Rpm and funnel management tpma-2013-05

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Presentation by Egan Cheung and John Stetic from Oracle Eloqua at the May 2013 TPMA meeting in Toronto.

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Rpm and funnel management tpma-2013-05

  1. 1. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.1
  2. 2. Is Your Marketing Working?John SteticEgan Cheung
  3. 3. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.3Buying Process Shifting …Education Active Buying Closing• Sales-dominated• One-way, single channel, relationship-drivenMarketing
  4. 4. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.4Buying Process Shifting to Marketing-DrivenEducation Active Buying Closing• Marketing plays critical role• Buyers choice, analytics-drivenMarketing
  5. 5. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.5
  6. 6. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.6The Flexibility to Manage Your Unique Business
  7. 7. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.7You Need a True Multichannel PlatformOwnedEarnedPaid
  8. 8. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.8Marketing ROI, RPIs, and Benchmarking
  9. 9. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.9Median Cumulative Revenue Growth
  10. 10. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.10Median Cumulative Revenue Growth
  11. 11. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.11Sample Size: 27Sample Size: 155Sample Size: 5005X theGrowth!What do theyknow that wedon’t?Median Cumulative Revenue Growth
  12. 12. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.12Revenue Performance ManagementA strategy for managing acompany’s interactions withbuyers through theentire buying cycle that enablespredictable, rapid and profitablerevenue growth.
  13. 13. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.13Assessing the Financial Health of a BusinessINCOMESTATEMENT• Profit margin• AR turnover• AP turnover• Inventory turnsBALANCESHEET• Current ratio• Quick ratio• Leverage ratio• ROICASHFLOW• External financingindex ratio• Cash sources ratio• Operating cashindex ratio
  14. 14. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.14Assessing the Health of Your Revenue EngineVALUE• Weighted MarketingPipeline Value• Weighted SalesPipeline Value• Marketing/SalesPipeline RatioPERFORMANCE• Reach• Share of Audience• Revenue Conversion• Days Leads Outstanding• Buy Cycle• Sales CycleEFFICIENCY• Customer AcquisitionCost Ratio• Campaign ROI• Sales Sizing• Economic Value ofConversion
  15. 15. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.15A Different Revenue StructureMarketingResponsesClicks/VisitsVolumeCostsSourceExecutivesRevenueProfitabilityCash-flow
  16. 16. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.16A Different Revenue StructureMarketingResponsesClicks/VisitsVolumeCostsSourceExecutivesRevenueProfitabilityCash-flowRevenue Steering CommitteeRevenue Cycle Dynamics
  17. 17. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.17Silos of Data = Incomplete PictureRevenueProspectQualifiedLeadSalesAccepted Lead(SAL)SuspectSalesQualified Lead(SQL)SFA systemsCall notes/(…morespreadsheetsEmail systems,event systems (morespreadsheets)Web analytics,social media(spreadsheets)
  18. 18. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.18The Right Revenue ProcessRevenueProspectMarketingQualifiedLead(MQL)SalesAccepted Lead(SAL)SuspectSalesQualified Lead(SQL)Evaluate PurchaseLearn JustifyInterestSales &MarketingProcessMarketingvalidates qualityof interestMarketingnurtures tosales readySales validatesand acceptsownershipSales validatesrevenue criteriaSales closesrevenueopportunityBuying Process
  19. 19. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.19The Results
  20. 20. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.20Questions your CEO should be askingAnd so should you!Is there valueweakness at aparticular stage inmy funnel?Do I have theexpected number ofleads in my funnelstages?Are leads convertingas anticipated?What tactics canimprove this?Are leads andopportunitiesgetting ‘stuck’in the funnel?What tacticsgenerate thehighest return?
  21. 21. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.21Critical Insights to For Driving RevenueValueWhat’s the value ofmy pipeline?ReachWho can I target todrive value?ConversionWhat % ofprospects willbecome revenue?Eloqua creates modern marketers that know exactly what their customers andprospects want, enabling them to deliver a superior customer experience and todrive revenue growth for their organizationsVelocityHow long will it taketo realize revenuefrom a prospect?ReturnWhat is the revenuereturn on mymarketing andsales investment?
