Over 60% of marketers now use opportunities, pipeline, revenue, deals, and ROI to measure marketing performance. In the 4th annual State of Pipeline Marketing Survey, over 400 B2B marketers shared how they build growth for their organization through pipeline marketing methodology which impacts the entire funnel rather than only top of funnel customers. While this methodology is embraced by more marketers, 53.1% of respondents said their departments are still seen as cost centers within their organization. What can marketers do to change this perception?
Being perceived as a revenue driver is directly linked to marketing organizations that have gone through some form of digital transformation and can prove their impact versus marketers that are focused solely on leads and activities. The more that marketers can frame the value of their efforts in the language of the C-suite, the easier it is to receive budget increases. Marketers that make a direct correlation between investment, planning, and impact metrics have quantifiable data are speaking the universal language of the C-suite – REVENUE.
How is your marketing team measuring performance?
60.4% of marketers surveyed rated their organization’s ability to effectively measure marketing performance as merely ‘somewhat effective’. This is a crucial metric; the ability to accurately measure effectiveness means that marketing departments can optimize successful programs and activities to improve future outcomes. Marketing organizations that map spend-to-revenue are 42% more likely to expect their YOY budget to increase. Allocadia co-founder and CPO Katherine Berry knows that “regardless of the exact ROI approach you take, it’s essential to have an accurate view of both the R and the I.” It’s not enough to have access to data – marketers need to start mapping their investment data against pipeline and revenue metrics if they want to gain full clarity into how marketing is impacting the entire organization’s growth.
How does your marketing team plan?
Once you have clarity into your program effectiveness, it’s time to plan your next marketing activities based on revenue metrics. If your marketing team hasn’t formalized a process to map investment against revenue and improve performance, now is the best time to get started.
Marketing organizations that plan based on revenue are:
- 85% more likely to have a reputation as a revenue center within their company
- 31% more likely to confidently hit their revenue goals
- 66% more likely to report positive ROI
What is the benefit to changing?
Being viewed as a revenue driver is crucial to making your marketing department seen as strategic and impactful. Marketing organizations that are perceived as revenue drivers are 54% more likely to have YOY revenue growth greater than 20%. CEO and co-founder of Allocadia Kristine Steuart emphasizes that, “every marketer today must assume accountability for performance against strategic business objectives and revenue targets.” If marketers consider their organization’s broader business objectives while planning, they set themselves up for success within the department and with the C-suite, because they’ll be driving revenue alongside other teams. Another bonus? 50% of marketing departments that are perceived as revenue drivers expect to receive a budget increase!
55.8% of marketers have some investment data mapped to their pipeline and revenue metrics, but they’re also only somewhat confident that their team will hit their revenue goals. By half-committing to a strategy, these marketers are eliminating their chances for budget increases and having a reputation as a revenue driver. Marketers need to stay competitive as the MarTech industry evolves. Eliminate uncertainty by mapping all investments to revenue and ensure that the insights you gain are used to improve future programs.
Yes – investing time, resources, and man-power into revamping the way your team measures and optimizes performance is a big commitment. But the results are too great for marketers that are serious about ROI and driving impact to ignore. Pipeline-focused marketers are more likely to hit their revenue goals, report alignment with broader business objectives, and be perceived as revenue drivers. The longer marketers wait to implement these changes, the harder it will be and the farther they will fall behind their peers. The time to change is now.