In these slides you'll learn how to draft a demand generation budget starting from your revenue goals. These include funnel metrics, Customer Acquisition Costs (CAC), what line items should be considered when creating the budget, how to forecast your ROI, and what tools can help you in the process. AGENDA - "Introduction - Why you are not spending enough on customer acquisition" (Franco Caporale - Founder - SaasMQL) - "Accurately measuring ad spend ROI against actual revenue generation" (Sahil Jain - CEO & Co-Founder - AdStage) - "Leveraging your funnel metrics to build an effective demand gen plan" (Steve Arentzoff- VP of Demand Generation - Medallia) - "Building a demand generation budget from scratch" (Jack Foster - Sr. Director, Demand Generation - SurveyMonkey)

1. Creating a Demand Generation
Budget From Scratch
Demand Generation Marketers Meetup (SF)
July 11th, 2019

2. Welcome!
HOST
Franco Caporale
Founder
franco@saasmql.com

3. Agenda
6:30-6:45 - Why you are not spending enough on customer acquisition
(Franco Caporale - Founder - SaasMQL).
6:45-7:00 - Accurately measuring ad spend ROI against actual revenue
generation
(Sahil Jain - CEO & Co-Founder - AdStage).
7:00-7:15 - Leveraging your funnel metrics to build an effective demand gen plan
(Steve Arentzoff- VP of Demand Generation - Medallia).
7:15 - 7:30 - Building a demand generation budget from scratch
(Jack Foster - Sr. Director, Demand Generation - SurveyMonkey).
7:30 - 8:00 - Panel & Q&A
8:00 - 8:30 - Closing & Networking

4. Sponsors

5. Why you are not
spending enough on
customer acquisition

6. About Me
Franco Caporale
Founder
Led Enterprise Marketing at:

7. SaasMQL - ABM Consulting
CLIENTS INCLUDE:● We help you identify your
Ideal Customer Profile and
Target Accounts
● We run targeted ABM
programs to generate
qualified pipeline.
● We track pipeline, ROI and
revenue from ABM
campaigns.

8. The Cost of Customer Acquisition
There is no such thing as a “free customer”.

9. CAC Ratio & Payback Period
CAC = Total cost of Sales & Marketing / No of Deals closed
Average Payback Period in SaaS: 12 months
Source: ForEntrepreneurs.com

10. Why companies underspend in DG
1. Low confidence in ROI and marketing attribution.
2. Lack of visibility
3. Short-term goals
4. No scalable systems or process in place
5. Committed budget to hire sales resources
6. Still trying to “hack” some free customers
7. Nobody owns the demand gen budget

11. ROI Framework by Channel
Source: Bizible

12. New Customer
Opportunity
Value
Meeting
Value
MQA
Value
$50,000 $10,000 $2,500 $250
Qualified Meeting Value ($)
20% 25% 10%
Values are in ARR (Annual Recurring Revenue)

13. Revenue Goal
Average Deal Size:
$50,000
$2M
Customers
Win rate: 20%
#40
Opportunities
Conversion rate: 25%
#200
Meetings
Cost Per Meeting:
$1,500
#800
Budget
Marketing Programs
$1.2M
Revenue Goal/Budget

14. Know Your Funnel Metrics
What are the
conversion rates for
each stage, divided
by segment?

15. B2B Pipeline Benchmarks

16. Distributing budget across programs
● How much should be allocated in branding/pr initiatives?
● How much in content creation?
Source: 2017 Hubspot Demand Generation Benchmark Report

17. ABM Budget : Account Tiers
● How is your current revenue distributed across account
tiers?
TIER 1
ACCOUNTS
TIER 2
ACCOUNTS
TIER 3
ACCOUNTS
50% 35% 15%

18. Marketing Budget vs. Sales Budget
MARKETING SALES DESCRIPTIONGTM STRATEGY
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● amet nec at adipiscing
● risus at dolor porta
2
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3
INSIDE SALES
(SDRs/AEs)
ENTERPRISE
(Field reps)
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1 HIGH VELOCITY
(Self-serve)
95% 5%
30%70%
30% 70%
The budget and quota changes depending on your
Go-to-Market strategy
“Why should I invest $1M more in
demand gen vs. hiring 4 more reps?”

