Revenue Performance Strategy
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Revenue Performance Strategy

 Rescooped by Business-Accelerated Company from The MarTech Digest

The Mathematics of Revenue Cycle Strategy - Marketo

Learn how to think of your revenue mathematically with marketing automation, measure variables, and benchmark your measurements and drive them to improve.

Summary...

I usually think of the revenue cycle like a factory line. Raw materials come in (“names”). They are processed (“revenue cycle stages”). And then the product comes out (“revenue”). If you think of it that way there are clear variables that will impact the product being produced.

The key revenue variables are the following:

Number of names in Engaged status = A    Number of names added to Engaged status = B    Quantity of Engagement = C    Quality of Engagement = D    Product quality = E

What is the formula you might ask?

((A*weight 1) + (B*weight 2) + (C*weight 3) + (D*weight 4) + (E*weight)) = P*

Notes:

P = your revenue cycle momentumIf P increases you will generate more revenueEach variable has a weighting adjustment to equalize their impact on your final number – therefore any variable change will impact P at the right magnitude
Via marketingIO

There's nothing like a good equation to set the parameters of your thinking and expectations.  You don't need to be an economist but you do need qualitative quantitative skills.  Business owners must make friends with math.  Your future revenues depend upon it.

marketingIO's curator insight,

We had to think hard about this one, and quickly realized that it is a relatively simple formula that has the potential to reveal gaps and opportunities. Not as clean as you may want, as it relies on your weighting, but a nice approach.

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 Rescooped by Business-Accelerated Company from Strategy and Competitive Intelligence by Bonnie Hohhof