Does your company have an RPM? Nah, we aren’t talking about automotive Revolutions Per Minute or real-estate Real Property Management, but Revenue Performance Management. Throughout your marketing processes, what is your strategy for driving real sales growth? How do you quantify and optimize those processes?
Revenue Performance Management (RPM) appeals to a company’s marketing initiatives, because it validates their activities, projects, contributions and shows active revenue generation. RPM helps management evaluate sales and marketing activities in real time. They are able to measure the reach of activities, the pipeline value, customer spending and how marketing activities appeal to consumers’ emotions. This method leads to conversion, which is an important component to sales and marketing. Conversion shows revenue performance progress through each stage of your sales cycle.
(Retrieved from High Performance Marketing for Revenue Performance Management, September 4, 2012. http://ezinearticles.com/?High-Performance-Marketing-for-Revenue-Performance-Management&id=7251839)
Your sales cycle includes (a) prospecting or initial contact, (b) sales lead/building rapport, (c) identifying and assessing needs, (d) delivering persuasive presentations or proposals, (e) overcoming objections/negotiations, (f) closing the sales and getting repeat sales, and (g) follow-up and referrals. Management is able to evaluate how much time is taken in each stage of the sales cycle, their return on investment from sales and marketing activities, how to improve forecasting and reviewing stage-by-stage analysis for continued revenue growth.
Measuring volume-based metrics is not an easy process. Somehow the customer gets lost in the process of your repeatable strategy and all too often it is difficult to “buy” loyalty from a customer lost in the shuffle of the system. Optimize interactions with your customers, avoid wasting resources and missed opportunities. Ethically, you want to give customers a say and make their customer experience so exceptional that it leads them to become your company’s advocates/evangelists, which will lead to your revenue performance progress.