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Collaboration Between Marketing and Sales #IS12

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  • Results firstFor those of you not familiar with Marketo, we provide on-demand marketing automation & sales effectiveness solutions thatsignificantly increase corporations’ revenue performance. Over the last three years, we’ve signed up more than 900 mid-market and enterprise customers across a variety of industries including tech, healthcare, business services, manufacturing, finance, etc., which means that we’re currently growing faster than SuccessFactors, Omniture, or Netsuite did at the same point in their lifecycle.
  • What’s unique about us is how efficiently we are driving that growth. ExplainThis means our Sales and Marketing model is about 2X as productive as other SaaS companies…. The rest of this presentation is all about how.
  • The core philosophy of our revenue engine is that buying has changed forever, and that marketing and sales need to change as well.Not that long ago, there were few 3rd party sources of information, which meant that a buyer had to get most of their information from sales. In this world, it made perfect sense for marketing to pass all leads over to sales. But now, the explosion of readily available information means buyers get most of their information themselves and don’t want to talk to a sales person until they are much further along. 70% of the buying cycle has already taken place before buyers are willing to engage with a live sales person.With this change, marketing has the opportunity to seize the day and take a much larger share of revenue.
  • Deals: 40% Inbound, 40% Paid; 10% Sales, 10% Referral.Importance of inbound - Website Prospects are 5X as good as Paid prospects.Paid Sources: AppExchange prospects rock!Tradeshows have really improved as we transformed our strategy – much lower CPPVirtual tradeshows good because cheapPPC solid – expensive but convert wellEmail and Webinars are workhorses (every month). Email flat; Webinars declining for us (saturation)?Content syndication not great – but way betterSocial Media – still working it outRed velocity = NURTURE
  • Deals: 40% Inbound, 40% Paid; 10% Sales, 10% Referral.Importance of inbound - Website Prospects are 5X as good as Paid prospects.Paid Sources: AppExchange prospects rock!Tradeshows have really improved as we transformed our strategy – much lower CPPVirtual tradeshows good because cheapPPC solid – expensive but convert wellEmail and Webinars are workhorses (every month). Email flat; Webinars declining for us (saturation)?Content syndication not great – but way betterSocial Media – still working it outRed velocity = NURTURE
  • BCG – 2X2 matrix
  • 1/3 of Leads are from New Prospects, 2/3 from “Slow”

Transcript

  • 1. How Collaboration Between Sales and Marketing Has Changed the Lead Generation Game Jon Miller, VP Marketing and Co-Founder Author of Modern B2B Marketing blog @jonmiller2© 2012 Marketo, Inc.
  • 2. Bay Area’s Fastest Growing Company Salesforce SuccessFactors Omniture NetSuite Constant Contact Marketo Year 0 Year 1 Year 2 Year 3 Year 4 All revenue numbers normalized to Marketo Year 1Page 2© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 3. Highly Efficient Revenue Engine • 80% of revenue sourced by marketing • $1.2M annual recurring revenue quota • 93% quota attainment CAC ProductivityPage 3© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 4. Buying Has Changed Forever OLD DAYS: INFO SCARCITY TODAY: INFO ABUNDANCE 1960s – Recent BUYER SALES REP SALES REPPage 4© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 5. Marketo’s Revenue Cycle Prospect Name Sales Lead Lead Awareness Friend Opportunity Customer Nurturing Database Generating Awareness Developing Relationships and “Like” (Email, Social, Offline)Page 5© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 6. Marketo’s Revenue Cycle Prospect Name Sales Lead Lead Awareness Friend Opportunity Customer Nurturing Database Exposed to us via Generating Awareness or word of mouth Relationships content, brand, Developing and “Like” (Email, Social, Offline)Page 6© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 7. Marketo’s Revenue Cycle Prospect Name Sales Lead Lead Awareness Friend Opportunity Customer Nurturing Database Feels a relationship and trust Generating Awareness Developing Relationships with us and “Like” (Email, Social, Offline)Page 7© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 8. Marketo’s Revenue