Around this time of the the year, businesses project what their overall revenue will look like in the next. It’s an essential process that’s needed to create the year’s budget and align it to an overall business plan and strategy.
Without a reasonably realistic projection at what you’ll be making, figuring out what you can afford to spend can be difficult, and marketing budgets often end up on the low end as a result.
Naturally, most finance teams don’t immediately think of marketing when they sit down to do their revenue projections. But why don’t they? It’s probably because marketing departments today struggle to provide valuable information, blended with sales, that improves the overall accuracy of the forecast. We recognize this struggle and help create and manage a better process to KNOW how your plan will contribute to revenue.
Predictive Marketing Software Can Also Help the Finance Team
Software can’t tell the future with 100% accuracy, but it can perform sophisticated calculations and incorporate actual performance to gain a surprisingly accurate idea of what’s likely to happen in the future.
While this information is commonly used to inform marketing teams about the best potential strategies they can use, it’s also a key way to help the finance team see the big picture of how much the marketing team is likely to contribute in the next year.
Obviously, the math is not always perfect – there are a lot of eventualities marketing software can’t foresee - but it’s a valuable addition to the process, allowing company to gain a clearer picture of what’s possible, and then plan accordingly.
Real-Time Marketing Planning Can Better Track Progress
Another important upgrade in advanced marketing departments is the advent of real-time marketing analytics to track progress day by day. Where predictive analytics help you create a better revenue plan and set better goals, real-time analytics allows you to quickly see how well campaigns are meeting those goals day by day.
This means you can better utilize data to inform your marketing plans and constantly inform revenue projections. Your marketing and sales teams can course correct by cutting out the tactics that aren’t working while shifting more of their resources to the stronger performing tactics on a more frequent basis.
If you start to fall behind on meeting your goals, alerts will ensure you’ll know this immediately, allowing the maximums time to adjust and catch up.
Flexible Marketing Planning Makes Meeting Revenue Goals Easier
The old days of creating a marketing plan once a year and then revisiting it at the end of the year are over. Marketing departments that shift to dynamic planning are empowering not only the marketing team but also the rest of the company. By building flexibility into your revenue plan, your business can overall make faster decisions that maximize marketing performance.
By using an agile marketing strategy, you can seamlessly communicate within different departments in your organization, based on learning that informs everyone. Every part of the organization can then benefit and adapt their plans, leading to better informed planning overall: marketing teams get the data right where sales wants them, so they can better project their results.
Better Planning = Better Results
To glean the insights you need from your collected data, you need to be able to analyze it quickly and effectively. Best in class marketing software makes that possible and allows you to more easily apply the insight to data-driven changes in your plan. This is the path to consistently improves marketing’s revenue projections and the overall contribution to the business.