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Marketo Marketing Nation Summit 2016: Beyond Acquisition - How to Keep Your Customers Happy and Grow Your Revenue
- 1. Beyond Acquisition: How to Keep Your Customers Happy And Grow Your Revenue Anastasia Pavlova Sr. Director, Marketing, Marketo @digijinni
- 2. Agenda • STRATEGY: Design a winning customer DG strategy • PROGRAMS: Develop and execute programs at scale • MEASUREMENT: Measure marketing impact • ALIGNMENT: Focus Sales & Marketing on the same goals
- 3. Marketers Must Own the Entire Customer Experience
- 4. Acquiring a customer costs 5-10 times more than retaining one1 A 5% increase in retention yields profit increases of 25-95%2 1. eMarketer, 2. Bain and Company 5X-10X 25%-95%
- 5. How to Design a Winning Customer DG Strategy? Strategy • Programs • Measurement • Alignment
- 6. 1 • Bookings Revenue, $$ 2 • # of Wins 3 • # of Opportunities 4 • Pipeline • # of SQLs 5 • # of MQLs 1. Start With the Goals
- 7. 2. Create Customer Personas Exec. Sponsor Decision Maker User
- 8. ENABLEMENT ADOPTION RETENTION GROWTH ADVOCACY Matching expectations with the customer experience Drive up usage, platform adoption and retention across all segments Optimization and growth through cross-sell ENGAGEMENT MARKETING MATURITY & VALUE REALIZATION Grow the influence of our advocates within the Nation 3. Map Customer Journeys
- 9. 4. Segment Your Customer Base Organization Industry Size Territory Revenue Customer Journey Persona Product or Solution Target Account Purchase History Usage Demographics
- 10. 5. Map Products to Segments BUY —> Segments | V Product A Product B Product C Solution 1 Solution 2 Solution 3 Segment 1 Persona Segment 2 Persona Segment 3 Persona Segment 4 Persona
- 11. 6. Map Content to Buyer Personas & Journeys ENABLEMENT STAGE NEEDS: • Reporting, metrics, insights • Skills & resources • Budget, ROI • Value realization GROWTHENABLEMENT NEEDS: • Systems integration • Data migration • CRM sync & workflows ENABLEMENT NEEDS: • Content strategy, segmentation • Lead scoring, nurturing • Org. alignment ADOPTION / RETENTION
- 12. 7. Design the Programs Mix
- 13. Strategy • Programs • Measurement • Alignment Develop and Execute Programs at Scale
- 14. • Adoption / Retention • Cross-sell Programs
- 15. Personas • Products purchased • Type & size of company • Role: User / Executive • Geo ADOPTION PROGRAMS: DIMENSIONS Product Usage & Journey Stage • # engagement streams • # of basic reports • # of email programs SEGMENTS TRIGGERS STORY ARC Content • Why: strategy, value, best practices • How: step-by step in Marketo, tips & tricks
- 17. Personas • Based on products they don’t have • Type & size of company • Customer role (user, exec) Product Interest & Journey Stage • Product pages visited • Content downloads • Webinar attended SEGMENTS TRIGGERS STORY ARC CROSS-SELL PROGRAM DIMENSIONS Content • Entertain • Educate • Create a need • Accelerate to purchase
- 19. Strategy • Programs • Measurement • Alignment Measure Marketing Impact
- 20. Cross-sell Metrics: Set Goals & Incentives Upfront 1 • Bookings goal: $5,000,000 2 • # of Wins: 200 3 • # of Opportunities: 800 4 • Pipeline: $20,000,000 5 • # of SQLs: 889 6 • # of MQLs: 5926 ASP: $25,000 Win rate: 25% Pipeline = Opps x ASP SQL to Opp-ty conv. rate: 90% MQL to SQL conv. rate: 15% Hypothetical example
- 21. What to analyze? Early - Engagement Metrics Late - Revenue Metrics 1 • Registrations 2 • Attendance, Downloads 3 • CTR, CTO, Unsubscribe rates 4 • Act Nows, Call Nows 1 • Customer MQLs 2 • Opportunities 3 • Pipeline Revenue 4 • ROI Cross-sell Metrics: What to Measure When
- 22. Design Programs to Be Measurable
- 23. • Customer satisfaction • Net Promoter Score (NPS) • Customer account temperature • Retention, renewals and churn rates • Subscription dollar retention rate • Customer lifetime value Retention Metrics
- 24. Strategy • Programs • Measurement • Alignment Align Sales And Marketing on the Same Goals
- 25. Align Teams & Hand-off Process Marketing Sales Development Sales Services Customer Success
- 26. Agree on Definitions • Program Success • Marketing Qualified Lead • Customer MQL vs. Product MQL • Sales Qualified Lead • Opportunity • Act Now, Call Now
- 27. Stars and Flames show priority List of Interesting Moments Prioritize Leads
- 28. Communicate & Train Frequently • Weekly email updates • Monday “To help you sell” email • Thursday global forecast notes • Bi-Weekly SDR / Sales / CAM / Mktg. meetings • Monthly and ongoing training for SDRs and new hires • Quarterly business reviews • Semi-annual S&M Revenue Kick-off • Ongoing conversations
- 29. Takeaways 1. Focus on driving revenue first, throughout the ENTIRE customer lifecycle 2. Create relevant and personalized experiences across multiple channels 3. Design your programs to be measurable 4. Don’t set it and forget it – have regular checks and balances for scoring and input from sales 5. It’s 10X cheaper to retain an existing customer than to acquire a new one @digijinni #mktgnation@marketo
- 30. Thank You!
