In a world where massive sets of data are readily available with the click of a button, proper management of this information is central to staying abreast of best-of-breed B2B practices. Revenue Performance Management (RPM), while not a new concept, is gaining momentum in the B2B literature. All too often, critical pieces of data go unused, unseen, and underutilized. However, emerging companies are realizing the intrinsic value in RPM and its potential to fuel business growth. The ability to capture data to analyze its relevance for current company tactics and industry trends is the foundation of proper RPM.
At the end of the day, even the most seasoned B2B marketer is human and the human mind is often incapable of understanding the type of data that a statistical model can deliver. As such, an established RPM methodology is necessary for generating data that is applicable and relevant, and in turn, creates useful information for the organization.
The following outlines the crucial features of a successful RPM strategy:
1. Spending Analysis: marketing and sales are commonly the biggest B2B expenses. The ability to analyze these expenses in relation to revenue and ROI puts an organization in a position to win.
2. Accountability: departments such as accounting and operations are no longer the only divisions which can measure, track, and hold themselves accountable for returns.
3. Revenue Growth: successful RPM puts B2B companies in a position to grow revenues substantially by calculating exactly how marketing and sales spending are affecting the overall performance of the organization.
4. Forecasting: by tracking and regulating 5 core metrics, RPM is able to tell an accurate story of marketing and sales performance to deliver the strongest results.
5. Five Critical Gauges: by evaluating current numbers in reach, value of each stage in the sales pipeline, conversions, time taken for prospects to become customers, and reporting in terms of returns, RPM represents a strong growth opportunity.
As new technologies continue to emerge, departments such as marketing and sales, are able to take the guesswork out of their core expenditures. While marketing is still largely an art, the ability to track specific metrics in order to make real adjustments will ultimately boost sales, increase accountability, amplify current needs, and showcase best methods to meet forecasts.