- Key Performance Indicators, or KPIs, are the essential metrics of business processes. However, companies rarely use them to full effect when measuring marketing and revenue generation activities.
- Measuring the impact of marketing investments is complicated by factors like time, external forces, multiple interactions, and various individuals influencing a sale.
- The RPM concept and its company-specific Revenue Cycle Models capture outcome metrics that can be paired with investment data to yield true ROI information.
- Justifications for marketing investments need to specify their expected outcomes over the life of their benefit to the company.
- Strategic KPIs for revenue include customer acquisition cost, pipeline contributions from marketing, inventory of active prospects, and return on marketing investment.
- Key RPM metrics involve lead generation, lead counts at each stage, conversion rates, and velocity.
- RPM enables more accurate revenue forecasts and allows executives to adjust their spending priorities accordingly.
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