When it all goes according to plan, it’s the kind of magic that propels careers and gets marketers noticed for the vision, project management and creativity that went into hitting a revenue goal.
In this post we’ll discuss building a strong foundation in order to set and hit revenue goals — revenue goals that are higher than last quarter, of course.
Many researchers will tell you that writing a research grant involves reporting and teasing the results of research you’ve already done. It’s counter intuitive, but you get a research grant after you’ve completed most of your research and have a decent understanding what the answer is to your research question.
It’s a revenue goal, but it’s also a prediction that you expect has a high chance of coming true. And this takes the ability to study data and run tests to understand what’s possible in terms of goals and stretch goals.
To answer this question, start with the most important reports pertaining to each section of the funnel. We think of the funnel as having three parts: top-of-funnel (TOFU), middle-of-funnel (MOFU), and bottom-of-funnel (BOFU) transition stages or stages in your funnel.
For each stage you’ll want to know the ROI or dollar efficiency, i.e. how much do you get with for $1 in spend for a lead, opportunity and customer? You’ll also want to know how quickly that $1 dollar turns into a lead, opportunity, and etc., measured by velocity.
How do we drive demand and fill the top of funnel better? Answering this question is how you reach a demand goal, and set goals that are higher than before, hopefully without having to spend exponentially more money.
For leads, we use U-Shaped attribution model which distributes credit for anonymous First Touch and Lead Create touch. This model represents an accurate estimation of channel performance, measured by how many leads each channel should be credited for.
In order to run an analysis or make a forecast to help you set attainable #marketing goals, you need data that represents how well your channels are actually performing. Using a single touch attribution model to measure performance will make some channels look like they are performing better than they actually are, or worse than they actually are.
After understanding your baseline channel performance numbers for the past several months or quarters, you can plot them and begin to see the month-over-month (MoM) growth, and get a sense of what next month’s or next quarter’s goal should be.
But there are metrics you can include and tests you can run to gain an understanding of what’s possible as a result of more spend or optimization improvements. We’ll cover that in the next section.
To understand the trends for lead-to-opportunity conversion rates, you’ll need to run an Opportunities By Marketing Channel Report. This describes channel performance from an opportunity creation point of view.
By understanding how well your channels are converting opportunities, you can set opportunity goals in marketing. Same rules apply as previous, you want to use a multi-touch attribution model to accurately estimate which channels and touchpoints were influential in driving the opportunity. At Bizible, we use W-Shaped attribution.
There are additional reports you can run to help you set marketing goals. By looking at average velocity of lead to opportunity conversion and cost data, you can begin to understand the levers that move opportunity conversion. If you can improve velocity or reduce cost per opportunity, you can set higher goals, or simply have greater control over how many opportunities you generate.
Setting a lofty a goal is one thing, being able to set a goal that is obtainable and realistic is another. You can’t have the latter without a firm understanding
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