How to Deliver the Right Metrics to Your CMO and Earn More Recognition for Marketing

Transcription

1 How to Deliver the Right Metrics to Your CMO and Earn More Recognition for Marketing Terry Flaherty VP of Strategy and Best Practices Bulldog Solutions Jon Vlock Director of Client Marketing Strategy, UBM TechWeb

2 Agenda The Scorecard of the C-Suite Marketing s Role in the C-Suite Scorecard The Integrated Sales and Marketing Process 5 Critical Metric Categories for the CMO Meeting & Exceeding CXOs and Business Leaders Expectations in the Real World Expectations of You and Marketing is Shifting CEOs and Business Stakeholders Expectations Key Recommendations & Approaches How to Avoid Metrics Traps

3 About Bulldog Solutions Demand-generation agency for BtoB. We provide BtoB marketing with new capabilities to grow revenue and prove its influence. How do you measure up? Take the Executive Benchmark Assessment at eba.bulldogsolutions.com

4 CMO Role is Evolving Compelled to drive revenue Integrate marketing and sales deliver value throughout the sales and marketing process Balance revenue growth and cost of sales/marketing Bring process best practices to marketing and sales CMOs need to speak about business in business terms to their peers, using words and metrics like revenue, cash flow, and profitability.

5 Speaking the Right Language

6 The C-Suite Scorecard

7 CMO Impacts 2 Key Metrics

8 Rev Growth and S/M Efficiency % Revenue Growth 40.00% 30.00% 20.00% 10.00% 0.00% S/M Efficiency -5.00% -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% % % %

9 Rev Growth and S/M Efficiency % Revenue Growth 40.00% Buying Market? 30.00% 20.00% Driving Growth Gaining Efficiencies 10.00% 0.00% S/M Efficiency -5.00% -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% % Losing Revenue Costs Escalating % Overaggressive Cost Reduction? %

10 Rev Growth and S/M Efficiency % Revenue Growth 40.00% 30.00% 20.00% 10.00% 0.00% S/M Efficiency -5.00% -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% % % %

11 Why Scorecards Matter to the CEO Company A Company B 2 Competitors in Enterprise Software Rev. Growth 32.1% 25.4% Similar Solutions Similar Business Model (SAAS) Similar Revenue (~$200M)

12 Looking a Little Deeper Company A (HiGrowth) Company B (Efficiency) Rev. Growth 32.1% 25.4% S/M % Rev 47.7% 27.7% Every dollar of revenue costs company B 27.7 cents and company A 47.7 cents in sales and marketing costs 2 Competitors in Enterprise Software Similar Solutions Similar Business Model (SAAS) Similar Revenue (~$200M) Aggregate Impact B has a $26M Competitive Advantage Driven by efficiencies in Sales/Marketing process (i.e. the demand waterfall)

13 The Challenge for the CMO Marketing Sales? Issues Process disconnect Visibility Predictability Repeatability Scalability Accountability

14 The Gap in the Process? Marketing Programs Often manual, Transitioning to Marketing Automation Limited visibility post-inquiry Metrics not linked to revenue Limited understanding of metrics outside of marketing Opportunity to Closed/Won Supported by CRM Needs Analysis Solutions Presentation LOI/Proposal Contracts Closed/ Won Somewhat repeatable process and defined stages Standard metrics Communicated via sales pipeline and forecasts

15 Integrated Sales and Marketing Funnel Critical stages in the marketing and sales process: Manages lead hand-off between marketing and sales Provides closed loop feedback throughout the funnel

16 Integrated Sales and Marketing Process Sales and Marketing Costs $$$ Revenue Growth

17 Key Metric Categories Types of Funnel Metrics Business Strategy Volume (and trends) Conversion rates Velocity Program/Asset Performance

18 Business Strategy Metrics New Revenue - Sales Initiated 29% New Revenue - Marketing Initiated 32% Recurring Revenue 39% Marketing Initiated Revenue sourced by marketing programs CMO accountable for specific revenue goals

19 Stage Volume and Trends Inventory Metric can accumulate inventory no SLA Service-level based time sensitive

20 Conversion Rates Average Strong Best-inclass Suspect- Inquiry Inquiry - MQL MQL - SAL SAL - SQL SQL - CL/W 0.5% 1.0% 1.5% 3.9% 5.8% 9.7% 58.3% 65.6% 74.5% 49.1% 56.4% 60.5% 23.1% 26.9% 30.7% Sirius Decisions

