How to Use Data to Drive Your Growth and Revenue Strategy

September 27, 2021

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In the current digital age, businesses are increasingly relying on data-driven strategies to drive growth and revenue. Companies that do not have a strong understanding of their customer base or market trends will find themselves struggling to compete with those that do.

According to research by McKinsey, businesses that leverage data-driven strategies are six times more likely to perform better than their competition. 

Data-driven marketing strategies are more effective than traditional ones for many reasons, one being that they help increase your rep's productivity and make the process much less onerous. They can also boost funnel conversion rates which means higher revenue growth, in turn, leads to better forecasting capabilities as well.

But, how can you use your data to drive growth and create a revenue strategy for your business?

Identify the right metrics for success. You need to know what it is that drives revenue and then prioritize those areas of focus when building out a strategy. This includes understanding how much profit an additional sale will bring in, knowing where customers come from, having insight into the best leads to target, and knowing how effective your marketing is.

Create a framework for success by identifying levers that drive revenue growth. This should be connected with both customer-facing activities as well as product initiatives. For example, let’s say you find through data analysis that an email campaign will bring in 50% more customers than a paid ad campaign. This means you should choose to invest in email marketing and not spend your money on ads, which will bring in the same number of customers but at a higher overall cost.

Create an optimal customer journey by mapping out all touchpoints. Start with how leads are generated (e.g., SEO, PPC), then track the life cycle from the moment a lead is generated to when they convert into customers and, finally, how those customers progress through your product. By mapping out this journey, you can identify which areas of your funnel need improvement and what types of content or messaging should be focused on at different stages.

What’s more important than ever before: Marketing and sales teams are now in a “zero-sum” game. In the past, when companies were just starting out they could increase their customer base without hurting revenue or profitability because there was still untapped market demand. Now that most markets have been saturated with competitors, you need to start scaling up your revenue side of things while continuing to increase your customer acquisition.

Your company should have one metric that it focuses on primarily. It can be customer acquisition or revenue but make sure everyone is clear and aligned around this goal so your team knows what they are working towards. Reach out if you need more details on this topic - happy to share insights and notes!

About the Author

Gloria Gunn

Co-founder - LinkedSure

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