Everyone’s getting squeezed for ROI. This is nothing new but the pressure is even higher for marketers who are looking at proving their revenue contribution. We’ve all heard the stories about the accolade-winning marketing campaigns that didn’t move the sales needle. CEOs want far more than just awards and pretty brochures.
They want proven results.
They’re demanding marketers demonstrate – beyond a shadow of a doubt – that they’re driving revenue. So, ideally, marketers set before them spreadsheets proclaiming high lead-conversion and even better expense-to-revenue ratios; the CEO smiles with satisfaction and pads the next year’s marketing budget.
But should they?
That’s the essential question of Dave Green’s whitepaper, Measuring Lead Generation Effectiveness: a Case for a New Approach. He challenges marketers to be painfully honest: do they really deserve the credit they’re taking? Are their fabulous campaigns the primary reason deals are closing, or are the wins a reflection of the blood, sweat, and tears of tenacious sales professionals?
Before becoming Director of Best Practices at MECLABS,
the parent company of InTouch and MarketingExperiments, Dave was called upon by leading organizations to improve their marketing and sales systems to rapidly generate more revenue. And he did, to the tune of billions of dollars.
That’s probably because he’s not afraid of asking tough questions like “Which use of resources yield a better ROI: sales or marketing?” that inspire even tougher questions like “Can marketing develop quality pipeline more cost-effectively than sales?” and “If marketing fills the sales pipeline with poor-quality leads, how much time and money does sales invest in getting good ones?”
I believe these are the kind of questions CEOs should be asking if they really want to make the best investment of their resources. But here’s the obvious question you’re probably pondering right now: how do you answer them? Obviously, it requires much more than running a couple of spreadsheets.
Dave implies that accurate measurement is a continuous, intense process; it’s definitely not based on conclusions that could have been influenced by a multitude of factors. He exhorts us to dig deeper to gain the understanding that is critical to making the wisest use of precious resources.
Do you think it would be worth it, or even realistic, to implement Dave’s ideas in your organization? How would you go about it, what other questions would you ask and what else do you think is important to find out in the process?
Finally, if you took a big gulp as you read this blog because you suspect that intense measurement might not place you in the brightest light, there’s hope. Mark your calendars for November 9 when Dave presents Trends and Challenges of Lead Generation in 2011. He’ll reveal how to give CEOs the outcomes they really want – quality leads – and quickly make a powerful impact on your company’s revenue capacity, profit and growth.
Collaboration Huddles and 35 Other Ways to Improve Sales and Marketing Teamwork
Sales and Marketing – One Team
Sales and Marketing as a Team: Five Tips to Improve Performance
5 dials to tune in your lead generation process
Lead Generation: Streamlining the process for quality over quantity
Lead Gen: A proposed replacement for BANT
Image by: j.towbin