Revenue performance is a management system that measure revenue. The process can be used to identify factors that drive revenue, measures the performance of these factors, and taking action to maximize revenue. It involves quantifying and optimizing marketing processes and helps to improve the effectiveness of your marketing efforts. In this article, we provide an overview of revenue performance management and explain why it is such an important part of marketing and business overall.
The World Wide Web has completely changes the shape of sales and marketing. It has transferred power from sellers (businesses) to buyers (consumers). Thanks to the internet, buyers now have more ways than ever before to really research products or services before the make a purchase. That’s why it’s important for marketers to ensure that they can easily be found on the Internet. After all, if your business can easily be found on the internet, your chance of seeing revenue gains can be significantly increased. That’s where revenue performance management comes in.
What is Revenue Performance Management?
Revenue performance management is a relatively new approach in online marketing. It focuses on optimizing interactions with prospective buyers across the entire revenue cycle. This type of management focuses on transforming marketing and improving sales practices. It also involves changing the tools that are used in marketing and improving communications with marketing and sales teams. In doing all of these things, businesses can see how their revenue is performing and increase it.
In short, revenue performance management involves a systematic approach to figuring out what drives revenue. It also identifies what impedes revenue. The two are rigorously measured and efforts are made to optimize marketing return on investment top line growth.
Essentially, the goal of revenue performance management is to help move prospects through the sales funnel.
Processes Involved with Revenue Performance Management
The main process behind effective revenue performance management is constantly measuring and analyzing all of the results that you possible can and then creating actionable insights for implementation in future campaigns.
The processes involved in revenue sales management include the following:
- Revealing the sales pipeline. If you really want to take a fully integrated approach, you want to become familiar with your sales team so that you can develop a cohesive partnership between your sales and marketing departments. Learn how they track sales quotas, route leads, forecast sales, etc. All of this information will help you determine how to manage leads better and more effectively filter them through the sales funnel.
- Generating demand. To generate more demand, you’re going to want to increase communications by ensuring that you are sending out relevant messages that recipients can truly engage in.
- Managing leads. Marketing and sales departments work together to establish metrics; key performance indicators and benchmarks, for example. The goal should be to align lead scoring models with service level agreements. This will allow you to optimize lead quality and flow more effectively.
- Determine where to find revenue. Assess all of the information you have gathered to determine where your revenue is coming from, where you are losing it, and where you can gain more.