Big Data, Big Revenue: How Big Data Means Millions for Marketing

Jon MillerRosanne Saccone

Today’s Topics

• Big data basics• Marketing use cases• How Marketo uses

Pentaho for revenue• How Pentaho Marketing

uses Marketo for data driven decisions

Hi, I’m Jon MillerVP Marketing and Co-Founder

Marketo

@jonmiller

1. My first child was born the same month that we incorporated Marketo

2. Born in Ethiopia3. Studied Physics at Harvard, captain of high-

school debate team and newspaper staff4. I have a top secret “Q” clearance from DOE

Big Data Basics

INFORMATION SCARCITY

WE USED TO LIVE IN A WORLD OF

ABUNDANCEINFORMATION

Source: Adbusters, 2011

Marketing Use Cases

Hi, I’m Ro SacconeCMO, Pentaho

@rosanne_saccone

1. Native San Franciscan

2. Avid golfer and piano player

3. Finance and Marketing background – great for understanding what makes a company tick

Pentaho CorpEnabling the modern big data driven business

Business Analytics for all Data

Any Data

Any Analytics

We all know the amount of data in the world is growing exponentially

Big Data Opportunity for MarketersSeamlessly connecting to relevant customer activity

Powerful Insights from Combined Data

The Value of Big DataMarketing related use cases

Drive incremental revenue

• Understand and monetize customer behavior• Personalize customer experience• Predict customer behavior across all channels

Big Data Driven Marketing Use Cases

ONLINE RETAILERUnderstand buying patterns of five million users via click stream data

GAMINGBetter monetization of premium game features via player data analysis

SOCIAL COMMERCEBetter campaign performance via analysis of social media, page clicks and email data

TRAVEL/ENTERTAINMENTEnable thousands of travel partners to improve promotional targeting

ON-LINE ADVERTISINGReal-time analysis of customer data for personalized offers & targeted advertising

CUSTOMER LOYALTYEnable customer behavior and social media driven marketing & rewards programs

Big data combined with operational data

IT IS HARD• Big data technology is immature• Few big data coding experts• Use case must be clear

So why doesn’t everyone take advantage of big and diverse data?

Find Optimal Campaign and Promotion Mix

Understand Best Marketing Activities and Interactions

Analytics

BLEND Relevant Data On-Demand

Leverage Your Company’s Big Data Projects

DECIDE & ACT!

Big Data Store

Social

Website

Operational Data

Store/Analytics

Marketing

Sales

Customer

Find where the data lives and get the right tools

Pentaho’s Data Driven approach using Marketo

Metrics that MatterGet a seat at the table: Know impact to business goals

Drive Net New Business1. Marketing Qualified Leads (MQLs)

2. Sales Accepted Opportunities (SAOs)

3. MQL to SAO Conversion Percentage

Drive Thought Leadership4. Share of Voice

5. Press and Analyst Influence

BUT, Metrics Data Lives in Various Sources

Each data set is an important part of the total picture

SOCIAL & WEBSITE PIPELINE & BOOKINGS FORECAST

LEADS & OPPORTUNITIES

Multiple reports hard to manage

Manage Optimal Campaign & Content Mix by Target Audience

Understand Marketing Campaigns that Drive Closed Won Deals

Analytics

Our Approach – Blend and AnalyzeAssess Impact of Campaigns from Various Data SourcesFocus on Highest ROI: Optimize Limited Marketing Resources

BLEND Relevant Data On-Demand

Operational Data

Store/Analytics

Big Data Store

Monitoring Trends to Make an ImpactBig data, small data blended for full picture

We Start with Booking Goals

• Leads by Campaign Types • 20 Major Nurturing Tracks: 6 – 10 Touches• Lead Conversion to Sales Opportunity• Nurturing Effectiveness • Opportunities across Sales Stages to Closed• Effectively Forecast Sales Results

Revenue Foundation: Must be Timely, Accurate

and Actionable

Expect to manage the entire marketing/sales flow

Blend Key Sources that MatterA single view into the health of Pentaho

How do I target and influence my most

ready-to-buy prospects?

• Ads• Events• Software Trials• Social• Forums

• Email• Website• Search• Webinars• …

Gain Insight into the Funnel

2. How do created SAOs impact pipeline?

3. How much pipeline is closed won?

4. What’s average deal size?

1. How do MQLs move thru the lead funnel?

Four fundamental metrics to understand deeply

MQLs to SAOs• 20% - Current Month• 30% - Next Month• 50% - Next 3 Months

Expected close date• 32% - Current Qtr• 27% - Previous Qtr• 41% - Prior to that

Deal Size• $200k - Current Qtr• $250k - Previous Qtr• $375k – Prior to that

Close won %• 15% - Current Qtr• 26% - Previous Qtr• 10% - Prior to that

The Rest is Math

Qtr Pipeline Needed

SAOs Created to Date

Gap MQL Created Current Qtr

MQL CreatedQtr +1

MQL CreatedQtr +2

Current Qtr

1,250 1,000 250 250

Qtr +1 1,500 1,000 500 350

Qtr +2 2,000 500 1,500 800

Need to create 250 + 350 + 800 = 1,400 MQLsin the current quarter

Waterfall effect of how leads created drive future pipeline

Final Step: Once Know Goals… Market Creatively and Aggressively

How Marketo Uses Pentaho for Revenue

What Drives Top of Funnel (TOFU)?

Source: Marketo Revenue Cycle Analytics, 1 Apr 2013 to 6 Aug 2013

What Generates Quality Pipeline?

Source: Marketo Revenue Cycle Analytics, June 2013* Percentage of all programs in channel that achieve MT Ratio > 5

Nurture Email - CTA

Nurture Email

Paid Online (PPC+Email)

Nurture (New)

% Above Min*

N/A52%

100%

39%

79%

46%100%38%

N/AN/AN/A29%38%

52%7.6

Revenue Cycle Modeler

Screenshot: Marketo Revenue Cycle Analytics

Filter/Drill into data, e.g. by Program Type, Business Unit, Geography, etc.

Key topic areas:• Balance (Reach)• Flow• Conversion• Velocity Trends over time

Screenshot: Marketo Revenue Cycle Analytics

7%

19%

Win

s

New Opps

240

75%

Sales Leads

Existing Opps

320

820$2,100/ea

10%

25%

3%

.75%

25%

10%

New Targets

Existing Active Targets

Win

s

Existing OutboundOpps

New OutboundOpps

20,000

140,000

38090

105

6080%+ sales leads from database

$33/ea

Use Metrics to Set & Justify Budgets

Con-tactedfrom New

from DB

600

1,050

Inbo

und

/ Pr

ogra

ms

40,000 / month(900K DB Total)

10% inactive / month

New Names

Marketo metrics: your stage definitions may vary

Marketing Forecasts

Get The “Definitive Guide to Marketing Metrics & ROI”

http://marketo.com/DG2MM

Thank You

Jon MillerVP Marketing

blog.marketo.com@jonmiller

Rosanne SacconeCMO

blog.pentaho.com@Rosanne_Saccone