19. Fast Growth vs CAC Efficiency
Revenue target and number of logos are
priority.
Investing mostly in proven, low-cost channels
(e.g. outbound emails)
Payback period can be > 12 months Budget is capped, unless ROI is proven
Usually high LTV Limited investment in testing new programs
Testing many channels, doubling down on
those that deliver ROI Payback period is low but growth is limited
FAST GROWTH CAC EFFICIENCY

20. Conclusions
1. There are no “free leads” or “free customers”
2. Get a clear view of your funnel metrics
3. Decide how much are you willing to invest per each
acquired customer (aggressive growth or low CAC?)
4. Track ROI and distribute budget accordingly
5. Your go-to-market strategy determines the sales vs.
marketing contribution

21. QUESTIONS?
415-448-6551
www.saasmql.com

22. Accurately measuring
ad spend ROI against
actual revenue generation

23. Sahil Jain

24. Here’s what you’ll get from this session
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26. Data is changing the CMO role

27. Marketers are now responsible for revenue
— Accenture, C-level disruptive growth

28. Digital-native marketers outscored
corporate marketers by 73%
Today, the greatest marketing
advantage is technical marketing
talent — the martecheter.
– IBM 2019 Marketing Trends Report

30. Marketers are aware of the need to align with sales
– SnapApp Sales and Marketing Alignment: 45 Experts Explain How To Connect The Dots

31. 79% of leads never convert to sales
partly due to a lack of nurturing,
and of the leads that get passed to
sales, 73% are never contacted. –
HubSpot
– HubSpot: Sales-Marketing Alignment Increases Revenue by 208% [Infographic]

32. Sales-marketing alignment
increases revenue by 208%! –
HubSpot
– HubSpot: Sales-Marketing Alignment Increases Revenue by 208% [Infographic]

34. Melding sales + marketing to create “smarketing”
– Roofer’s Coffee Shop

35. Define and agree on expectations
– Business 2 Community: How to Build an Event SLA For Marketing and
Sales

36. A pretty good buyer persona...

37. Sales can help with Psychographic

38. Quid Pro Quo - Collaborate on Collateral
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39. Talk, communicate, meet, connect, get together
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40. All this paves the
way to CRM
access

42. First, populate the CRM with the data you need

43. Your leads will carry this source data with them

44. Then run CRM reports down to your UTMs

45. Show the value of campaigns in the context of
business goals

47. Affect ROI with a sales mindset

48. But make sure you optimize correctly
Channel Spend MQL CPL
AdWords $15,000 30 $250
Bing $5,000 25 $200
Facebook $5,000 50 $100
LinkedIn $10,000 20 $500
Total $35,000 125 $280
Focus here
Cut here

49. Results change as you go down funnel
Channel Spend MQL CPL Customers Revenue ROAS ACV
AdWords $15,000 30 $250 4 $32,000 213% $8,000
Bing $5,000 25 $200 3 $15,000 300% $5,000
Facebook $5,000 50 $100 1 $4,000 120% $4,000
LinkedIn $10,000 20 $500 4 $32,000 320% $8,000
Total $35,000 125 $280 12 $83,000 243% $6,917
Focus here
Cut here

50. Now you have the data to ask for more budget
Channel Spend Lead
(MQL)
CPL Customer
s
Revenue
LinkedIn $15,000 30 $500 6 $48,000
Channel Spend Lead (MQL) CPL Customers Revenue
Facebook $10,000 20 $500 4 $32,000

51. Match keywords to bottom-of-funnel mentality
– How To Map Content To The Buyer's Journey & The
Marketer's Funnel [Inbound 2014]
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52. Create campaigns based on sales milestones
– Facebook Improve Customer Acquisition with the Power of Lead Ads and Offline
Conversion

54. MarTech + AdTech finally together =
the Holy Grail of Marketing
Enterprise brands use on average
more than 90 marketing tools
– IBM 2019 Marketing Trends Report

55. Use the power of Salesforce to improve paid ads
– Salesforce Digital Advertising 2020 report

56. Google AdWords Conversion Import
– About Google Ads Conversion Import for Salesforce®

57. HubSpot’s closed-loop marketing integration
– Hubspot + Salesforce integration product

58. So, what did we just learn?
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59. And don’t forget:
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60. Sahil Jain
CEO & Co-Founder

61. Building Effective
Growth Marketing Plans
Aligning Business Objectives with Funnel Metrics

62. Presenter
STEVE ARENTZOFF
Steve Arentzoff
VP of Demand Generation

63. About Me
● 20+ year career in marketing
● Current role: VP demand generation: Medallia
● Previous roles
○ Senior Vice President Global Digital Marketing: Cision
○ Senior Director Demand Generation: Dealertrack/Cox Automotive
○ Various VP Marketing positions
● Consistent ability to support company annual growth in excess of 35%

64. Growth Marketing/Demand Generation Definition
● Demand Gen is responsible for delivering a
percentage of sales closed revenue from marketing
sources
○ Typically 35% - 50%
● Delivering leads is not our objective,
○ Your success will not be measured on lead delivery
○ Don’t believe this if you are told this
● Success requires growth team to possess:
○ Marketing strategy, customer insights into messaging and pain points,
media expertise, MarTech expertise for both paid and owned
channels, customer engagement strategy, data and analytics

65. How to Deliver Revenue Growth of +35%
● Assume you have a Margin budget, not a $ budget
● Your finance team will not refuse budget requests for
demand programs that guarantee a given revenue and
profit result
● Planning process is driven solely by required delivery
of sales results

