Marketo Secret Sauce for Revenue

Transcription

1 Marketo Secret Sauce for Revenue Jon Miller VP Marketing and Co-Founder, Marketo Author of Modern B2B Marketing blog #RockTheRev

2 Fastest Growing SaaS Company Salesforce SuccessFactors Omniture NetSuite Constant Contact Taleo Marketo Year 0 Year 1 Year 2 Year 3 Year 4 All revenue numbers normalized to Marketo Year 1

3 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 2.00 Productivity (1-year New Customer Bookings / $M+S )

4 Buying Has Changed Forever OLD DAYS: INFO SCARCITY 1960s Recent TODAY: INFO ABUNDANCE BUYER SALES REP SALES REP

5 Marketo s Revenue Cycle AWARENESS All Names Engaged Prospect & Recycled MQL Lead SAL Sales Lead SQL Opportunity Customer Nurturing Database Marketing SDR Sales

6 Marketo s Revenue Cycle Names are just names. AWARENESS All Names Engaged Prospect & Recycled MQL Lead SAL Sales Lead SQL Opportunity Customer Nurturing Database Marketing SDR Sales

7 Marketo s Revenue Cycle Meaningful interaction with us. AWARENESS All Names Engaged Prospect & Recycled MQL Lead SAL Sales Lead SQL Opportunity Customer Nurturing Database Marketing SDR Sales

8 Marketo s Revenue Cycle AWARENESS All Names Engaged Prospect & Recycled MQL Lead SAL Sales Lead SQL Opportunity Customer Nurturing Database Qualified, engaged potential buyers. Marketing SDR Sales

9 Marketo s Revenue Cycle AWARENESS All Names Engaged Prospect & Recycled MQL Lead SAL Sales Lead SQL Opportunity Customer Nurturing Database Showing buying signs or significant engagement. Marketing SDR Sales

10 Marketo s Revenue Cycle AWARENESS All Names Engaged Prospect & Recycled MQL Lead SAL Sales Lead SQL Opportunity Customer Nurturing Database Qualified as sales-ready by a human. Marketing SDR Sales

11 Marketo s Revenue Cycle AWARENESS All Names Engaged Prospect & Recycled MQL Lead SAL Sales Lead SQL Opportunity Customer Nurturing Database Marketing SDR Sales

12 Benefits of Content Marketing Risk Reduction SEO Definitive Guides Social Scoring Marketo TV Blogs Webinars Resource Center

13 When To Ask For Registration Early Stage Thought leadership and best practices to build brand and awareness 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

14 Short Forms Outperform Long Forms Short Form (5 fields) Conversion: 13.4% Cost per: $31.24 Medium Form (7 fields) Conversion: 12.0% Cost per: $34.94 Long Form (9 fields) Conversion: 10.0% Cost per: $41.90

15 Problems With Self-Submitted Data #RockTheRev

16 Prospect Generation 2H2010 Source Prospects Cost % Lead Velocity (Days) Lead to Opp Index Trade Show Virtual 3,793 $ % rd Party Blast 3,302 $ % Trade Show 2,703 $ % Paid Webinar 1,760 $ % PPC 990 $ % Content Syndication 536 $ % Other Paid 208 $ % Website 2,871 58% Sales Prospecting 1,888 26% Partner Co-Marketing % AppExchange % Referral 80 36% Other Inbound %

17 Why Lead Nurturing: Stay in Touch Building relationships with qualified prospects regardless of their timing to buy, with the goal of earning their business when they are ready. The art of maintaining permission to stay in front of your buyers as they educate themselves

18 The Value of Lead Nurturing Marketo ROI Results Fast Leads ( MQL <1 mo) Slow Leads (MQL >1 mo) Total Leads (MQL) Cost / Lead (MQL) Without Nurturing 20% 6.67% 26.67% $ With Nurturing 20% 20.0% 40.0% $ Source: Actual Marketo data; assumes $55 per prospect Results: 50% more marketing qualified leads from lead nurturing

