Ecommerce Playbook: Numbers, Struggles & Growth

What Finance Got Wrong About Revenue Forecasting (and How Marketers Can Fix It!)

Nov 7, 2024

Explore the disconnect between finance and marketing in revenue forecasting. Discover how traditional financial forecasts often miss the mark due to a lack of insight into marketing actions. Learn about the Event Effect Model, which links marketing events to revenue generation using historical data. Gain insights into the importance of a structured library of marketing activities for better predictions. Understand the need for cooperation between finance and marketing to drive accurate forecasts and successful growth strategies.

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Quick takeaways

The disconnect between finance and marketing highlights how traditional revenue forecasting often overlooks the impact of specific marketing actions.

CTC’s Event Effect Model empowers marketers by linking planned marketing events to revenue predictions, fostering a proactive approach to forecasting.

Deep dives

Understanding the Event Effect Model

The event effect model aims to enhance forecasting accuracy in e-commerce by linking planned marketing actions to future revenue outcomes. It emphasizes that past performance alone is insufficient for predicting future results, especially when events like Black Friday and Cyber Monday disrupt typical sales patterns. The model encourages businesses to move beyond traditional forecasting methods by associating qualitative marketing activities—such as new campaigns or product launches—with their anticipated quantitative impacts on revenue. This approach allows e-commerce companies to proactively adjust their forecasts based on specific, planned marketing initiatives rather than relying solely on historic data.

Intro

4min

Enhancing Revenue Forecasting Through Detailed Analysis

2min

Building a Comprehensive Library of Marketing Actions

2min

Mastering Revenue Forecasting

9min

Rethinking Revenue Creation: The Interplay of Marketing and Finance

3min

Get the Prophit System: https://commonthreadco.com/pages/ecommerce-strategy

In this episode of the podcast, we explore the critical disconnect between finance-driven revenue forecasting and the actual marketing actions that generate revenue. Richard and Taylor jump deep into how finance teams often miss the mark when predicting revenue growth—because they lack control over the marketing levers that drive results.

Join us as we unveil CTC’s Event Effect Model, an approach that empowers marketers to take charge of revenue forecasting. By leveraging historical data, marketing events, and detailed actions, this model allows ecommerce brands to transform their future predictions into actionable plans.

Discover:

Why traditional financial forecasts often fall short
How marketing actions like product launches, promotions, and ads directly influence revenue
The innovative strategies CTC uses to model marketing-driven revenue growth
How to use marketing events as building blocks for more accurate predictions

If you’re ready to rethink how your ecommerce brand approaches revenue forecasting and take control of your future, this is an episode you don’t want to miss. Hit that subscribe button, drop a like, and let's dive into the future of revenue forecasting!

Show Notes:

The Ecommerce Playbook mailbag is open — email us at podcast@commonthreadco.com to ask us any questions you might have about the world of ecomm

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