Demand Generation: Marketo on Marketing

© 2012 Marketo, Inc. Marketo Proprietary and Confidential

Marketo On MarketingA Behind the Scenes Look

Jon Miller, VP Marketing and Co-Founder

© 2012 Marketo, Inc.

Jon Miller, VP Marketing and Co-FounderAuthor of Modern B2B Marketing blog@jonmiller2

Explosive Growth: Customers & Revenue

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Marketo publicly reported approximate new customer figures

INFORMATION SCARCITY

WE USED TO LIVE IN A WORLD OF

ABUNDANCEINFORMATION

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Marketo’s Revenue Cycle

Generate Awareness and “Like”

Develop Relationships Until Sales Ready

(Email, Social, Offline)

Opportunity CustomerLead

Sale

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Nurturing Database

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Sale

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Nurturing Database

Exposed to us via content, brand, or word of mouth

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Nurturing Database

Feels a relationship and trust with us

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Sale

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Nurturing Database

Names are just names.

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Nurturing Database

Meaningful interaction with us

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Nurturing Database

Meaningful interaction and qualified demographics

Nurture until ready for next step

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Nurturing Database

Showing buying signs or significant engagement

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Nurturing Database

Qualified as sales-ready by a human.

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Nurturing Database

Accepted and actively worked by sales

The Five Horsemen of Opportunity

SparkSmall-Biz

Corporate10-100

Mid-Market101-1,500

Enterprise1,500+

% Marketing-Led 100% 84% 80% 78%

% Inbound 65% 42% 31% 32%

% Demand Gen 30% 24% 23% 27%

% Teleprospecting 0% 12% 22% 12%

% Referral 5% 6% 3% 6%

% Sales-Led 0% 16% 20% 22%


Inbound, Content, and Social Marketing

Don’t Find Leads; Help Leads Find You

VS

Use brains, not budget.

Three Types of Inbound Marketing

Quality Inbound

Affinity

Utility Content

Brand awareness

Brand preference

Risk reduction

Blogs Definitive GuidesResource Center VideoWebinars

Content Marketing for Brand & Like

Research data, funny videos, curated lists, infographics, thought leadership

Types of Content

NO

YES

MOSTLYNO

Thought leadership and entertainment to build brand and awareness

Tools that help buyers find you when they are looking for solutions

Company-specific information to help evaluate and reaffirm selection

Buying guides, RFP templates, ROI calculators, whitepapers, analyst reports, webinars

Pricing, demos, services information, 3rd party reviews, customer case studies

Gated?Early Stage

Middle Stage

Late Stage

Content must always be relevant and helpful

Use “411” method for nurturing Likes

Seed Nurturing

Visual Content Helps Stand Out

3,000 tweets

136,000 views

Social Marketing Automation


Demand Generation Pipeline

What Works in Demand Gen?

Screenshots: Marketo Revenue Cycle Analytics, 12 months ending 10 May 2012

Marketo Prospect Generation 1H2011Source Prospects Invest-ment % Lead 12 mo Velocity (Days) Lead to Opp Index3rd Party Email Blast 19,039 $43 30% 147 0.2Trade Show 12,619 $53 29% 153 1.0Paid Social Media Ad 4,319 $65 30% 72 0.1Virtual Trade Show 4,120 $40 32% 213 1.6Paid Webinar 3,849 $63 36% 156 0.4Pay-Per-Click (PPC) 2,999 $171 48% 88 0.8Content Syndication 2,302 $126 40% 178 0.2AppExchange 1,306 $26 80% 26 0.9Website/Inbound 3,352 57% 75 2.8Referral / WOM 179 36% 158 10.9Sales Prospecting 440 28% 108 3.6

Source: Marketo Revenue Cycle Analytics, 12 months ending 30 April 2012

Automation Enables Scale40+ Programs a Month

Set and Use Tokens Integration

Clone to

Reuse

25Best-

Practice Templates


Middle of the Funnel

Why Middle of the Funnel?

• % new Prospects not sales-ready: 81%• Prospect to Lead time: 123 days average• % Slow Leads: 66%• Revenue growth from Scoring: 12%• Increase in sales time spent selling: 17%

Lead Nurturing Relevance

A

B

C

D

1 23

Stages1. BUYING STAGES• Early (Pre-MQL)• Mid (MQL)• Late (Opportunity)• Customer

2. BUYING PROFILESPersona (67%)• Molly Marketer• Sam Sales• Jack Executive

Get The “Definitive Guide to Lead Nurturing”http://bit.ly/DGtoLN

DYNAMIC CONTENT• Industry Wrappers (82%)• Size Specific Examples (49%)• Localization (29%)• Social Signatures• “What’s New”

http://bit.ly/DGtoLN

A Framework for Lead Scoring Explicit

What the prospect tells you Inferred

What you observe or infer

FitAre you interested in them?

