New Study Quantifies Dramatic Growth From Revenue Performance Management

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Posted: May 24, 2011 | Modern Marketing

On this blog I have consistently made the point that in today’s radically altered buyer/seller environment, companies need to make equally radical changes in their sales and marketing strategies to continue to grow and prosper.

My oft-repeated message is two-pronged. First, businesses today need to transform how they create, manage, and accelerate revenue. Secondly, a powerful and proven strategy to achieve breakout growth is Revenue Performance Management (RPM).

Now, there is a new global study that clearly underscores these points by quantifying the bottom-line financial impact of transforming a company’s sales and marketing activities through RPM. Conducted over the past few months by our in-house research team, the newly released Marketo Revenue Quotient study calculated that, by deploying RPM, Marketo’s customers worldwide have the potential to bring in a total of $2.53 trillion more in revenues over the next five years. That is trillion with a “t”!

This reflects the amazing 40 percent increase in revenues that Marketo’s customers report after deploying revenue performance management. These sharply increased revenue numbers are directly attributable to using RPM, a breakthrough category of software applications and business processes (think “Six Sigma” for marketing and sales) that optimize interactions across the revenue cycle to accelerate predictable revenue growth.

According to the new Revenue Quotient study, the sharply higher revenue results achieved by Marketo’s customers derive from the following RPM-driven improvements:

  • 46 percent improvement in the number of sales opportunities
  • 11 percent improvement in average contract value
  • 17 percent improvement in sales win rate
  • 15 percent reduction in customer acquisition costs

What’s Your RPM “Score”?

As part of the study, our researchers analyzed Marketo’s 1,000-plus global base of customers, focusing on the four key areas or RPM:

The research team analyzed the cumulative customer results across these RPM categories and developed a score for each. That score was then applied to the projected aggregate revenues of Marketo’s customers through 2015, with the net result being the total of $2.5 trillion in revenue gains over the next five years.

By any measure one can use, those breakout revenue results profoundly change the game for corporations, which are looking for new ways to achieve ever higher levels of growth and profitably. RPM not only gives business leaders an ideal roadmap to navigate and capitalize on the historic changes taking place in today’s social, mobile, and web-driven marketplace. Equally important, RPM helps companies to optimize their customer interactions across every touch-point, and align sales and marketing to operate at maximum performance.

In a global economy that is increasingly more social and more connected, business leaders need marketing and sales tools and strategies that enable more agility and more speed. RPM is meeting that need, and the new Revenue Quotient survey demonstrates the tangible results that follow.

Adding Up to “Real Money”

There is an old Washington, DC saying that speaks to the massive budgets that are commonplace in the US Capitol: “A few billion here, a few billion there. Pretty soon, you’re talking real money!” (And that was before the daily news about national deficits ballooning to multiple trillions.)

Our new Revenue Quotient study makes it very clear that there is indeed “real money” for companies deploying RPM as they seek to reengineer the demand chain and transform the entire revenue process. The timing couldn’t be better to grab hold of this trillion dollar revenue opportunity.

Phil is former Chairman and CEO of Marketo. He is a Silicon Valley veteran, with more than 30 years of experience building and leading breakout technology companies. Phil is a well-known writer and speaker on topics related to digital marketing, marketing automation, big data, and entrepreneurialism, and is the author of Revenue Disruption (Wiley, 2012), which delivers bold new strategies for any company to transform its sales and marketing to accelerate revenue.

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New Study Quantifies Dramatic Growth From Revenue Performance Management

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