Definition

lead-to-revenue management (L2RM)

Contributor(s): Tim Ehrens

Lead-to-revenue management (L2RM) is a set of sales and marketing methods that focuses on generating revenue throughout the customer life cycle. More prominent in business-to-business (B2B) marketing and sales, L2RM starts in the lead generation phase and extends through each stage in the buyer's journey in order to evaluate how much money customers in each stage brings in.

The goal of L2RM is to judge customer engagement through the lens of revenue generation in order to optimize the customer acquisition and retention process and maximize an organization's income. Practices such as customer journey mapping and calculating a customer's lifetime value (CLV) help L2RM practitioners determine which sales or marketing practices need to be improved to improve lead generation and ultimately net revenue gain.

L2RM requires many different information technology systems to work together, including customer relationship management (CRM) systems, marketing automation platforms, sales enablement tools, content management systems and business intelligence frameworks. Integrating these systems allows marketing and sales departments to use the same data, work closer together and hopefully close more deals.

L2RM is often part of a more comprehensive change management strategy that defines and implements procedures and/or technologies to augment business processes.  If done well, a successful L2RM initiative is likely to disrupt an organization's sales and marketing practices by exposing weaknesses and/or introducing new procedures that disrupt the status quo.

This was last updated in November 2015

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