Marketing attributed revenue is basically the actual dollar value in revenue that marketing is responsible for. The specific channels or activities that are most important in driving this revenue vary from company to company and from time to time within a company. Knowing your company’s revenue-producing marketing means knowing how well your marketing strategy is working. And when you know the impact each marketing dollar has on the company bottom line, you can plan more effectively, make a better case for budget approval, and generally raise marketing’s profile within the organization.
How is Marketing Attributed Revenue Important to a Company’s Bottom Line?
Marketing attributed revenue data should be used to make better decisions, support programs and channels that are working and either modify or scrap the ones that are not. In other words, this type of revenue helps you make better use of your company’s resources, and that will be reflected on the bottom line. A survey by the Lenskold Group found that nearly 60% of highly effective and efficient companies use marketing attributed revenue information to justify their marketing spending, compared with just over one-third of lower performing companies.
Why Measuring Marketing Attributed Revenue Is Challenging
Measuring proven revenue out of marketing is challenging. For one, when do you measure impact? Maybe you’re spending marketing money on a trade show today, but when will the results of that investment show up? For another, considering the many touch points that happen between a cold lead and a sale, how do you know which of those touch points was the one that made the difference? Furthermore, in many companies, a number of people influence purchases, and some purchases may be made by committee. Which influencer was key to the decision to purchase? Finally, there are any number of uncontrollable variables that may influence the revenue, like a snowstorm that keeps customers home for several days. How do these affect marketing ROI?
In some attribution models, weighted revenue credit is given to different marketing activities that influence a closed deal. How attribution is shared varies from company to company, and sometimes from one sale to another within the same company. In general, measuring the effect of marketing dollars requires starting with a base revenue figure for a particular period before a marketing campaign. You would then calculate total revenues for the same length time period after the marketing campaign and then subtract the base revenue to get an incremental revenue value.
How Can You Improve Marketing Attributed Revenue?
One of the most important factors influencing marketing revenue is the quality of marketing data that a company uses. When you inject marketing data on a lead right into your lead nurturing protocol without first checking data quality, you could end up making decisions based on faulty information. Data cleansing is essential to making smart marketing decisions and improving marketing attributed revenue.
To improve marketing revenue, you must ensure that data quality is high, and cleansing data is not a one-time process. Data goes “stale” month to month, and repeated cleansing is necessary to ensure it is accurate, complete, and not redundant. Automatic data enrichment is one solution to ensuring the data – the fuel that powers your marketing engine – is clean and does its job.
You must also make sure data is integrated. Often when companies add technology, they create a silo of data that may be inconsistent with other data sources. But when new data is integrated and unified with other marketing data, companies can come closer to developing a 360-degree view of their customer, developing a central, single source of truth for everyone.
Every company should understand how its marketing dollars are spent and how much revenue that spending ultimately brings in. It’s not an easy figure to pin down, but the information marketing attributed revenue provides helps companies make smarter decisions on what to do with their marketing resources.
Getting the most from marketing dollars means working with marketing data that is of the highest quality. It should be cleansed – de-duplicated, standardized, corrected, and verified – regularly, and where possible it should be enriched with data from other sources. The ReachForce continuous marketing data management solution (also called a CDP – Customer Data Platform by industry analyst David Raab, is designed to unify, cleanse, enrich, and activate customer data to help companies develop a 360-degree customer view so they can make the best use of marketing resources and increase marketing attributed revenue.
ReachForce helps marketers increase revenue contribution by solving some of their toughest data management problems. We understand the challenges of results-driven marketers and provide solutions to make initiatives like marketing automation, personalization and predictive marketing better. Whether you have an acute pain to solve today or prefer to grow your capabilities over time, ReachForce can unify, clean and enrich prospect and customer lifecycle data in your business, and do it at your own pace.
To learn more about how ReachForce can help you optimize demand generation and your impact on revenue, check out our real-time web form enrichment demo, or request a free marketing data diagnostic. Get the power to let data drive marketing and higher performance.