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Secret Sauce for Revenue: A Practical Case Study

by Marketo

2,935 views

: Marketo is one of the fastest-growing marketing automation software companies in the US, providing lead management resources that assist the sales and marketing teams in the lead management process. ...

: Marketo is one of the fastest-growing marketing automation software companies in the US, providing lead management resources that assist the sales and marketing teams in the lead management process. Shared marketing automation resources encourage sales and marketing alignment and ensure that all potential customers experience lead nurturing. Online content marketing resources draw in potential customers, who are seamlessly passed onto sales reps who turn these promising leads into revenue for your company.

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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.
When marketing takes a larger share, you need to look at the REVENUE CYCLE, not just the Sales Cycle.Why Sales Cycle is good.Extend that to entire process.APPLY TO B2C as well…Names not leads.Engaged. Only 20% of prospects are ready to be leads, so we nurture.
When marketing takes a larger share, you need to look at the REVENUE CYCLE, not just the Sales Cycle.Why Sales Cycle is good.Extend that to entire process.APPLY TO B2C as well…Names not leads.Engaged. Only 20% of prospects are ready to be leads, so we nurture.
When marketing takes a larger share, you need to look at the REVENUE CYCLE, not just the Sales Cycle.Why Sales Cycle is good.Extend that to entire process.APPLY TO B2C as well…Names not leads.Engaged. Only 20% of prospects are ready to be leads, so we nurture.
When marketing takes a larger share, you need to look at the REVENUE CYCLE, not just the Sales Cycle.Why Sales Cycle is good.Extend that to entire process.APPLY TO B2C as well…Names not leads.Engaged. Only 20% of prospects are ready to be leads, so we nurture.
When marketing takes a larger share, you need to look at the REVENUE CYCLE, not just the Sales Cycle.Why Sales Cycle is good.Extend that to entire process.APPLY TO B2C as well…Names not leads.Engaged. Only 20% of prospects are ready to be leads, so we nurture.
When marketing takes a larger share, you need to look at the REVENUE CYCLE, not just the Sales Cycle.Why Sales Cycle is good.Extend that to entire process.APPLY TO B2C as well…Names not leads.Engaged. Only 20% of prospects are ready to be leads, so we nurture.
When marketing takes a larger share, you need to look at the REVENUE CYCLE, not just the Sales Cycle.Why Sales Cycle is good.Extend that to entire process.APPLY TO B2C as well…Names not leads.Engaged. Only 20% of prospects are ready to be leads, so we nurture.
See where our Prospects, and our Opps come from.Deals: 40% Inbound, 40% Paid; 10% Sales, 10% Referral.Paid Sources: Virtual Tradeshows good; PPC next (1.7X), Webinar (2.3X), online ad (2.5X). Tradeshow 3.5X. Content sucks. Really highlights the importance of content/inbound.In terms of PAID finding prospects, top sources… Tradeshows expensive, but drive opps. Two paths through Marketo – paid/nurture, and inbound.
What I want to focus on here is two models that you can use to calculate the ROI yourself. In the first, the key is to estimate
Total Mailed 41578 -Total Responded 1709 4.1%Total Demos 139 8.1%Opportunities 7151.1%Wins 19 -Total Mailed = 29,295Total Responded = 713 (2.4%)Total Demos = 90 (13%)Opportunities = 36 opps (40%)Wins = 16 customers
BCG – 2X2 matrix
5. Model Flow through the Revenue StagesThe final analytical step in the process is to project everything forward by taking your existing and new leads and modeling how they will convert through the various revenue stages over time. Explain slideNote: 65% of all deals; heavy spend on marketingIf your understanding of conversion rates and inputs are accurate, you will create a solid projection of what the revenue funnel will deliver in future periods.

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