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Case Study: Using Social Media and Lead Nurturing for Demand Generation - Marketo

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Case Study: Using Social Media and Lead Nurturing for Demand Generation …

Case Study: Using Social Media and Lead Nurturing for Demand Generation

In this detailed case study, Marketo will share the specific programs and tactics they use to drive revenue, including how to use content and social media to generate leads, best practices for lead nurturing and lead scoring, and advanced techniques to measure and forecast marketing's impact on revenue. No theory here, just practical, hands-on advice you can use immediately.

* Chris Russell, Senior Marketing Operations Manager at Marketo

Published in: Education

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  • Mission: help turn marketing from a cost center to a revenue driver and to launch massive improvements in sales effectiveness and predictable revenue.Launch product in 3/2008Customers:McKesson, Kelly Services, one of the worlds largest search engines, one of the worlds largest airlines
  • 1. Model Your Revenue StagesTraditional sales methodologies, such as SPIN Selling and Miller-Heiman, provide standard benchmarks and best practices for the sales function, e.g. Stage 1 is 10% likely to close, Stage 5 is 70% likely, etc.However, marketing is typically less rigorous.These sales methodologies do not provide a sufficient view of what is coming from the earlier stages of the revenue process; put simply, they leave marketing out and are therefore limited for modern forecasting.That is why the first step in making a marketing forecast is defining the revenue stages a prospect can pass through. Explain Marketo stages.Explain transitions:A person may move from “Review New Names” to “Prospect” if they have revenue above $100 million a year and are in one of the target industriesA “Prospect” may move to “Lead” when the lead score goes above 100 pointsA “Prospect” may move to “Inactive” if they have not responded to any campaigns or visited the website in more than six monthsAn leads in “Inactive” may move back to “Prospect” if they respond to a new program
  • Wear are all of the prospects coming from?No Names, ProspectsVirtual Tradeshow is the cheapest, 10k names, 1k prospects, as a gold sponsor we get them.Website—organic PPC is expensive
  • 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
  • Once you’ve defined your Buying Stages and Profiles, you can map all your existing content to each cell grid and start sending the right content to your prospects.This is often implemented as a drip campaign, which can be automated by marketing automation, but it doesn’t necessarily need to be a drip campaign. As long as you are consistent about sending out content, and you are diligent about segmenting your lists to sent the right content to each buyer profile and stage, then you are doing lead nurturing. Thinking about nurturing usually highlights where marketers need more content. In fact, not having enough content is probably the biggest concern I hear from marketers that want to get started with lead nurturing. To them I say, don’t worry about it! It’s better to get started right away with a small nurturing campaign, even if you can’t customize it by all your profiles or stages, and then continually adapt and improve it as you get more content. As long as you have a vision and roadmap for where you want to get to, it’s always better to start small, deliver value quickly, and then evolve than to get bogged down in a long implementation. Finally, even when you have built out all your content, you can continue to evolve and improve your nurturing processes with testing and optimizing. Which subject lines work best? What messages resonate the most? Which campaigns most effectively move people to the next stage? By tracking these metrics, you can tune your lead nurturing to deliver even better results over time.
  • 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.
  • Measuring how these conversion rates vary by type is a great way to measure marketing effectiveness. Actual Marketo slide to show conversion rates over the last yearTracking how the rates change over time is a great way to monitor marketing performance. If the percent of fast movers is declining, perhaps it is a sign of deteriorating lead quality. If the percentage of leads converting out of inventory increases, perhaps you are doing a better job keeping leads engaged with nurturing.Also:Do leads from certain sources convert better than other sources? If so, perhaps you should invest more in those. Notice orange bar - model
  • This type of presentation is useful to show actual results compared to forecast and plan, as well as how the forecast changes over time. The example shows actual results for the current month and a forecast for the next three months; it also shows the forecasts from the prior four months compared to actual results. This presentation can also illustrate the forecast for other revenue stages such as new prospects, marketing qualified leads, even closed bookings.
  • Don’t just focus on the front of the funnel..Only call if you can add valueDon’t let leads stagnateDifferentiate between active and latent buying
  • 3. Measure Revenue Stage ConversionAt the core of your marketing forecast is an accurate understanding of how each lead type moves through the various revenue stages in terms of conversion percentage and velocity. Straightforward for Gate and SLA stages, since it is easy to know when to measure the conversion rate. A Gate stage conversion happens instantly, so the conversion rate for any period is simply the number of leads that passed the gate divided by the number that entered the gate. For an SLA stage, wait until after the SLA time is met to make the measurement; for an SLA of 14 days, you can measure an accurate conversion as long as you do it 14 days or more after the period is over. On the other hand, the calculation for an Inventory stage is significantly more complicated. Because leads can sit in the inventory pool for an indefinite period, you need to consider time when thinking about conversion. Any calculation that does not properly reflect this will suffer from inaccuracies and distortions. First, take all the leads that enter an inventory in a given month (or quarter) and measure the percent that convert down your “happy path” within the same month. This is a measurement of the quality of the incoming leads. Second, take all the leads that are sitting in the inventory at the beginning of the month and measure the percent of those that convert in a given month. This is a measurement of your nurturing effectiveness. Third, repeat the calculations for detour stages such as “Inactive” or “Lost”. Finally, combine all the results to estimate the number of leads that will be left in the inventory at the end of the period. Then you can repeat the second and third calculations projecting forward to estimate what conversion looks like over time.Explain slide
  • As we've all heard before, simple forms convert better, but the question is, how much better? Is the extra information worth the reduced conversion rate? Are certain types of information more costly in terms of conversion rate? I decided to use landing page testing to find out.The difference in the cost per conversion between the short and medium forms is $3.70, between the medium and long forms is $6.96, and between the short and long forms is $10.67. This means that each additional piece of information costs $1.85, and that asking for a phone number (the most invasive of all the fields) costs more than $5.00. At these prices, the conclusion was obvious: keep only the short form and turn off the other versions.As much as my sales team and I would like that information, it is not worth paying for these extra fields. Fortunately, this type of information is available from a variety of data cleansing and augmentation vendors, usually for as little as $1.00 for all the information you need.
  • Explain the chartLong charts get you good leads is the theory, but does it work in practiceJon to give example…
  • Transcript

