The Journey to Revenue Marketing is a model that explains four distinct stages to becoming a revenue marketer – Traditional, Lead Generation, Demand Generation and Revenue Marketing. It helps you identify where you are and provides insight for understanding where you need to be.
Introduced in 2011, the model has been tested with thousands of marketers and has proved to be an easy way to set a course for any marketing group to more concretely connect with revenue.
Traditional marketing is characterized by the 4 P’s – Product, Promotion, Placement and Price. It is still how marketing is taught at the undergraduate and graduate levels and is a key element of all marketing groups.
of marketing organizations are in the Traditional Marketing stage.
The first big jump towards Revenue Marketing is making that transition from Traditional marketing to Lead Generation marketing.
Lead Generation is characterized by marketing providing leads to sales through outbound email campaigns powered by an email system (an ESP). The leads are raw, not fully developed, but do have a pulse. Metrics tracked include # of emails sent, open rate, click through rate, # of form submits, # of leads to sales, etc.
Tens of 1,000s
of marketing organizations are in the Lead Generation stage.
It’s a giant leap when moving from the Lead Generation to the Demand Generation stage of the Journey. We define Demand Generation as the joint activities of both sales and marketing to do two things:
1. Put high quality leads into the top of the funnel
2. Pull opportunities through the funnel faster.
Companies and marketers at this stage have invested in a marketing automation (MA) system and have integrated it with CRM. Key metrics include: Number of scored leads (MQLs) sent to sales, percent conversion to opportunity, percent conversion to close, percent contribution to pipeline and number of days to close. Metrics at this stage of the Journey become very interesting to senior management, as they represent a tangible revenue contribution from marketing.
marketing organizations are in the Demand Generation stage.
To move from the Demand Generation stage to the Revenue Marketing stage of the Journey is a final, huge transition for companies.
It includes everything you see in the Demand Generation stage BUT, and this is a big BUT, the revenue generated and attributed to marketing is now REPEATABLE, PREDICTABLE AND SUSTAINABLE (just remember RPS).
Just like a VP of Sales takes a given revenue number and does backwards math to see what he/she needs to put into the top of the funnel to get to that ultimate number, the ‘VP of Revenue Marketing’ takes a similar approach. He/she comes to the table with a Revenue Marketing Forecast and aligns tightly with sales to ensure the revenue goal is reached.
marketing organizations are in the Revenue Marketing stage.
The time for the Revenue Marketer has arrived.
Sales is asking for better qualified leads, heads of sales are asking for help to manage the top of the funnel and CXOs are looking for new ways to create revenue.
So, where are you on this marketing journey?
Take this quick 4-minute assessment to find out where you are now, and to receive 5 Action Steps that will help guide you to the next stage of your Journey.