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Do the Math: The Smart Analysis your CEO and CFO Expect (even if they haven’t asked yet)


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For the first time, Marketers have the ability to collect and measure almost any data imaginable. As a result, too many of us find ourselves violating Robert McNamara’s maxim – we try to make what’s measurable important, vs. making the important measurable. How do we reach that elusive Goldilocks state of measuring not too much, not too little, but just the right things? Start with the executive management team. What metrics are they using to run the business, and how can you help?

This session will review real dashboards and reports you can use to communicate to stakeholders in sales and finance, inform long-term plans, and continually optimize execution. The result? Marketing’s credibility increases, your forecasts become more accurate even than those of Sales, and you assume your rightful place as indispensable consigliore to your C-levels.

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Do the Math: The Smart Analysis your CEO and CFO Expect (even if they haven’t asked yet)

  1. 1. Do the Math: The Smart AnalysisYour CEO and CFO Expect* *even if they haven’t asked yet
  2. 2. About MeCate Zovod Actuate Corporation Senior Director Integrated Market Development and Solutions MarketingEloqua user since June 2011Lawrence Welk came to my house #EE12
  3. 3. Laboris Gloria Ludi #EE12
  4. 4. What You’re Going to Learn Today“Marketing is the New Finance” Anne Lewnes SVP Global Marketing Adobe SystemsPractical approach toRevenue Performance Management The 3 V’s Volume, Velocity and Value #EE12
  5. 5. Why Should You Care?For the End Game… Marketing calls the shots • Knows the business better than anyone • Knows the customer better than anyone • Is the go-to for executive management to answer questions about the business • Forecasts better than street level • Are the smartest gals and guys in the room #EE12
  6. 6. Actuate: The BIRT CompanyFounded 19 years ago in 1993Publicly Traded BIRT - on NASDAQ since 1998Revenues $135 million in FY2011Profitability 23.7% non-GAAP Operating Margin in FY2011Employees 550+ employees worldwideUser Community More than 2 million BIRT developersHeadquarters San Mateo, California Fribourg, London, Frankfurt, Paris, Singapore, Tokyo, Mumbai,Offices New York, DC, Chicago, Dallas, Toronto R&D: San Mateo, Kansas City, Shanghai, Toronto, Barcelona Over 5,000 top-tier accounts in banking, insurance, securities,Customers government, health care, education, utilities and OEM in high techServices Design, consulting, development, integration, training, supportProducts ActuateOne and BIRT
  7. 7. How is Marketing Organized? Business Enterprise Xenos Analytics Field Product Marketing Marketing EMEA Corp Comm Customer Partner Marketing Marketing North ActuateAmerica Sales Centers of Evangelism APAC Enablement Excellence Marketing Websites Operations Online Marketing Eloqua!
  8. 8. Our MarketechtureWhere the Data Comes From BIRT Lead Scoring Engine Salesforce Eloqua Websites People Soft Google Analytics Back-end data storage Demand CMS Web Ringlead Base Trends #EE12
  9. 9. “Andrea, Schedule a Review with Marketing” What the *$f#&@ are they doing with my money? CEO SVP Marketing CFO #EE12
  10. 10. What Marketing Metrics Matter?Volume The 3 Vs • How much pipeline are you creating? • Are you bringing in enough of the right kind of opportunities?Velocity • How long does it take to create and close the right kind of opportunities? • How long does it take for a campaign to show return?Value • What results am I seeing from my marketing investments? • Where are you over-spending and under-spending? • What is working and what is not? #EE12
  11. 11. Reporting without Metrics is a Waste of TimeSTEP ONEBuild YourModel with SalesSirius Decisions is rightNet new leads don’tperform the same asnurtured; sales-generated don’t perform Excerpted fromthe same as Inbound Sirius Decisions research brief,…but this is too detailed “The Demand Waterfall, Rearchitfor C-level execs ected”
  12. 12. Modeling Tips Quarterly Ramp Assumptions Revenue Growth SY 2013-2014 Revenue Expectations by Cycle Code*Start with assumptions Marketing Share of Revenue by Cycle Code, ProductAssumptions start with Average Deal Size for net new MQL Average Deal Size for nurtured MQLhistorical data Average Deal Size by Cycle Code Waterfall Model - net new MQLs Velocity MQL - Stage 5 net new MQLEnforce adoption by: Velocity Stage 5 - Stage 4 net new MQL • Tying marketing and sales Velocity Stage 4 - Stage 1 net new MQL Conversion MQL - Stage 5 net new MQL compensation to it Conversion Stage 5 - Stage 4 net new MQL • Building analytics that Conversion Stage 4 - Stage 1 net new MQL Waterfall Model - nurtured MQLs measure performance against Velocity MQL - Stage 5 nurtured MQL model weekly, quarterly, Velocity Stage 5 - Stage 4 nurtured MQL Velocity Stage 4 - Stage 1 nurtured MQL annually Conversion MQL - Stage 5 nurtured MQL Conversion Stage 5 - Stage 4 nurtured MQL Conversion Stage 4 - Stage 1 nurtured MQL
  13. 13. VOLUME: Lead Flow
  14. 14. Lead Volume Comparison MQL Volume by Quarter #EE12
  15. 15. Lead Scorecard
  16. 16. Segment VOLUME by Demand Generation Channel Opportunities where Marketing successfully nurtured past leads or touched contacts during Inside Sales opportunities the opportunity life cycle that result from nurture Field Sales opportunities Inside Sales opportunities that result from nurture that result from net new leads from Marketing Field Sales opportunities that result from net new leads from Marketing Marketing contributed Inside Sales a net new lead that led Field Sales opportunities to the opportunity, or opportunities with no marketing was added to it with no marketing touchpoint touchpointCopyright A6 Group #EE12
