Australian SMEs are rightly focused on growth, but too often marketing feels disconnected from the bottom line. We see businesses running campaigns without a clear understanding of how each dollar spent contributes to revenue. As we look ahead, this disconnect will only become more costly. The good news is, establishing a robust connection between marketing activity and revenue targets is achievable with a few key shifts in approach.
The first step is moving beyond ‘vanity metrics’ – likes, shares, website visits – and focusing on revenue-correlated metrics. These are the numbers that directly influence sales. Think cost per acquisition (CPA), customer lifetime value (CLTV), and marketing qualified lead (MQL) conversion rates. Tracking these provides a far more accurate picture of marketing’s impact.
Next, we need to embrace attribution modelling. This isn’t about pinpointing a single touchpoint, but understanding the influence of *all* marketing interactions on a customer’s journey. Different models – first touch, last touch, linear, time decay – will suit different businesses. Experiment to find what best reflects your customer behaviour. Increasingly, data-driven attribution is becoming more accessible to SMEs through platforms like Google Analytics 4.
Another crucial element is integrated data. Siloed data – marketing data in one system, sales data in another – creates blind spots. Connecting these systems allows for a holistic view of the customer and a more accurate assessment of marketing ROI. Customer Relationship Management (CRM) systems are central to this, but even simple integrations between marketing automation platforms and accounting software can make a big difference.
- Forecasting & Scenario Planning: Use historical data to forecast the revenue impact of planned marketing activities. Model different scenarios – what if lead volume increases by 10%? What if CPA rises? This allows for proactive adjustments.
- Investment Alignment: Allocate marketing budget based on the revenue potential of different channels and campaigns. Prioritise activities with the highest projected ROI.
Finally, remember that this isn’t a ‘set and forget’ exercise. Continuous monitoring, analysis, and optimisation are essential. As customer behaviour evolves, so too must your marketing strategy and measurement approach. By focusing on revenue-correlated metrics, embracing attribution, and integrating your data, you’ll be well-positioned to confidently connect your marketing efforts to tangible business results, not just this year, but well into the future.
To get started, we recommend conducting a marketing audit to identify your current data gaps and opportunities for improvement. This will provide a solid foundation for building a revenue-focused marketing strategy.
