The relationship between product marketing and revenue is not as straightforward as it might seem. Simply put, a well-executed product marketing strategy should result in increased revenue for your company. But how do you actually track and measure that? As a product marketer, making this connection clear and explicit can help you demonstrate the value of your work and justify your budget. In this article, we'll dive into how to link product marketing to revenue effectively.
First, let's set the scene by defining product marketing. At its core, product marketing involves bringing a product to market and driving its adoption. From positioning and messaging to sales enablement and launch planning, product marketing managers (PMMs) marry the product to the market.
Despite these essential roles, tying product marketing efforts directly to revenue can be tricky. Sales can be influenced by multiple factors, many of which are beyond the reach of product marketing. Not every deal closed can be attributed to a specific product marketing initiative.
To understand how to tie product marketing to revenue, it's crucial to comprehend the revenue chain. A revenue chain is a conceptual model that suggests every business has a series of interlinked processes that start with marketing and end with revenue recognition.
In the revenue chain, product marketing plays a pivotal role - strengthening the connections between each link - to guide potential customers towards a purchase. This involves creating compelling messaging and positioning, developing go-to-market strategies, enabling the sales team with the necessary training and tools, and driving product adoption and usage.
So, how do you tie product marketing to revenue? Here are some steps to consider:
1. Set Clear, Measurable Goals
Establish what success looks like in your product marketing efforts and set measurable goals tied to revenue. This might be a target number of new users, percentage increase in sales for a specific product or upsell revenue for a particular period. Remember, these goals must be Specific, Measurable, Achievable, Relevant, Time-bound (SMART).
2. Use Metrics that Capture Revenue Impact
Linking product marketing to revenue often involves metrics that prove a direct impact. For example, measuring product usage can indicate how well your product satisfies customers' needs. Other crucial metrics may include conversion rates, retention rates, upselling, cross-selling, and customer lifetime value.
3. Adopt Attribution Modeling
Attribution modeling is an approach to credit sales or leads to different marketing touchpoints. It can help your team understand which efforts contribute to revenue generation. For instance, a new customer might first learn about your product through a blog post, then attend a webinar, and subsequently decide to purchase after a sales call. Each of these touchpoints contributes to the final sale.
4. Implement Uplift Measurement
Uplift Measurement is a technique used to determine the change in behavior due to a specific marketing action. For example, you might measure adoption rates before and after implementing a new product feature or marketing strategy. This technique can provide quantifiable evidence of product marketing's impact on sales.
5. Continuously Iterate and Optimize
Optimization is paramount to growth. You need to analyze your campaigns and strategies consistently. Consider using A/B testing to refine messaging, positioning, or other aspects of your product marketing strategy.
With tools like Aomni, measuring and tracking product marketing's influence on revenue is faster and more precise. Aomni's AI-powered platform for B2B sales offers real-time account research, providing actionable competitive insights and personalized sales content. The software records and analyzes every interaction with your customers, allowing you to pinpoint which efforts yield the highest results. With this platform, producing quantifiable results linking product marketing to revenue is easier than ever before.
Aligning product marketing with revenue isn't always a straightforward process, but it's worth the effort. By setting measurable goals, tracking the right metrics, and continuously improving your strategies, you can demonstrate the impact of product marketing and justify your budget. Moreover, leveraging AI-powered tools like Aomni can significantly simplify measuring and tying product marketing to revenue, optimizing your strategy, and ensuring sustainable business growth.