  22. 22. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.22RPI: Reach DemoI don’t know if mydatabase is growingfast enough to hit myrevenue number.What: Reach shows the numberof ‘reachable’ marketing contactsfor each month. Calculated as thegreen additions less the red lossesof Contacts in the database).Why: Reach helps executivesbetter allocate resources towardsdatabase growth vs. prospectengagement & conversion.Reach, Conversion & Value can beused to calculate long termrevenue forecasts.How many leadsdo we acquire andlose over time?
  23. 23. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.23RPI: Reach DemoWhat is it: The Reach by Stageshows the distribution of leads andopportunities through the revenuecycle for the time period selected.You can toggle between a bar orfunnel view of the data.Why: Executives want to know howmarketing and sales teams aredoing at filling the funnel. The Reachby Stage drill down lets users tocompare the volume of leads andopportunities in the revenue cycleagainst earlier time periods, andassess whether this volume isenough to meet forward revenuetargets.What does my revenue cyclelook like today and how doesthat compare against priortime frames?
  24. 24. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.24RPI: Reach DemoWhat is it: The Reach Trend andBenchmark chart shows the trend inReach for the four standard stagetypes and provides a comparison ofyour Reach growth rate to theEloqua Benchmark Index.Why: You grew your pipeline by15%, but how does that compare totop performers? Benchmarkinghelps executives understand howtheir organizations stack up againstothers and pinpoint whereprocesses can be improved togenerate more revenue over time.By stage type, howhas my change inreach trended andhow do I compare?
  25. 25. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.25RPI: Conversion DemoWhat is the ratioof won deals tonew prospects ina time period?What: Conversion is the percent of a‘class’ of leads that progress throughthe entire funnel to Closed Revenue.The Conversion RPI is an indicator ofmarketing and sales efficiency. TheOrange line shows the number ofclosed opportunities divided by thenumber of prospects entering arevenue cycle. The Blue line (RPI)shows true conversion of leads overtime (ratio of lead from this period thateventual close).Why: Conversion answers thequestion – “what percent of interestedprospects will become closed deals?”– a critical measure of revenueproduction. It is also the key to longterm forecasting.What percent ofleads generatedactually convert torevenue?
  26. 26. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.26RPI: Conversion Demo How are myleads convertingthrough stages?How does myconversion ratecompare toindustry standards?What: The Conversion Rate byStage shows the stage-to-stageconversion rate through theintegrated sales and marketingfunnel for the month highlighted.Why: This tells you where tofocus to have the biggest impact(for example, small conversionrate improvements at the top ofthe funnel can yield big revenuegains at the bottom).
  27. 27. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.27RPI: Value DemoAre weconsistentlyadding Value toour revenuecycle?What: Value is the total revenueexpected from the current leadinventory in end-to-end revenuepipeline.Why: The Value RPI helpsexecutives understand therevenue dollars associated witheach stage of the revenue cycle– from clicks all the way toclosed deals. It answers thequestion “Are my sales andmarketing investments creatingrevenue opportunities?”
  28. 28. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.28RPI: Value Demo Which stages ofthe revenue cycleare weakest?What: The Valueby Stage chartshows a snapshot of the valuedistribution throughout thestages of the integrated salesand marketing funnel for the timeperiod selected.Why: Executives can use thischart to compare time periodsand assess where the funnelmay be losing or gaining value.
  29. 29. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.29RPI: Velocity Demo Presenter NameDateDrill Down: For month X,What is the velocitydistribution?What: Velocity is the average time ittakes for potential buyers to reach anend point in the revenue cycle. Theblue trend line shows the averagenumber of days between Prospectand Closed Revenue for deals closedin the month highlighted. The greenbars represent the volume of revenuecycles that were closed in that timeperiod.Why: Time creates hugeinefficiencies in your revenue cycle.After all, the longer your revenuecycle, the fewer opportunities yoursales team can close in a givenperiod of time.How long will ittake for today’sleads to convertinto revenue?
