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
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Sales reps carry $1.2M annual recurring revenue quota CAC ratio of 1.5
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
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
Page 4© 2010 Marketo, Inc.
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
Page 5© 2010 Marketo, Inc.
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
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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
Page 8© 2010 Marketo, Inc.
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
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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”
Page 10© 2010 Marketo, Inc.
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
Page 11© 2010 Marketo, Inc.
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%
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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
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Great place to experiment
© 2010 Marketo, Inc.
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
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Source: CSO Insights
© 2010 Marketo, Inc.
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
Page 16© 2009 Marketo, Inc. Marketo Proprietary and Confidential
Lead = 55 “overall score”
Lead = 25 “behavior score”
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
Page 18© 2010 Marketo, Inc. Marketo Proprietary and Confidential
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%
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( g ) 15%Names($0)
(Last 6 Months)
© 2010 Marketo, Inc.
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
Page 22© 2010 Marketo, Inc. Marketo Proprietary and Confidential
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
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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
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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”
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www.marketo.com/dg2‐lead‐nurturing
© 2010 Marketo, Inc.
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