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#RockTheRev Welcome! © 2011 Marketo, Inc.

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#RockTheRev

Welcome!

© 2011 Marketo, Inc.

#RockTheRev

Paul Albright, Chief Revenue Officer

Bill Binch, SVP Sales

Secret Sauce for Revenue Growth

#RockTheRev

Three Requirements for Greatness

1. Killer sales & marketing

+

2. Amazing products

+

3. Insanely passionate people

=

Delighted Customers

3

#RockTheRev

Three Things Butt-Kicking Revenue Teams Do

1. Grow faster

2. Dominant global brand

3. Ignite greatness

4

#RockTheRev

Old Now

Buyer

Buying has Changed Forever…

Old Now

#RockTheRev

Sales and Marketing Must Change

Sales reps DO NOT achieve their sales goals - CSO Insights 2010 SPO Sales Strategy Analysis

52% Marketing qualified leads will never close - SiriusDecisions

94% Companies rate their Lead Generation as subpar - CSO Insights 2010 SPO Sales Strategy Analysis

60% Sales people who view their marketing as “sales savvy” - CMO Council

10%

#RockTheRev

45% of Sales’ Time is Wasted

Trying to Figure Out Where to

Spend Their Time!

#RockTheRev

Revenue Generation Must Fundamentally Adapt

• Greatness at Inbound, Social, and Content Marketing

• Chief Revenue Officer to Architect Growth

• Make Fact-based Decisions On Program Investments

• Continuous Marketing + Sales Collaboration

• Achieve Integrated “Whole-Funnel” Forecasting

• Educate and Win the Minds of Self-Directed Buyers

• Detect and Exploit Buying Signals Instantly

• Prioritize Sales Time on Most Likely Buyers

#RockTheRev

It’s All About Growth: SaaS Comparison

All revenue numbers normalized to Marketo Year 1

#RockTheRev

Marketo Maximizes Productivity Across

Sales AND Marketing

#RockTheRev

Increase Revenues by 40% Half of which flows to bottom line

Customer Success Metrics

22% Increase in qualified leads

21% More leads convert to opportunities

Grow number of

opportunities

15% Reduction in customer acquisition cost

Optimize ROI

2011 Survey of over 250 customers.

17% Increase in win rate

12% Increase in deal size 7% shorter sales

cycle

Improve Sales

Productivity

#RockTheRev

Highly Efficient Revenue Engine

90 cents in Marketing for every $1 in Sales

80% of revenue directly sourced by marketing

$1.2M annual recurring revenue quota

0.00

0.50

1.00

1.50

2.00

Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11

Productivity (1-year New Customer Bookings / $M+S )

#RockTheRev

Marketo’s Revenue Cycle

All N

am

es

Pro

spect

&

Recycle

d

Lead

AW

AR

EN

ESS

Engaged

Opportunity Customer

Sale

s Lead

MQL

SAL SQL

Nurturing Database

Marketing SDR Sales

#RockTheRev

Marketo’s Revenue Cycle

All N

am

es

Pro

spect

&

Recycle

d

Lead

AW

AR

EN

ESS

Engaged

Opportunity Customer

Sale

s Lead

MQL

SAL SQL

Nurturing Database

Marketing SDR Sales

Names are just names.

#RockTheRev

Marketo’s Revenue Cycle

All N

am

es

Pro

spect

&

Recycle

d

Lead

AW

AR

EN

ESS

Engaged

Opportunity Customer

Sale

s Lead

MQL

SAL SQL

Nurturing Database

Marketing SDR Sales

Meaningful interaction with us.

#RockTheRev

Marketo’s Revenue Cycle

All N

am

es

Pro

spect

&

Recycle

d

Lead

AW

AR

EN

ESS

Engaged

Opportunity Customer

Sale

s Lead

MQL

SAL SQL

Nurturing Database

Marketing SDR Sales

Qualified, engaged potential buyers.