19 Lead Nurturing Relevance Stages A B BUYING STAGES Early (Pre-MQL) Mid (MQL) Late (Opportunity) Customer C 2. BUYING PROFILES Industry: D 82% Role: 67% Company Size: 49% Geography: 29%

20 Lead Nurturing Relevance Stages A 1. Short content is good! (YouTube) 2. B Reuse and repurpose 3. Stay ahead of the drip C D Start small, think big and adapt quickly

21 Other Kinds of Lead Nurturing Accelerators Move prospects faster with relevant nudges Recycled Nurture based on what you find Reconstituted AKA Wake the Dead

22 The ROI of Lead Scoring How Easy Is it To Get Information About Prioritizing Sales Efforts? Other Benefits of Fewer But Higher Quality Leads Higher Win Rates Shorter Sales Cycles Higher Revenue Per Rep Source: CSO Insights

23 A Framework for Lead Scoring Fit Are you interested in them? Explicit What the prospect tells you Demographics Firmographics BANT Inferred What you observe or infer Data quality Corporate vs. personal Inferred from IP (geography, ISP domain) Interest Are they interested in you? BANT Latent behaviors (engagement) Active behaviors (sales readiness)

24 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

25 Closed Loop Refinement #RockTheRev

26 Identifying Marketing Qualified Leads 21+ Super- Target Lead Lead Lead Fit 9-20 Target Lead Lead 2-8 Other Lead <2 Interest Engagement < Buying Intent <

27 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

28 No Lead Left Behind Day 0 Notification Day 1 In 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

29 Sales Insights #RockTheRev

30 Measuring and Proving Marketing s Impact on Revenue #RockTheRev

31 Revenue Cycle Modeler #RockTheRev

32 Key topic areas: Balance Flow Conversion Velocity Filter/Drill into data, e.g. by Program Type, Business Unit, Geography, etc. Trends over time

33 9,500 / mo Paid Names ($29.33) Unpaid Names ($0) Marketo Revenue Cycle Metrics 80% of all deals follow this model Lead Type Variants Source Channel Division 40% Size Prospects 3,800 / mo ¾ paid ($73) ¼ unpaid ($0) ($55 average) New Customers ($5,800) 20% Opportunities 130 / mo ($2,000) Leads 2,000 / mo ($137.50) 80% Lead to Sales Lead: 7% Sales Lead to Opp: 80% 1.4 people per Opp 1,000 Leads = 40 Opps 40% of prospects eventually become a lead 4.0% / month Active Prospect Database 10% 75% Inactive (Last 6 Months)

34 Conversion Over Time Predict conversions from stage to stage over time Create plans / forecasts about future Marginal Conversion y = x R² = ,000 1,800 1,600 1,400 1,200 1, Cumulative Conversion y = 994.2x R² =

35 Marketing Forecasts #RockTheRev Plan Forecast Actual

36 Key Takeaways Grow revenue by making sales more productive, not just by hiring more reps Focus on the entire revenue cycle, not just the top of the funnel Don t contact a lead before its time No lead left behind / service level agreements Use forecasting to turn marketing from a cost center into a revenue driver

37 Contact Me JON MILLER VP Marketo, Inc. 901 Mariners Island Suite 200 San Mateo, CA Direct: blog.marketo.com The Definitive Guide to Lead Nurturing

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39 Risk and Branding in B2B Fear Trust

40 Fit Scoring VP or Director +5 Student/Consultant etc -10 Marketing or Sales role +5 Inferred Company is an ISP -2 Inferred Geography -6 to +5 based on country and zip Target Industry +5 Company Name Self -10 Size <$10M: +0 $10M-$500M: +5 $500M: +10 CRM System = SFDC +10 Good First / Last Name +5 Personal address -5 Complete profile +3

41 Conversion and Speed By Type Prospect to Lead