the business as we’re able to connect the dots across the entire visitor journey.
We have a handbook that explain this process in more detail. So, if you want to maximise the ROI from your marketing activities then we recommend you give it a read.
Benefits of Revenue Marketing
There are several benefits to revenue marketing, which include:
Build Buy-In Across the Company
One of the main constraints many marketing teams have is that they are viewed as a cost centre and not a profit centre.
With revenue marketing, you can prove that your marketing efforts have a direct (positive) impact on company revenue, it will be easy to build buy-in for new projects and experiments you want to run.
You’ll also be able to prove why company revenue should be spent on marketing and not elsewhere due to the value your activities provide and the real impact marketing has on the company bottom-line.
Make Decisions Based on Real Data
By focusing on revenue, you’ll know what works and what doesn’t. If a channel seems expensive (LinkedIn Ads have a notoriously high CPC), you can look past vanity metrics such as the number of leads generated and judge success on whether it brings in revenue or not.
For example, in the screenshot below, you can see that Facebook Ads generated more leads than Google Ads.
Ruler Analytics Last-Click Source Report
On first impressions, you’d want to start spending more on Facebook. However, if we focus on revenue, we can see that the Google Ads campaign led to higher revenue, therefore making it a better channel to focus on.
This means you can make decisions using reliable data, rather than letting metrics that don’t matter to you affect your choices.
It’s always tempting to get caught up in vanity metrics like goals or the sheet number of leads that a campaign generates.
But, as we’ve seen, they don’t always tell the real story.
As a marketer, you should always be proving why your work matters to your company, and using the revenue marketing approach is the perfect way to do that.
Ready to go beyond basic conversion tracking in Google Analytics? Book a demo of Ruler Analytics to learn about the opportunities of revenue tracking and closed-loop marketing attribution.
This article was originally published on 16th December 2019 and was last updated on 9th September 2020.