#RockTheRev

Marketo’s Revenue Cycle

All N

am

es

Pro

spect

&

Recycle

d

Lead

AW

AR

EN

ESS

Engaged

Opportunity Customer

Sale

s Lead

MQL

SAL SQL

Nurturing Database

Marketing SDR Sales

Showing buying signs or significant

engagement.

#RockTheRev

Marketo’s Revenue Cycle

All N

am

es

Pro

spect

&

Recycle

d

Lead

AW

AR

EN

ESS

Engaged

Opportunity Customer

Sale

s Lead

MQL

SAL SQL

Nurturing Database

Marketing SDR Sales

Qualified as sales-ready by a human.

#RockTheRev

Marketo’s Revenue Cycle

All N

am

es

Pro

spect

&

Recycle

d

Lead

AW

AR

EN

ESS

Engaged

Opportunity Customer

Sale

s Lead

MQL

SAL SQL

Nurturing Database

Marketing SDR Sales

Accepted and actively worked by sales

#RockTheRev

Risk Reduction

SEO

Social

Scoring

Popular Blogs Definitive Guides Resource Center Marketo TV Webinars

Content Marketing

#RockTheRev

Early Stage Thought leadership and best practices to build brand and awareness

When To Ask For Registration

Middle Stage Buyers guides, RFP templates and industry information to help structure research

Late Stage Company-specific information to help evaluate and reaffirm selection

#RockTheRev

Short Forms Outperform Long Forms

Short (5) Conversion: 13.4%

Cost per: $31.24

Medium (7) Conversion: 12.0%

Cost per: $34.94

Long (9) Conversion: 10.0%

Cost per: $41.90

#RockTheRev

Marketo Prospect Generation 1H2011

Source Prospects Cost % Lead Velocity (Days)

Lead to Opp Index

3rd Party Email Blast 9,049 $36 20% 32 0.5

Trade Show 3,786 $36 22% 29 1.8

Trade Show – Virtual 3,125 $18 17% 48 1.0

Paid Webinar 1,971 $71 26% 33 0.7

PPC 1,494 $135 45% 15 1.8

AppExchange 1,128 $41 72% 3 2.4

Content Syndication 881 $69 18% 29 1.2

Social Media 588 $94 33% 16 0.2

Other Paid 1,645 $45 25% 32 0.9

Website/Inbound 5,133 58% 9 1.9

Referral / WOM 564 21% 32 1.4

Sales Prospecting 349 19% 71 3.9

#RockTheRev

Marketo Prospect Generation 1H2011

Source Prospects Cost % Lead Velocity (Days)

Lead to Opp Index

3rd Party Email Blast 9,049 $36 20% 32 0.5

Trade Show 3,786 $36 22% 29 1.8

Trade Show – Virtual 3,125 $18 17% 48 1.0

Paid Webinar 1,971 $71 26% 33 0.7

PPC 1,494 $135 45% 15 1.8

AppExchange 1,128 $41 72% 3 2.4

Content Syndication 881 $69 18% 29 1.2

Social Media 588 $94 33% 16 0.2

Other Paid 1,645 $45 25% 32 0.9

Website/Inbound 5,133 58% 9 1.9

Referral / WOM 564 21% 32 1.4

Sales Prospecting 349 19% 71 3.9

Web Prospects Convert 5X Better Than Paid Prospects

#RockTheRev

Marketo Prospect Generation 1H2011

Source Prospects Cost % Lead Velocity (Days)

Lead to Opp Index

3rd Party Email Blast 9,049 $36 20% 32 0.5

Trade Show 3,786 $36 22% 29 1.8

Trade Show – Virtual 3,125 $18 17% 48 1.0

Paid Webinar 1,971 $71 26% 33 0.7

PPC 1,494 $135 45% 15 1.8

AppExchange 1,128 $41 72% 3 2.4

Content Syndication 881 $69 18% 29 1.2

Social Media 588 $94 33% 16 0.2

Other Paid 1,645 $45 25% 32 0.9

Website/Inbound 5,133 58% 9 1.9

Referral / WOM 564 21% 32 1.4

Sales Prospecting 349 19% 71 3.9

Tradeshows focused on Salesforce and captive roadshows have dramatically improved ROI

