Marketo Secret Sauce for Revenuepages2.marketo.com/rs/marketob2/images/Marketo... · Prospect &...
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#RockTheRev Marketo Secret Sauce for Revenue Jon Miller VP Marketing and Co-Founder, Marketo Author of Modern B2B Marketing blog
Transcript of Marketo Secret Sauce for Revenuepages2.marketo.com/rs/marketob2/images/Marketo... · Prospect &...
#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
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
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
Names are just names.
#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
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
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Marketo, Inc.901 Mariners IslandSuite 200San Mateo, CA 94404
Direct: +1.650.376-2310
blog.marketo.comwww.marketo.com
JON MILLERVP Marketing
[email protected]@jonmiller2
Contact Me
The “Definitive Guide to Lead Nurturing”www.marketo.com/dg2-lead-nurturing
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#RockTheRev
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
