New Study Shows Marketing’s Role In Revenue Growing As Analytics Capabilities Increase
- Published in Marketing Analytics
It’s no secret that the majority of BtoB companies are starting to take a deeper look at metrics. There is a growing trend among marketers now to use analytics and measurement tools as key performance indicators to drive pipeline and revenue performance.
According to DemandGen Report’s new Marketing Analytics and Revenue Management Survey, two-thirds of respondents said they are currently using contact/lead quality and campaign effectiveness as indicators of true marketing performance, 64% are analyzing lead conversion at funnel stages, 63% are measuring marketing-sourced leads and 43% track marketing’s influence on revenue/deals.
Industry experts agree that companies are increasing their measurement capabilities, digging deeper into conversion and marketing influenced or sourced leads. “For any marketing organization that wants to be viewed as indispensable, and a driver of growth (not just a cost center), the ability to map activity to revenue is mandatory,” said Amy Bills, VP of Marketing at Bulldog Solutions. “The definitions of influence and sourced aren’t one-size-fits-all, but that should not cause anyone to shy away from measuring marketing’s impact.”
Just more than half of respondents (53%) said their marketing departments are responsible for revenue goals. And while the survey found that 60% of respondents are “somewhat confident” they will reach revenue contribution goals for the current year, marketers point to several hurdles that prevent the collection and analysis of key metrics, including a lack of internal processes (47%); limitations of tools and technology (45%) and an inability to integrate data across tech platforms (42%).
Marketing teams are increasingly influencing revenue impact. According to the survey, more than 4 in 10 CEOs (42%) are now actively tracking marketing’s impact on revenue, and 21% of CFOs now have direct visibility into the revenue performance of marketing. While 63% of respondents said CMOs are now providing reports that show marketing’s impact on revenue, surprisingly only 43% of VPs of sales are tracking marketing contribution.
“I have seen that many CMOs and marketing executives now understand that their roles have changed and that they need to begin to demonstrate their contribution to pipeline,” noted Carlos Hidalgo, CEO, The Annuitas Group. “While there is this realization, I think many are still looking at how they can do this consistently.”
Analytics Adoption Drivers
Increased measurement capabilities are not only helping organizations streamline internal operations, but these tools and metrics can be a solid competitive strategic differentiator. With greater visibility into the quality of generated leads and converted campaigns, best-in-class companies will be able to respond quickly and more intelligently. A vast majority (89%) of respondents have increased emphasis on marketing measurement over the past 24 months, while only 11% have not, according to the survey.
“No doubt [measurement capability] is one of the key priorities on RFPs that we see during vendor selection processes,” noted Cari Baldwin, Partner at Bluebird Strategies. “Campaign effectiveness, lead progression and visibility into conversion all prove the value of marketing.”
According to the survey, 68% of respondents cited “pressure to justify spend” as the primary driver for adopting measurement solutions, while 65% cited management’s push for better pipeline visibility. In addition, 58% said their sales teams are looking for more leads.
The complete survey results will be presented during the webinar titled “The Model For The New Revenue-Centric Marketer,” Wed. August 3 at 1 p.m. ET. Click here to register to attend.