Benefits of Revenue Marketing for Business
In every business activity, the use of the term revenue is always the main focus. Revenue is generally used to measure the profits of a business. Seeing the definition, revenue can be interpreted as income generated by a company or business activity within a certain period of time.
Sources of revenue can be generated from the activity of buying and selling goods or services which are the main operational activities. In addition, there is also the term revenue marketing. Do they both have the same meaning? Then, is there a difference between the two?
Understanding Revenue Marketing in Business Activities
The term revenue marketing seems to have been first popularized by Debbie Qaqish in her book entitled "Rise of the Revenue Marketer". Revenue marketing refers to an approach taken by someone who works in marketing.
This includes the process of using various media or available means to build a marketing campaign. The ultimate goal of revenue marketing is to attract as many consumers as possible and boost sales.
Several functions that can be performed by revenue marketing include helping marketers to prove the return of a marketing investment, creating an optimal experience for consumers, and helping businesses to compete in the digital world.
Today, marketing revenue is increasingly being looked at by business people, especially those who do marketing via the internet to generate new business prospects and opportunities.
Marketing revenue is also increasingly promising as a way to boost revenue levels. This can be achieved through marketing campaigns with the aim of increasing brand awareness or to support product launches.
Revenue marketing connects the marketing plans carried out by marketers so that they can achieve the intended income value. If you are trying to implement a marketing revenue plan in your business, pay attention to the revenue value that is your goal.
For example, a company wants to reach its target of 10,000 new customers and earn Rp. 100 million in revenue. So, every marketing effort carried out by the company must be able to reach Rp. 100 million, especially from the 10,000 new customers.
Benefits of Revenue Marketing for Business
As previously mentioned, revenue marketing is an effort to increase prospects and attract more demand in the business. In addition, there are also three benefits that can be obtained through revenue marketing, including:
1. Increase Customer Focus
In general, marketing practices are carried out to attract consumers' interest. As for traditional marketing practices, the company will try to display the product as attractively as possible so that it will be of interest to the public at large.
It's different if through revenue marketing, companies will be invited to focus on the needs of the community and what people really want. In addition, companies will also be invited to build long-term relationships with customers.
2. Improve Team Alignment
In the world of work, it is commonplace when there is a conflict between employees or divisions. One division that often experiences disagreements is the marketing and sales team.
The marketing team wants to improve a broad positive image, on the other hand the sales team is more focused on consumer interest. For this reason, revenue marketing helps the company so that each division moves with the same direction and focus, namely the customer.
Thus, all divisions can re-align the common goals and results to be achieved by the company. Each role within the company will see a wider context for achieving a goal.
3. Improve Goal Setting
Revenue marketing will make the company prioritize revenue (revenue) without compromising the achievement of prospects. In addition, companies will also be helped to link between success metrics and revenue generation from certain sources.
This is intended so that the goals to be achieved will be rooted in real sales volume, not only based on predictions of potential customers. In order to reach the marketing revenue stage, each company will go through the following four marketing stages.
- Traditional Marketing
This is the beginning of the whole marketing process. At this stage, companies usually take various ways to build a brand so that it can be recognized by the public in the midst of limited financial conditions.
- Lead Generation
When entering this stage, the marketing or marketing team will try to determine the target of high-value prospects to go to so that steps can be determined to encourage sales.
Companies often have to face conflicts between marketing and sales teams due to an understanding of the prospects being pursued. As a company leader, your biggest challenge is that you can be present as a leader who protects employees.
- Demand Generation
At this stage, you will focus on marketing efforts towards the value of income which of course must be carefully planned. The marketing team plays a role in setting strategies so that company goals can be achieved.
A number of challenges that are usually present at this stage are maintaining brand image and demand from the public, managing expenses and income, and building solid relationships between divisions.
- Revenue Marketing
If it has succeeded in realizing a consistent system in generating revenue, the company has started to enter the automation stage. This is achieved through experience so you can now develop predictable, repeatable and measurable strategies.
To achieve revenue in a company, synergistic collaboration is needed in every function within the company. The stakes between finance, marketing, sales, and production teams make pricing very challenging.
Therefore, company leaders are expected to be able to understand the basic and alternative aspects of pricing. That way, the strategic design in achieving the company's revenue can be done simultaneously.