  17. 17. Measuring and Tracking VOLUME Understand where the deals come from #EE12A6 Group LLC and Actuate Corporation Confidential
  18. 18. What Kinds of Opps Close? All opportunities - # Closed/Won opportunities - # All opportunities - $ Closed/Won - $ #EE12
  19. 19. VOLUME: Targets Against Model - SQLs (in millions) #EE12
  20. 20. “Are we Improving?” Marketing-touched Total OpportunitiesMarketing-touchedClosed/WonOpportunities
  21. 21. Drill Down for Discovery, Analysis
  22. 22. What is the Data Telling You?
  23. 23. Be Ready for Any Question Be ready to show marketing influence by stage, product, region, campaign Be able to drill into opportunities
  24. 24. Be Ready for Any Question
  25. 25. How Do You Measure and Track VELOCITY Cohort Analysis Track # of days year over year, from quarter to quarter Inquiries MQL 40/30 days90/60 days  Sales Development Lead Stage 5 45/40 days  Field Sales Opportunity Stage 4 30/25days  Short List60/40 days  Stage 1 Won 30/30 days  #EE12
  26. 26. Converting Leads into OpportunitiesCohort Analysis: New Lead to Close - # of Days #EE12
  27. 27. Measuring and Tracking VELOCITY Cohort Analysis: Median DaysMQL toSQL 5 10 15 20 25 30SQL toProject 5 10 15 20 25 30*Only new leads converted within 90 days (considered nurture otherwise) #EE12
  28. 28. Measuring and Tracking VALUECampaign ROI: CEO Version Expected ROI Ramp • Every campaign has 12 months to Quarter ROI show ROI Q1 0% • Pipeline doesn’t count Q2 30% • All campaigns must earn a Q3 50% minimum of 5x their cost within Q4 20% one year 80% in first 9 months • Only new business and new Any revenue projects in existing accounts are contribution past one counted year doesn’t “count” #EE12
  29. 29. Measuring and Tracking VALUE Campaign Cost Actual Won Target 5X Target 5X % Q1 Target Q1 Actual Q1 % • Campaign cost • Actual won • Target 5X • % of target achieved …for each quarter, rolling from campaign start date Include total ROMI by dividing complete contribution across deals touched #EE12
  30. 30. Campaign ROI: Marketing’s Analysis #EE12
  31. 31. VALUE: ROI – Pipeline Contribution• Campaign type• Campaign name• Asset/Fulfillment/Offering• Revenue contribution across Stages, Cycles• ROI (divide full opp amount among campaigns touched)• Selectors for region, cycle code, stage, type• How many days prior to opp creation and how many days after are you willing to “credit” a campaign? #EE12
  32. 32. #EE12
  33. 33. VALUE: Closed/Won Analysis • WHO is participating in deals that close? • WHAT campaigns are they visiting? Which campaign vehicles and assets • WHEN are they visiting them… Before or after the opportunity is created? • HOW many days does it take from first hit to close? #EE12
  34. 34. Example Closed/Won Analysis Titles Involved: 4A – Deal, Amount, Name, Company, Industry, Opp ID How many hit campaigns?: 2Create Date: March 1, 2012Days to Close: 84 Senior Java DeveloperCampaigns Touched Before Opp Created: 9 Director of ApplicationsCampaigns Touched After Opp Created: 3 Project ManagerDate Title Campaign Web Applications Manager02/24/2012 Director of Applications Contact Me form, BE.com02/24/2012 Director of Applications Forrester OSBI Wave, BE.com02/29/2012 Senior Java Developer Google PPC – Cognos Competitive Web Seminar02/29/2012 Senior Java Developer Google PPC – A11 Demo02/29/2012 Senior Java Developer iServer Eval for Windows, BE.com02/29/2012 Senior Java Developer iServer Eval for Linux, BE.com02/29/2012 Senior Java Developer Google PPC, Forrester OSBI Wave02/29/2012 Senior Java Developer Google PPC, Forrester OSBI Wave v202/29/2012 Senior Java Developer Website posting, Forrester OSBI WaveOpp Created on March 1, 2012Date Title Campaign03/01/2012 Director of Applications Archived Webinar, AOne Demo Challenge03/01/2012 Senior Java Developer Website Contact Us form03/13/2012 Senior Java Developer Business Reports Demo, website #EE12
  35. 35. VALUE: Look at Example Closed DealsWhat does campaign history tell Marketing? #EE12
  36. 36. Close with a Brief Review of Creative #EE12
  37. 37. Our ResultsFrom 5x to 7x ROMI112% Target of MQL goalsBest license revenue growth of any BI company for thelast 2 quartersData-driven business changes • Changes to lead follow up process • Increased investment in online programs • Focused quarterly customer campaigns • Downloader management program • Increased investment in APAC • Better personas • Investment in Nurture and Tools #EE12
  38. 38. What We’re Going to Do Next Determine how to measure Build BIRT dashboards withthe ROI of technology and targets in the visualizations formarket intelligence all levels, regions, productsinvestments Look at Total Cost of Sale • Eloqua, Demandgen, InsideView, Forecasting and Predictive Determine how to Analyticsincorporate campaign • New BIRT capability!weighting into measurement • Pre-opp creation: first touch, last touch prior to opp creation • Post-opp creation and deal acceleration
  39. 39. What You Should Do Next Make sure Marketing and  Invest in data integrationSales are using the same and visualizationmodel Hire at least one very  Make sure all contactssolid data scientist or are tied to oppsconsultant• Olivier Delerm, A6 Group #EE12
  40. 40. Thank You Cate Zovod Actuate Corporation Senior DirectorIntegrated Market Development and Solutions Marketing Twitter @czovod Office: 650-645-3922 Cell: 928-310-8556