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.
20:39
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
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.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