Editor's Notes
- So you’ve acquired thousands of customers, now what? How will you make sure they continue using your products and keep coming back for more? Attend this session to learn how Marketo designed a winning customer base marketing strategy. We’ll examine how to target your best growth opportunities, listen to customer behaviors to determine their product interest. measure marketing impact on revenue and focus sales on their best bets.
- Every company has the same mission: to maximize their value. But in Marketo’s view, your most valuable asset isn’t your product, or your branding, or even your team—it’s your customers. The most successful companies succeed because they excel during each stage of the customer lifecycle: in acquiring new buyers, in growing their lifetime value, and in converting them into advocates. Today, more than ever, marketers must focus on providing value through the entire customer lifecycle. From acquisition, where marketers aim to acquire customers at the lowest possible cost, to engaging those customers in meaningful conversations on the channel of their choice, to retaining them and providing value so that the customer keeps coming back for more, to ultimately turning those customers into brand advocates.
- Based on data from Bain & Company, a 5% increase in retention yields between 25% - 95% increase in profits. This illustrates that by spending the majority of their efforts on costly acquisition techniques, marketers are leaving money on the table. https://www.linkedin.com/pulse/what-cost-customer-acquisition-vs-retention-ian-kingwill
- The needs change based on the journey Step#2: you need to understand your audience and build profiles of customers that you’ll be marketing to. A lot of this information should be already available to you from marketing to prospects. Now that they are in your database and part of your community, you have an opportunity to ask them even more questions and use various listening tools to develop more robust profiles, targeted messages and assets Roles Needs Based on the stage in their customer journey – from immediate post sale
- The goals is to identify the biggest segments in your database that you will be selling to. The next step is to start developing even more advanced and targeted segments taking into account behavioral data, scoring (or where the customer is in their buying cycle); If you have marketing automation solution like Marketo, it’s easy to do; you need to define what behaviors you want to listen to (for example, last engagement or web site visit, attendance to your event, specific asset download or specific score threshold). The more precise your segmentation the more targeted and relevant your campaign messaging and overall customer communications, which will ultimately drive higher engagement, conversions, customer sat. and retention metrics and revenue.
- Next step, is to look at the products & services in your -- portfolio and map those products to your segments. First, you’re looking at what products are owned by your customer accounts and where the white space is. The x on this slide represents current product ownership by a particular segment and the white space represents paths or opportunities for cross-sell. This map will come very handy when you start building you retention and cross-sell nurture streams. Another way to think about it is that x on this map represent retention streams and topics and white space represents cross sell nurture paths. And don’t forget to prioritize your most promising segments! Of course, you don’t go through this process in isolation – it’s important to work closely with Product or Segment marketing, Sales and business stakeholders to prioritize segments, products, dg efforts.
- Growth: map content image to needs (metrics, reporting); make a connection to nurture Address a need – what does your reader care about? Be relatable – this is knowing your audience Make a point and get to the point… Stand out Listen to inputs from sales, social, and of course your customers
- Finally, you determine your tactics. We use a mix of programs designed to engage our customers across a variety of channels, including email, social media, events, web, etc.
- So the types of nurture we’ll discuss – include adoption/retention nurture, cross-sell nurture and multi-channel nurture
- The goal for adoption programs is to drive more product usage and we look at the 3 dimensions: Segments (your audience, personas that we defined) – Most important is the products that the customers have and how they are using them: we use customer success platform that integrates into Marketo and CRM to give us this information If we see that the usage is low on some core Marketo featurs – it’s a red flag We’ll have different
- Here’s an example of our adoption programs examples: Lead nurturing is a core Marketo functionality and the successful adoption and regular usage of CEE correlates highly with customer success overall and their propensity to renew. So if we see that a customer has very few engagement streams running or doesn’t use CEE at all we know that we need to do something about it. We put them into Adoption nurture streams First we educate customers on nurture strategy, metrics, content best practices; the concept of “why nurture”; then we move them into step-by-step tips on how to set up streams in Marketo.
