The CMO-CFO Guide: The Impact of Marketing on Revenue

Marketing organizations are highly accountable for driving revenue, and there are many ways companies measure that contribution.  In this post, we’ll highlight some areas of contention and how those might change in the AI Era. Marketing, of course, isn’t about just selling—it’s about understanding customer needs, developing loyalty, and supporting users. However, for growth-oriented companies, particularly in the B2B space, expectations for marketing are squarely in growth-related categories such as contribution to the sales pipeline, leads added to the marketing funnel, and the cost of each of those efforts.

Core Contributions of Marketing to Revenue

Lead Generation: Probably the most obvious way marketing contributes to revenue is through lead generation. This involves attracting potential customers and moving them into the sales pipeline. For B2B companies, this can mean generating leads through content marketing, SEO, webinars, and trade shows. Key metrics here include the number of leads generated, cost per lead (CPL), and the conversion rate of those leads into paying customers.

Demand Generation: A superset of Lead Generation, Demand Generation activities build interest in your product and help create a steady pipeline of potential customers who are primed for conversion. Metrics include engagement rates, the number of marketing-qualified leads (MQLs), and conversion rates.

Customer Retention and Cross-Sell: While acquiring new customers is crucial, retaining existing ones is often more cost-effective and can significantly boost revenue. Marketing efforts aimed at customer retention include email marketing, loyalty programs, and customer support. Cross-selling and upselling to existing customers also drive additional revenue. Metrics to watch are customer retention rates, customer lifetime value (CLV), and the revenue generated from cross-selling and upselling.

Finding New Markets: Marketing is critical in helping B2B companies enter new markets. These activities include researching and prioritizing new markets, localizing content for new regions, sponsoring international events, and building marketing campaigns that target new segments. Successful market penetration is measured by the revenue generated from new markets and the speed at which these markets are entered and scaled.

Building Awareness and Brand Equity: Building awareness of your brand is fundamental. A company with a strong brand has the flexibility to set premium prices, and strong brands foster customer loyalty. This is especially true in B2B, where the buying cycle is longer, and trust is critical. Note that companies with strong brand equity often have lower customer acquisition costs because of the power of positive awareness. Metrics like brand recognition, brand recall, and customer sentiment are crucial here.

Sales Enablement: Marketing helps shorten sales cycles and improve win rates by equipping the sales team with the right resources. Metrics include sales cycle length, win rate, and sales rep performance.

Customer Education and Onboarding: Educated and well-onboarded customers are more likely to be satisfied, leading to higher retention rates and opportunities for upselling and cross-selling. Metrics include customer satisfaction scores (CSAT), Net Promoter Score (NPS), and time to value.

Partnerships and Alliances: Developing strategic partnerships and alliances with other businesses can open up new channels for reaching potential customers. Metrics include revenue generated from partnerships, the number of new leads from partners, and partnership engagement levels.

Not all marketing tactics will have the same ROI, and that’s to be expected. For example, content marketing might have a longer payback period than paid search ads but can yield higher-quality leads over time. Similarly, while attending trade shows might be expensive, face-to-face interactions can result in highly valuable leads. It’s essential to align expectations and ensure all executives understand success metrics.

Emerging Insights: Brand metrics correlated with revenue growth

In the previous section, we discussed the relationship between brand marketing and growth marketing, which leads to a fundamental question: “What is the impact of brand on revenue growth?” The data science team at BlueOcean set out to answer this, and by analyzing over 6,000 brands, they identified the brand metrics most correlated with revenue growth.

Focusing on 18 B2B and SaaS companies with significant revenue shifts, the team uncovered three key metrics:

1. Employee Support: Surprisingly—or perhaps not—employee support is a strong predictor of revenue growth. Companies with high employee satisfaction often see increased productivity and a cohesive brand mission, driving revenue upward. Happy employees become brand advocates, boosting internal morale and external perception.
2. Non-Branded Search: High traffic from non-branded search terms indicates strong business health. Companies generating organic search traffic through non-branded keywords often see better financial outcomes. It signals that your content meets customer needs before they even know your brand, capturing interest early in the buyer’s journey.
3. Customer Reviews: Positive customer reviews are crucial, especially in B2B. Companies with more and better reviews on platforms like G2 and Capterra typically experience higher revenue growth. Reviews build trust and credibility, essential elements in the decision-making process.

These findings underscore the need to prioritize activities that drive employee sentiment, optimize non-branded search terms, and improve customer reviews. Some of those activities could be more fundamental than a simple marketing program, but through this focus, you not only build a stronger brand but also directly drive revenue growth.