Guest post by Samantha Waites.
An effective marketing strategy and sales business plan are essential to drive growth. Revenue marketing tries to close the gaps between sales and marketing by combining closed-loop data feedback and automation to ensure no money is wasted.
Here are six ways revenue marketing can positively impact your business.
1. Know Your Audience
Strategic revenue marketing can help you learn more about your customers and get to know them better. Understanding your target market is why revenue marketing metrics are important. The marketing strategy you create must be based on the problem you’re trying to solve. You can develop a detailed buyer persona to map out what people need at different points in the buying process.
When someone is ready to buy your goods or service, they go through a buying cycle, which is a set of decisions they make before they buy. The buying cycle is critical to know to ensure that your sales and marketing efforts work together.
Even though the buying process varies from one company to the next, some marketing steps stay the same for each. There are many ways people buy things, and you need to know how they like to buy yours.
2. Integrate Your Sales and Marketing Teams
The term “revenue marketing” is used when marketing and sales work together to link campaigns to revenue and maintain contact with leads even after salespeople have started an active sales cycle. Rather than putting each person or team in charge of their work, you can build up a culture of collective responsibility and accountability.
As a business owner, you can ensure your sales and marketing teams know each other’s goals and processes. They will work together to generate leads. These tactics can be used repeatedly based on which channels and campaigns bring in the best leads, ensuring that the results will be consistently successful.
3. Price Based on Value
Revenue marketing allows a business to develop a pricing plan that will attract customers and give it an advantage over its competitors, which will enable it to make more money. Companies that excel at revenue marketing develop a deep understanding of their prospects’ needs and value drivers, making it difficult for competitors to keep up.
Revenue marketing plans can help businesses with many different products or services figure out which are the most popular and how to sell more of them. It also tells you if you’ve set your prices right. If a product sells many units but doesn’t make a lot of revenue or profit (e.g., due to high post-sale service requirements), the price may need to change.
4. Improve Cash Flow
More accurate forecasting—having a better handle on when and how much you expect to sell—is one of the most important benefits of revenue marketing. Improved forecasting helps you better manage your cash flow. Many businesses have different sales at different times of the year.
A business with well-planned revenue marketing can bank cash during its busiest times. This helps avoid the need to borrow operating capital to pay your staff, your bills, or your taxes during slow sales periods.
5. Keep Control of Your Inventory
Revenue-focused tactics make it easier for a business to keep track of its inventory. Improved forecast accuracy make it less likely you’ll miss opportunities due to being out of stock or increase costs by carrying too much inventory. It means that you won’t have to pay for either expedited transportation of materials or extra storage space for products.
Having enough stock to meet demand reduces the risk of losing sales. Ensuring that the goods are ready to be bought when the customer wants to buy them improves both your top line and customer satisfaction. Finally, forecasting eliminates the need for flash sales to get rid of extra stock.
6. Increase Customer Satisfaction
Customer satisfaction and excellent service can only happen if you completely understand what customers want and need. Without accurate forecasting by product, you run the risk of stock outs and possibly losing customers to competitors.
Revenue marketing helps companies learn more about what customers want from their business. It helps them set pricing that reflects value and offer the right mix of services along with product variations and packaging.
These are just some of the changes you’ll see with the help of effective revenue marketing. The goal of revenue marketing is to make more money for your business. You can add revenue marketing to your marketing plan to better align your sales and marketing teams.