#RockTheRev

Marketo Prospect Generation 1H2011

Source Prospects Cost % Lead Velocity (Days)

Lead to Opp Index

3rd Party Email Blast 9,049 $36 20% 32 0.5

Trade Show 3,786 $36 22% 29 1.8

Trade Show – Virtual 3,125 $18 17% 48 1.0

Paid Webinar 1,971 $71 26% 33 0.7

PPC 1,494 $135 45% 15 1.8

AppExchange 1,128 $41 72% 3 2.4

Content Syndication 881 $69 18% 29 1.2

Social Media 588 $94 33% 16 0.2

Other Paid 1,645 $45 25% 32 0.9

Website/Inbound 5,133 58% 9 1.9

Referral / WOM 564 21% 32 1.4

Sales Prospecting 349 19% 71 3.9

PPC drives expensive prospects – but they convert great

#RockTheRev

Marketo Prospect Generation 1H2011

Source Prospects Cost % Lead Velocity (Days)

Lead to Opp Index

3rd Party Email Blast 9,049 $36 20% 32 0.5

Trade Show 3,786 $36 22% 29 1.8

Trade Show – Virtual 3,125 $18 17% 48 1.0

Paid Webinar 1,971 $71 26% 33 0.7

PPC 1,494 $135 45% 15 1.8

AppExchange 1,128 $41 72% 3 2.4

Content Syndication 881 $69 18% 29 1.2

Social Media 588 $94 33% 16 0.2

Other Paid 1,645 $45 25% 32 0.9

Website/Inbound 5,133 58% 9 1.9

Referral / WOM 564 21% 32 1.4

Sales Prospecting 349 19% 71 3.9

Email blast, webinars, and virtual tradeshows are our “workhorses” –

but need to watch saturation

#RockTheRev

Marketo Prospect Generation 1H2011

Source Prospects Cost % Lead Velocity (Days)

Lead to Opp Index

3rd Party Email Blast 9,049 $36 20% 32 0.5

Trade Show 3,786 $36 22% 29 1.8

Trade Show – Virtual 3,125 $18 17% 48 1.0

Paid Webinar 1,971 $71 26% 33 0.7

PPC 1,494 $135 45% 15 1.8

AppExchange 1,128 $41 72% 3 2.4

Content Syndication 881 $69 18% 29 1.2

Social Media 588 $94 33% 16 0.2

Other Paid 1,645 $45 25% 32 0.9

Website/Inbound 5,133 58% 9 1.9

Referral / WOM 564 21% 32 1.4

Sales Prospecting 349 19% 71 3.9

Late stage content = 4X improvement in Opp Index

#RockTheRev

Marketo Prospect Generation 1H2011

Source Prospects Cost % Lead Velocity (Days)

Lead to Opp Index

3rd Party Email Blast 9,049 $36 20% 32 0.5

Trade Show 3,786 $36 22% 29 1.8

Trade Show – Virtual 3,125 $18 17% 48 1.0

Paid Webinar 1,971 $71 26% 33 0.7

PPC 1,494 $135 45% 15 1.8

AppExchange 1,128 $41 72% 3 2.4

Content Syndication 881 $69 18% 29 1.2

Social Media 588 $94 33% 16 0.2

Other Paid 1,645 $45 25% 32 0.9

Website/Inbound 5,133 58% 9 1.9

Referral / WOM 564 21% 32 1.4

Sales Prospecting 349 19% 71 3.9

Still working things out on paid Social Media advertising

#RockTheRev

Marketo Prospect Generation 1H2011

Source Prospects Cost % Lead Velocity (Days)

