Track These 3 Key Revenue Metrics for Success

The best kept Business Secret in modern days is that most companies have no idea where their revenue is actually coming from...

In the dynamic world of business, understanding the sources of your revenue is like having a map in a treasure hunt. Yet, surprisingly, many companies are navigating blindfolded. The truth is, a significant number of businesses, particularly when it comes to marketing-related revenue, are often in the dark about where their profits truly originate.

The Common Excuses

Interacting with founders and marketers, we've encountered a myriad of excuses masking this lack of understanding:

"Not everything is trackable": A common refrain that echoes the challenges of quantifying certain marketing efforts.

"It all comes through organic, I can feel it": This statement reflects a reliance on intuition rather than data.

"Reporting takes time and doesn't add value": A surprising misconception, suggesting a lack of appreciation for the insights that data analysis can provide.

When probed further about the 'why' behind these justifications, what often follows is a perplexed silence. This silence speaks volumes about the gap in understanding the true impact of marketing on revenue generation.

Not All Marketing is Trackable, But... there’s 3 Metrics you defintely DO need to track

It's true that not every marketing endeavor lends itself to precise tracking. However, any marketer worth their salt should be able to discern, at least in part, how their efforts are contributing to the bottom line. Here are three critical metrics that every business should start with:

1. Revenue Breakdown

Inbound vs Outbound

• Inbound (Marketing): This involves understanding how much revenue is generated through marketing-driven leads. It's essential to differentiate between the returns on organic search, social media, content marketing, and other inbound strategies.

• Outbound (Sales): Comparing this with outbound efforts provides a holistic view. How much revenue is coming from direct sales efforts, cold calling, or email marketing?

2. Inbound Lead Quantity

Offline vs Digital Channels

• Offline Channels: These might include traditional advertising, events, or referrals. Tracking the conversion rates of these channels is crucial.

• Digital Channels: Analyzing the performance of digital channels like social media, email campaigns, or your website is vital. Understanding their respective conversion rates can reveal where to focus your digital marketing efforts.

3. Digital Inbound Leads

Per Conversion Channel

• Tracking MQLs (Marketing Qualified Leads): Identify where prospects are turning into MQLs. Is it through your social media campaigns, your blog, or PPC ads?

• Conversion Efficacy: Assess how well these leads convert. This metric can guide you in optimizing your marketing funnel for better results.

Beyond the Basics

Monitoring these three metrics, even in isolation, can significantly sharpen your competitive edge in revenue generation. They provide clarity on what works and what doesn't, allowing for more informed strategic decisions.

Unraveling the complexities of revenue sources is not just about tracking and reporting. It's about understanding the story behind the numbers. It's a continuous process of learning, adapting, and optimizing.

Your Thoughts?

Do you have any additional insights or metrics that you find invaluable in tracking marketing-related revenue? How do you navigate the challenge of quantifying the unquantifiable in your marketing efforts? I'm eager to hear your thoughts and strategies.

Feel free to reach out for a deeper discussion or if you're interested in more tailored insights.