Revenue Marketing University - The Pedowitz Grouprevmarketer.pedowitzgroup.com/rs/pedowitzgroup2/images/RMU Wi… · Revenue Marketing University Education for Marketing Executives

3/8/2013 The Pedowitz Group ©2012 1

Revenue Marketing University Education for Marketing Executives

Winter 2013

Changing the Status Quo

Class 3: The CMO Dashboard

The Pedowitz Group


Welcome!

[email protected] 404.590.9416

Twitter: @revenuemarketer LI: jeffpedowitz

Jeff Pedowitz President and CEO The Pedowitz Group Goal: To provide education based on real-life best practices and peer networking that will help marketing executives transform their organizations from cost centers to revenue centers.

Presenter

Presentation Notes

Welcome to the Revenue Marketing University Specifically designed for marketing executives who are in the process of transforming marketing from a cost center to a revenue center. This is a new day for the marketing executives and one that requires new knowledge, skills, and expertise. Where do you go to learn this stuff? Here, at the Revenue Marketing University.


Connections

Tweet if you hear something worth sharing! @revenuemarketer

Tell your friends and colleagues to join Register Have access to all replays

Connect with me on LinkedIn!


Winter 2013 Schedule Changing the Status Quo

Selling the Vision for Change - February 7th - 2:00pm ET Managing Change - February 21st - 2:00pm ET The CMO Dashboard - March 7th - 2:00pm ET Building the Revenue Continuum: Marketing & Sales

Alignment - March 21st - 2:00pm ET Revenue Marketing Organization: Structure & Team -

April 4th - 2:00pm ET


Taking the CMO Back to School Language of a CMO Dashboard

Series of Viewpoint articles at DM Confidential taking the CMO back to school to learn how to drive repeatable, predictable, scalable revenue performance from marketing. We call this Revenue Marketing.

POP QUIZ! I’ll give you a word and you tell

me what you think it means. Then, I’ll give you the definition in terms of Revenue Marketing.


Question #1: What is ROI?

“Did you say Roy? I’ve never seen someone spell their name this way. I think someone made a spelling error.” LOL. ROI stands for Return on

Investment and it is fast becoming the standard of measurement for B2B CMOs.

ROI is calculated as: Gain from investment – Cost of investment

Cost of investment


Question #2: What is Revenue?

“As in Internal Revenue? I just saw a PBS special about the history of moonshiners and it seems like the cops chasing them were Revenuers?” Say it with me – R-E-V-E-N-U-E.

This is the new responsibility for today’s CMOs. It’s measured by metrics such as:

%/$ contribution to pipeline %/$ to booked business


Question #3: What is Lead Management?

“I don’t manage leads, I toss them over the wall to sales and it’s hard work! Lead management is the

combined processes of marketing and sales that tracks and manages the entire life cycle of a lead. Every step and conversion point is tracked and reported on.


Question 4: What is Sales & Marketing Alignment and Why does it Matter to Metrics?

“Well, in my company, we play the Sales & Marketing Angry Birds game. We’re completely aligned in our mistrust and lack of respect for one another and take lots of pot shots. Our aim is excellent!” OK, OK. No more violence! For the

Revenue Marketer, sales and marketing alignment is a key ingredient of success. In companies where this alignment has occurred, you will see a synergistic revenue team comprised of marketing and sales all striving and accountable for the same number. Oh, and you guys need a new game.


Question #5: What is forecasting?

“What, like in the weather? That’s not in my job description!” You missed again. The hallmark

of a Revenue Marketer is they show up to a senior management meeting and not only report on their revenue impact last quarter, but also forecast the impact they’ll have on revenue in the upcoming quarter.


From Classroom to Real World…

CMO Dashboard at Sage Nancy Harris, GM

CMO Dashboard at BillTrust Jim Kanir, SVP Sales & Marketing


My background

SVP/GM at Sage 25 year career in high tech companies Product marketing, product

management, R&D, services and GM roles

RPM champion at two different companies

RPM is way that executives MUST think


Background

Sage 50 Canadian Edition business unit

Sage North America


Key Indicators

INCOME STATEMENT

• Revenue • Expenses • Net income

BALANCE SHEET

• Assets • Liabilities • Shareholder equity

CASH FLOW

• Cash sources • Expenses • Operating cash

VALUE • Pipeline • Leads • Ratio leads/close

PERFORMANCE

• Reach • Conversion rate • Velocity

EFFICIENCY

• Acquisition cost

• Close rate • ROI

Business indicators

RPM indicators

Presenter

Presentation Notes

Shows snapshot of revenue/expense and net income over a period of time. Shows snapshot of what is owned and owed at a snapshot in time Shows snapshot of liquidity at point in time


Journey to Metrics That Matter

Sales and marketing metrics BEFORE

Marketing

Visitors Clicks Leads Dollars spent

Sales

Opportunities Forecast Win rate Quota attainment


A Rigorous Revenue-Based Approach

Web (PPC, SEO)