Lead to Opp Index

3rd Party Email Blast 9,049 $36 20% 32 0.5

Trade Show 3,786 $36 22% 29 1.8

Trade Show – Virtual 3,125 $18 17% 48 1.0

Paid Webinar 1,971 $71 26% 33 0.7

PPC 1,494 $135 45% 15 1.8

AppExchange 1,128 $41 72% 3 2.4

Content Syndication 881 $69 18% 29 1.2

Social Media 588 $94 33% 16 0.2

Other Paid 1,645 $45 25% 32 0.9

Website/Inbound 5,133 58% 9 1.9

Referral / WOM 564 21% 32 1.4

Sales Prospecting 349 19% 71 3.9

Most prospects not ready to be leads when they come in

#RockTheRev

All N

am

es

Pro

spect

&

Recycle

d

Engaged

Lead

Nurturing

Lead Nurturing Plugs the Leak Building relationships with qualified prospects regardless of their timing to buy, with the goal of earning their business when they are ready.

Lead

Opportunity

Sale

s Lead

MQL

SAL SQL

“The art of maintaining permission to stay in front of your buyers as

they educate themselves”

#RockTheRev

The Value of Lead Nurturing

Fast Leads ( MQL <1 mo)

Slow Leads (MQL >1 mo)

Total Leads (MQL)

Cost / Lead (MQL)

Without Nurturing 20% 6.67% 26.67% $206.00

With Nurturing 20% 20.0% 40.0% $137.50

Source: Actual Marketo data; assumes $55 per prospect

Marketo ROI Results

Results: 50% more marketing qualified leads from lead nurturing

#RockTheRev

Other Kinds of Lead Nurturing

Accelerators

Move prospects faster with relevant “nudges”

Recycled

Nurture based on what you find

Reconstituted

AKA “Wake the Dead”

#RockTheRev

A Framework for Lead Scoring

Explicit What the prospect tells you

Inferred What you observe or infer

Fit Are you interested in them?

• Demographics

• Firmographics

• BANT

• Data quality

• Corporate vs. personal email

• Location

Interest Are they interested in you?

• BANT (Budget Authority Need Timeline)

• Latent behaviors (engagement)

• Active behaviors (sales readiness)

Get The “Definitive Guide to Lead Scoring”

http://bit.ly/DGtoLS

#RockTheRev

Interest Scoring - Examples

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

• Pricing pages:

• +10 regular, +15 detailed • Watch demos:

• +5 overview, +10 detailed • Mid-stage content +8 • Late-stage content +12 • Searches for “Marketo” +8

#RockTheRev

The Marketing-Sales Handoff (SDRs)

Best place for dramatic improvements in business performance are handoffs between functions

Benefits of a Sales Development function Faster, more consistent, & better quality follow-up

on leads Better economics The human touch enhances lead nurturing Better data and more metrics Talent development for sales

#RockTheRev

Lead Follow-up Cadence

#RockTheRev

No Lead Left Behind

Day 0 Notification

Day 1 If untouched, reminder

Day 2 If untouched, reminder cc boss

Day 3 If untouched, alert executives

Day 7 If stale, reminder

Day 8 If stale, reminder cc boss

Day 9 If stale, alert executives

#RockTheRev

Modern Definition of an Opportunity

Activity based, not rules based

© 2011 Marketo, Inc.

#RockTheRev

Sales Insights

#RockTheRev

More Sales Insight

#RockTheRev

Cadence

Marketing and sales SLAs

SDR and AE calendars shifted

AEs carry (12) (one-monthly) quotas

Spiff for consistency

© 2011 Marketo, Inc.

#RockTheRev

Key Takeaways

1. Grow revenue by making sales more productive, not just by hiring more reps

2. Portfolio of demand generation programs

3. Focus on the entire revenue cycle, not just the top of the funnel

4. No lead left behind / service level agreements

5. Demographic fit + behavioral interest = quality lead

#RockTheRev

We Stand Ready to Help: [email protected]

[email protected]

#RockTheRev

#RockTheRev

Increase Revenues by 40% Half of which flows to bottom line

Increase

average

contract value

11%

Increase

number of

opportunities

46%

GROW SALES

PIPELINE OF DEALS

Improve

win

rate

17%

SALES

PRODUCTIVITY

REVENUE

GROWTH

Reduce

customer

acquisition costs

15%

SAVE MONEY

ACROSS ALL STAGES

2011 Customer Survey

Amazing Impact That Grows Fast

#RockTheRev

Zero to Hero in 180 Days The FusionStorm Journey to Revenue Generating Rockstar Success

Josh Krasnegor

VP of Marketing

Kevin Schrage

Revenue Marketing Manager

#RockTheRev © 2011 Marketo, Inc.

