How Data Analytics affect Revenue Line of a Business ?
Gauging the revenue earned by the company is an important thing. But not every company does this itself, but they rather opt for outsourcing Revenue Analytics for business profit. Whether you choose to outsource it or do it yourself, it is a must that you learn about the revenue analytics methodology and the varied stages within this method.
For any organization, in order to upgrade its business, marketing plays a very important role. Marketing of any product or service is executed through online and social world which helps in gaining audience popularity. Therefore, marketing alone influences the 70% of the entire buying process and incurs sales. To produce revenue, a coalition of marketing and sales is important. Contrary to old process being followed, this is an all new approach towards business, towards revenue generation, which comprises new metrics and analytics. This new way of measuring and examining the cycle of revenue production is called “Revenue Analytics”. Outlining the whole process of marketing and sales, beginning from the consumer awareness including the whole of revenue cycle is termed as “Revenue Performance Management”. To create a firm foundation of relevant revenue metrics, you need to first line up marketing with sales and with this collaboration, perform the analysis through each stage.
The purpose of revenue analytics is that it helps the company keep proper track of sales as per the marketing and then measure the total amount of revenue generated. This methodology helps the sales executive gauge movement through different stages starting from the buyer's behaviour. The most popular model in use is Marketo's Revenue Cycle which includes a lot of stages. This revenue analytic, model kick-starts from the entry point where buyers are not taken as sale leads. In next stage, the leads are considered as engaged if they attend any webinar, read the content from the site and even click on the link in the email sent as marketing stunt. After this, the stages depict the buyer's intention of purchasing the commodity or some other behavioural engagement with the item. Further, when the previous stage is cleared, sales executive passes the lead as 'ready for sales' and is certified by the sales team, and is considered as a 'deal' which needs to work upon. The resultant outcome determines the next stage if it is time to initiate a new customer business.
The stages or processes described above can consume a lot of time, so there are considered some specific stages which can roll in other missed stages and provide focussed result, and thus a sharper and quicker gauge of tapping the revenue. These specific, concentrated stages are-
Inventory Stage: It is a 'holding pool' where leads and the corresponding accounts can be suspended for unlimited time, till they need to be shifted onto next stage.
Gate Stages: It serves a simple check to qualify or disqualify the lead.
SLA Stages: SLA means 'service level agreement'. In this stage, if a lead is stamped as 'ready for sales', it is termed as 'lead qualified for marketing'. The sales executive has a limited period of time to contact the lead. If it remains 'stagnant', it sends an alert message to sales management and the lead may be transferred to a other executive.
It depends upon the sales management team or the company to follow the elaborate method of revenue analytic model or to choose any specific one only. These stages help the company to measure the revenue which can be or which has been generated by company.
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