Measuring Program Revenue (PR)

The last blog series discussed how using Marketing Contribution to Revenue (MCtR) was not necessarily a great idea.  However, marketing must somehow be shown to be impacting revenue, otherwise, why bother?  To answer this linkage question we proposed two linkage metrics. The first is Expected Revenue (ER) which was discussed in the last blog posting.Continue reading “Measuring Program Revenue (PR)”

Marketing is a Parts Supplier to Sales (#6)

Don’t agree yet with the past posts?   Here is the final, and hopefully best reason why CMOs should be wary of using Marketing Contribution to Revenue (MCtR) as a statistic.  Marketing is essentially a parts supplier to the big sales factory that creates revenue.  As a parts supplier, marketing has to hit supplier goals toContinue reading “Marketing is a Parts Supplier to Sales (#6)”

MCtR Skews Marketing Program Results (#5)

After the previous four postings, are you still not convinced that MCtR (marketing contribution to revenue) is a dicey metric for sales and marketing management?  Here comes reason #5 – Skewed Marketing Results. Marketers love to show that their efforts generate revenue. In B2B marketing who wouldn’t?  The problem is that unlike consumer marketing whereContinue reading “MCtR Skews Marketing Program Results (#5)”

Transformers (#4)

If you look to the far left of the funnel, marketing tends to focus on driving traffic – either foot or online – to their various marketing assets. It is this traffic that may ultimately convert to a prospect name that may, along with other names, or perhaps different names, convert to an opportunity thatContinue reading “Transformers (#4)”

Closed Deal Forensics are Notoriously Difficult to Understand (#3)

After reading the first two posts of the Six Reasons Marketing Contribution to Revenue (MCtR) is a dicey metric, if you still want to use this metric, perhaps this post will convince you otherwise.  The only true way to get an accurate number on marketing’s contribution to revenue is do forensic analysis on almost everyContinue reading “Closed Deal Forensics are Notoriously Difficult to Understand (#3)”

B2B Sales Cycles Have Many Touch Points (#2)

Measuring marketing contribution to revenue (MCtR) is a dicey proposition for a variety of reasons.   Last post we talked marketing’s work in so many other areas that drives revenue, that to focus purely on lead generation to revenue contribution really under reports marketing’s contribution. In this post, we look at the complexity and number ofContinue reading “B2B Sales Cycles Have Many Touch Points (#2)”

Marketing Does More than Lead Generation (#1)

The first problem with the “Marketing Contribution to Revenue” metric is that it somewhat ignores the other aspects of marketing’s role.  In most companies I have seen, in addition to demand generation, marketing is also tasked with brand development, product positioning, competitive analysis, sales training, support, and sales cycle support once sales has engaged aContinue reading “Marketing Does More than Lead Generation (#1)”

Top Six Reasons CMOs Should Be Wary of Using Marketing Contribution to Revenue (MCtR) as a Metric

Many B2B organizations attempt to measure marketing on their contribution to overall revenue (MCtR). This metric is has many issues with its use. In this metric, closed deals are traced back to marketing originated leads and marketing is “credited” with the deal.   While this metric has some value,  too much focus on this canContinue reading “Top Six Reasons CMOs Should Be Wary of Using Marketing Contribution to Revenue (MCtR) as a Metric”