#RockTheRev

Marketo Secret Sauce for Revenue

Jon MillerVP Marketing and Co-Founder, MarketoAuthor of Modern B2B Marketing blog

#RockTheRev

Fastest Growing SaaS Company

Year 0 Year 1 Year 2 Year 3 Year 4

Salesforce

SuccessFactors

Omniture

NetSuite

Constant Contact

Taleo

Marketo

All revenue numbers normalized to Marketo Year 1

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Highly Efficient Revenue Engine

90 cents in Marketing for every $1 in Sales80% of revenue directly sourced by marketing$1.2M annual recurring revenue quota

0.00

0.50

1.00

1.50

2.00

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

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Buying Has Changed Forever

SALES REP SALES REP

BUYER

OLD DAYS: INFO SCARCITY1960s – Recent

TODAY: INFO ABUNDANCE

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Marketo’s Revenue Cycle

All

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es

Pros

pect

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Recy

cled

Lead

AWA

REN

ESS

Enga

ged

Opportunity Customer

Sale

sLe

ad

MQLSAL

SQL

Nurturing Database

Marketing SDR Sales

#RockTheRev

Marketo’s Revenue Cycle

All

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es

Pros

pect

&

Recy

cled

Lead

AWA

REN

ESS

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ged

Opportunity Customer

Sale

sLe

ad

MQLSAL

SQL

Nurturing Database

Marketing SDR Sales

Names are just names.

#RockTheRev

Marketo’s Revenue Cycle

All

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es

Pros

pect

&

Recy

cled

Lead

AWA

REN

ESS

Enga

ged

Opportunity Customer

Sale

sLe

ad

MQLSAL

SQL

Nurturing Database

Marketing SDR Sales

Meaningful interaction with us.

#RockTheRev

Marketo’s Revenue Cycle

All

Nam

es

Pros

pect

&

Recy

cled

Lead

AWA

REN

ESS

Enga

ged

Opportunity Customer

Sale

sLe

ad

MQLSAL

SQL

Nurturing Database

Marketing SDR Sales

Qualified, engaged potential buyers.

#RockTheRev

Marketo’s Revenue Cycle

All

Nam

es

Pros

pect

&

Recy

cled

Lead

AWA

REN

ESS

Enga

ged

Opportunity Customer

Sale

sLe

ad

MQLSAL

SQL

Nurturing Database

Marketing SDR Sales

Showing buying signs or significant engagement.

#RockTheRev

Marketo’s Revenue Cycle

All

Nam

es

Pros

pect

&

Recy

cled

Lead

AWA

REN

ESS

Enga

ged

Opportunity Customer

Sale

sLe

ad

MQLSAL

SQL

Nurturing Database

Marketing SDR Sales

Qualified as sales-ready by a human.

#RockTheRev

Marketo’s Revenue Cycle

All

Nam

es

Pros

pect

&

Recy

cled

Lead

AWA

REN

ESS

Enga

ged

Opportunity Customer

Sale

sLe

ad

MQLSAL

SQL

Nurturing Database

Marketing SDR Sales

#RockTheRev

Risk Reduction

SEO

Social

Scoring

Blogs

Definitive Guides

Resource Center

Marketo TV

Webinars

Benefits of Content Marketing

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When To Ask For Registration

Early StageThought leadership and best practices to build brand and awareness

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

Late StageCompany-specific information to help evaluate and reaffirm selection

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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

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Problems With Self-Submitted Data

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Prospect Generation 2H2010Source Prospects Cost %

LeadVelocity(Days)

Lead to OppIndex

Trade Show – Virtual 3,793 $25.44 17% 81 1.03rd Party Email Blast 3,302 $34.65 18% 43 0.5Trade Show 2,703 $221.30 23% 61 1.9Paid Webinar 1,760 $68.50 21% 60 1.0PPC 990 $158.10 45% 42 1.4Content Syndication 536 $82.84 12% 59 0.3Other Paid 208 $187.50 13% 93 1.3Website 2,871 58% 27 2.6Sales Prospecting 1,888 26% 46 2.2Partner Co-Marketing 903 17% 102 1.1AppExchange 353 78% 37 3.4Referral 80 36% 12 1.0Other Inbound 370 100% 19 9.0

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Why Lead Nurturing: Stay in Touch

“The art of maintaining permission to stay in front of your buyers as they educate themselves”