• Demographics• Firmographics• BANT

• Data append• Data quality• Corporate email• Location

InterestAre they interested in you?

• BANT• Latent behaviors

(engagement)• Active behaviors (sales

readiness)

Get The “Definitive Guide to Lead Scoring”http://bit.ly/DGtoLS

http://bit.ly/DGtoLS

Interest Scoring - Examples

• Early stage content +3• Attend webinar: +5• Visit any webpage / blog : +1• Visit careers pages: -10

Latent Behaviors (Engagement)

• Pricing pages: • +10 regular, +15 detailed

• Watch demos: • +5 overview, +10 detailed

• Mid-stage content +8• Late-stage content +12• Searches for “Marketo” +8

Active Behaviors(Buying Intent)

Identifying Marketing Qualified Leads for SDRs

21+ Super-Target Lead Lead Lead

9-20 Target Lead Lead

2-8 Other Lead

<2

Engagement <20 20-44 45-89 90+

Buying Intent <6 6-12 13-18 19+

Fit

Inte

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Account-Based Pipeline

Target Accounts

Accounts

Contacts

Effective Target-Account Tactics

Appointment Setting

Micro-Events

Direct Mail

“Why You, Why You Now”

War

mer


Appointment Setting

Micro-Events

Direct Mail


Buyer’s don’t care about you… answer WYWYN directly upfront

War

mer


Appointment Setting

Micro-Events

Direct Mail


Fortune Cookie Mailer

Postcard Series

War

mer


Appointment Setting

Micro-Events

Direct Mail


War

mer


Appointment Setting

Micro-Events

Direct Mail


Marketing Automation Drives a 63% Connect Rate, 5% Opportunity Rate

Add Leads/Contacts

to CampaignPackage / Postcards Automatically Sent

Upon Delivery, Personalized Email

Task to Call Created in SFDC

SLA

Reminders


Budgeting and Staffing for Growth

Budget and ResourcesRevenue Marketing / Demand Gen Q2-12Pipeline $ $27M# Opportunities 850Prospects 20KLeads 15KProgram Investment $1.5MTotal Investment in Revenue Marketing $2.3MRevenue Marketing Headcount 22Program : People Ratio 69 : 31Customer Acquisition Cost Ratio (Bookings / Sales and Marketing) 1.3

Organizing For Scalability

Demand Center

8

EMEA2+1

US4+1

Target Account

3

Inbound3+1

Customer1+1

• Integrated Marketing• Middle of Funnel• Marketing Operations(Also Sales Development)

AsiaPac


Proving — and Improving — Marketing’s Impact on Revenue

Track All Touches Across People

Screenshot: Marketo Revenue Cycle Analytics

Multi-Touch Attribution


Revenue Cycle Modeler


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

Key topic areas:• Balance• Flow• Conversion• Velocity

Trends over time

SLA violations


Marketo Revenue Cycle Metrics

Opportunities 200 / mo($1,860)

New Customers($5,000)

Leads3,700 / mo

($101)

Prospects6,500 / mo

($57)

19%Active Prospect

Database

4.5% / month 75%

Paid Names($14)

10%UnpaidNames

($0)

24%

Inactive (Last 6

Months)

Lead Type Variants• Business Unit• Source• Channel

81%

• Lead to Sales Lead: 10% • Sales Lead to Opp: 74%• 1.4 people per Opp1,000 Leads = 54 Opps

27,000 / mo

319K Total55K Prospects

36% engaged x 66% qualified

Conversion Over Time

• Predict conversions from one stage to another over time

• Create plans / forecasts about future

3 8 13 18 23 28 33 38 43 48 53 58 63 68 73 780

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f(x) = 50.7486452521888 x^-0.57138477143868R² = 0.430133719514154

Marginal Conversion

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f(x) = 994.202885818322 x^0.135210727928123R² = 0.95505216364088

Cumulative Conversion

Marketing Forecasts

Get The “Definitive Guide to Marketing Metrics & ROI”http://bit.ly/DG2MM

http://bit.ly/DG2MM

Key Takeaways

1. Use content to help leads find you

2. Focus on the entire revenue cycle, not just the top of the funnel – nurturing and scoring are essential

3. No lead left behind / service level agreements

4. Use forecasting to turn marketing from a cost center into a revenue driver

5. Grow revenue when marketing makes sales more productive (not just by hiring more reps)

Contact

Jon MillerVP Marketing, [email protected]@jonmillerblog.marketo.comDirect: +1.650.376.2310

mailto:[email protected]