- We don’t market cross sell products to customers in the first 6 months – it’s too early Also growth and maturity is very different for various customers – it’s not linear or time-based
- Here’s an example of our adoption / retention nurture content: for the streams that focus on Nurture (no pun intended) Lead nurturing is a core Marketo functionality and the successful adoption and regular usage of CEE correlates highly with customer success overall and their propensity to renew. So if we see that a customer has very few engagement streams or exhausted content in the streams, we nurture them. First we educate customers on nurture strategy, metrics, content best practices; the concept of “why nurture”; then we move them into step-by-step tips on how to set up streams in Marketo.
- Let’s switch gears and talk about measurement or KPIs that are important when evaluating your DG programs I think marketers struggle to measure programs ROI for two reasons. One is because they might not think about measurement upfront and then fail to create the right structure/framework to measure results. Two, there is no alignment on what metrics matter.
- Let’s look at an example: Let’s say your revenue goal is $5M and your ASP is $25k, so to hit that revenue target, you need to win 200 deals (divide $5m by $25k), and if your win rate is only 25%, you’d need 4x the number of opportunities or 800 opportunities to get there. And your pipeline is $20M or the number of opportunities times ASP. If 90% of your SQLs turn into opportunities then you need 889 SQLs and if your MQL to SQL conversion rate is 15%, then you’d need 5926 MQLs. These numbers become “the plan” for different teams and you can hold all of them accountable for meeting the goals. At Marketo, Demand Gen. Marketing is not only responsible for driving program successes and MQLs, but we’re actually comp’ed on the number of opportunities and pipeline generated by marketing
- Consider your audience and what KPIs you’ll be measuring at what point in time Focus on revenue metrics and ROI Optimize programs to drive higher ROI
- It’s very important to have a framework and a time frame for measuring the results of your programs. Let’s consider our email nurture program and what you might measure over a 6 month period So, say in January you set up and launch your nurture program. You measure the engagement score a month later (combination of clicks, opens, content downloads). It’s 70, then you start testing an optimizing it and get the score up to 80 by 4th month. In May (in 5 months): your compare the results to historical – pre-nurture or to a control group that hasn’t been nurtured; in this example, nurture drove 4x the #of fast leads and doubled the number or MQLs 6 months – 2x the number of opps; and we can take it further and track the pipeline and closed deals
- How often do you track these? Depends on your business Our subscription dollar retention rate in Q1 was 105% while average subscription revenue per customer continued to show solid progress, increasing by 15% relative to the same period a year ago. ARR retention %: very SAAS specific metric; and what that means is that from the Avg. Recurring Revenue standpoint
- Finally, I’d like to talk to you about S&M alignment, which is critical for the success of your business as Marketing cannot run programs in isolation
- Different when we talk about cross-sell and retention; different teams are involved SDRs and AE follow-up on customer leads What’s the role of SDRs and CAMs? Align teams around the customer needs From first customer acquisition to successful enablement, hand off to CAM From marketing driving leads to SDRs to Sales and CAM Who engages with a customer and when
- General MQLs or Product MQLs How do you score customer leads and their readiness to buy? Is there a concept of a Marketing Qualified Lead for customers? And how is it different from prospects? Regardless of what you call customer leads, you need a way of scoring and prioritizing customer leads for your sales teams. At Marketo, we started with general MQLs for customers based on engagement, but as we grew our cross-sell products and services portfolio, it became obvious that we needed to measure the customer’s interest and buying intent for different products separately. That’s why we moved to product MQLs. This may work differently at your organization. Here’s an example of our scoring for MQLs: Product MQLs are based on product interest scores. A product interest score works just like a lead activity score. The difference is that it only scores for a specific product. The threshold for becoming a product MQL is a product interest score of 5+ points. A customer can be an MQL for multiple products in the same month. However, the customer can only be a specific product MQL once every quarter. Even if the customer hits the threshold for becoming an MQL more than once a month or during another month that same quarter, he/she will only be qualified as a product MQL once. If the customer does not continue to be engaged on a specific product, their score for that product is decayed over cycles of two weeks until it hits zero. A customer can be an MQL for multiple products in any given quarter. Keep in mind that this is not set in stone and could be very different for your business depending on your sales cycle.
- Regardless of who follows up on leads, Sales need a way of prioritizing the volume. At Marketo we use our MSI tool (you see a screen shot here) that plugs in directly into SFDC to help with prioritization. This is what it looks like to the SDR or Sales rep inside CRM Interesting moments show the lead’s activity, so they can have a more relevant conversation This is how we help focus the sales rep on the hottest leads AND enable them to be more effective when they do connect with a prospect or customer Sales Insight delivered natively in-CRM Email templates and campaigns for Sales Real-time Sales Alerts Interesting Moments Sales Insight Mobile for Salesforce1 Gmail / Chrome Plug-in Outlook Plug-in
- And the last point I would to close with is the importance of training and communication. Our business moves so fast that it’s imperative to invest in training SDR, Sales and CAM organizations and keep them constantly updated on the types on programs we run.