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

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The Value of Lead Nurturing

Fast Leads( MQL <1 mo)

Slow Leads(MQL >1 mo)

Total Leads (MQL)

Cost / Lead (MQL)

WithoutNurturing 20% 6.67% 26.67% $206.00

WithNurturing 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

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Lead Nurturing Relevance

A

B

C

D

1 2 3Stages

1. BUYING STAGES• Early (Pre-MQL)• Mid (MQL)• Late (Opportunity)• Customer

2. BUYING PROFILES• Industry: 82%• Role: 67%• Company Size: 49%• Geography: 29%

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Lead Nurturing Relevance

A

B

C

D

1 2 3Stages

1. Short content is good! (YouTube)2. Reuse and repurpose3. Stay ahead of the drip

Start small, think big and adapt quickly

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Other Kinds of Lead Nurturing

AcceleratorsMove prospects faster with relevant “nudges”

RecycledNurture based on what you find

ReconstitutedAKA “Wake the Dead”

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The ROI of Lead Scoring

• Higher Win Rates• Shorter Sales Cycles• Higher Revenue Per Rep

Source: CSO Insights

How Easy Is it To Get Information About Prioritizing Sales Efforts?

Other Benefits of Fewer But Higher Quality Leads

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A Framework for Lead Scoring

ExplicitWhat the

prospect tells you

InferredWhat you

observe or infer

FitAre you interested in them?

• Demographics• Firmographics• BANT

• Data quality• Corporate vs. personal

email• Inferred from IP

(geography, ISP domain)

InterestAre theyinterested in you?

• BANT

• Latent behaviors (engagement)

• Active behaviors (sales readiness)

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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

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Closed Loop Refinement

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Identifying Marketing Qualified Leads

21+ Super-Target Lead Lead Lead

9-20 Target Lead Lead

2-8 Other Lead

<2

Engagement <20 20-44 45-89 90+

Buying Intent <6 6-13 14-23 24+

Fit

Inte

rest

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The Marketing-Sales Handoff (SDRs)Best place for dramatic improvements in business performance are handoffs between functionsBenefits 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

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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

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Sales Insights

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Measuring and Proving Marketing’s Impact on Revenue

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Revenue Cycle Modeler

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Filter/Drill into data, e.g. by Program Type, Business Unit, Geography, etc.

Key topic areas:• Balance• Flow• Conversion• Velocity

Trends over time

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Marketo Revenue Cycle Metrics

Opportunities 130 / mo($2,000)

New Customers($5,800)

Leads2,000 / mo($137.50)

Prospects3,800 / mo¾ paid ($73)

¼ unpaid ($0)($55 average)

20%Active Prospect

Database

4.0% / month 75%

Paid Names

($29.33)

10%UnpaidNames

($0)

40%Inactive (Last 6

Months)

40% of prospects eventually become a lead

80%

80% of all deals follow this model • Lead to Sales Lead: 7%

• Sales Lead to Opp: 80%• 1.4 people per Opp1,000 Leads = 40 Opps

9,500 / mo

Lead Type VariantsSource

ChannelDivision

Size

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Conversion Over Time

Predict conversions from stage to stage over timeCreate 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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Marketing Forecasts

Plan Forecast Actual

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Key Takeaways

Grow revenue by making sales more productive, not just by hiring more repsFocus on the entire revenue cycle, not just the top of the funnelDon’t contact a lead before its timeNo lead left behind / service level agreementsUse forecasting to turn marketing from a cost center into a revenue driver

#RockTheRev

Marketo, Inc.901 Mariners IslandSuite 200San Mateo, CA 94404

Direct: +1.650.376-2310

blog.marketo.comwww.marketo.com

JON MILLERVP Marketing

jon@marketo.com@jonmiller2

Contact Me

The “Definitive Guide to Lead Nurturing”www.marketo.com/dg2-lead-nurturing

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Risk and Branding in B2B

Fear Trust

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Fit Scoring

• Inferred Company is an ISP -2

• Inferred Geography -6 to +5 based on country and zip

• Good First / Last Name +5• Personal email address -5• Complete profile +3

• VP or Director +5• Student/Consultant etc -10• Marketing or Sales role +5

• Target Industry +5• Company Name “Self” -10• Size

• <$10M: +0• $10M-$500M: +5• $500M: +10

• CRM System = SFDC +10

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Conversion and Speed By Type

Prospect to Lead