5 Ways to Pay for Marketing Automation

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This presentation showcases how Revenue Marketers can utilize 5 different tools provided by DemandMetric and The Pedowitz Group to make the business case for marketing automation.

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5 Ways to Pay for Marketing Automation

  1. 1. <ul><li>Presented by: </li></ul><ul><li>Debbie Qaqish, </li></ul><ul><li>Chief Revenue Officer </li></ul><ul><li>The Pedowitz Group </li></ul><ul><li>John Follet, </li></ul><ul><li>Chief Analyst </li></ul><ul><li>Demand Metric </li></ul>5 Ways + 5 Tools to Pay for Marketing Automation
  2. 2. “ What are you gonna to do about revenue?”
  3. 3. Agenda <ul><li>Lay the Foundation </li></ul><ul><li>Industry Standards </li></ul><ul><li>5 Ways to Pay for Marketing Automation </li></ul><ul><li>5 Tools to Help Justify Your Business Case </li></ul>
  4. 4. Change in Buyer Behavior <ul><li>Information became free </li></ul><ul><li>Prospects access information online </li></ul><ul><li>Sales is no longer information conduit </li></ul><ul><li>Marketing now responsible for this early and frequent digital communication </li></ul><ul><li>How have you changed? </li></ul>
  5. 5. New Role for Marketing
  6. 6. Enhancing Lead Gen is #1 CSO Insights Study
  7. 7. Sales Rates Marketing on Lead Generation ..and the score is not good! 63% “Needs Improvement ” CSO Insights Study
  8. 8. <ul><li>107% better lead conversion rate </li></ul><ul><li>40% greater average deal size </li></ul><ul><li>20% higher team attainment of quota </li></ul><ul><li>17% better forecast accuracy </li></ul><ul><ul><li>Aberdeen Group, “Marketing Automation 101: Ensuring Early Success with the Basics; Maturing Your Deployment for long-term ROI” June 2010 </li></ul></ul>Companies with an MA Platform
  9. 9. <ul><li>“ Companies that excel at lead nurturing have 9% more sales reps make quota, and enjoy a 10% shorter ramp up time for new reps.” </li></ul><ul><ul><li>CSO Insights </li></ul></ul><ul><li>“ On average, nurtured leads produce a 20% increase in sales opportunities versus non-nurtured leads.” </li></ul><ul><ul><li>DemandGen Report </li></ul></ul><ul><li>“ Companies that excel at lead nurturing are able to generate 50% more sales-ready leads at 33% lower cost-per-lead.” </li></ul><ul><ul><li>Forrester Research </li></ul></ul>Industry Metrics
  10. 10. <ul><li>Average MA system runs $30k - $60k/year </li></ul><ul><li>Allocate ½ to 3 FTE </li></ul><ul><li>One Revenue Marketer averages $90K fully loaded </li></ul><ul><li>Ranges from $75K to $150K </li></ul>How much does it cost?
  11. 11. Studies show… According to the “2010 Lead Generation Optimization Key Trends Analysis” from CSO Insights, more than 91% of companies worldwide reported increasing new customer acquisition was one of their top strategic marketing objectives for 2010. Based on the quantity and quality of leads generated, companies said email was their best lead generation program, followed by live events, website registrations and webinars.
  12. 12. <ul><li>Average B2B company spends $10K/month </li></ul><ul><ul><li>1-2 speaking engagements </li></ul></ul><ul><ul><li>A by-line article </li></ul></ul><ul><ul><li>A press release </li></ul></ul><ul><li>Shift 50% of this or $5k/month = $60k/year </li></ul><ul><li>In return: </li></ul><ul><ul><li>3x increase in lead production (can also look at improving the conversion rate) </li></ul></ul><ul><ul><li>Assuming a 30:1 lead to close ratio, $50K average sales price, three new deal/month = $150K </li></ul></ul><ul><ul><li>$5k gives you $150K per month </li></ul></ul><ul><ul><li>$60K gives you $1.8M per year </li></ul></ul>#1. Reallocate PR Budget
  13. 13. <ul><li>Average tradeshow costs $30k </li></ul><ul><li>Lucky to get 2-3 good leads </li></ul><ul><li>Get one customer = $50,000 </li></ul><ul><li>Using math in example #1, $30K represents 6-12 months worth of marketing automation </li></ul><ul><li>Every month = 3 net new deals </li></ul><ul><li>Value of one tradeshow is: </li></ul><ul><ul><li>6 mos x 3 x $50k = $900k </li></ul></ul><ul><ul><li>12 mos x 3 x$50k = $1.8M </li></ul></ul>#2. Do one less tradeshow
  14. 14. <ul><li>Typical agency spend is $10k/month </li></ul><ul><li>Provides creative services </li></ul><ul><li>Not demand generation focused </li></ul><ul><li>Convert part of this spend to measurable demand generation </li></ul>#3. Reduce your agency spend
  15. 15. <ul><li>Assuming you send 10,000 pieces at $1.50 each = $15,000 </li></ul><ul><li>Pays for 3 – 6 months of marketing automation </li></ul><ul><li>That’s 9 – 18 new pieces of closed business </li></ul>#4. Eliminate one direct mail campaign
  16. 16. <ul><li>Average sales rep is $150K fully loaded </li></ul><ul><li>Takes 6 months to get up to speed </li></ul><ul><li>More than fully pays for marketing automation </li></ul><ul><li>Has an immediate, measurable and predictable return </li></ul>#5. Hire one less sales person
  17. 17. So, now what are you gonna do about revenue?
  18. 18. About the Speaker Debbie Qaqish – Chief Revenue Officer and Principal at The Pedowitz Group, is a recognized thought leader in the Demand Generation industry with over 7 years experience in using marketing automation and 30 years experience in sales and marketing. Debbie has helped hundred of companies meet their demand generation goals. [email_address] 770-331-4443 Revenue Marketer Educational Series Revenue Marketer Radio
  19. 19. About the Speaker John Follet – John Follett joined Demand Metric in July 2007 as a Partner and Chief Analyst, specializing in Product Development and research. John was responsible for providing Canadian citizens with secure private, high-speed access to all federal government online services earlier in his career and has extensive experience in Internet Marketing and Business Continuity Planning. [email_address]
  20. 20. <ul><li>Lead Generation Strategy Scorecard </li></ul><ul><li>Lead Generation Prioritization Tool </li></ul><ul><li>ROI Demand Generation Calculator </li></ul><ul><li>Other Tools Available After the Webinar: </li></ul><ul><li>Demand Generation Business Case Template </li></ul><ul><li>Webinar Replay </li></ul><ul><li>Webinar Slide Deck </li></ul>Let’s look at some cool tools

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