The Measurement Status Quo
And the Need for Revenue Growth Insight
“Every line is the perfect length if you don't measure it.”
This quote from Marty Rubin is the unofficial motto of many companies, especially when it comes to their sales and marketing efforts. Many businesses continue to implement traditional strategies, not because they produce a marked increase in revenue, but because the success of these strategies continues measured by guesswork.
Without reliable insight into the revenue that is generated, choosing whether to continue with a strategy or try something new hinges more on a gut reaction than on empiric observation. You may be convinced your new plan of action is sound, but when its results can't be measured, you have no way to know if the cost of revenue, the time and resources invested were justified, or if it is worth trying again.
There is a good reason why this kind of speculation is still so common – up until recently there was no other choice. Sales and marketing divisions accepted that trying a new campaign and attempting to suss out how it affected future revenue was an unavoidable problem. And many companies are skeptical when told that a panacea exists which can solve this age-old problem.
It is true that, in a world where everyone seems to be peddling a magic pill, every business should practice caution to make sure it is not investing in technology that makes unrealistic promises. When it comes to the murky questions behind sales, marketing and revenue, there are solutions out there that can fundamentally change how you operate.
The Need for Revenue Growth Insight
“Measurement is the first step that leads to control and eventually to improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.” – H. James Harrington, business guru
It is crucial that each business seek out a way to quantify the success of its strategies. Measurement is integral to the ability to make future-shaping decisions. As every Chief Marketing Officer knows, revenue that flatlines or begins to dip can inspire fear and erratic decision-making. As of last year, 83% of marketers acknowledged decisions based on data to be the most efficient way to grow business. That, in part, is because data removes assumptions from the equation and gives CMOs a dose of reality and a sense of control.
This is especially important when you consider the “cost of revenue” – what companies spend in order to grow revenue. Some may think that term only covers a small portion of what it takes to advertise and deliver a product, but it encompasses everything from marketing to PR to channel sales to discounts. While many businesses aren't seeing significant increases in their revenue, they are shouldering a 28% increase in sales and marketing investments compared to only eight years ago. The ROI gap is increasing at an exponential rate. Part of the opacity stems from an increasingly complex system that continues to further blur the objectives of CMOs. The martech/adtech universe has increased the amount of available data substantially, but clearly has not delivered promised insight and efficiency. Something has to change.
Of course, this is where a business must do its due diligence. There are innumerable ways to collect data and countless companies offer various methods to accomplish that. But collection can only solve so much. Most companies have plenty of data, but they simply don't know what to do with it. It's the analysis of the data that leads to connecting action with reaction, as well as outlining the next best steps to take to impact revenue. This is why every business should seek out the right tools in order to make sure an analysis of its data is being delivered clearly, quickly and without prejudice.
From Data to Decision
Transform provides a holistic approach to data aggregation and insight. This is possible due to multiple innovations. First of all, aggregating large amounts of diversified data breaks down the barriers that arise from a silo mentality. When departments become focused only on the success of their own corner, this leads to a fragmented culture that hinders the ability of a business to realistically face its successes and shortcomings. When looking at their businesses, executives are too often forced to take a 30,000-foot approach. Transform gathers, stores and interprets this data to offer a granular look at each facet of a company. While these metrics may seem overwhelming and chaotic when taken as a whole, our analysis converts the data to measurements that clearly gauge the performance of your current investments.
To illustrate how expansive our data collection is, let's begin with a small section of what we work with: Revenue Channels. The current data you have can be broken down into multiple channels that include wholesale, retail and ecommerce. Other datasets, such as customer relationship management (CRM) and partner relationship management (PRM) can also be collected and analyzed to explicitly show the dynamics of each strategy. Every channel applicable to your business can be explored and quantified. And these aren't isolated data points – our aggregations can be scaled up into an interconnected mosaic that shows how each piece is affected by other separate strategies and how they all work together to increase revenue.
Measuring the data that already exists, though, can only be so successful. Every company is amassing large amounts of data each day, and waiting to measure it can lead to decisions based on trends that are now in the past. This is why real-time analytics is crucial to growth. Instead of waiting to see how strategies pan out after a year, Transform gives you the tools that show revenue results in a matter of weeks. And this is all delivered free of guesswork or bias.
Every strategy is perfect if you don't measure it. Businesses concerned about their investments in revenue generation must adopt the tools that give them extensive, timely and accurate insight. This approach will lead to greater understanding and control, and help deliver maximum revenue.