CMOs are facing a watershed moment: to find a way to drive repeatable, predictable, and scalable revenue, or move onto another career. The evidence is mounting on how smart marketing executives are connecting to revenue, transforming their departments from a cost to a revenue center and, in the process, helping their organizations outgrow their competition.
New research by Lenskold Group and sponsored by Pedowitz Group, "2012 Lenskold Group/Pedowitz Group Lead Generation Marketing Effectiveness Study," reveals key data that begins to unlock the secret to marketing connecting to revenue and outperforming the competition. In a nutshell, these marketing organizations focus on revenue and ROI through the use of integrated marketing automation, alignment of key executives to revenue marketing as a strategic not a tactical solution, a specific structure that supports the focus, and key processes to enable the change. This report presents a set of data points that can help the CMO plan and execute that transition. Among them:
CMO Point #1: Integrated Marketing Automation And Growth
Companies outgrowing their competitors are more likely to use integrated marketing automation (66 percent vs. 50 percent of slower/same growth companies). The definition of integrated marketing automation is the use of full-featured marketing automation integrated with CRM.
CMO Point #2: Marketing Automation And Increase in Revenue from Marketing
Companies outgrowing their competitors are more likely to have experienced an increase in total marketing revenue contribution from marketing automation (55 percent vs. 31 percent of slower/same growth companies). This data point highlights the role of revenue marketing to competitive advantage.
CMO Point #3: Marketing Automation And ROI Metrics
Of the companies using marketing automation and ROI metrics, 69 percent reported an increase in total marketing revenue contribution. Contrast that with the 19 percent increase in total marketing revenue contribution reported by users of only traditional, nonfinancial metrics. This data points out that just having marketing automation is not enough; a focus on ROI metrics by marketing is equally important.
CMO Point #4: Marketing Automation And Strategic Support
Companies outgrowing their competition are more likely to have marketing automation provide a level of strategic support–26 percent vs. 15 percent of slower/same growth companies. While the gap is fairly significant, both numbers are low. This is not a surprising number given that most revenue marketing initiatives are still not driven by the CMO, but are driven by lower levels in the marketing organization.
CMO Point #5: Marketing Automation And Marketing Capabilities
Companies that use integrated marketing automation to manage lead-generation effectiveness vs. companies that do not use marketing automation reported to have the tools (75 percent vs. 25 percent), organizational structure (49 percent vs. 24 percent), and established key processes (56 percent vs. 22 percent). In effectively managing the lead-generation process, companies using integrated marketing automation have a major advantage over those with no marketing automation. Effectively managing the lead-generation process is the first step to revenue and ROI.
It’s clear that today’s CMO and certainly tomorrow’s successful CMO will have an important role in revenue contribution and outgrowing the competition. Understanding how to make the transformation is now the foremost thought for smart executives.
Next Page: 6 data charts from the study.
Click on the following links to view each full-size data chart in a separate window.