The Secret Sauce to Accelerated Revenue, as presented by Jon Miller and Bill Binch at the 2010 Marketo User Summit

Marketo Prospect Generation 1H2010 Source Prospects Cost Opps Nurture Impact 3rd Party Email Blast 2,476 $35 22 Medium Trade Show –Virtual 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 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 6

Last Year’s Nurture Campaign One Smart Campaign  Send email, wait, repeat… Positives:  Automated drip; fire and forget  Easy to add a/b email testing Things to Consider:  It’s siloed  Only considers criteria for membership once  Limited safeguards against over/miss-communicating © 2010 Marketo, Inc. Marketo Proprietary and Confidential Page 7

This Year’s Nurture Campaign Triggered Traffic Cop Early Stage (Latent) Mid Stage (Active) Late Stage (Opps) Master Master Master Wait Step Wait Step Wait Step Email 1 Email 1 Email 1 Email 2 Email 2 Email 2 1. Traffic Cop prioritizes and assigns best nurturing campaign (title, buying stage) 2. Master campaign for program decides which email to send • If NOT received email 1, then send email 1 and remove from flow • Else, if NOT received email 2, then send email 2 and remove from flow • Etc. 3. Email campaign sends email (A/B testing) then requests wait step 4. Wait step campaign waits, then checks to see if lead should continue in program – if so calls Master to restart cycle 5. Accelerators: When change occurs that necessitates moving lead to new nurturing program (e.g. becomes a Lead), triggers in Traffic Cop request new program © 2010 Marketo, Inc. Marketo Proprietary and Confidential Page 8

This Year’s Lead Scoring Demographics Show Qualification Active Score Shows Buying Intent • Third party data or manual • Visit pricing pages: prospect review • +10 regular, +15 detailed • Timeline < 3 months: +15 Latent Score Shows Engagement • Watch demos: • Attend webinar: +5 • +5 overview, +10 detailed • Download thought leadership: +3 • Download Marketo reviews: +12 • Visit any webpage / blog : +1 • Download buyers guides: +8 • Click any email: +1 • Download data sheets: +8 • Visit careers pages: -10 • Searches for “Marketo”: +8 • Heavy web activity: +5 Lead = 55 Lead = 25 “overall score” “behavior score” © 2009 Marketo, Inc. Marketo Proprietary and Confidential Page 11

Lead Follow-Up Processes High Score / Latent High Score / Active Buying Buying Immediate Sales Enterprise Unrealized Need Follow-Up Immediate Target Unrealized Need Qualification Low-Priority Other X Qualification © 2010 Marketo, Inc. Marketo Proprietary and Confidential Page 12

No Lead Left Behind Day 0 Notification Day 1 In untouched, reminder Day 2 If untouched, reminder cc boss Day 3 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 14

Marketo Revenue Cycle Model New Customers 65% of all deals ($5,800) follow this model Lead Type Variants 34.5% 8.4% of leads / • Source Opportunities 1.4 leads per opty • Channel ($2,000) = 6% lead to opty • Division • Size 46% of prospects Leads eventually become a lead ($120) 3.0% / month 75% 28% Paid Active Prospect Names Prospects Database ($33) 2/3 paid ($83) 40% 1/3 unpaid ($0) Unpaid ($55 average) 72% Names 15% Inactive (Last 6 ($0) Months) © 2010 Marketo, Inc. Page 22

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 y = 50.749x-0.571 1,600 50 R² = 0.4301 1,400 y = 994.2x0.1352 40 1,200 R² = 0.9551 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 24

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 25

Key Takeaways 1. Your revenue cycle model is the foundation to success 2. Grow revenue by making sales more productive, not just by hiring more reps 3. Differentiate active buying behaviors from latent buying behaviors 4. No lead left behind / service level agreements 5. Use forecasting and analytics to build credibility for marketing 6. Continual evolution and closed-loop optimization Page 28

Thank You! Page 29

When To Ask For Registration? Early Stage 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 Five: Justifying the Decision Late Stage Company-specific information to help evaluate Six: Making the Selection and reaffirm selection Page 30

Sample Accelerator Campaign Set up: Auto drip Target: Leads who were recycled Goal: Acc. Re- LIKELY SKIP THIS SLIDE engagement if circumstances changed. Response: Great! © 2010 Marketo, Inc. Marketo Proprietary and Confidential Page 34

Marketing and Sales 2.0 Changing buyer behavior demand new marketing and sales processes Topic Old New Mass Media, Advertising and Content Marketing, Interruption, Lead Generation Inbound Outbound Lead Top of the Funnel Revenue Cycle Management Perception of Cost Center Revenue Driver Marketing The Result: Dramatic Improvements in Revenue Performance. © 2010 Marketo, Inc. Page 35

And Then It All Changed Again Your website is no longer the only source of information Buyers tire of “marketing speak” and search social sites as part of their research, interacting with other prospects to get and share recommendations Prospects less likely to register for early stage content You can no longer control the conversation, you have to participate. © 2010 Marketo, Inc. Page 38

Metrics: Prospect to Lead Transition Average time to 39.3% after 2 years convert: 4.1 months 4500 40% long-term 4000 3500 Assumptions 3000 • 10,000 initial prospects 2500 36.2% after 1 year • 20% conversion new prospects 2000 (month 1) 1500 • 4.0% conversion existing 1000 prospects (subsequent months) 500 • 10% go inactive each month 0 1 11 21 31 41 51 © 2010 Marketo, Inc. Page 39

Lead Follow-Up Processes High Score / Latent High Score / Active Buying Buying Immediate Enterprise Unrealized Need Qualification Immediate Target Unrealized Need Qualification Low-Priority Other X Qualification Inbound Calls, “Contact Us” forms, and qualified Free Trial requests get <5 minute follow-up. © 2009 Marketo, Inc. Marketo Proprietary and Confidential Page 43

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% • Company Size: 49% • Geography: 29% Page 48

Forms: Ask Only What You Really Need Short Form (5 fields) Conversion rate: 13.4% Cost per: $31.24 Medium Form (7 fields) Conversion rate: 12.0% Cost per: $34.94 Long Form (9 fields) Conversion rate: 10.0% Cost per: $41.90 © 2010 Marketo, Inc. Page 49

The Secret Sauce to Accelerated Revenue, as presented by Jon Miller and Bill Binch at the 2010 Marketo User Summit

by Marketo on Oct 18, 2010

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The Secret Sauce to Accelerated Revenue, as presented by Jon Miller and Bill Binch at the 2010 Marketo User Summit — Presentation Transcript