    • 1. Using Social Media and Lead Nurturing for Demand Generation:Marketo Secret Sauce Case Study
      Chris Russell, Sr. Marketing Ops. Manager , Marketo
      © 2010 Marketo, Inc.
    • 2. Who Is Marketo?
      Marketing automation & sales effectiveness (SaaS)
      600+ mid-market and enterprise customers
      Tech, business services, manufacturing, finance, etc…
      Three years old, 100 employees
      Highly efficient revenue cycle:
      65% of revenue directly sourced by marketing
      Sales reps carry $1.2M annual recurring revenue quota
      © 2009 Marketo, Inc. Marketo Proprietary and Confidential
    • 3. Marketo’s Revenue Cycle
      MQL
      Prospect & Recycled
      © 2010 Marketo, Inc.
      SQL
      SAL
      Cust-omer
      Sales Lead
      Oppor-tunity
      All Names
      Lead
      Engaged
      Awareness
      Nurturing Database
      Marketing
      SDR
      Sales
    • 4. Generating Traffic (1 Month)
      © 2010 Marketo, Inc.
    • 5. 180+ Resources w/Social Sharing
      © 2010 Marketo, Inc.
    • 6. When To Ask For Registration?
      © 2010 Marketo, Inc. Marketo Proprietary and Confidential
      Early StageThought leadership and best practices to build brand and awareness
      Example: SiriusDecisions
      NO
      Middle StageBuyers guides, RFP templates and industry information to help structure research
      YES
      Late StageCompany-specific information to help evaluate and reaffirm selection
      YES
    • 7. Landing Page Optimization, A/B Testing
      © 2010 Marketo, Inc.
    • 8. Progressive Profiling
      © 2010 Marketo, Inc.
    • 9. Personalized Sales Follow-ups
      © 2010 Marketo, Inc.
    • 10. Marketo Prospect Generation 1H2010
      © 2010 Marketo, Inc.
    • 11. The Value of Lead Nurturing
      © 2010 Marketo, Inc.
      Marketo ROI Results
      Source: Actual Marketo data; assumes $55 per prospect
      3x!
      Results: 50% more marketing qualified leads from lead nurturing
    • 12. Content Mapping
      © 2010 Marketo, Inc.
      Buying Stages
      Content
      Map your existing content
      Blank cells determine your content roadmap
      Short content is good! (YouTube approach)
      Test and optimize
      Start small, think big and adapt quickly
      Buying Profiles
    • Other Kinds of Lead Nurturing
      Accelerators
      Move prospects along the buying cycle faster with relevant “nudges” triggered by specific behaviors
      Recycled
      Key driver of messaging in active recycling is the reason for disqualification
      Limit number of reasons
      Timeframe of months or quarters
      Reconstituted
      AKA “Wake the Dead”
      Great place to experiment
      © 2010 Marketo, Inc.
      Source: SiriusDecisions
    • 19. The ROI of Lead Scoring
      How Easy Is it To Get Access to Information About Prioritizing Sales Efforts?
      Source: CSO Insights
      © 2010 Marketo, Inc.
    • 20. Sample Scoring Rules
      © 2010 Marketo, Inc.
      Demographics:
      30 points based on manual Prospect review
      0-8 points based on title
      -20 to 0 based on inferred country
      Source and Offer:
      Website lead source: + 5
      Thought leadership offer: -5
      Latent Buying Behavior:
      Attend webinar: +5
      Download thought leadership: +3
      Visit any webpage : +1
      Visit careers pages: -10
      Active Buying Behavior:
      Install AppExchange app: +15
      Download Marketo reviews: +12
      Visit website 2X in one week: +8
      Download buyers guides: +8
      Watch demos: +5 each
      Search for “Marketo”: +5
      Visit pricing pages: +5
      No activity in one month:
      Score > 30: -15 points
      Score 0 to 30: -5 points
    • 21. Lead Follow-Up Processes
      © 2010 Marketo, Inc. Marketo Proprietary and Confidential
      Inbound Calls, “Contact Us” forms, and qualified Free Trial requests get <5 minute follow-up.
    • 22. No Lead Left Behind
      © 2010 Marketo, Inc. Marketo Proprietary and Confidential
      Trigger: New Status = Sales Lead
      … plus 7 more steps
    • 23. Best Bets Dashboard
      © 2010 Marketo, Inc.
    • 24. Sales Insight
      © 2010 Marketo, Inc.