#RockTheRev © 2011 Marketo, Inc.

FusionStorm

Founded in 1995

B2B Technology Sales

$420M in revenue & growing

Delivers IT solutions to thousands of across the US & Europe (including Marketo) IT Consulting

Technology Solutions

Managed/Hosted/Cloud Services

Marketing team of 5 & funded from co op funds from partners, 100 sales & 200 engineers

#RockTheRev

The Hurdles

No marketing infrastructure budget

Brand new CRM (Salesforce.com)

No marketing automation

No defined lead process

No accurate reporting

No reportable ROI

© 2011 Marketo, Inc.

#RockTheRev

The Plan

Find a marketing automation tool

Create a true lead process

Create sales & marketing alignment

Produce accurate reports

Become marketing revenue generators

© 2011 Marketo, Inc.

#RockTheRev

Choosing the Tool

Discussed marketing automation with peers

Reviewed different automation tools

Researched best practices

Why we chose Marketo?

Discovered Marketo was a recognized thought leader

Great compatibility with our CRM

Easy implementation with our IT operations team

Met all of our business requirements

Ease of use

© 2011 Marketo, Inc.

#RockTheRev

Sales & Marketing Alignment

#RockTheRev

Defining a Process

Researched best practices on lead lifecycle management

Created standardized definitions and processes

Built a Service Level Agreement (SLA) between Sales and Marketing

Implemented this process with all marketing qualified leads – No lead left behind

Refined and tested it

© 2011 Marketo, Inc.

#RockTheRev

“BARKETING”

Business Acquisition Team + Marketing = Barketing

Marketing agrees to deliver high quality MQL’s to BAT

In return BAT agrees to follow up all leads defined by our lead process

We found better cooperation with BAT with defined SLA’s

We are gaining more visibility down the lead lifecycle

MQL > BAL > SQL > Opp > Closed Won

© 2011 Marketo, Inc.

#RockTheRev

Lead Process

#RockTheRev

Lead Process Prior to Marketo

Marketing Sales

I am awesome!

#RockTheRev

Lead Process Developed With Automation

© 2011 Marketo, Inc.

MQL

Marketing

Qualified Lead

has been

generated and

designated as

Hot or Normal

Lead is sent to

Owner or Queue

If it is sent to a

queue you must

check to see if

the lead is in

your region.

*24 hours to

accept in queue

for Normal

Leads

BAT member

assigned Accept/Reject

BAT member

will use follow

up process that

pertains to the

type of lead.

This will be

dependant on

the type of lead.

*3 days to follow

up normal leads

Once a BAT

member

engages with

the lead they

will need to

qualify/disqualify

. This process

will give

marketing some

metrics on the

quality of leads

being passed.

*After 5 solid

attempts

disqualify if no

contact is made

with “not

interested”

Convert

Once a lead is

qualified the

main goal is to

uncover an

opportunity.

Once you

uncover the

opportunity

convert the lead

to an account.

**You cannot

convert the lead

without it having

an opportunity

#RockTheRev

Automated Alerts – New MQL

© 2011 Marketo, Inc.

#RockTheRev

Automated Alerts – MQL Not Accepted

© 2011 Marketo, Inc.

#RockTheRev

Automated Alerts – MQL Accepted

© 2011 Marketo, Inc.

#RockTheRev

Automated Alerts – MQL Not Followed Up On

© 2011 Marketo, Inc.