66. Building a Demand Plan
(Example)
The Reverse Waterfall
Required Sales $100,000
Marketing
Responsibility (35%)
$35,000
Required
Pipe (3.5x)
$ 122,500
# of Opps
($pipe/opp) 1,225
# of Leads
(lead-Opp Conv
Rate)
2,450

67. Demand Funnel Strategy
Middle Funnel
Management
Bottom Funnel
Delivery
Upper Funnel Objective: Increase quality and quantity of lead
generationPaid channels
• ABM targeted display
(Terminus)
• Prospect email delivered by
Marketo
• Zoominfo
• Industry advertising
• Targeted Paid social
• Tradeshow Event participation
• Brand campaigns
Owned channels
• Marketo email
• Website
• Website ABM personalization
• Lead nurturing
Objective: Increase Pipeline Creation
Paid channels
• Expand and enhance Paid
Search
Owned channels
• Marketo – Prospect emails
• Marketo – cross-sell/upsell
emails
• Medallia.com
• Webinars
Objective: Upgrade Inquires to SQL leads
Paid channels
• ABM targeted display ()
• Industry advertising
• Paid social
• Website product page
remarketing
• City Tour events
• Target key audiences through integrated campaigns
leveraging targeted paid and owned media
• Improve efforts to convert upper funnel leads to MQL using
targeted paid and owned media
• Upgrade Marketo to support cross-sell/up-sell leads in SFDC
Owned channels
• Website
• Marketo email
• Lead nurturing
• Webinars
• Implement ABM nurturing of companies with
SQL leads and open opportunities to increase
Pipeline creation and closed won success
• Implement ABM nurturing of companies with MQL leads to
increase SQL success by SDR team
• Accelerate content development program required by
campaigns
• Focused Medallia.com upgrades

68. Building a Demand Plan -
Keys:
● Must understand key waterfall metrics
● Must have predictable conversion rates
● Campaign design must align core themes, aligned to each audience you target, to create a campaign
strategy and tactical plan that creates the required quantity and quality of leads to deliver required revenue
Demand Planning by Channel
Leads from
Owned Channels Waterfall
Leads from
Paid Channels Waterfall
Always On
Channels
Website Lead to
opp/pipe/revenue
SEM Lead to
opp/pipe/revenue
Variable Channels Email Lead to
opp/pipe/revenue
Paid Display Lead to
opp/pipe/revenue
Social Lead to
opp/pipe/revenue
Sponsored Webinars Lead to
opp/pipe/revenue
Webinars Lead to
opp/pipe/revenue
Paid Email Lead to
opp/pipe/revenue
Total Spend $ $
Forecasted
Revenue
$ $

69. Conclusions
● Budget and activity planning starts with required end result
● The campaign planning process aligns the demand generation
results with a strategy that combines channels, audiences, and
campaigns
● Growth Marketing owns the delivery of required revenue
a. Assume contingency plans will be required to meet goals

70. QUESTIONS?

71. How to build a Demand
Gen budget from
scratch

72. About Me

73. Tip 1: Know your stage
Are you….
Building a foundation
Finding market fit
Building awareness
Or….
Repeatable business
Scaling programs
Moving upstream

74. Tip 2: Align to sales
What % of bookings
is coming from
Marketing vs. Sales?
Do you support SMB
the same way you
support Enterprise?

75. Tip 3: Define a strategy
Ideal Customer Profile (ICP)
Approach: High-touch and
personalized experience
Core Tactic examples: 1:1
ABM plays, Field Marketing
Large Enterprise
20%
Mid-Market
60%
Approach: One-to-many
Marketing
Core Tactic examples:
Programmatic ABM, flywheel
programs (Email, SEM,
Website, Webinars, Paid
Social, Organic, Trade shows)
SMB
20%
Approach: Mass Marketing
Core Tactic examples:
Website conversion rate
optimization, SEO

76. Tip 4: Know your inputs
- Know or establish conversion rates at each stage of the funnel
(by program type and segment)
- MQL to SQL
- SQL to opp
- Opp to closed won
- Understand your Average Order Value by segment, by product
- CPLs by channel
- Build your model from the bottoms up
- Start building scenarios (top down)

77. Tip 5: Measuring success
ROI
Attribution
window
LTV

78. Tip 6: Socialize
Sales
Your Team
XF Partners

79. Remember...
● There is no silver bullet, channels don’t scale indefinitely
● Look at seasonality
● Leave room for testing and failing

80. Example of how this could
look
Data in screenshot is not real

81. QUESTIONS?
415-448-6551
www.saasmql.com

82. Panel
SAHIL JAIN
CEO & Co-Founder
LOGAN NEVEAU
Director of Growth
JACK FOSTER
Sr. Director, Demand Gen
STEVE ARENTZOFF
VP of Demand Generation