Lead Nurturing and Lead Scoring - Marketo's Secret Sauce Case Study

Lead Nurturing and Lead Scoring:Marketo Secret Sauce Case StudyMarketo Secret Sauce Case Study

Maria Pergolino, Director of Marketing, MarketoAuthor of Modern B2B Marketing blog

© 2010 Marketo, Inc.

How Marketo Does It

About Marketo:Marketing automation & sales effectiveness (SaaS)Marketing automation & sales effectiveness (SaaS)

700 mid‐market and enterprise customers700 mid market and enterprise customers Tech, business services, manufacturing, finance, etc.

ld l3 ½ years old, 110 employees

Hi hl ffi i t lHighly efficient revenue cycle: 65% of revenue directly sourced by marketing Sales reps carry $1 2M annual recurring revenue quota

Sales reps carry $1.2M annual recurring revenue quota CAC ratio of 1.5

© 2010 Marketo, Inc. Marketo Proprietary and Confidential

Marketing and Sales 1.0


Marketo’s Revenue Cycle

s MQL

l Nam

es

Prospe

ct

&

Recycled

Lead

aren

ess

ngaged Oppor‐

tunityCust‐omerSa

les

Lead

SQL SAL

Al P R

Awa E

NurturingNurturing Database


Marketing SDR Sales

Marketing as a PublisherMarketing as a PublisherRisk MitigationRisk Mitigation

SEO

Offers

S iScoring

www.marketo.com/resources•180+ Best Practices

blog.marketo.com•9 000+ subscribers•180+ Best Practices

•Two updates per week•9,000+ subscribers•Multiple channels for marketing, sales


Traffic Sources (marketo.com Q310)

Website BlogWebsite Blog


When To Ask For Registration?

Early Stagey gThought leadership and best practices to build brand and awareness

Two: Committing to Change

One: Loosening of the Status Quo

Middle StageBuyers guides, RFP templates and industry information to h l t t h

Three: Exploring the Possible Solutions

help structure research

Late StageCompany specific

Five: Justifying the Decision

Four: Committing to a Solution

Company‐specific information to help evaluate and reaffirm selectionSix: Making the Selection

Forms: Ask Only What You Really Need

Short Form (5 fields)Conversion rate: 13.4%Cost per: $31.24

M di F (7 fi ld )Medium Form (7 fields)Conversion rate: 12.0%Cost per: $34 94Cost per: $34.94

Long Form (9 fields)g ( )Conversion rate: 10.0%Cost per: $41.90


Marketo Prospect Generation 1H2010NurtureSource Prospects Cost Opps Nurture Impact

3rd Party Email Blast 2,476 $35 22 MediumTrade Show Virtual 2 019 $33 28 MediumTrade Show –Virtual 2,019 $33 28 MediumSponsorship 1,296 $81 12 MediumTrade Show 929 $104 38 HighAlliance 743 $40 13 MediumPPC 686 $182 28 HighContent Syndication 89 $98 0 Mediumy $Website 2,586 178 LowPartner 358 21 HighAppExchange 308 18 LowAppExchange 308 18 LowReferral 302 49 LowSales Outbound 178 56 High

Inbound Call 91 33 LowBlog 55 3 Medium© 2010 Marketo, Inc.

Why Lead Nurturing: Stay in TouchBuilding relationships with qualified prospects regardless of their timing to buy, with the goal of earning their business when they are ready.

mes ect

eded

MQLSQL SAL

All N

am

Prospe &

Recycle

Engage Lead

Nurturing Lead Oppor‐

tunitySales

Lead

SAL

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


your buyers as they educate themselves

The Value of Lead Nurturing

Marketo ROI ResultsFast Leads( MQL <1 mo)

Slow Leads(MQL >1 mo)

Total Leads (MQL)

Cost / Lead (MQL)

Without 20% 6 67% 26 67% $206 00Nurturing 20% 6.67% 26.67% $206.00

WithNurturing 20% 20.0% 40.0% $137.50g

Source: Actual Marketo data; assumes $55 per prospect

Results: 50% more marketing qualified leads from lead nurturing


Content MappingBUYING STAGES

1 2 3Stages

• Early (Pre‐MQL)• Mid (MQL)• Late (Opportunity)• Customer

A

CONTENT

• Customer

B

C

1. Map your existing content2. Blank cells determine your content roadmap3. Short content is good! (YouTube approach)

C

D

4. Test and optimize5. Start small, think big and adapt quickly

BUYING PROFILES• Industry: 82%• Role: 67%

Role: 67%• Company Size: 49%• Geography: 29%

Other Kinds of Lead Nurturing

Accelerators Move prospects along the buying cycle fasterthe buying cycle faster with relevant “nudges” triggered by specific behaviors

Recycled Key driver of messaging in active

recycling is the reason forrecycling is the reason for disqualification

Limit number of reasons Timeframe of months or quarters

Reconstituted AKA “Wake the Dead”

