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#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
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
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
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
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
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
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.
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
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 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
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
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
Kevin Schrage
Revenue Marketing Manager
© 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
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
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
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
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
#RockTheRev
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
#RockTheRev
Example: Multi-Touch Attribution
Pipeline and revenue allocated based on all the “Success”
touches by Programs Screenshot: Marketo Revenue Cycle Analytics
#RockTheRev
Programs Analyzer
Screenshot: Marketo Revenue Cycle Analytics
First-touch allocation, multi-touch
allocation, investment, volume, etc
#RockTheRev
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
#RockTheRev
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.
#RockTheRev
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
#RockTheRev
Final Marketing Forecast
Get The “Definitive Guide to Marketing Metrics & ROI”
http://bit.ly/DG2MM
#RockTheRev
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
#RockTheRev
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
@jonmiller2
Question and Answer
#RockTheRev © 2011 Marketo, Inc.
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