Terminology

Here you'll find all of the unique terms used within the Revup app to be clear what they mean.

Measuring Performance

Equivalent Financial Value

Sum total of all Key Results Achieved multiplied by their respective Unit Value. This could be in context of the entire Marketing Plan or a particular Budget Item.

Accurate Equivalent Financial Value: A critical factor in calculating Equivalent Financial Value is to avoid "double-counting" in which a customer who works through the funnel is counted as a Website Visit, a Lead, and again as Opportunity. Therefore, in calculating Equivalent Financial Value, each Funnel Stage count should be deducted from the stage that preceded it.

If you have 1000 Website Visits, 100 Leads, 10 Opportunities, you count the value of the 10 Opportunities, 90 of the Leads that did NOT become Opportunities, and 900 of the Website Visits that did NOT become Leads.

Scenario: A Budget Item contributes to three Key Results that are part of a Funnel. 100 Prospects, 10 Leads, and 1 Opportunity. The Unit Values of these Key Results are $10, $100, and $1,000 respectively. If the Key Results are independent, the Equivalent Financial Value (EFV) calculation is simple. The resulting EFV is $3,000 ($1,000 + $1,000 + $1,000). However, in the case of Funnel-based Key Results, it is important to avoid double-counting. In this example, the EFV is $2,800 ($900 + $900 + $1,000).

Example: $3,000,000 EFV produced by a Marketing Plan

Marketing Investment

Sum total of expenses incurred for a given Marketing Plan.

Example: $1,000,000 of Expense Line Items in Closed status.

Net Marketing Return

The Equivalent Financial Value produced minus the Marketing Investment incurred. This could be in context of the entire Marketing Plan or a particular Budget Item.

Example: $2,000,000

Marketing ROI

Net Marketing Return divided by Marketing Investment then multiplied by 100 to present as a percentage.

Example: 200%

Gross Marketing Return Rate

EFV divided by Marketing Investment and presented as a multiple.

Example: 3X

Marketing Plan

The collective effort for a specified time period (typically a fiscal year) and given a specified budget. The Marketing Plan is the context for all other entities including Budget Items, Expenses, Objectives & Key Results, Funnel & Outcomes, and Playbook.

OKR

Objective & Key Result is a clearly articulated goal (Objective) and one or many quantifiable methods to measure attainment (Key Results) that include a Metric (i.e. New Customer Deal), a Target (i.e. 100), and a Unit Value (i.e. $3,000).

Primary Key Result

Your various marketing efforts (programs, campaigns, etc.) known as Budget Items, will likely achieve multiple Key Results. However, the Primary Key Result is designated as the ultimate indicator of the Budget Item's purpose. This allows you to measure success multiple ways - by total Business Value, by ROI, and by the one thing that was deemed most important.

Funnel

An expected series of stages toward an acquisition outcome (i.e. new customer, new partner) used to determine Key Results targets and business value.

Outcome

Synonymous with a Stage in a Funnel. Outcomes are assigned a Unit Business Value because they are an asset generated by Marketing.

Progress

Used in particular to reference the percent of all Key Results given to a Budget Item that has been attained.

Example: If you have a Target of 100 Leads for a Key Result, and you have generated 30, your progress is 30%.

Performance

Used in particular to reference whether a certain Progress is good, average, or poor in relation to the time left to achieve it. Default thresholds for Performance are:

• 😊 Good = Key Result Progress is equal to 90% or greater of the Plan's duration complete.
• 😐 Average = Key Result Progress is equal to 80-89% of the Plan's duration complete.
• ☹️ Poor = Key Result Progress is 79% or less of the Plan's duration complete.

Example: You are 50% of the way through the Plan's duration. It is June 30 and your Plan runs Jan 1 to Dec 31.

• If your Key Result's Progress is 45%, your Performance is "Good" because 45 is 90% of 50.
• If your Key Result's Progress is 40%, your Performance is "Average" because 40 is 80% of 50.
• If your Key Result's Progress is 35%, your Performance is "Poor" because 35 is 70% of 50.

Budget & Expense Management

Budget Item

An item to which budget is allocated to. Budget Items express what programs, campaigns, technology, services, etc. you are planning to spend money on. 

Budget Item Type

The highest level of categorization for Budget Items, these are "Campaign", "Overhead", and "Talent". These are common classifications of marketing spend.

Budget Item Category

Nested within a Budget Item Type, a Budget Item Category is a customizable attribute to give you more granular organization of your Budget Items.

Examples of "Campaign" Budget Item Categories might include Brand Awareness, Demand Generation, and Customer Experience. Examples of "Overhead" Budget Categories might include Technology, Production, and Services. 

Budget Burn Rate

Budget Burn Rate is a percentage of the Plan's total budget value that has been "spent". Spent is defined as all Expense Line Items where status equals Closed.

Since many people use budget/expense-related terminology differently which may not be technically incorrect, it is important to standardize a few terms.

• Spent Budget refers to the amount of Expense Line Items that are Closed
• Utilized Budget refers to the amount of Expenses Line Items that are either Closed or Committed
• Assigned Budget refers to the amount of Expense Line Items regardless of status
• Allocated Budget refers to the amount portioned out to Budget Items

Expense

A purchase made which may be a single payment or series of payments. The Expense represents the agreement and the payee. Consider this the contract-level information.

Expense Line Item

Related to an Expense, Expense Line Items represent the particular payment(s), the amounts and when they "hit the budget" for accounting. An Expense may have a single or many Expense Line Items. Consider this the invoice-level information.

• Expense Date: The date of the transaction
• Payee: The recipient of payment (i.e. the vendor, contractor, service provider, retailer)
• Status: The status of the expense. It has either A) been paid out to the payee (Closed), B) is contractually obligated to be paid out upon the upcoming Expense Date (Committed), or is being reserved at the moment as a future purpose but is under no obligation (Planned).

Planning

Playbook

Your documented marketing approach. It can contain whatever you'd like but a default set of section is provided such as Situational Analysis, Target Market, Message & Positioning, and so on. This allows you to keep your strategy and operating procedures front-and-center while you manage your plan throughout the year.

Scenario Planning

A means to compare to plans side-by-side and easily see budget allocation will differ and how forecasted performance will as well. This is useful for showing the impact of potential changes mid-year such as budget cuts or increases.

Administration

Account

This represents your company. There are both Account Roles & Permissions and Team Roles & Permissions.

Account Roles

• Admin: This person has permission to make Account-level changes.
• Member: This person has permission to use the system but not make Account-level changes.
• Contract Owner: This particular Admin is considered the legal contract owner and may be required to make verbal/written/digital approvals for certain changes to the Account such as permanent data deletion.

Team

Can be used to represent different geographic business units, subsidiaries, or distinct product teams - if your company has distinct marketing teams that operate separately.

Team Roles

• Team Lead: Can create/edit/delete all data of all Plans
• Director: Can create/edit/delete all data of all Plans except cannot edit Playbook, Objectives, or Business Value)
• Contributor: Can create/edit/delete Budget and Expense data only