A framework to measure, refine, collaborate and optimize top line revenue

Recycle Deferred, Unresponsive Leads

13% Close Rate

50% SAL Rate

15% MQL Rate

80% Activity Conversion Rate

Lead Aggregators

Webinars

Campaigns

Reach, Value, Conversion, Velocity, Return

Presenter

Presentation Notes

Imagine the power of being able to measure and manage each phase of the marketing and sales funnel such that you could predictably and reliably know what your revenue was going to be based on what was at the top of your funnel. Not only can you know how many leads you will require in the top of your funnel to make your target revenue, you will be able to know what would happen with each turn of the dial at each phase of the funnel what will happen to revenue—small changes in each phase can significantly impact revenue. Lead Lifecycle Management Manage engagement with prospects and customers through entire buyers journey Nurture marketing, lead prioritization, lead scoring, and pipeline analytics Sales and Marketing Alignment Have a shared definition of a lead between sales and marketing Look at conversion rates from Marketing Qualified Lead (MQL) to Sales Accepted Lead (SAL) – not just campaign performance Data Driven Decisions Gain predictable knowledge on how much it will cost to achieve targets, and the most efficient combination of channels to utilize in outbound campaigns. Continuous Improvement: Define, measure, analyze, improve, control, and�re-measure campaign effectiveness, channel mix,�and sales operations will lead to the �maximization of revenue for the organization.


Metrics Focus on Results not Activities

Presenter

Presentation Notes

Dashboard—can track everything and see the metrics and true ROI and the metrics that allow us to manage the funnel.


Jim Kanir

SVP Sales/Marketing Billtrust

CRO M5 Networks COO for Powerway, Inc. President / CEO Cohesia

Corp Global sales and marketing

executive positions: Reasoning Inc. Unify Corporation,

CrossAccess Corporation Pentawave Bell & Howell


You Know You Need to Revisit Your Marketing Metrics When…

Presenter

Presentation Notes

Most of the time, before buying marketing automation, a marketer feels like this [image] when presenting data to the CEO. The tell-tale signs that you are not tracking the correct data is that sales and marketing are not aligned and in agreement about what should be shared with the c-suite.


Billtrust Before Focusing on Metrics that Matter

Dirty Data Input = Lack of data around lead source ROI Length of sales cycle = ??? Size of the funnel = ??? No measurement on the effectiveness of marketing

programs No insight into the number of deals that marketing

influenced Gathering data to present to the CEO

took hours of excel sorting Not enough data to forecast


Listen Up and STOP

If you were given a 10% budget increase, which

lead sources would you allocate it to based on ROI?

What percent of your company’s closed-won deals has marketing influenced?

How much revenue did marketing contribute to in 2012?

What is your forecasted revenue for Q2 2013?

Presenter

Presentation Notes

If you’re organization cannot currently answer these questions, its time to “fire yourself” and start new. THESE ARE THE METRICS THAT MATTER. And I will show you how Billtrust and many other organizations got to the point where they can answer these questions confidently to our CEO and board.


ALIGN SALES AND MARKETING GOALS

2012: Sales & Marketing AGREED to increase revenue by 50% The team crushed the goal of 50% Year over Year Then we signed on for a stretch goal of 120% and delivered total

revenue of 141% of the original plan

Presenter

Presentation Notes

Step one to achieving metrics that matter: Align sales and marketing goals


Sales Did Their Part…

Reps Ramping Period Standard Operating Procedure


Marketing Did Their Part…

Analyzed New & Clean Data From Sales Started to Focus on Funnel Size & Velocity

Measured Marketing Influence Via Marketo

Deals Nurtured by Marketing

70%

Forecasting


Lessons Learned

Sales and marketing alignment is ALWAYS step one The metrics that the C-Suite wants start with clean data

input by sales PS: They don’t care about the # of clicks and likes MQL’s are interesting, SAL’s are key!

A dedicated marketing team member should focus on the metrics that matter

Fail Fast and Fall Forward!


Q & A

Jim Kanir SVP

Sales & Marketing Billtrust

Nancy Harris GM

Sage Canada

Jeff Pedowitz CEO

The Pedowitz Group [email protected]

404.590.9416 Twitter: @revenuemarketer

LI: jeffpedowitz

Presenter

Presentation Notes

Welcome to the Revenue Marketing University Specifically designed for marketing executives who are in the process of transforming marketing from a cost center to a revenue center. This is a new day for the marketing executives and one that requires new knowledge, skills, and expertise. Where do you go to learn this stuff? Here, at the Revenue Marketing University.

Documents

Revenue Marketing University - The Pedowitz Grouprevmarketer.pedowitzgroup.com/rs/pedowitzgroup2/images/RMU Wi… · Revenue Marketing University Education for Marketing Executives