Marketers need to stop using leads for their goals.
Previously, leads were an acceptable way of measuring the performance of your marketing.
…When cloud-based applications weren’t the norm.
…When the average marketing manager probably gave little attention to the CRM.
…When the word ‘eyeballs’ was a measure seriously spoken about and the concept of attribution was alien to anyone outside of film and copyright.
It was a time when sales and marketing teams sat in silos, divided by language, goals systems and processes.
The problem with leads is that it doesn’t show on a balance sheet.
A ‘lead’ doesn’t generate real value.
To simply focus on leads means you’re misguided. Unaligned with what your business is trying to achieve.
It means that you can often get stuck. Unable to see the wood for the trees.
Your marketing team can be stacking up mountains of leads, but your bottom line remains flat.
Sales can find themselves inundated with poor quality, irrelevant deals that take up all of their time but never had a chance of closing.
In fact, I’d go as far as saying that misaligned sales and marketing teams are the biggest problem faced in the customer acquisition function today.
To quantify that problem, I’d like to draw your attention to a study by the Aberdeen Group.
They found that teams with self described ‘good alignment’ grew their annual revenues by 20%.
Their out-of-sync counterparts?
Their revenues declined by an average of 4%.
It’s no surprise that 80% of CEOs don’t trust marketers.
They fail to accept proper commercial responsibility, even though the tools they need to do so exist and are readily available.
Instead, they focus on fluff.
Things that distract people from proper business goals.
They’ll try and dazzle executives with the promise of ‘the next big thing’ like marketing automation and messaging bots, or even worse, reports on how many people have liked or shared their posts on social media.
What they should be doing is making efforts to prove their commercial impact. Focussing on generating more customer demand in a quantifiable and measurable way.
You Must Reassess Your Goals
You must understand, I’m not saying the practise of generating leads is wrong, dead, dying or going anytime soon.
What I am saying is;
if you’re using leads to measure the performance of your marketing, then you need to reevaluate your strategy.
The ultimate goal for any marketer, salesperson and business is to generate more revenue.
So the way to make sure that every marketer, sales person and executive is aligned, the goal we must all strive for is simple.
What is Revenue Marketing?
Revenue marketing is a system that focusses on the entire customer journey, from discovery to each repeat purchase.
It influences people to continue their path to revenue. From becoming a lead, moving to a sales opportunity and finally becoming a paying customer.
The key to the evolution of revenue marketing is the rise in cloud-based CRM and marketing tools that can share data with each other.
If you know the impact of your actions through the entirety of the customer’s lifetime, you can accurately link it back to the initial investment.
Marketing attribution systems can pass data like the lead source, campaign, keyword and referrer alongside the lead’s name and contact information.
This information, paired with the customers revenue data, means you can now easily segment and view the exact revenue generated by your marketing efforts.
By focussing on the entire funnel, not just lead generation, sophisticated marketing teams are now making leaps and strides towards becoming one of the most indispensable functions.
No longer is marketing seen as a luxury, and one of the first functions in line for layoffs when times get hard, but a department that provides a tangible impact on the company’s growth.
As these teams understand exactly how marketing activities correlate with revenue outcomes, planning is much simpler. Activities can be planned based setting a goal and working backwards to get a measure of what is needed to achieve them.
Revenue marketing is inclusive of all marketing methods and tactics.
The core premise is simple, figure out how you can use data and analytics to understand the impact of all of your sales and marketing activity on revenue.
How To Become a Revenue Marketing Organisation
Becoming a revenue focussed marketing team is easier than you think.
All you need is a marketing attribution tool and CRM that integrate with each other.
Once this connection is formed, it’s simple to see the amount of revenue you actualise throughout the customer’s lifetime.
Marketers have been focussed on leads for so long because that’s all they were able see.
But now, there is no excuse. It’s time to optimise your marketing based on what really matters to your business.