Marketing's Impact on Revenue - How to Measure, Optimize and Predict It

Marketing’s Impact on Revenue – How to Measure Optimize and Predict Itto Measure, Optimize and Predict It

#Marketo#Marketo

Our SpeakersJon Miller VP Marketing MarketoJon Miller, VP Marketing, MarketoKen Moorhead, Sales Operations Manager, CompendiumIsaac Pellerin, Marketing Design Manager, Compendium

Obsolete or Totally Dysfunctional?

#Marketo© 2010 Marketo, Inc.

Marketing Has an Image Problem

“Arts and crafts”M i h d ’ (di l )Metrics that don’t (directly) impact the businessI d hInvestment today has uncertain impact on revenueLi i d lLimited toolsCost center

Only 20% of companies believe they excel at measuring the performance of marketing initiatives


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New Opportunities for Marketing

Earn a Seat at the Revenue Table

1. Transform marketing and sales operations to create a high performance revenue engineg p g

2. Measure – and forecast – marketing ROI and impact on revenue


Define & Measure Your Revenue Cycle

Know

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ting

Q

ualif

ied

Sale

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epte

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WA

REN

ESS

arke

ting

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Opportunity Won

Sale

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AW Ma Ac Q


About Compendium


Compendium’s Revenue Cycle Model


Known and Marketing Accepted


Marketing Qualified and Sales Accepted LeadsSales Accepted Leads


Sales Qualified, Opportunity, and Won LeadsWon Leads


Webinar Campaign Report


Top 5 Opportunities by Lead Source ReportLead Source Report


Opportunities from Demo Offers


Opportunities by Demo Offer - Charts


Which Scored Behaviors Drive The Sales Pipeline?The Sales Pipeline?

• Product-centric videos i ifi tl i t thsignificantly impact the

sales pipeline

• Historic nurturing call• Historic nurturing call-to-action (demo request) doesn’t outperform otheroutperform other prospect behaviors –maybe we should rethink our nurturingrethink our nurturing offers


Fast insights into the evolution of our businessbusiness


Marketing and Sales Alignment: Focusing R P d ti iton Rep Productivity

Classic argument between sales and marketing: reps not contacting leads while they’re hot (25% of SLA’s missed)


(25% of SLAs missed)

Marketing and Sales Alignment: Understanding the problemUnderstanding the problem

• Five minutes spent together in RCA: it’s clear that ourFive minutes spent together in RCA: it s clear that our sakes team isn’t keeping up with the lead flow from marketing.

• Diving in deeper to our SAL and SQL stages, we find that many of these prospects are cold and not being engaged actively by sales.


g g y y

Redefining “Qualified Prospect” and Letting Marketo Do the Heavy LiftingLetting Marketo Do the Heavy Lifting

• In November, nearly 20% of leads in the SAL stage , y gwent to Recycle or Sales DQ

• Recently pulled the bulk of our SAL leads into recycle f t ifor a re-engagement campaign

• Redefining score qualifications in MQL and Recycle to make sure Sales receives the most viable leads


to make sure Sales receives the most viable leads

Key Take Aways

Hold weekly meetings with key “in‐the‐trenches” members of your sales and marketing teamAlways verify assumptions with relevant data and be willing to pivot quicklySet up your revenue model involving members of your management team


Forecasting and Beyond

Conversion Over Time

Predict conversions from one stage to another over time

Create plans / forecasts about futurep /

70

Marginal Conversion2,000

Cumulative Conversion

y = 50.749x-0.571

R² = 0.4301

30

40

50

60

y = 994.2x0.1352

R² = 0.95511,000 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

#Marketo© 2010 Marketo, Inc. Marketo Proprietary and Confidential

Program Effectiveness Reporting


Program Effectiveness Forecasting

70Conversion Model

y = 50.749x-0.571

R² = 0.4301

0

10

20

30

40

50

60

70


0

3 13 23 33 43 53 63 73

Marketing Forecasts

Prospects 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 Nov

Jul 8,500Aug 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 NovPlan 67 81 82 90 94 100 104 109Apr 83 83 90 93May 81 88 90 94Jun 91 93 95 101Jul 70 90 100 103

#Marketo

Aug 92 101 104 109 Plan Forecast Actual

© 2010 Marketo, Inc.

Q AJon Miller VP Marketing Marketo

Q&AJon Miller, VP Marketing, MarketoKen Moorhead, Sales Operations Manager, CompendiumIsaac Pellerin, Marketing Design Manager, Compendium

Thank YouThank YouContact UsContact Us+1.877.260.6586www.marketo.com

Marketing's Impact on Revenue - How to Measure, Optimize and Predict It

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