The Methodology behind Revenue Analytics
In a previous blog post, I discussed the importance time plays in accurate marketing analytics. Using a methodology that incorporates time is also essential when establishing a foundation for accurate marketing reporting and analytics. While marketing has not traditionally applied the same level of rigor to modeling their portions of the revenue cycle as their sales counterparts, defining the stages of the revenue cycle is important nonetheless. It serves as the foundation of revenue cycle analytics and allows marketers to discuss results in a way that shows the effectiveness of lead generation and lead nurturing activities, activities that affect every stage of revenue.
By defining the stages of the revenue cycle, the marketer has the ability to measure the quality of any given marketing program at any point in time. By measuring and reporting on the number of leads and accounts that enter each stage in a given period, it helps the marketer determine which lead generation sources create prospects that convert better and faster down the funnel. It also gives marketers insight into the programs that can accelerate pipeline through tracking which marketing touches influence conversion from stage to stage.
A revenue stage model creates a common language throughout the entire organization. This universal communication enables your company to measure results, understand the status of any propsective customer and define actions that are required from each department. Other operational benefits that improve lead management processes include:
- Customizing lead nurturing based on where each prospect is in the cycle and automatically move prospects between nurturing tracks as they move through the funnel
- Adjusting lead scoring rules and sales alerts by stage
- Triggering campaigns and sales actions as prospects transition from stage to stage
- Defining service level agreements for how long a lead can stay in certain stages and automatically send alerts and trigger campaigns when leads go stale.
For a deeper dive into Marketo’s unique methodology and best practices, see The Marketo Revenue Cycle Analytics white paper.