Lead Nurturing and Lead Scoring - Marketo's Secret Sauce Case Study

How Marketo Does It About Marketo: Marketing automation & sales effectiveness (SaaS) Marketing automation & sales effectiveness (SaaS) 700 mid market and enterprise customers 700 mid‐market and enterprise customers  Tech, business services, manufacturing, finance, etc. 3 ½ years old, 110 employees ld l Highly efficient revenue cycle: Hi hl ffi i t l  65% of revenue directly sourced by marketing  Sales reps carry $1.2M annual recurring revenue quota Sales reps carry $1 2M annual recurring revenue quota  CAC ratio of 1.5 © 2010 Marketo, Inc. Marketo Proprietary and Confidential Page 2

Marketo’s Revenue Cycle MQL Prospect All Names s Recycled Engaged SQL areness SAL Sales Oppor‐ Cust‐ Lead Lead & tunity omer Awa R P Nurturing Nurturing Database Marketing SDR Sales © 2010 Marketo, Inc. Page 4

Marketing as a Publisher Risk Mitigation Risk Mitigation SEO Offers Scoring S i www.marketo.com/resources blog.marketo.com • 180+ Best Practices 180+ Best Practices • 9 000+ subscribers 9,000+ • Two updates per week • Multiple channels for marketing, sales © 2010 Marketo, Inc. Page 5

When To Ask For Registration? Early Stage y g One: Loosening of the Status Quo Thought leadership and best practices to build brand and awareness Two: Committing to Change Three: Exploring the Possible Solutions Middle Stage Buyers guides, RFP templates and industry information to Four: Committing to a Solution help structure research h l t t h Five: Justifying the Decision Late Stage Company‐specific Company specific information to help evaluate Six: Making the Selection and reaffirm selection Page 7

Forms: Ask Only What You Really Need Short Form (5 fields) Conversion rate: 13.4% Cost per: $31.24 Medium Form (7 fields) M di F (7 fi ld ) Conversion rate: 12.0% Cost per: $34.94 Cost per: $34 94 Long Form (9 fields) g ( ) Conversion rate: 10.0% Cost per: $41.90 © 2010 Marketo, Inc. Page 8

Marketo Prospect Generation 1H2010 Source Prospects Cost Opps Nurture Nurture Impact 3rd Party Email Blast 2,476 $35 22 Medium Trade Show –Virtual Trade Show Virtual 2,019 2 019 $33 28 Medium Sponsorship 1,296 $81 12 Medium Trade Show 929 $104 38 High Alliance 743 $40 13 Medium PPC 686 $182 28 High y Content Syndication 89 $ $98 0 Medium Website 2,586 178 Low Partner 358 21 High AppExchange 308 18 Low Referral 302 49 Low Sales Outbound 178 56 High Inbound Call 91 33 Low Blog 55 3 Medium © 2010 Marketo, Inc. Page 9

Why Lead Nurturing: Stay in Touch Building relationships with qualified prospects regardless of their timing to buy, with the goal of earning their business when they are ready. MQL ect mes ed ed SQL SAL Recycle Engage All Nam Prospe Sales Lead Oppor‐ Lead Lead & Nurturing tunity “The art of maintaining permission to stay in front of your buyers as they educate themselves your buyers as they educate themselves” © 2010 Marketo, Inc. Page 10

The Value of Lead Nurturing Marketo ROI Results Fast Leads Slow Leads Total Leads Cost / Lead ( MQL <1 mo) (MQL >1 mo) (MQL) (MQL) Without Nurturing 20% 6.67% 6 67% 26.67% 26 67% $206.00 $206 00 With Nurturing g 20% 20.0% 40.0% $137.50 Source: Actual Marketo data; assumes $55 per prospect Results: 50% more marketing qualified leads from lead nurturing © 2010 Marketo, Inc. Page 11

Content Mapping BUYING STAGES • Early (Pre‐MQL) • Mid (MQL) Stages 1 2 3 • Late (Opportunity) • Customer A CONTENT B 1. Map your existing content 2. Blank cells determine your content roadmap 3. Short content is good! (YouTube approach) C 4. Test and optimize 5. Start small, think big and adapt quickly D BUYING PROFILES • Industry: 82% • Role: 67% Role: 67% • Company Size: 49% • Geography: 29% Page 12

Other Kinds of Lead Nurturing Accelerators  Move prospects along the buying cycle faster the buying cycle faster with relevant “nudges” triggered by specific behaviors Recycled  Key driver of messaging in active recycling is the reason for recycling is the reason for disqualification  Limit number of reasons  Timeframe of months or quarters Reconstituted  AKA “Wake the Dead”  Great place to experiment Great place to experiment Source: SiriusDecisions © 2010 Marketo, Inc. Page 13

