The digital age has changed people’s spending habits, and younger generations are responding to it. As our article ‘Millennial Shopping Trends: 2023’ notes, 54% of millennials make purchases online, with 42% shopping from smartphones—and this doesn’t even take Gen Z, the world’s foremost digital natives, into account.
With more businesses investing in marketing strategies that can capture younger consumers with more digital spending habits, marketing professionals are looking for ways to boost ROI by tying revenue into marketing itself. In fact, a Business Wire article finds that this task is now a priority for marketing leaders, right behind integrating AI into their operations.
But what exactly is revenue marketing, and how can it help your business? Here’s everything you need to know about this emerging trend.
What is revenue marketing?
Revenue marketing is a promotional approach that aims to enhance sales and customer acquisition. In other words, it means marketing teams don’t base campaigns on speculations of potential customer behavior. Instead, their initiatives will be based on generating revenue from specific campaigns.
Benefits of revenue marketing
It facilitates team synergy
With disparate goals, it can be easy for marketing and sales teams to oppose each other’s efforts. The former looks to elevate the business’s reputation, while the latter focuses on individual customer conversions. Revenue marketing can get both to zero in on one goal: determining the most effective marketing initiatives driving customers to make purchases. The resulting streamlined collaboration can be very effective in itself, with one study by Aberdeen showing that aligned sales and marketing teams can add 20% to annual revenue growth.
It pinpoints high-yielding marketing campaigns
Revenue marketing depends on revenue attribution—correctly identifying which marketing initiatives reaped the most revenue and using that to inform marketing efforts rather than leveraging abstract measures like web traffic. By doing this, businesses can single out the most effective ways to encourage consumers to progress down their customer journey instead of investing in newer strategies that don’t guarantee success.
Best practices for revenue marketing
Leverage technology to gain insights from revenue
Since revenue will inform the entire promotional strategy, marketing teams need updated revenue data to inform every step they take. Since manually gathering that data can be time-consuming, they can simplify the process with automated tools. Take the revenue management system by SOFTRAX, which can seamlessly integrate with existing CRM, CPQ, and other systems to automate revenue recognition and ensure accurate processing. Marketers can use it to track revenue data as it comes in and even when their marketing models become more complex, granting them top-notch insights on their most successful campaigns and marketing efforts.
Create a comprehensive marketing plan
In revenue marketing, businesses base all their strategies around a goal for monetary inflow. However, they can’t just stop at choosing a number they want to arrive at. Precision is a prerequisite. A great intuitive framework marketing teams can use to clarify their objectives is SMART goals, which ensure every aim is specific, measurable, attainable, relevant, and time-based. That can look like a marketer deciding they want to make double what they made last year—say, $100,000 in revenue—a goal they know is doable based on their metrics and important to their business goals. They determine they want to achieve this through more engaging digital campaigns to reach this objective by year’s end. That SMART goal now acts as the essential skeleton of a marketing plan that can now be acted on.
Coordinate your team
Ensuring the full participation of a marketing team for revenue marketing can be easier said than done, even when campaign goals have been disseminated to each member. To ensure consistent progress, keep everyone on the same page by leveraging collaboration software like Slack. This can integrate with useful third-party apps like Google and Zapier for improved in-team communications on revenue documentation, insights, and smooth marketing workflow collaboration overall. By using such software to promote more coordinated team efforts, marketers can stay on track toward their revenue marketing goals.
Revenue marketing is a new way to amplify marketing efforts. Consider implementing this emerging business trend as you adjust to new consumer habits in the digital age.
