Determine marketing contribution on Revenue Goal

Determine Marketing Contribution on Revenue

Goal

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“However beautiful the strategy, you should occasionally look at the results.” – Winston Churchill

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"Setting goals is the first step in turning the invisible into the visible." - Tony Robbins

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OK, So defining marketing goals is first step.Think beyond from branding or logo designing, Marketing is transforming

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Understand the marketing function and its existence in 2020s

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What does your CEO keen to know?How you can share marketing impact?

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The Proof is in the Pipeline

Revenue-Generation Marketing

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Answer is Business ImpactRevenue contributed by

Marketing in boarder sense or impact on bottom line

growth because of marketing initiatives

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Find out How Many Customers You’ll Need• Determine revenue goal from marketing• Average sales value • Revenue Goal Divided by Average Sales Per Customer• Web Traffic Divided by Lead Conversion Rate • Conversion Rate = Total Number of Sales / Number

of Leads * 100• How many visitors do you need to create one lead• Lead Goal Divided by Visitor-to-Lead Conversion Rate

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$30,0000 (Revenue Goal)

$5,000 (Average sales/deal value per customer)

= 60 Customers / deals

To find out the number of new customers we need to achieve our revenue goal. Divide revenue goal of $300k by our ASP of $5k. This shows, we need 60 new customers to reach our revenue objective of $300k.

Number of new customers you need

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= Total Number of Sales / Number of Leads * 100

Go back to the previous data and find out the average conversion rate

Let us understand thisConversion Rate

Let’s say you made 40 sales last year and you had 200 leads. Your sales to lead conversion rate would be 20%.

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60 New Customers

.02 Conversion rate

= 3,000 leads

( based on last year revenue data)

Divide the number of new customers (60) by the sales to lead conversion rate (2%). This indicate us that we should require 3,000 leads to create 60 customers.

Number of new leads, you need

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3,000 leads

.03 Conversion rate

= 1,50,000 visitors

Divide the number of desired leads (2,500) by the visitor-to-lead rate (3%). By dividing 2,500 leads by .03, we can see that we need more than 83,000 visitors to the website. Spread over a year, that’s approximately 7,000 web visits per month. -

Number of new visitors you need


80% of B2B marketers rate “generating quality leads” as the technique with the highest profit potential. Second was “improving sales conversion” at 71%.

Source: BtoB magazine, 2013 Lead Generation: Optimum Techniques for Managing Lead-Gen Campaigns, Nov 2013)

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Lead generation funnel

• Define a lead and understand his or her buying journey

• Build a robust lead generation strategy through marketing automation

• Use content marketing, social media, your website, SEO, and paid programs for lead generation

• Build enduring customer relationships with Middle-of-Funnel (MOFU) techniques

• Test, optimize, and measure your lead generation campaignsSource: marketo

(c) Hariom Sharan 2015© Hariom Sharan


Content Marketing and PR influencer, Social Media Marketing Strategist and Trainer. Checkout my marketers community http://www.marketingnewsline.com

AuthorHariom Sharan

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Determine marketing contribution on Revenue Goal

Marketing

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