To grow revenue in a marketing automation company, there are two popular choices. Most companies use both. Whenever you feel overwhelmed by all the marketing options available, it pays to return to first principles. If your marketing efforts are not connected to one of these growth methods, you may need to re-evaluate your growth strategy.
Option 1: Acquire new customers
Attracting more customers is the simplest way to grow. Using inbound or outbound, you find a qualified lead for your product. They complete the purchase, and you’re done! This process quickly starts to become more complicated when you dive into the numbers.
In enterprise marketing automation software, a single new customer could be worth $20,000 per year or more. To close that deal, you have to spend significant time and resources. That’s way SaaS leaders have become comfortable with a payback period of 12 months or longer on new customer acquisition.
What’s the next option?
Option 2: Land and expand: sell more to your current customers
Ever heard the expression “loss leader”? I first heard this concept in the world of retail sales. A retailer offers a discount on a popular product like milk or eggs to bring you into the store. They may not make any meaningful profit on that product. However, while you are in the store, you are likely to make additional purchases. It happens every day of the week at companies like Costco, Target, and even e-commerce firms like Amazon.
Salesforce.com uses the land and expand the strategy to sell more software. Consider the company’s customer relationship management (CRM) software. If the company sells 100 user licenses to the west coast sales division of a Fortune 500 company and the rollout is successful, what will happen next? Salesforce’s account executives are going to start looking at other sales teams within the same company to expand.
Don’t assume that land and expand is limited to billion-dollar marketing automation companies either. ActiveDEMAND, a marketing automation company with 500-1000 customers, uses land and demand to grow. For example, the company often starts by selling a call tracking product to marketing agency clients. After that product delivers results, ActiveDEMAND can sell more products and increase the value of that customer.
Why Content Marketing Helps With Both Growth Options
With all the sales and marketing methods on the market, why does content marketing make a difference? Consider the trust impact of content marketing. Purchasing marketing automation software is a scary decision! What if the product fails to deliver results and the company fails to hit its revenue target this year? That’s the worry quietly going through the mind of most buyers.
With content marketing, a buyer can discover your company’s point of view in a low-pressure way. Russell Brunson, the co-founder of ClickFunnels, does excellent work with content marketing across several platforms: several podcasts, conferences, and books like Dot Com Secrets. By using content marketing to build trust, you’re also forced to come up with new ideas that set you apart from the competition.