KPIMarketing

Marketing-Sourced Revenue

Closed-won revenue from opportunities originally sourced by marketing

What is Marketing-Sourced Revenue?

Marketing-sourced revenue is the total value of closed-won deals that came from leads marketing generated. It is the point where marketing activity is measured in the revenue it actually produced.

It is the most direct way to show the return on marketing spend. Because deals take time to close, it lags the spend that created it, so it is reviewed over quarters rather than days.

How this KPI is measured

Function: Marketing
Sub-function: Demand Generation
Industry: All Industries
Type: Lagging
Impact: Revenue
Unit: $
Measurement frequency: Monthly / Quarterly
Formula: Sum of closed-won deal values attributed to marketing-sourced leads

How to calculate it

Add up the value of all closed-won deals in the period whose lead source is attributed to marketing.

For example, if 25 deals closed in a quarter with a combined value of 600,000 and 10 of them, worth 240,000, came from marketing-sourced leads, marketing-sourced revenue is 240,000.

Agree a source-attribution rule with sales and finance, and apply it consistently. Report it as an absolute value and as a share of total revenue.

Where it is used

Proving return on investment
Compare it with marketing spend to show what the budget returned in revenue.
Board and leadership reporting
Give executives a figure in revenue terms that is directly comparable with the company target.
Planning budget
Use the historic ratio of spend to sourced revenue to plan how much to invest.

How to improve it

Fix the attribution ruleAgree how deals are credited to marketing, and document it with sales and finance.
Protect the quality of source dataMake source recording mandatory when a lead or opportunity is created.
Concentrate on the best-converting programmesLook back from won deals to the campaigns that produced them and invest there.
Shorten the path to revenueImprove lead follow-up and handover so leads convert faster.
Review over a full sales cycleMeasure across a period long enough to match spend to the revenue it eventually produced.

Tips and common mistakes

Because of the sales cycle, this figure trails marketing spend. Do not judge a campaign on this month's revenue alone.
Reconcile with finance so the number matches booked revenue.
A single very large deal can dominate the total. Look at the count of deals as well as their value.

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