Cycle Prospect Name Sales Lead Lead Awareness Friend Opportunity Customer Nurturing Database Names are just names. Generating Awareness Developing Relationships and “Like” (Email, Social, Offline)Page 8© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 9. Marketo’s Revenue Cycle Prospect Name Sales Lead Lead Awareness Friend Opportunity Customer Nurturing Database Meaningful interaction and qualified Generatingdemographics, sent to nurturing Awareness Developing Relationships and “Like” (Email, Social, Offline)Page 9© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 10. Marketo’s Revenue Cycle Prospect Name Sales Lead Lead Awareness Friend Opportunity Customer Nurturing Database Showing buying signs or significant Generating Awareness engagement. Developing Relationships and “Like” (Email, Social, Offline)Page 10© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 11. Marketo’s Revenue Cycle Prospect Name Sales Lead Lead Awareness Friend Opportunity Customer Nurturing Database Qualified as sales-ready by a human. Generating Awareness Developing Relationships and “Like” (Email, Social, Offline)Page 11© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 12. Marketo’s Revenue Cycle Prospect Name Sales Lead Lead Awareness Friend Opportunity Customer Nurturing Database Accepted and actively worked by sales Generating Awareness Developing Relationships and “Like” (Email, Social, Offline)Page 12© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 13. Content Marketing for Brand and Like Brand awareness Brand preference Risk reduction Popular Blogs Resource Center Definitive Guides Webinars Marketo TVPage 13© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 14. Types of Content Early Stage Thought leadership and best practices to build brand and awareness Middle Stage Buyers guides, RFP templates and industry information to help structure research Late Stage Company-specific information to help evaluate and reaffirm selectionPage 14© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 15. Marketo Prospect Generation Source Prospects Cost % Lead Velocity Opp Index (Days) Lead to 3rd Party Email Blast 9,049 $36 20% 32 0.5 Trade Show 3,786 $36 22% 29 1.8 Trade Show – Virtual 3,125 $18 17% 48 1.0 Paid Webinar 1,971 $71 26% 33 0.7 PPC 1,494 $135 45% 15 1.8 AppExchange 1,128 $41 72% 3 2.4 Content Syndication 881 $69 18% 29 1.2 Social Media 588 $94 33% 16 0.2 Other Paid 1,645 $45 25% 32 0.9 Website/Inbound 5,133 58% 9 1.9 Referral / WOM 564 21% 32 1.4 Sales Prospecting 349 19% 71 3.9Page 15© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 16. Marketo Prospect Generation Prospects Cost % Lead Velocity Opp Index Source (Days) Lead to 3rd Party Email Blast 9,049 $36 20% 32 0.5 Trade Show 3,786 $36 22% 29 1.8 Trade Show – Virtual 3,125 $18 17% 48 1.0 Paid Webinar 1,971 $71 26% 33 0.7 PPC 1,494 $135 45% 15 1.8 AppExchange 1,128 $41 72% 3 2.4 Content Syndication 881 $69 18% 29 1.2 Social Media 588 $94 33% 16 0.2 Other Paid 1,645 $45 25% 32 0.9 Most prospects5,133 ready to58% Website/Inbound not be 9 1.9 Referral leads when they come in21% / WOM 564 32 1.4 Sales Prospecting 349 19% 71 3.9Page 16© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 17. Lead Nurturing Plugs the Leak Building relationships with qualified prospects regardless of their timing to buy, with the goal of earning their business when they are ready. MQL Prospect & SAL All Names Recycled Engaged SQL Lead Sales Lead Lead Opportunity Nurturing 50% More Sales LeadsPage 17© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 18. Lead Nurturing Relevance Stages 1 2 1. BUYING STAGES 3 A • Early (Pre-MQL) • Mid (MQL) • Late (Opportunity) B • Customer 2. BUYING PROFILES • Industry: 82% C • Role: 67% • Company Size: 49% D • Geography: 29% Get The “Definitive Guide to Lead Nurturing” http://bit.ly/DGtoLNPage 18© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 19. The ROI of Lead Scoring How Easy Is it To Get Information Other Benefits of Fewer About Prioritizing Sales Efforts? But Higher Quality Leads • Higher Win Rates • Shorter Sales Cycles • Higher Revenue Per Rep Source: CSO InsightsPage 19© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 20. A Framework for Lead Scoring Explicit Inferred What the prospect tells you What you observe or infer • Data quality Fit • Demographics Are you • Corporate email? • Firmographics interested in • Location • BANT them? • Data append (Data.com) Interest • Latent behaviors Are they (engagement) • BANT interested in • Active behaviors (sales you? readiness) Get The “Definitive Guide to Lead Scoring” http://bit.ly/DGtoLSPage 20© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 21. 