Revenue Performance Management (RPM); The Next Big Thing, or Just another TLA?

Revenue Performance Management (RPM); The Next Big Thing, or Just another TLA?

I was recently asked by Analyst Lauren Carlson to comment on a blog post discussing the new concept of Revenue Performance Management (RPM). As stated there and elsewhere:

“RPM is a systematic approach to identifying the drivers and impediments to revenue, rigorously measuring them, and then pulling the economic levers that will optimize top line growth.” -Brian Kardon

A couple of companies have created systems to support RPM by making it easier to gather, compile and analyze metrics supporting the concept:

“By pulling data from traditional CRM systems, RPM solutions allow users to gain a more holistic view of the revenue cycle from the earliest stages of marketing through to sales execution.” – Lauren Carlson

RPM’s advocates position the concept to be a step beyond traditional Marketing Automation, in that it concentrates on driving the top line and thereby captures interest in the C-suite. It may also be a worthwhile tool for those who want to compute their Return On Marketing Investments (ROMI). This utility alone makes it attractive to anyone wanting to hold marketers accountable for their results. We know that this issue is a top concern for marketers, as noted in the Association of National Advertisers 2011 survey results.

Measuring the effect of revenue enhancement activities is a natural extension of the data-driven business process improvement mindset that has become popular since Dr. Edwards Deming’s ideas were finally accepted in the US. The concept meshes nicely with standard TQM practices. Taking advantage of the wealth of data available in a well-used CRM system, plus other measures collected by the users elsewhere, RPM can enhance productivity, help make marketing a more efficient user of resources, and reduce uncertainty.

RPM is not a cure-all though. Reaching the right audience at the right time with the right message is still the essence of effective marketing. Those are challenges that must be answered outside of any RPM platform.

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