#RockTheRev

Automated Alerts – Sales Qualified

© 2011 Marketo, Inc.

#RockTheRev

Automated Alerts – Opp Closed Won

© 2011 Marketo, Inc.

#RockTheRev

Reporting

© 2011 Marketo, Inc.

#RockTheRev

Lead Process with Marketo

Marketing Sales

MQL’s are awesome!

$

#RockTheRev

Revenue Marketing Campaigns

#RockTheRev

Campaigns with Marketo

Created multi touch campaigns

Tracked every touch with Marketo

Direct Mail, Email, Telemarketing, Adwords

Used lead scoring

Gave sales visibility on touches via Sales Insight

© 2011 Marketo, Inc.

#RockTheRev

Throw Away Your Laptop Campaign

© 2011 Marketo, Inc.

Visually engaging direct mail piece themed

“Throw Away Your Laptop”

2 emails to follow up direct mail piece to

reinforce call-to-action

Web landing page to capture recipient

information and provide relevant materials.

Follow up telemarketing to prioritized

prospects – done through lead scoring

Campaign Deliverables

#RockTheRev

Direct Mail

© 2011 Marketo, Inc.

Direct mail with call to action and incentive

Take a brief assessment and grab $25 to $75 in iTunes gift cards

#RockTheRev

Followed by Emails

2 weeks after sending the direct mail piece we sent an email to anyone who didn’t register via direct mail

Marketo makes it easy to differentiate registrants and non-registrants

After 2 weeks we sent another email to the rest of non-registrants changing the subject line

© 2011 Marketo, Inc.

#RockTheRev

Followed by Telemarketing

Using Sales Insight we prioritize our telemarketing efforts Lead Scoring allowed us to target qualified leads

Low lead scores are nurtured instead of harassing them with phone calls

Lower rejection rates leads to higher confidence in your sales reps More meetings are set with fewer phone calls

Without Sales Insight – 100 calls = 1-2 appointments

With Sales Insight – 100 calls = 10-15 appointments

© 2011 Marketo, Inc.

#RockTheRev

Capturing Lead Information

All lead information was captured on a Marketo form and synced to our CRM

© 2011 Marketo, Inc.

#RockTheRev

Automating the Process

© 2011 Marketo, Inc.

All emails and forms are set up before the direct mail piece is sent

Triggers are set up to add to SFDC campaign and change status

Emails are set up to go out at a scheduled time and date

Alerts are sent to the team when the form is filled out

The leads are automatically sent to sales after 1 week of filling out the form to allow for fulfillment of gift card

Lead escalation is set up for any lead not followed up

Closed won opps alerts are sent to the team

#RockTheRev

Current Campaign Results

© 2011 Marketo, Inc.

After 6 weeks

List of 1,000 targeted leads

95 Filled out form

41 Marketing Qualified Leads

12 Appointments set

3 Opportunities

$46,000 in pipeline

#RockTheRev

Rise to Fame

#RockTheRev

Struggles

Sales management buy-in wasn't easy

Adoption took longer than expected

Changing BAT structure along the way

Sales people

CRM adoption

© 2011 Marketo, Inc.

#RockTheRev

Successes

Created marketing & sales alignment

BAT adoption

No lead left behind

Visibility on lead lifecycle

Accurate reporting

Credibility

© 2011 Marketo, Inc.

#RockTheRev

What's Next?

Refining the lead process

Creating a better lead nurture process

Improving sales alignment

Delivering higher quality leads to sales

© 2011 Marketo, Inc.

#RockTheRev

Questions?

Josh Krasnegor

VP of Marketing

[email protected]

Kevin Schrage

Revenue Marketing Manager

[email protected]

© 2011 Marketo, Inc.

#RockTheRev

Next Up: Proving — and Improving —

Marketing’s Impact on

Revenue

© 2011 Marketo, Inc.

