Earlier this year, Marketo conducted a global study of customers that reported some pretty astonishing findings. The study calculated that by using Revenue Performance Management (RPM), our customers had the potential of generating more than $2.53 trillion in incremental revenues over the next five years.
That huge number reflected a 40 percent increase in revenues that Marketo’s customers could deliver as a consequence of deploying RPM. Talk about a data-point that focuses one’s mind (and hopefully actions)!
The study assessed how over 250 Marketo customers (nearly 19 percent of our current customer base) are faring by using the company’s full range of revenue-building solutions. According to the survey, Marketo’s customers are registering tangible business results across the revenue cycle, including:
- 22 percent increase in qualified leads generated by marketing
- 21 percent increase in qualified leads converting to sales-accepted opportunities
- 17 percent increase in sales win-rate
- 12 percent increase in average contract value
- 7 percent improvement in length of sales cycle
The study also found a sharp increase in marketing productivity as a result of deploying our RPM-related solutions. On average, Marketo customers ran over 46 percent more programs and campaigns after a year of using Marketo. The top 20 percent of customers had doubled their programs, and 49 percent of customers had increased programs by 75 percent.
Clearly, by using these revenue-focused products and services, corporations are significantly expanding the scope and frequency of their marketing activities. And that leads to increased revenue performance and results.
How the RPM ‘Maturity Curve’ Correlates to Revenue Results
What I found particularly intriguing about this study was its examination of where customers are on the “maturity curve” in terms of deploying various aspects of RPM. Even more important was how that maturity level correlates with the companies’ revenue performance. A deeper analysis of the study data examined where our customers placed on the RPM “maturity curve” around these three revenue process categories:
- Increasing flow of opportunities through marketing automation, optimized campaigns, and lead nurturing
- Improving sales effectiveness through better lead prioritization, insights into buyers, and alignment with marketing
- Optimizing investments in programs, processes and people across marketing and sales through better insights and planning
The bottom-line is that the research found a strong correlation between the customer’s position on the RPM “maturity curve,” with the business results they were seeing. Simply stated, the more you use RPM, the more revenue results you will put on the board.
For example, customers that deployed the full RPM solution (the pinnacle of the “maturity curve”) achieved a 29 percent increase in qualified leads. That is a notable increase from the 21 percent increase in qualified leads for customers who deployed just marketing and sales effectiveness solutions. And, it is a significant boost over the 7 percent increase posted by customers who deployed only marketing automation, which is at the starting point of the RPM “maturity curve.”
Where Does Your Company Stand in The Revenue Performance Continuum?
This RPM “maturity curve” is a useful analytical model in helping companies gauge where they stand in the revenue generation continuum, and what skills and additional process improvements they need to keep progressing up the various levels. Of course, the more companies progress on the curve, the more impact that has on their sales and marketing productivity, and ultimately their revenue results.
So the question is: Where does your company fall on the Revenue Performance Management “maturity curve?”
Answering that question could be the critical first step in accelerating your company’s journey on the path to a high-performance, high-growth revenue future.
Phil Fernandez