Not Another Buzzword: Revenue Marketing’s Surge in Popularity is Real

If you survey 100 random people on the street and ask what they think marketing’s primary goal is, the majority would answer to increase brand awareness. If you survey 100 marketers and ask what they believe their function’s ultimate goal is, the majority would say to drive revenue. So which answer is correct? Both are — or at least the right answer is a combination of the two. 

Yes, marketing exists to generate awareness. But the end goal isn’t to simply expose buyers to a product or service. It’s to introduce then educate so the buyer will know what to buy, why to buy, and where to buy. And though marketing’s contribution to revenue isn’t as black and white as that of closing a deal, successful marketing campaigns undeniably boost sales — and ultimately company revenue. 

Marketing’s goal to contribute to the business’ bottom line has not changed. However, there has been an increase in the number of companies asking the department to more tangibly prove their impact on revenue with more than three in four (77%) CMOs feeling pressure to prove their campaigns are providing short-term return on investment.

Enter revenue marketing. Revenue marketing is not a new concept nor is it another buzzword. Despite the fact that the term has been trending in the industry, revenue marketing is real. Its surge in popularity is unsurprising given the changing — and challenging — macroeconomic climate. 

What is revenue marketing?

Revenue marketing is a strategy to identify marketing channels that offer revenue growth and align marketing and sales teams to attribute their campaigns to revenue-generating activities. In revenue marketing, marketing and sales actively work together to boost customer acquisition and better predict sales. 

The biggest differentiator between revenue marketing and other marketing strategies is the prioritization of targeted and goal-oriented marketing tactics that require closely tracking and staying engaged with prospects even after they’ve moved beyond the first stage of the funnel. In the past, marketing simply qualified a lead and handed it off to sales. In revenue marketing, marketers continuously engage with buyers to ensure customer retention and initiate upsell opportunities. By monitoring the impact of marketing campaigns beyond lead generation, marketers can pinpoint where leads convert into revenue-generating customers. 

What is the difference between revenue marketing and marketing ROI?

Revenue marketing’s emphasis on revenue growth may cause some to mistakenly consider it synonymous with marketing return on investment (ROI). What’s the difference? Revenue marketing refers to a specific strategy and its accompanying tactics with the goal of increasing overall revenue. Marketing ROI analyzes the performance of marketing campaigns and measures the profit and revenue growth brought in from various marketing channels. 

So, while not the same, the two concepts are related. And both revenue marketing and marketing ROI are critical to proving marketing’s positive impact on the business. By uniting sales and marketing teams with the common goal of driving revenue, the combined efforts spotlight which tactics successfully contribute to revenue growth. In turn, marketing leaders can confidently plan their short- and long-term campaigns. 

What are the benefits of revenue marketing?

Beyond linking marketing to reliable, repeatable, and revenue-driving efforts, revenue offers a variety of other benefits. When purposefully implemented and effectively executed, revenue marketing positively impacts customer interactions and improves the relationship between sales and marketing.

When it comes to customers, revenue marketing focuses on their specific wants and needs versus highlighting the company, product, or service. For example, there would be a greater emphasis on customer-specific benefits (i.e., response time to speak with a representative or a positive user experience on the website) rather than product-specific features (i.e., AI-backed insights or accessible reports). Revenue marketing helps establish and nurture long-term customer relationships, which drives continued sales over the years. 

It’s no secret that marketing and sales teams often have a fragile relationship, with friction that is usually exacerbated by marketing’s desire to elevate the brand’s reputation and profile and sales’ focus on closing deals. Revenue marketing can also positively impact this fraught relationship by aligning the two teams with a singular focus — the customer. When in agreement around the importance of maintaining a consistent and positive engagement even throughout the entire customer journey, sales and marketing can tag-team to engage current customers and develop new revenue opportunities.

Revenue marketing within your TAM

Revenue marketing empowers marketers to deliver relevant content across all stages of the customer journey. Before kicking off your revenue marketing strategy, remember this one critical fact — no message, no matter how compelling, will make an impact if it falls into the wrong hands. Yes, you need to communicate the value of your product or service at all times. But you also need to communicate it to the right audience — the accounts in your total addressable market (TAM). 

Marketing’s ultimate goal is twofold: awareness that ultimately contributes to revenue. By identifying the marketing channels that offer revenue growth and aligning marketing and sales teams to attribute their campaigns to revenue-generating activities within your TAM, your marketing efforts are more likely to convert into a sale and drive predictable, sustainable revenue.