Revenue Performance Management
What is Revenue Performance Management?
Revenue performance management (RPM) is a combination of marketing and sales strategies with careful analytics to determine the success of those strategies and alter them accordingly to maximize revenue potential. The key to RPM is understanding your entire sales cycle from stranger to customer to brand advocate as well as determining the right key performance indicators to track and periodically analyze.
RPM isn’t a single strategy in and of itself that works the same for every business. It’s a process that varies depending on the business, its products, and its customers. For manufacturers who sell indirectly, there’s a second layer to RPM that direct businesses don’t have to account for: revenue performance through distribution partners.
RPM for distribution networks goes beyond measuring marketing and sales performance. It includes partner performance, including partner engagement data from the marketing assets they use to the deals they close. A comprehensive RPM strategy for an indirect network gets to the bottom of how every part of the network is performing and seeks to optimize it.
Why You Need RPM For Your Distribution Network
Understanding how marketing and sales strategies perform is important for building effective strategies that attract and close more of the right consumers, maximizing ROI. A comprehensive RPM strategy allows manufacturers to monitor what’s working and what’s not in their distribution network and helps them identify areas for improvement.
RPM helps with new business acquisition, partner engagement, and upsell and cross-sell opportunities by utilizing data to understand customer and partner behavior. Any SaaS or PaaS is already collecting customer and partner data, so organizing and analyzing that information is also building the ROI of the tech investment.
Getting Started with Revenue Performance Management
Since the goal of RPM is to maximize ROI from marketing and sales, data collection in these areas is vital. However, the rise of cloud-based SaaS and PaaS makes data collection automatic for any business with even one of these platforms. Even social media platforms have basic analytics for business accounts like profile and page visits, likes, shares, and link clicks. But data isn’t enough on its own—compiling the data to mean something is what makes RPM powerful.
Your tech stack is already collecting data for you, from site traffic and form submissions on your own website to leads registered, deals closed, and deal size from your partners. Whatever data pieces your applications are collecting, take the time to find them to have a big picture of what you can look at to inform performance.
Once you start collecting data, continue tracking it to identify change. Custom reports dashboards are available in most platforms to help keep track of what matter to your business.
Look at the process of how your distribution network handles leads. Where do they come from, and where do they go? Gain a solid understanding of how leads become customers, which leads are becoming customers, and which leads might be missed out on—and why.
Understanding your current process with the data you have will help uncover strengths and weaknesses that inform decisions made to improve the process.
- Leads generated by partner or partner tier
- Lead-to-close by partner or partner tier
- Win-loss ratios by partner or partner tier
You can measure how marketing is influencing these metrics by also taking into account the marketing assets your partners are using. For example, do partners who co-brand a certain whitepaper experience higher lead generation than those who didn’t? Or do partners who utilize a sales email sequence from you have higher lead-to-close ratios?
RPM Tools for Your Indirect Distribution Network
Partner Relationship Management
Partner relationship management (PRM) is a platform for manufacturers and partners to communicate information like leads registered or distributed as well as deals won and lost. These platforms usually generate reports like partner leader boards and give insight into your distributors’ sales.
Through-Channel Marketing Automation
Through-channel marketing automation platforms are a resource for partners to find marketing and sales content, but they’re also powerful data generation tools for manufacturers. Understand which partners are using marketing and sales assets for your brand and what kinds of assets they’re using to compare to their sales performance.
Distribution Partner Portal
Partner portals can be for more than product information and company news. Use a discussion board in your portal to get feedback from your partners and collaborate on ways to improve ROI and marketing performance.