    • 25. Marketo Revenue Cycle Model
      65% of all deals follow this model
      New Customers($5,619)
      Lead Type Variants
      34.5%
      10% of leads / 1.4 leads per opty
      = 7.1 % lead to opty
      Opportunities($1,937)
      40% of prospects eventually become a lead
      Leads($137.50)
      4.0% / month
      75%
      Active Prospect Database
      20%
      Paid Names($29.33)
      Prospects¾ paid ($73)¼ unpaid ($0)
      ($55 average)
      40%
      80%
      UnpaidNames
      ($0)
      10%
      Inactive (Last 6 Months)
      © 2010 Marketo, Inc.
    • 29. Conversion Rates over Time
      Win
      Prospect
      Lead
      Opportunity
      All numbers three month averages (except Opportunity Sources)
      © 2010 Marketo, Inc.
    • 30. Marketing Forecast
      © 2010 Marketo, Inc.
    • 31. Key Takeaways
      Focus on the entire revenue cycle, not just the top of the funnel
      Don’t contact a lead before its time
      Make sure prospects keep moving and don’t sit idle
      Understand latent buying and active buying and follow-up accordingly
      Use forecasting to turn marketing from a cost center into a revenue driver
    • 32. Marketo, Inc.
      901 Mariners Island
      Suite 200
      San Mateo, CA 94404
      CHRIS RUSSELL
      Marketing Operations
      chrisr@marketo.com
      Direct: +1.650.240-4662
      blog.marketo.com
      www.marketo.com
      Contact Me
      Download the “Definitive Guide to Lead Nurturing”
      www.marketo.com/dg2-lead-nurturing
      © 2010 Marketo, Inc.
    • 33. © 2010 Marketo, Inc.
    • 34. Why Lead Nurturing: Stay in Touch
      © 2010 Marketo, Inc.
      Building relationships with qualified prospects regardless of their timing to buy, with the goal of earning their business when they are ready.
      MQL
      Prospect & Recycled
      SQL
      SAL
      Lead Nurturing
      Sales Lead
      Oppor-tunity
      All Names
      Engaged
      Lead
      “The art of maintaining permission to stay in front of your buyers as they educate themselves”
    • 35. Metrics: Prospect to Lead Transition
      © 2010 Marketo, Inc.
      39.3% after 2 years
      Average time to convert: 4.1 months
      40% long-term
      Assumptions
      • 10,000 initial prospects
      • 36. 20% conversion new prospects (month 1)
      • 37. 4.0% conversion existing prospects (subsequent months)
      • 38. 10% go inactive each month
      36.2% after 1 year
    • 39. Authoritative Thought Leadership
    • 40. Final Email
      © 2010 Marketo, Inc.
      Please let me know your interest level in Marketo’s lead management solution on a scale of 1-4
    • 41. Awareness
      8,900 a month
      2,500 a month
      Goal: Be Everywhere!
      © 2009 Marketo, Inc.
    • 42. Forms: Ask Only What You Really Need
      © 2008 Marketo, Inc. All rights reserved.
      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
    • 43. Do Tech Buyers Provide Accurate Information During Registration?
      © 2010 Marketo, Inc.
    • 44. 60 Week Nurture Process
      © 2009 Marketo, Inc. Marketo Proprietary and Confidential
      A: Early StageThought leadership and best practices to build brand and awareness
      B: Middle StageBuyers guides, RFP templates and industry information to help structure research
      C: Late StageCompany-specific information to help evaluate and reaffirm selection
      Accelerators move people from A to B and B to C based on downloads and opportunity stage
    • 45. Source Tells You Much About Quality
      © 2009 Marketo, Inc. Marketo Proprietary and Confidential
      • Search is the best performing “paid” tactic
      • 46. Invest in word of mouth, awareness, buzz
    • When To Ask For Registration?
      © 2009 Marketo, Inc. Marketo Proprietary and Confidential
      Early StageThought leadership and best practices to build brand and awareness
      Example: SiriusDecisions
      NO
      Middle StageBuyers guides, RFP templates and industry information to help structure research
      YES
      Late StageCompany-specific information to help evaluate and reaffirm selection
      YES
    • 47. The Importance of Timely Response
      © 2010 Marketo, Inc.