Companies that employ mature Revenue Performance Management (RPM) strategies get a much bigger pipeline contribution from their marketing efforts, according to a recent Marketo Benchmark Report.
According to the report, companies that excel at RPM achieve 101% of their target revenue plans, while average companies achieve only 77% and those with the least mature RPM strategies achieve only 54%, according to the Benchmark on Revenue Performance Management (RPM).
The report also found that marketing generates 55% of pipeline activity at RPM companies, compared to 38% of pipeline for average companies, and only 18% at companies with the least mature processes.
According to the report, when marketing takes a larger share of responsibility for pipeline generation, using lead nurturing and lead scoring to help sales focus on the hottest leads and opportunities, it frees the sales team to focus their time on direct selling. As a result, sales reps at leading RPM companies spend 69% of their time selling, compared to 57% for average companies and 46% for the least mature companies.
The Marketo Benchmark on Revenue Performance Management examined revenue performance maturity and performance metrics for each company across three categories: growing number and quality of leads and opportunities; improving sales effectiveness; and optimizing sales and marketing ROI. Companies were then grouped into four levels of revenue performance maturity: Traditional Marketing, Demand Generation, Integrated Pipeline and Revenue Performance Management.