Revenue Performance Management: Startling Stats Show that Your Success Depends on It

Sales Marketing Alignment


“Revenue Performance Management” (RPM) will be one of the most important business concepts to emerge in this decade. The future of B2B revenue revolves around it. Your success as an organization depends upon it. And your career as a leader may hinge upon it.

How do we know? Because according to a new survey conducted by Marketo, RPM Leaders achieve 128% more revenue against their plans than average companies, and 178% more than the least mature companies.

So, what is it RPM?

We define Revenue Performance Management as a strategy to optimize interactions with buyers across the revenue cycle to accelerate predictable revenue growth. Too often, Sales and Marketing Departments are set up with different goals in mind. The Marketing Department is focused on producing leads, while the Sales Department is focused on closing deals. Unfortunately, not all leads are created equally, so it’s important to make sure that the Marketing Department passes the Sales Team the leads that have the best chance of becoming deals. This creates friction between the two departments, as the Sales Team begins to ignore Marketing leads, opting instead to drum up their own leads. This results in missed opportunities, wasted resources and billions in lost revenue each year.

Revenue Performance Management begins with a shift in mindset. Instead of viewing customer interactions as having two parts – a marketing cycle and a sales cycle – realizing that, from the customer’s point of view, the entire interaction is one big buying cycle. The customer makes no distinction between their interaction with your Marketing Department and the Sales Department, so why should you? When you start to understand the buying experience from the customer’s point of view, it becomes clear that any disruption in that cycle – such as the one that usually occurs when a lead is passed from Marketing to Sales – results in lost leads and revenue.

To prevent that disruption, the Sales and Marketing must unite in pursuit of one common goal: Revenue.

This holy union is what we call “Revenue Performance Management,” and it has drastic effects on close rates. According to preliminary results from our survey, on average, 22% of opportunities convert into closed won customers, but RPM Leaders see an opportunity win rate of 35%. Moreover, more of these customers are a result of B2B marketing efforts. Marketing generates 57% of pipeline at Revenue Performance Management Leaders, but only 40% of pipeline for average companies, and only 22% at companies with the least mature processes. In short, RPM increases revenue by maximizing marketing ROI and improving sales effectiveness.

Implementing a Revenue Performance Management strategy requires the right personnel, the proper technology and a solid gameplan. Think you’re ready? First you’ll need to answer a few questions…

  • How much revenue is your organization losing due to misaligned Sales and Marketing Departments?
  • How does this compare to other organizations?
  • How do you increase your revenue through Revenue Performance Management?

We’ve developed our survey to help you figure out how well your organization is maximizing the revenue coming from its B2B marketing initiatives. Take a few minutes to answer the questions, and we’ll send you a customized report to help you figure out your strengths and identify areas of potential growth. Our goal is to help you become a Revenue Rockstar.