These are the questions we asked ourselves as we imagined and developed “What is Revenue Performance Management?”, the latest video from Eloqua and JESS3. To be honest, we never came up with a clear answer. I suppose it tastes great and is less filling.
When we published The Future of Revenue, the precursor to today’s video, our objective was clear: help create a new category (Revenue Performance Management) by putting our vision in historic context. Worry less about the details, more about the concept.
Category creation requires passion. So we created a video that would put RPM “on the map,” alongside major business shifts like Total Quality Management and the assembly line.
But eventually passion must give way to process. In the year or so since we published our first video, companies have set down the path toward Revenue Performance Management. Best practices emerged. Methodologies took shape. Results are being tracked. To borrow a line from Dan and Chip Heath’s “Made to Stick,” it’s our job as the pioneers of this category to “make it concrete.”
How do you make the inner workings of an entirely new business strategy concrete while compelling the viewer to watch? How do you keep their attention long enough to tell a substantive story? And how do you do it with staying power – a motif more durable than lolcats?
Together with JESS3, we rifled through ideas – from the rote to the irreverent, from the familiar to the far-out. We settled on a Rube Goldberg-inspired concept, an animated “machine” that takes the viewer on a journey not only through RPM itself, but also through time and even space. It’s not your average corporate video. (There’s even a toupee gag.)
Or, as JESS3 co-founder Leslie Bradshaw, said, “Just when you think you've seen it all from Eloqua and JESS3, we go and do something so spectacular that it begs the question: is this art or marketing? We actually think it is both and together we will continue to redefine what marketing is through useful, beautiful and entertaining content."
We are thrilled to share our latest animated video, “What is Revenue Performance Management?” We hope you enjoy watching as much as we enjoyed creating it. If you wish to share it, we’d like that very much. We’re using the hashtag #RPMvideo.
As an added bonus ... below is the script supplied to the narrator:
WHAT IS REVENUE PERFORMANCE MANAGEMENT?
Since the dawn of industry, marketing has been about appealing to people’s emotions.
From memorable TV spots to guerrilla advertising, it’s always been more an art than a science.
Thanks to new technologies including trackable media, companies have the ability to apply rigorous metrics to what was once a matter of taste.
Now marketing can be just as accountable as other core business functions, like accounting and operations.
Sales and marketing are most companies’ greatest costs, yet few have any real idea of how this spending impacts business growth.
Revenue growth is the top priority of most CEOs, leading to higher expectations for all business functions, but in a recent study, 87% of marketers said their current techniques are not hitting performance targets.
With better insight into sales and marketing activities, it’s estimated that companies could gain an extra 10% in total annual sales.
In other words, marketing is no longer just an art form; it also needs to show that it’s an active generator of revenue, requiring sales and marketing teams to work together like never before.
Smart companies are implementing scientific methods to examine how their sales and marketing dollars are spent.
The science these smart companies are turning to is called “Revenue Performance Management,” and it’s helped these organizations outpace the S&P 500 Index by 78%.
Using Revenue Performance Management methodologies, companies evaluate sales and marketing performance and forecast future revenue by tracking and adjusting five essential metrics … in real time.
First, companies evaluate the REACH of a given activity.
Marketers must ask themselves, 'How many people are we able to contact ... and how can we make that number grow?'
Second, companies need to know the VALUE of each stage in the sales pipeline…
… how many prospects are at each particular stage, and how much is each likely to spend.
Accurately tracking pipeline value is a key step in reliable forecasting.
Third is CONVERSION, which ensures continued progress throughout each stage of the sales cycle.
By measuring the rate at which leads move through the pipeline, companies can work out if there are any bottlenecks and where.
The next important concept is VELOCITY, involving the accurate measurement of time taken for a prospect to become a customer, including how much time was spent at each intermediate stage.
Now more than ever, marketers are figuring out ways to accelerate the process…
…and how to improve forecasting so it is no longer a guessing game.
Finally, RETURN is often the “missing piece” of sales and marketing.
By implementing reporting for the whole sales cycle…
…companies can provide a clear cost of specific marketing and sales activities compared to the revenue they bring in.
Marketing is still an art, but new technology allows business leaders to apply science to it like never before.
Revenue Performance Management is not just the future of marketing, it’s also the future of business.