Webinar: The 5 Metrics Every Marketer Must Track For A Clear Picture of Revenue Impact
The Model for the New Revenue - Centric Marketer
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Transcript of The Model for the New Revenue - Centric Marketer
ELOQUA DemandGen Report
#RevCentricMktr
The Model for the New Revenue – Centric Marketer
ELOQUA DemandGen Report
ELOQUA DemandGen Report
#RevCentricMktr
Today’s SpeakersSpeaker:Andrew Gaffney EditorDemandGen Report
Speaker:Jim WilliamsSenior Director of Product Marketing Eloqua
ELOQUA DemandGen Report
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About DemandGen Report
- Launched in 2007 to track best practices in lead generation
- Newsletter has grown to more than 25,000 readers
- We also offer a menu of research and best practices reports
- New audio/video podcasts at DemandGenReport.com @DG_Report
linkd.in/DG_Specialists
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Today’s Twitter Hashtag:
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89%
11%
Has your company increased on Marketing Measurement over the past 12-24 months?
YesNo
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Neeed for deeper intelligence on customer segments
Sales team looking for more leads
Management's push for better pipeline visibility
Pressure to justify spend
45%
58%
65%
68%
If yes, what are the business drivers that have increased the focus on marketing measurement?
(check all that apply)
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Actively tracked by CFO
Actively tracked by CEO
Tracked by VP of Sales
Included in marketing reports from CMO
How much visibility is there currently within your execu-tive management team into marketing measurement and
its impact on revenue? (check all that apply)
63%
43%
21%
42%
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Marketing resource management system
Content management system (CMS)
Email service provider (ESP)
Marketing automation platform
Web analytics
CRM system
Which technology is your company currently using to measure and track marketing's impact on
sales/revenue performance? (check all that apply)
12%
30%
30%
72%
54%
69%
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Number of leads generated
Web traffic
Contact/lead quality
Campaign quality
Lead conversion at funnel stages
Marketing sourced leads
Database growth
Influence on revenue/deals
Social media refferrals
Productivity gains
What metrics are you currently using to track marketing performance/ROI? (check all that apply)
43%
9%
37%
63%
64%
88%
66%
66%
44%
72%
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Lead Nurturing
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43%
27%
30%
Is your company currently measuring the impact of lead nurturing campaigns?
YesNo Not Yet, but plan to within the next 3-6 months
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Conversion rate of nurtured leads to opportunities
Shortened sales cycles on nurtured leads
Number of re-engaged leads
Improved intelligence for sales prioritization
If yes, which lead nurturing metrics are you currently collecting and analyzing?
36%
72%
33%
39%
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No
Yes 47%
Is your marketing department currently responsible for a revenue goal?
53%
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If yes, what is marketing’s revenue contribution as a percentage of company’s total revenue goal?
30%
19%23%
12%
16%
<40%30-40%20-30%10-20%1-10%
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Number of leads
Conversion metrics
Web site traffic
Database growth
Number of sales meetings
If your marketing department is NOT currently responsible for a revenue goal, what are the metrics marketing is held accountable for?
(check all that apply)
54%
35%
18%
6%
33%
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Campaign influence/attribution
Predictability of lead conversion
Trends over time
Deeper campaign analysis
Additional pipeline forecasting capabilities
Cost per qualified lead
Cost per opportunity
Outbound telemarketing (cold calling)
Looking ahead, what type of additional marketing analytics & metrics would you want to access? (check all that apply)
46%
61%
54%
64%
55%
46%
45%
21%
© 2011 Eloqua, Inc. Confidential 17
The Model for the New Revenue - Centric Marketer
Jim Williams, Sr. Director, Product MarketingAugust 3, 2011
© 2011 Eloqua, Inc. Confidential 18
The CEO’s #1 Challenge
© 2011 Eloqua, Inc. Confidential 19
Median Cumulative Revenue Growth
Sample Size: 500
Notes: • Source: MSN, Hoovers, and SEC filings
© 2011 Eloqua, Inc. Confidential 20
Median Cumulative Revenue Growth
Sample Size: 155
Sample Size: 500
Notes: • Source: MSN, Hoovers, and SEC filings
© 2011 Eloqua, Inc. Confidential 21
Median Cumulative Revenue Growth
Sample Size: 27
Sample Size: 155
Sample Size: 500
Notes: • Source: MSN, Hoovers, and SEC filings• The Eloqua RPM index and the Eloqua Pre-RPM index are mutually exclusive
78%
© 2011 Eloqua, Inc. Confidential 22
A Different Revenue Structure
MarketingResponsesClicks/VisitsVolumeCostsSource
ExecutivesRevenueProfitabilityCash-flow
© 2011 Eloqua, Inc. Confidential 23
A Different Revenue Structure
MarketingResponsesClicks/VisitsVolumeCostsSource
ExecutivesRevenueProfitabilityCash-flow
Revenue Steering CommitteeRevenue Cycle Dynamics
© 2011 Eloqua, Inc. Confidential 24
RPM Adopters Follow a Better PlanWhere is our next revenue
opportunity?
