Develop your organization to consistently deliver successful products
Marketing got stuck in the cost centre syndrome over the years, whilst the sales organization claimed the monopoly to the full revenue generating role.
When you are measuring marketing’s contribution with vanity metrics like number of views or are stuck with the traditional metrics like marketing qualified lead, you are at a disadvantage towards the other functions. Especially against the sales department.
In a world where departments that behave as cost centres are always at risk of the next efficiency round, you want to be at the revenue generating side.
Today sales takes 100% credit for revenue.
But if we look at the customer’s acquisition journey, it doesn’t take a lot of analysis to discover the error in this reasoning. Just like in soccer, it requires a lot of touchpoints before the ball gets from one side of the field to the other before the striker can score the goal.
Winning over a client also takes more than a single interaction with your company.
The customer might have heard from your brand through an advertising campaign; touchpoint 1. He will have done research on the internet where he read reviews that were organized by the marketing team; touchpoint 2, etcetera. Before the sales team comes into the picture, the prospect has already acquired a great deal of information about your solution.
Question is, how do you value every touchpoint? The answer to this is revenue attribution. Just like the sales department has a sales funnel to which they attach a value so they can forecast. So, can you in marketing attach, or attribute, value to different touchpoints if the customer acquisition journey. This will show very clearly how much revenue the marketing department is contributing to. Adding the length of sales cycles, will even allow you to start forecasting revenue.
By becoming a revenue generating centre, you bring marketing back to the strategic centre stage of the company.