#RockTheRev

Secret Sauce:

Proving — and Improving —

Marketing’s Impact on Revenue

Jon Miller, VP Marketing and Co-Founder

#RockTheRev

Topics

Building Marketing Credibility

The Right Metrics

Revenue Metrics

Marketing Program Performance

Forecasting

#RockTheRev

12%

20%

15%

9%

44%

Improve profits bymore than 20%

Improve profits by10% to 20%

Improve profits up to10%

No major change inprofits generated

Don't Know

What Profits Can Be Generated With 10%

More Budget?

#1 Answer:

Don’t Know

Source: 2010 Lenskold Group / emedia Lead Generation Marketing ROI Study

#RockTheRev

Part 2: Planning for

Marketing ROI

#RockTheRev

Planning for Marketing Measurement

Measure ROI to find not just what works, but what works better.

Source: Lenskold Group

Establish Goals and ROI Estimates Up-Front

Design Programs to Be Measurable

Focus on the Decisions that Improve ROI

#RockTheRev

Part 3: The Right Metrics

#RockTheRev

Where Metrics Go Wrong

Vanity Metrics Sound good and impress people, but don’t measure impact on revenue or profitability

#RockTheRev

Where Metrics Go Wrong

Activity Metrics Measure what you do instead of what results and impact you have

#RockTheRev

Where Metrics Go Wrong

Cost Metrics Frame marketing in terms of cost and spending instead of results and outcomes

#RockTheRev

The Right Metrics

Revenue Metrics

Aggregate impact on company revenue

Marketing Program Performance

Incremental contribution and ROI of individual marketing programs

Other Metrics Areas (less tied to Revenue/Finance) Customer Profitability, Net Promoter, Web Analytics, Public Relations Effectiveness, Product Performance, Brand Preference and Health, Sales Tool Usage

#RockTheRev

The Right Metrics

Performance Metrics & KPIs

Past: How did we do?

Diagnostics Present: What is working? How can we do better?

Leading Indicators

Future: How will we be doing?

#RockTheRev

Part 4: Revenue Metrics

#RockTheRev

Model the Full Revenue Cycle

Screenshot: Marketo Revenue Cycle Analytics

#RockTheRev

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

Screenshot: Marketo Revenue Cycle Analytics

#RockTheRev

Marketo Revenue Cycle Metrics

Opportunities 200 / mo ($2,000)

New Customers ($5,000)

Leads 3,800 / mo ($105.25)

Prospects 6,000 / mo

($67)

20%

Active Prospect Database

4.0% / month 75%

Paid Names

($25.80)

10% Unpaid Names

($0)

33%

Inactive (Last 6

Months)

Lead Type Variants • Source • Channel • Division • Size

80%

80% of all deals follow this model

• Lead to Sales Lead: 10% • Sales Lead to Opp: 74% • 1.4 people per Opp 1,000 Leads = 53 Opps

18,000 / mo

#RockTheRev

Drill In Analytics

Prospect to Lead by Lead Source

Screenshot: Marketo Revenue Cycle Analytics

#RockTheRev

Part 5: Marketing Program

Performance

#RockTheRev

Why Measuring Programs is Hard

Multiple touches. Seven touches needed to convert a cold lead into a sale

Multiple influencers. Typical buying committee has 5-21 people

Tyranny of time. The money you invest today will have an uncertain impact at an uncertain point in the future

#RockTheRev

Ways that Companies Measure

• 20%: No tracking

• 45%: Single Attribution

• 21%: Attribute Across Multiple Programs and People

• 11%: Test and Control Groups

• 3%: Market Mix Modeling Source: 2010 Lenskold Group / emedia Lead Generation Marketing ROI Study

#RockTheRev

Example: Single Attribution

100% of pipeline and revenue allocation to the program that sourced the primary contact

Screenshot: Marketo Revenue Cycle Analytics

#RockTheRev

Single Attribution: First / Last Touch

Pros

Relatively easy and low cost

Insight into the lead acquisition

Straightforward insight into “investment per” lead metrics

Cons

Ignores influence of subsequent nurturing / sales touches

Hard to account for quality until deal closes

#RockTheRev

Single Attribution W/ Revenue Projection

Source Prospects Cost % Lead Velocity (Days)