Should we invest more in sales or marketing?
How do we optimize revenue investments?
How do we close more deals?
What drives the best demand?
How do we generate more leads?
Demand Generation & Lead Management
© 2011 Eloqua, Inc. Confidential 25
RPM Adopters Follow a Better PlanWhere is our next revenue
opportunity?
Should we invest more in sales or marketing?
How do we optimize revenue investments?
How do we close more deals?
What drives the best demand?
How do we generate more leads?
Demand Generation & Lead Management
One View of the Truth
© 2011 Eloqua, Inc. Confidential 26
They Follow the Right Revenue Process
Revenue
ProspectQualified
Lead
Sales Accepted
Lead (SAL)Suspect
Sales Qualified
Lead (SQL)
Evaluate PurchaseLearn JustifyInterest
Sales &MarketingProcess
Marketing validates quality of interest
Marketing nurtures to sales ready
Sales validates and
accepts ownership
Sales validates revenue criteria
Sales closes revenue
opportunity
Buying Process
© 2011 Eloqua, Inc. Confidential 27
Parlez-vous Exécutif?
INCOME STATEMENT
• Profit margin
• AR turnover
• AP turnover
• Inventory turns
BALANCE
SHEET
• Current ratio
• Quick ratio
• Leverage ratio
• ROI
CASH
FLOW
• External financing index ratio
• Cash sources ratio
• Operating cash index ratio
© 2011 Eloqua, Inc. Confidential 28
Revenue Engine Lingua Franca
VALUE
• Weighted Marketing Pipeline Value
• Weighted Sales Pipeline Value
• Marketing/Sales Pipeline Ratio
PERFORMANCE
• Reach
• Share of Audience
• Revenue Conversion
• Days Leads Outstanding
• Buy Cycle
• Sales Cycle
EFFICIENCY
• Customer Acquisition Cost Ratio
• Campaign ROI
• Sales Sizing
• Economic Value of Conversion
Actionable Analytics
VALUE:Is there value weakness at a
particular stage in my funnel? What is the cause and how
can I increase value by stage?
REACH:Do I have the
expected number of leads in my funnel stages?
Which leads can I influence to change the
dynamics of my funnel?
CONVERSION:Are leads
converting as anticipated? Are there conversion
problems at specific stages? What tactics can
improve this?
VELOCITY:Are leads and opportunities
getting ‘stuck’ in the funnel? What
are the best tactics to increase velocity?
RETURN:What tactics generate the
highest return? What is my cost per stage? How
can I better allocate my resources?
© 2011 Eloqua, Inc. Confidential 30
RPI: Velocity – Average Time in Integrated Funnel
• Presenter NameDate
© 2011 Eloqua, Inc. Confidential 31
RPI: Velocity – Average Time in Integrated Funnel
• Presenter NameDate
For period X, what is the average time to close?
For period X, how many deals closed?
Drill Down: For month X, What is the velocity
distribution?
By stage type, how have I trended and how do I
compare?
32
Revenue Performance Management
is a strategy for managing a company’s interactions with buyers through the
entire buying cycle that enables predictable, rapid and profitable
revenue growth.
© 2011 Eloqua, Inc. Confidential 33
Why Another *#! 3-Letter Acronym?
“What we’re trying to do is correlate some reasonable patterns of behavior that will tell us how things are going to happen … It’s the equivalent of going from driving using the rear view mirror, to driving with GPS.”Dr. Christopher Boorman, CMO, Informatica
© 2011 Eloqua, Inc. Confidential 34
The Benefits of Leadership
Increase MQL to SQL from 23 to 31%, driving $12m to bottom line.
Lead flow up 82% over past three years and revenues are up 34%.
Increased pipeline conversion rate by 1% = offsetting <$1 million in sales expense.
© 2011 Eloqua, Inc. Confidential 35
The Benefits of Leadership
Eloqua.com/Revenue
© 2011 Eloqua, Inc. Confidential 36
Thank You!
Jim Williams,
Sr. Director, Product Marketing
Eloqua.com/revenue
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