Great place to experiment

Great place to experiment


Source: SiriusDecisions

The ROI of Lead Scoring

120%

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

97%

72%79%

80%

100%

50%60% Easy

Hard

20%

40%

0%

% Revenue Plan Achieved % Reps Meeting/Beating Quota

Source: CSO Insights


Signs of Buying Behavior


Sample Scoring Rules

Demographics Show Qualification• Third party data or manual

prospect review

Active Score Shows Buying Intent• Visit pricing pages:

• +10 regular +15 detailedprospect review• Inferred geography (0 to ‐20)

Latent Score Shows Engagement

• +10 regular, +15 detailed• Timeline < 3 months: +15• Watch demos:

• +5 overview, +10 detailedg g• Attend webinar: +5• Download thought leadership: +3• Visit any webpage / blog : +1• Click any email: +1

• Download Marketo reviews: +12• Download buyers guides: +8• Download data sheets: +8• Searches for “Marketo”: +8• Click any email: +1

• Visit careers pages: ‐10• No activity in 1 month: Decay

Searches for Marketo : 8• Heavy web activity: +5

Lead = 55 Lead = 25


Lead = 55 “overall score”

Lead = 25 “behavior score”

Lead Follow-up Process


No Lead Left BehindDay 0 NotificationNotification

Day 1 In untouched, reminderIn untouched, reminder

Day 2 If untouched, reminder cc bossIf untouched, reminder cc boss

Day 3 If untouched alert executivesIf untouched alert executivesDay 3 If untouched, alert executivesIf untouched, alert executives

Day 7 If stale, reminderIf stale, reminder

Day 8 If stale, reminder cc bossIf stale, reminder cc boss

Day 9 If stale, alert executivesIf stale, alert executives


Sales Insights


Marketo Revenue Cycle ModelNew Customers 65% of all deals

O i i

New Customers($5,800)

34.5%Lead Type Variants• Source

65% of all deals follow this model

8.4% of leads / 1 4 l dOpportunities

($2,000)

46% of prospects

Source• Channel• Division• Size

1.4 leads per opty= 6% lead to opty

Leads($120)

3 0% / month %

f p peventually become a lead

28%Active Prospect

3.0% / month 75%

Paid N Prospects

2/3 paid ($83)1/3 unpaid ($0)($55 average)

DatabaseNames($33)

15%UnpaidNames

40%Inactive

72%

( g ) 15%Names($0)

(Last 6 Months)


Conversion Over Time

Predict conversions from one stage to another over time

Create plans / forecasts about futurep /

70

Marginal Conversion2,000

Cumulative Conversion

y = 50.74x-0.57

R² = 0.430

30

40

50

60

y = 994.2x0.135

R² = 0.9551,000 1,200 1,400 1,600 1,800 ,

0

10

20

30

3 13 23 33 43 53 63 73-

200 400 600 800

3 13 23 33 43 53 63 733 13 23 33 43 53 63 73 3 13 23 33 43 53 63 73


Marketing ForecastsProspects Q2 2010 Q3 2010 Q4 2010Prospects Q2 2010 Q3 2010 Q4 2010Plan 6,635 7,814 9,150May 7,000 7,520Jun 8,380 8,500Jul 8,500

Leads Apr May Jun Jul Aug Sep Oct NovPlan 760 800 825 1000 1069 1374 1434 1512

Aug 8,800 10,000

Plan 760 800 825 1000 1069 1374 1434 1512Mar 810 850 875Apr 685 850 875 925May 818 875 900 915Jun 909 1000 1069 1374Jul 924 1200 1374 1434Aug 1280 1414 1450 1512

Opps Apr May Jun Jul Aug Sep Oct NovOpps Apr May Jun Jul Aug Sep Oct NovPlan 67 81 82 90 94 100 104 109Apr 83 83 90 93May 81 88 90 94Jun 91 93 95 101

Jul 70 90 100 103Aug 92 101 104 109

Plan Forecast Actual

© 2010 Marketo, Inc. Marketo Confidential and Proprietary

Key Takeaways

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

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

3. Don’t contact a lead before its time4 No lead left behind / ser ice le el agreements4. No lead left behind / service level agreements5. Use forecasting to turn marketing from a cost

center into a revenue drivercenter into a revenue driver6. Continual evolution and closed‐loop

optimization

optimization

Contact Me

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

Maria PergolinoDirector of Marketing

maria@marketo com San Mateo, CA 94404

Direct: +1.650.898‐7147

[email protected]@inboundmarketer@marketo

blog.marketo.comwww.marketo.com

Download the “Definitive Guide to Lead Nurturing”

www.marketo.com/dg2‐lead‐nurturing


Lead Nurturing and Lead Scoring - Marketo's Secret Sauce Case Study

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