Lead to Opp Index

3rd Party Email Blast 9,049 $36 20% 32 0.5

Trade Show 3,786 $36 22% 29 1.8

Trade Show – Virtual 3,125 $18 17% 48 1.0

Paid Webinar 1,971 $71 26% 33 0.7

PPC 1,494 $135 45% 15 1.8

AppExchange 1,128 $41 72% 3 2.4

Content Syndication 881 $69 18% 29 1.2

Social Media 588 $94 33% 16 0.2

Other Paid 1,645 $45 25% 32 0.9

Website/Inbound 5,133 58% 9 1.9

Referral / WOM 564 21% 32 1.4

Sales Prospecting 349 19% 71 3.9

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Example: Attribute across Multiple Programs

and People?

A deal worth $100,000 recently closed. Three people were involved in the deal:

Person A attended Seminar A and Trade Show B

Person B attended Trade Show B

Person C was sent Direct Mail C

$100,000 Revenue

$25,000 $25,000 $25,000 $25,000

Seminar A $25,000

Tradeshow B $50,000

Direct Mail C $25,000

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Track All Touches Across People

Screenshot: Marketo Revenue Cycle Analytics

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Example: Multi-Touch Attribution

Pipeline and revenue allocated based on all the “Success”

touches by Programs Screenshot: Marketo Revenue Cycle Analytics

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Programs Analyzer

Screenshot: Marketo Revenue Cycle Analytics

First-touch allocation, multi-touch

allocation, investment, volume, etc

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Attribute across Multiple Programs and People

Pros

Incorporates all touches, not just lead generation

Useful for long revenue cycles

Focuses on all contacts associated with deal

Cons

Assumptions can add bias

Risk of over-crediting low impact touch points

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Example: Test and Control

Source: Lenskold Group

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Part 6: Marketing Forecasting

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Introducing Marketing Forecasts

Where the CSO lacks “bottom-up” visibility, marketing forecasts can fill the void

Marketing has long-term view and visibility into the early stages of the revenue cycle

Traditional Marketing Forecast

The market will grow by an estimated 4.2% overall and by 5.1% in the Western region.

Highly Accountable Marketing Forecast

Marketing will generate an incremental 30 new deals worth $4.0 million of bookings that are not currently in the sales forecast.

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Forecasting Conversion Over Time

Predict conversions from one stage to another over time

One model per transition per lead type

Create plans / forecasts about future

y = 50.749x-0.571

R² = 0.4301

0

10

20

30

40

50

60

70

3 13 23 33 43 53 63 73

Marginal Conversion

y = 994.2x0.1352

R² = 0.9551

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

3 13 23 33 43 53 63 73

Cumulative Conversion

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Final Marketing Forecast

Get The “Definitive Guide to Marketing Metrics & ROI”

http://bit.ly/DG2MM

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Key Takeaways

Buying has changed forever – the role of marketing must change as well

Reporting is less important than DECISIONS that improve ROI

Focus on financial metrics that matter to the CFO (profit, cash, revenue)

Avoid cost and spend metrics – focus on investment and return

A trusted marketing forecast is the single most important step to make marketing a revenue driver, not a cost center

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Marketo, Inc.

901 Mariners Island

Suite 200

San Mateo, CA 94404

Direct: +1.650.376-2310

blog.marketo.com

www.marketo.com

JON MILLER VP Marketing

[email protected]

@jonmiller2

Question and Answer

#RockTheRev © 2011 Marketo, Inc.

Panel Discussion

Revenue Performance Management Social Media & Social Selling Online Marketing & Advertising Lead Nurturing & Lead Scoring Best Practices

Ralf VonSosen

VP Marketing

Insideview

David Karel

VP Marketing

Bizo

Justin Gray

CEO

LeadMD

RJ Brideau

VP Business Dev &

Customer Success

ReachForce

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Thank you!