For Australian SMEs, particularly those dealing with complex products or services, lengthy sales cycles are often the norm. It’s a common challenge – you’re investing in marketing now, but seeing the revenue impact months, even years, down the track. This makes justifying marketing spend to stakeholders tricky. We see this frequently, and it’s about shifting the focus from immediate ‘sales’ to building a robust marketing ecosystem that delivers predictable, long-term returns.
The traditional approach of tying marketing directly to immediate sales isn’t effective when your cycle is extended. Instead, we advocate for a more nuanced understanding of marketing’s contribution. Here’s how to build a stronger case for your investment:
- Focus on Marketing Qualified Leads (MQLs): Track and report on the *quality* of leads generated, not just the quantity. An MQL is someone who’s demonstrated genuine interest and fits your ideal customer profile. This is a leading indicator of future revenue, far more valuable than website visits alone.
- Attribution Modelling: Move beyond ‘last click’ attribution. Understand which marketing touchpoints are influencing prospects throughout their journey. First touch, multi-touch, and time-decay models provide a more accurate picture of marketing’s impact. In 2027, we anticipate more sophisticated AI-powered attribution tools will become accessible to SMEs.
- Customer Lifetime Value (CLTV): Calculate the projected revenue a customer will generate over their entire relationship with your business. This allows you to justify a higher Customer Acquisition Cost (CAC) if your CLTV is substantial. A longer sales cycle often correlates with higher CLTV, strengthening your argument.
- Pipeline Velocity: Monitor how quickly leads move through your sales pipeline. Marketing can directly impact velocity by providing sales with qualified leads and supporting content. Improvements in pipeline velocity translate directly to faster revenue realisation.
Remember, marketing isn’t about magic; it’s about systematically nurturing prospects. By focusing on these key metrics and demonstrating a clear link between marketing activity and pipeline health, you can confidently justify your spend, even with extended sales cycles. The key is to present a data-driven narrative that showcases marketing’s contribution to long-term, sustainable growth.
To get started, we recommend conducting a thorough audit of your current marketing activities and sales pipeline. Identify the key touchpoints and begin tracking MQLs and CLTV. This will provide a solid foundation for building a compelling case for continued investment.