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” +8Page 21© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 22. Identifying Marketing Qualified Leads Super- 21+ Target Lead Lead Lead 9-20 Target Lead LeadFit 2-8 Other Lead <2Interest Engagement <20 20-44 45-89 90+ Buying Intent <6 6-12 13-18 19+Page 22© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 23. Sales Development Reps (SDRs) Pass The Baton from Marketing to Sales Best place for dramatic improvements in business performance are handoffs between functions • 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 salesPage 23© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 24. Page 24© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 25. The Right Metrics for Sales andMarketing Alignment and ROI
  • 26. Why Measuring ROI is Hard • Multiple touches. Seven touches needed to convert a cold lead into a sale • Multiple influencers. Typical buying committee has 5-21 people • Tyranny of time. The money you invest today will have an uncertain impact at an uncertain point in the futurePage 26© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 27. Track All Touches Across People Screenshot: Marketo Revenue Cycle AnalyticsPage 27© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 28. Example: Multi-Touch Attribution Screenshot: Marketo Revenue Cycle AnalyticsPage 28© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 29. Revenue Cycle Modeler Screenshot: Marketo Revenue Cycle AnalyticsPage 29© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 30. Key topic areas: • Balance • Flow • Conversion • Velocity Trends over time Filter/Drill into data, e.g. by Program Type, Business Unit, Geography, etc. SLA violationsPage 30Screenshot: Marketo Revenue Cycle Analytics Proprietary and Confidential© 2012 Marketo, Inc. Marketo
  • 31. Marketo Revenue Cycle Metrics New Customers 80% of all deals ($5,000) • Lead to Sales Lead: 10% follow this model • Sales Lead to Opp: 74% • 1.4 people per Opp Opportunities 1,000 Leads = 53 Opps Lead Type Variants 200 / mo • Source ($2,000) • Channel • Division Leads • Size 3,800 / mo ($105.25) 4.0% / month 75% 18,000 / mo 20% Paid Names Active Prospect ($25.80) Prospects Database 33% 6,000 / mo Unpaid ($67) 80% Names 10% Inactive ($0) (Last 6 Months)Page 31© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 32. Conversion Over Time • Predict conversions from one stage to another over time • Create plans / forecasts about future Marginal Conversion Cumulative Conversion 70 2,000 1,800 60 1,600 50 y = 50.74x-0.57 1,400 R² = 0.430 y = 994.2x0.135 40 1,200 R² = 0.955 1,000 30 800 20 600 400 10 200 0 - 3 13 23 33 43 53 63 73 3 13 23 33 43 53 63 73Page 32© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 33. Marketing Forecasts Get The “Definitive Guide to Marketing Metrics & ROI” http://bit.ly/DG2MMPage 33© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 34. Key Takeaways 1. Sales makes more money when marketing handles pipeline development 2. Use content to help leads find you 3. Focus on the entire revenue cycle, not just the top of the funnel – nurturing and scoring are essential 4. No lead left behind / service level agreements 5. Use forecasting to turn marketing from a cost center into a revenue driverPage 34© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 35. Contact Me Marketo, Inc. JON MILLER 901 Mariners Island VP Marketing Suite 200 jon@marketo.com San Mateo, CA 94404 @jonmiller2 Direct: +1.650.376-2310 blog.marketo.com www.marketo.comPage 35© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 36. Discussion Topics • How do you handle leads that are not yet ready for sales? • How does your organization use lead scoring? • What is the process for recycling leads? • What lead generation metrics are most important to sales?Page 36© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 37. Additional Resources The Definitive Guide to Lead Nurturing SMS your email to +1.650.262.0066 http://bit.ly/DGtoLN The Definitive Guide to Lead Scoring SMS your email to +1.650.262.0066 http://bit.ly/DGtoLS The Definitive Guide to Marketing Metrics & ROI SMS your email to +1.650.262.0066 http://bit.ly/DG2MM Personalized Benchmark on Email Marketing http://www.marketo.com/benchmarkPage 38© 2012 Marketo, Inc. Marketo Proprietary and Confidential
  • 38. Sales InsightsPage 39© 2012 Marketo, Inc. Marketo Proprietary and Confidential