The ROI of Lead Scoring How Easy Is it To Get Access to Information About Prioritizing Sales Efforts? 120% 100% 97% 80% 79% 72% 60% 50% Easy Hard 40% 20% 0% % Revenue Plan Achieved % Reps Meeting/Beating Quota Source: CSO Insights © 2010 Marketo, Inc. Page 14

Sample Scoring Rules Demographics Show Qualification Active Score Shows Buying Intent • Third party data or manual • Visit pricing pages: prospect review prospect review • +10 regular, +15 detailed +10 regular +15 detailed • Inferred geography (0 to ‐20) • Timeline < 3 months: +15 • Watch demos: Latent Score Shows Engagement g g • +5 overview, +10 detailed • Attend webinar: +5 • Download Marketo reviews: +12 • Download thought leadership: +3 • Download buyers guides: +8 • Visit any webpage / blog : +1 • Download data sheets: +8 • Click any email: +1 Click any email: +1 • Searches for “Marketo”: +8 Searches for Marketo : 8 • Visit careers pages: ‐10 • Heavy web activity: +5 • No activity in 1 month: Decay Lead = 55 Lead = 55 Lead = 25 Lead = 25 “overall score” “behavior score” © 2009 Marketo, Inc. Marketo Proprietary and Confidential Page 16

No Lead Left Behind Day 0 Notification Day 1 In untouched, reminder Day 2 If untouched, reminder cc boss Day 3 Day 3 If untouched, alert executives If untouched alert executives Day 7 If stale, reminder Day 8 If stale, reminder cc boss Day 9 If stale, alert executives © 2010 Marketo, Inc. Marketo Proprietary and Confidential Page 18

Marketo Revenue Cycle Model New Customers New Customers 65% of all deals 65% of all deals ($5,800) follow this model Lead Type Variants 34.5% 8.4% of leads / • Source Opportunities O ii 1.4 leads per opty 14l d • Channel ($2,000) = 6% lead to opty • Division • Size 46% of prospects fp p Leads eventually become a lead ($120) 3 0% / month 3.0% / month 75% % 28% Paid Active Prospect Names N Prospects Database ($33) 2/3 paid ($83) 40% 1/3 unpaid ($0) Unpaid ( ($55 average) g ) 72% Names 15% Inactive (Last 6 ($0) Months) © 2010 Marketo, Inc. Page 21

Conversion Over Time Predict conversions from one stage to another over time Create plans / forecasts about future p / Marginal Conversion Cumulative Conversion 70 , 2,000 1,800 60 y = 50.74x-0.57 1,600 50 R² = 0.430 1,400 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 73 © 2010 Marketo, Inc. Marketo Proprietary and Confidential Page 22

Marketing Forecasts Prospects Q2 2010 Q3 2010 Q4 2010 Plan 6,635 7,814 9,150 May 7,000 7,520 Jun 8,380 8,500 Jul 8,500 Aug 8,800 10,000 Leads Apr May Jun Jul Aug Sep Oct Nov Plan 760 800 825 1000 1069 1374 1434 1512 Mar 810 850 875 Apr 685 850 875 925 May 818 875 900 915 Jun 909 1000 1069 1374 Jul 924 1200 1374 1434 Aug 1280 1414 1450 1512 Opps Apr May Jun Jul Aug Sep Oct Nov Plan 67 81 82 90 94 100 104 109 Apr 83 83 90 93 May 81 88 90 94 Jun 91 93 95 101 Jul 70 90 100 103 Aug 92 101 104 109 Plan Forecast Actual © 2010 Marketo, Inc. Marketo Confidential and Proprietary Page 23

Key Takeaways 1. Grow revenue by making sales more productive, not just by hiring more reps not just by hiring more reps 2. Focus on the entire revenue cycle, not just the top of the funnel top of the funnel 3. Don’t contact a lead before its time 4. 4 No lead left behind / service level agreements No lead left behind / ser ice le el agreements 5. Use forecasting to turn marketing from a cost center into a revenue driver center into a revenue driver 6. Continual evolution and closed‐loop optimization Page 24

Contact Me Maria Pergolino Marketo, Inc. k Director of Marketing 901 Mariners Island Suite 200 maria@marketo.com maria@marketo com San Mateo, CA 94404 San Mateo CA 94404 @inboundmarketer @marketo Direct: +1.650.898‐7147 blog.marketo.com www.marketo.com Download the “Definitive Guide to Lead Nurturing” www.marketo.com/dg2‐lead‐nurturing © 2010 Marketo, Inc. Page 25

Lead Nurturing and Lead Scoring - Marketo's Secret Sauce Case Study

by Marketo on Nov 22, 2010

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Lead Nurturing and Lead Scoring - Marketo’s Secret Sauce Case Study — Presentation Transcript