The Evolution of Revenue Funnel Science
The Revenue Funnel Science Maturity Model maps out the stages most businesses experience as they implement the Revenue Funnel Science methodology, which helps businesses better measure, forecast and optimize their revenue funnels. Once a company understands which stage they are currently at, they can formulate a plan to continue to grow using this model.
The Six Stages of Revenue Funnel Science Maturity
Business leaders must have a desire and need to improve the performance of marketing and sales. Accomplishing this means making data-driven decisions, and that requires marketing and sales measuring funnel performance together.
In order to make data-driven, revenue-impacting decisions, companies need to implement certain tools into their technology stack. Marketing automation and customer relationship management (CRM) software increase productivity and accountability in managing leads, contacts, accounts, opportunities and activities.
To have consistent revenue funnel measurements, businesses need to build a blueprint, which is the written definition of the stages a prospect goes through in the process of becoming a paying customer. A blueprint must have clearly defined entry and exit criteria for each revenue funnel stage and it must be documented in both business and technical terms to make certain people and technology follow the blueprint.
Once a blueprint is established, companies can capture key revenue funnel metrics to gain complete visibility of the buyer’s journey and determine what is successfully moving prospects forward. They then can slice data segments, or sub funnels, to understand performance and improve future results by scaling successful activities and making adjustments to less effective ones.
To ensure future revenue goals are achieved, Revenue Funnel Science allows companies to intelligently plan goals based on overall growth rate and historical performance of key metrics. This allows organizations to determine what is needed higher up in the funnel to achieve revenue. By regularly analyzing goal progress, organizations can make adjustments before it is too late.
When organizations have completed goal planning and are regularly monitoring and analyzing results, they establish an early warning system that provides alerts if revenue is on track or not, and if not, it identifies where to take immediate action.
After the other stages are in place, companies can accurately forecast and properly track attribution. Often, forecasting involves an imprecise probability placed on each opportunity. However, when organizations use Revenue Funnel Science, they build forecasts using the probability of records moving forward based on past performance. Marketing attribution can also use the same data to analyze marketing’s influence on pipeline and revenue and identify which marketing campaigns or programs have the biggest impact.
The last stage of the maturity model allows leaders to uncover their biggest areas of improvement to grow revenue. Benchmarking identifies these areas, even when revenue is on track. Benchmarking and optimization uses all the data and insights from previous stages and allows leaders to analyze sales and marketing performance both internally and externally.
Moving through the Maturity Model
While the Maturity Model maps out the stages of Revenue Funnel Science, companies evolve through and build upon each stage in their own time frame. Similar to a prospect’s journey, organizations and their teams may not move through the model in a linear fashion. Some stages may not be fully in place before taking on the next stage. While it may be ideal that business complete one stage before taking on the next one, they can still efficiently improve results and drive revenue by using Revenue Funnel Science and understanding its maturity model.