  30. 30. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.30RPI: Velocity DemoWhat: The upper right handchart presents the distribution ofclosed deals grouped by averagecycle length. On the bottom, youraverage Velocity for the timeperiod is compared to the EloquaBenchmark Index.Why: It is likely that executiveswould want to have the trends bystage analyzed in detail and asktheir revenue steering committeeor marketing operations teamdrill into underlying data toinvestigate velocity by deal size,region, product sku or leadIn what stage areslowdownsoccurring andhow can weoptimize?
  31. 31. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.31RPI: Return DemoWhat: Return shows the Returnpercentage for each month (revenuesgenerated divided by the costs spent).By adjusting the slider at the bottomof the chart, the specific 12 monthsincluded in the analysis can bechanged.Why: Every executive wants to knowhow their marketing and salesexpense translate into revenue. Infact, most financial types want ananswer to the question: “What willone more dollar in investment in sales& marketing yield in revenue?” Thisdashboard aggregates that up to anoverall return on dollars spent within aset time period.What return havewe realized on themarketinginvestments in agiven time period?How much revenuehas been createdfrom the spend in agiven time period?
  32. 32. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.32RPI: Return DemoWhat: The upper right hand chart inprovides a snapshot of when salesand marketing campaign investmentsbreak-even and begin to have aprofitable impact on revenue growth.The lower right chart provides asnapshot into your overall Return onsales and marketing campaigninvestments.Why: Executives want to know whatis working so it can be repeated.Periods of time with high marketingand sales returns need to beexamined against campaign, productand regional factors to find thewinning mix.How long will it takeme to see a positivereturn on mymarketing and salesexpenditures?
  33. 33. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.33Revenue Benchmark IndexSparkline: yourperformance by stagetype over time periodagainst static benchmarkBenchmarks: yourperformance againstindustry best, averageand laggards, by stage.
  34. 34. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.34ASP $25,000# of deals 400velocity (months 5velocity (qut) 2month/period 3conversion 0.30%FY1 Bookings $10,000,000 FY2 $15,000,000Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Prospects 3,200 9,600 1,920 4,800 4,800 7,680 - -MQL 1,600 4,800 960 2,400 2,400 3,840 - -SQL 400 1,200 240 600 600 960 - -SQO - 200 600 120 300 300 480 -Closed - - 100 300 60 150 150 240% of annual booking 0% 0% 25% 75% 10% 25% 25% 40%Qtr. booking target $- $- $2,500,000 $7,500,000 $1,500,000 $3,750,000 $3,750,000 $6,000,000running bookings $- $- $2,500,000 $7,500,000 $1,500,000 $5,250,000 $9,000,000 $15,000,000Conversion Base Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4P>MQL 5% 50% 50% 50% 50% 50% 50% 50% 50%MQL>SQL 60% 25% 25% 25% 25% 25% 25% 25% 25%SQL>SQO 50% 50% 50% 50% 50% 50% 50% 50% 50%SQL>Closed 20% 50% 50% 50% 50% 50% 50% 50% 50%P>Closed 0.300% 3.125% 3.125% 3.125% 3.125% 3.125% 3.125% 3.125% 3.125%Stage VelocityP>MQL 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0MQL>SQL 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0SQL>SQO 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0SQL>Closed 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0Running VelocityP>MQL 1 1 1 1 1 1 1 1 1MQL>SQL 2 2 2 2 2 2 2 2 2SQL>SQO 3 3 3 3 3 3 3 3 3SQL>Closed 5 5 5 5 5 5 5 5 5-10,00020,000$-$5,000,000$10,000,000Q1 Q2 Q3 Q4(5,000)5,00015,000$-$5,000,000$10,000,000Q1 Q2 Q3 Q4
  35. 35. Copyright © 2013, Oracle and/or its affiliates. All rights reserved.35

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