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Professional Churn & B2B Email Marketing - LinkedIn & Salesforce at Dreamforce 2014

Mathew Sweezey (Pardot) and Forest Baker (LinkedIn) present an analysis of LinkedIn member's annual churn (i.e., leaving a company or role) and what it means for B2B email marketers.

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Professional Churn & B2B Email Marketing - LinkedIn & Salesforce at Dreamforce 2014

  1. 1. Four Ways to Dominate Your B2B Marketing Database: Marketing's Greatest Asset Mathew Sweezey - Salesforce Marketing Evangelist @msweezey Forest Baker - Linkedin Former Head of Insights for Linkedin @forest415
  2. 2. Safe Harbor Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of product or service availability, subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services. The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, new products and services, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, the outcome of any litigation, risks associated with completed and any possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of, inc. is included in our annual report on Form 10-K for the most recent fiscal year and in our quarterly report on Form 10-Q for the most recent fiscal quarter. These documents and others containing important disclosures are available on the SEC Filings section of the Investor Information section of our Web site. Any unreleased services or features referenced in this or other presentations, press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available., inc. assumes no obligation and does not intend to update these forward-looking statements. @msweezey & @forest415
  3. 3. 50,000 The average size of a B2B marketing lead database. @msweezey & @forest415
  4. 4. $150.00 Average cost of acquiring a new email address. @msweezey & @forest415
  5. 5. $7.5 million But what do you know about it? @msweezey & @forest415
  6. 6. Our goal Use data to help us better understand and manage this asset. So we did some research. @msweezey & @forest415
  7. 7. @msweezey & @forest415 Forest Baker: Sales & Data Junky -Account Executive (Higher Education) -Former Head of Insights at LinkedIn -Former behavioral economist -Bikepacking Triple Crown Winner
  8. 8. @msweezey & @forest415 Mathew Sweezey: Author & Evangelist -Marketing Automation for Dummies -Byline for -B2B marketing Evangelist -Co-Founder Eventide Brewing
  9. 9. Four Ways To Dominate -Understand the churn of your database (New Data) -What does it mean for your forms -How to evaluate your email database -How to tactically use the data with sales @msweezey & @forest415
  10. 10. New Research @msweezey & @forest415
  11. 11. Question: What is the life cycle of a B2B email address? @msweezey & @forest415
  12. 12. Begins A new email address is issued for each new employee at a company. Email addresses follow a naming convention. @msweezey & @forest415
  13. 13. Ends The email address for a B2B lead dies when the employee leaves the company, or takes a role outside of your buying process at the company. @msweezey & @forest415
  14. 14. 22% Annual churn rate for US workers age 16+ US Department of Labor 2012 @msweezey & @forest415
  15. 15. LinkedIn profiles reveal churn rates 100M+ US Members @msweezey & @forest415
  16. 16. Churn from target persona 1. Leave key company 2. Leave key role @msweezey & @forest415
  17. 17. @msweezey & @forest415 2010 Churn Left company 2012 Churn Changed roles
  18. 18. Predict Churn • 6 Industries • 6 Functions • 3 Seniorities @msweezey & @forest415
  19. 19. Industries High-tech, Retail, Medical, Finance, Shipping, Manufacturing Functions Marketing, Sales, HR, Finance, Purchasing, IT Seniorities Individual Contributor, Manager, Director+ @msweezey & @forest415
  20. 20. Results @msweezey & @forest415
  21. 21. 17% Average 1-year churn rate based on profiles @msweezey & @forest415
  22. 22. 27% Highest churn rate • Industry: Retail • Function:Sales • Seniority:Individual Contributor @msweezey & @forest415
  23. 23. 11% Lowest churn rate • Industry: Finance • Function: Finance • Seniority: Director, VP, CXO, Owner/Partner @msweezey & @forest415
  24. 24. Seniority: Individual Contributors have the highest churn rate @msweezey & @forest415
  25. 25. Function: Marketing and Sales have the highest churn rates @msweezey & @forest415
  26. 26. Industry: High-tech has the highest churn rate @msweezey & @forest415
  27. 27. May your persona be: Professionals working in IT, Finance, or Purchasing who are managers or higher seniority @msweezey & @forest415
  28. 28. What about growth rates? How much does the size of each persona target grow each year? @msweezey & @forest415
  29. 29. Growth = Total who joined persona during year Total in persona at beginning of year @msweezey & @forest415
  30. 30. 15% Average 1-year growth rate based on profiles @msweezey & @forest415
  31. 31. 25% Highest growth rate • Industry: Retail • Function: Marketing • Seniority: Individual Contributor @msweezey & @forest415
  32. 32. @msweezey & @forest415 9% Lowest growth rate • Industry: Finance • Function: Finance • Seniority: Director, VP, CXO, Owner/Partner
  33. 33. Get the data year-churn-rate @msweezey & @forest415
  34. 34. What else does this mean? So if email churns is it still worth it to obtain? What else would we ask for to communicate? What are benefits of asking for social handles? How can we use this data to determine the health of our email database? @msweezey & @forest415
  35. 35. Is it worth it? The average cost of an email address is $150.00. The average cost of a paid social engagement is $0.50 So why spend the money on acquiring an email address? @msweezey & @forest415
  36. 36. Social LTV: Social handles have a much lower churn, more targeted approach, and be more valuable than spending time on email acquisition. Follower churn is 10% per year. @msweezey & @forest415
  37. 37. Bonuses Social fans allow for Look Alike campaigns. @msweezey & @forest415
  38. 38. Email is still king Despite the increase in paid social advertising, email is still the number one driver for many campaigns. However not all engagements require an email address. Know what you plan to do with it before you get it. @msweezey & @forest415
  39. 39. Target social @msweezey & @forest415
  40. 40. Use social to get email @msweezey & @forest415
  41. 41. @msweezey & @forest415
  42. 42. @msweezey & @forest415
  43. 43. Health of your database This data gives you way to now judge your largest asset @msweezey & @forest415
  44. 44. Penetration Total Database Potential DB @msweezey & @forest415 Linkedin provides this data thought their Sales Navigator Product
  45. 45. Growth Score Total Net New Email Addresses (Possible DB x % Growth) – (Possible DB x % decay) @msweezey & @forest415
  46. 46. New Ideas Targeting the time of churn. This means for each person who churns, there is a new opportunity with the existing company and the company they go to. @msweezey & @forest415
  47. 47. Data for sales Job change alerts are the best way for sales to keep up with change. They can reach out via inMail in Linkedin. @msweezey & @forest415
  48. 48. @msweezey & @forest415
  49. 49. @msweezey & @forest415
  50. 50. @msweezey & @forest415
  51. 51. Tactic: Making a new job drip program for sales to execute is a great idea! Think cross channel and not just email. @msweezey & @forest415
  52. 52. Thank you! Now lets get to questions @msweezey & @forest415
  53. 53. Questions Go easy on us………………………………….. @msweezey & @forest415