21 The Impact of Efficient Funnels 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2.50% 1.70% 4.3% 5.8% Contact to Inquiry Inquiry to MQL Company A (average) 68.1% 58.3% MQL to SAL 55.4% 52.3% 28.4% 24.2% SAL to SQL SQL to Closed Won Company B (strong) Goal : Generate $10M incremental marketing initiated revenue Waterfall Stages Required Company A (average) Company B (strong) Inquiries Required 17,509 8,940 MQLs Required SALs Required Opportunities (SQL) Required Deals Required Budget Company A (average) Company B (strong) Total Budget Required $ 935,973 $ 459,314 Company A (average) Company B (strong) Key Performance Metrics ROMI Performance Improvement over Current Client Baseline Avg. Deal Size: 180K

22 Velocity Average Days for Conversion Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Average Days for Conversion Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 MQL to SAL SAL to SQL MQL to C/Win Measures velocity of change across pipeline stage Key component (with conversion) of pipeline forecast Identify service level issues

23 Asset Performance Waterfall Stages Generated Cmpg001 Cmpg002 Cmpg003 Inquiries Generated MQLs Generated SALs Generated Opportunities (SQL) Generated Deals Generated Cost Per Waterfall Stage Cmpg001 Cmpg002 Cmpg003 Cost Per Inquiry $30 $48 $45 Cost Per MQL $352 $767 $798 Cost Per SAL $604 $1,616 $1,612 Cost Per SQL $1,324 $3,095 $2,964 Cost Per Closed-Won $4,815 $13,227 $11,227 Cmpg001 Cmpg001 Cmpg003 ROM$I $37.38 $13.61 $16.03 Understand Funnel Performance for each Campaign Units Generated at Stage Cost Return on Marketing $ Invested

24 CMO Planning Across Waterfall Attract Engage Convert

25 Evolution of Demand Gen Budget Over Time

26 UBM TechWeb Strategy & Business Model Business Information Fuels Insights For Tech Decision Making Business Information Marketing-as-a-Service Education & Conferences Training & Certification Research & Analytics Websites, Events, Newsletters & Mags Media Solutions Lead Lifecycle Exhibitions & Sponsorships Communities Content Development Custom Solutions 50% 50% Enabling People and Organizations to Harness the Power of Technology Pg 26

27 The Tide Shift From Mad Men to Math Men

28 What Do C-level Execs Expect and Value? First Take Reality More revenue. Less sass. Total agreement with everything I say. More credit given to John (the CFO) and me.

29 Tactics Have Changed but Principles are the Same What do CXOs Value and Expect? Defined success metrics Clear Opportunity or Problem Definition Agreed-Upon expected outcomes faster growth, new customers, revenue and profit Milestones and timeframe with frequent and clear communications - Tony Uphoff, CEO UBM TechWeb

30 Meeting CXOs & Business Leaders Expectations? Key Recommendations Everything in Context Its All About Growth Plan for Your Environment Agile Development vs. Big Bang Test, Test, and Test Some More

31 Marketer Beware and Learn from Past Mistakes The Metric Traps They Are Everywhere Irrelevant or Misleading Metrics Metrics In Isolation Artificial Expectations Efficiency vs. Effectiveness One and Done

32 Funnel Scorecard Scenarios Determining best actions for various pipeline conversion issues

33 1. Losing to No Decision 8.5% Prospects are stalling - "Lots of deals, but can't get them across the finish line" 13.8% 58.3% 49.1% Not losing to competitors - but do lose deals to "no decisions"

34 1. Losing to No Decisions - CMO Strategy Focus on economic buyers Sales enablement tools Tighten definition for MQL/SAL

35 2. Marketing and Sales Not Aligned 65.3% "Marketing Leads Stink"/ "Sales Never follows up on the great leads we produce"- 23.1% 18.3% 27.1%

36 2. Marketing/Sales Alignment CMO Strategy Re-evaluate definition of MQL/SAL Establish and measure bi-directional service level agreements Introduce lead scoring and lead nurturing Route qualified leads based on profile fit and engagement Establish nurture programs based on: Profile (Role, industry) Stage of the buying cycle

37 3. Starving for Leads 87.5% % 5.5% "We're starving for leads - Just get me someone to talk to Current scenario has high conversion rates from Inquiry to SAL Often leads to No Decisions or Unalignment

38 Starving for Leads CMO Strategy Quality is more important than Quantity (no matter how hard they complain) Create personas and specifications for MQLs that have rigor Drive relevant messages for very defined markets Leverage the "Rule of 5" for content development Hard Hitting Content Try new marketing channels and track closely Nurture existing database but also cleanse!

39 Summary Financial View Integrated and Aligned Processes Conversion Rates Rule!

40 Thank You For Your Time! Terry Flaherty VP of Strategy and Best Practices Bulldog Jon Vlock Director of Client Marketing Strategy, UBM TechWeb