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Marketo’s “Secret Sauce”
Marketing in a Digital World: Case Study

© 2014 Marketo, Inc. Marketo Proprietary and Confidential
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© 2014 Marketo, Inc.

@jonmiller
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© 2014 Marketo, Inc.

@jonmiller
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© 2014 Marketo, Inc.

@jonmiller
• The Age of the Self-Directed
Buyer
• Define The Buying Journey
and Revenue Cycle
• Strategies for Top-of-Funnel
• Strategies for Middle-ofFunnel
• The Right Metrics
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@jonmiller
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@jonmiller
INFORMATION

ABUNDANCE

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@jonmiller
Source: The Corporate
Executive Board
Company, “The Digital
Evolution in B2B
Marketing,” 2012.

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@jonmiller
Define The Buying Journey
and Revenue Cycle
Sales
Lead

Lead

Target

Engaged

Name

Friend

Awareness

Opportunity Customer

Nurturing
Database

TOFU
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© 2014 Marketo, Inc.

MOFU
@jonmiller

BOFU
Sales
Lead

Lead

Target

Engaged

Name

Friend

Awareness

Nurturing
Database

Exposed to us via
content, brand, or word of mouth
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@jonmiller

Opportunity Customer
Sales
Lead

Lead

Target

Engaged

Name

Friend

Awareness

Nurturing
Database

Opportunity Customer

Feels a relationship and trust
with us
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@jonmiller
Sales
Lead

Lead

Target

Engaged

Name

Friend

Awareness

Opportunity Customer

Nurturing
Database

Names are just names.

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@jonmiller
Sales
Lead

Lead

Target

Engaged

Name

Friend

Awareness

Opportunity Customer

Nurturing
Database

Meaningful interaction with us

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@jonmiller
Sales
Lead

Lead

Target

Engaged

Name

Friend

Awareness

Opportunity Customer

Nurturing
Database

Qualified potential customer

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@jonmiller

Nurture until ready
for next step
Sales
Lead

Lead

Target

Engaged

Name

Friend

Awareness

Nurturing
Database

Opportunity Customer

Marketing qualified lead (score > 100) –
SDR reach-out
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@jonmiller
Sales
Lead

Lead

Target

Engaged

Name

Friend

Awareness

Nurturing
Database

Opportunity Customer

Qualified as sales-ready by Sales
Development Rep (SDR)
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@jonmiller
Sales
Lead

Lead

Target

Engaged

Name

Friend

Awareness

Nurturing
Database

Opportunity Customer

Accepted and actively worked by sales:
marketing quota attainment
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@jonmiller
Sounds great, but I
have millions of
contacts!
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@jonmiller
Processes at scale

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@jonmiller
Top of the Funnel
Earlyleadership and
Stage
Thought
enjoyable content to build
brand, awareness, and desire

Middle buyers find
Stage
Tools that help
you when they are looking
for solutions

Late Stage
Company-specific
information to help evaluate
and reaffirm selection

Gated?
Blog, e-books, research data,
funny videos, curated lists,
infographics, webinars

NO

Buying guides, RFP templates,
ROI calculators, definitive guides,
analyst reports

YES

Pricing, demos, services
information, 3rd party reviews,
customer case studies

MOSTLY
NO
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
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@jonmiller
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
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@jonmiller
Inbound creates the best leads by far:
high conversion, high velocity
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
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@jonmiller
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Real-time Personalization

e.g. customized calls to action for
Customers

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@jonmiller
But we also use a Portfolio
of programs
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
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@jonmiller
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@jonmiller
DATE:

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JUNE
@jonmiller
Sponsored Email builds the
database, but low conversion
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
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@jonmiller
Webinar, tradeshow, PPC, and virtual
tradeshow are top paid TOFU
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
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Paid Social & Display Ad drive brand
and amplify inbound as well

Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
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Middle of the Funnel
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Sales Ready
2%

Need More
Nurturing

50%

Disqualified
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25%

25%
@jonmiller

Source: RainToday
Average days to
Opportunity: 327 days
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
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@jonmiller
Lead Nurturing:
Building relationships with
qualified prospects regardless
of their timing to buy
-- @jonmiller
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@jonmiller
The ROI of Lead Nurturing
Marketo ROI Results
Fast Leads
( MQL <1 mo)
Without
Nurturing
With
Nurturing

Slow Leads
(MQL >1 mo)

Total Leads
(MQL)

Cost / Lead
(MQL)

20%

6.67%

26.67% $206.00

20%

20.0%

40.0%

$137.50

Source: Actual Marketo data; assumes $55 per prospect

Results: 50% more marketing qualified leads from lead nurturing
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Relevance
Get the “Definitive Guide to Lead Nurturing”

marketo.com/DG2LN

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@jonmiller
More Targeted Emails are More Relevant
Engagement Score

400
350
300
250
200

150
100
50

0
100

1000

10000

Email Send Size
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100000

Source: 100s of Marketo campaigns
1. BUYING STAGES
2 Early: Be a Better Marketer
•
3

• Mid: Why Marketing Automation
• Late: Why Marketo
• Customer: Success

2. BUYING PROFILES
• Marketing, Sales, Exec
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Dynamic Content

Industry, Geography, Com
pany Size, Customer vs.
Prospect, etc.
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The Key to Relevance is Behavioral Targeting
Top Tactics to Increase Email Engagement

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Example: Topic of Interest Triggers
Email

Social
•
•
•
•
•

Content

Attends event
Downloads content
Click email
Fills out form
Score is changed

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Technology
@jonmiller
Standard Nurture

Triggered Interests

Lift

Open %

21.7%

Open %

34.0%

57%

Click to Open %

23.4%

Click to Open %

37.1%

59%

Click %

5.1%

Click %

12.6%

147%

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@jonmiller
Scoring and Lead
Management
Lead Scoring Defined
“Shared sales and marketing methodology for ranking
leads in order to determine their sales readiness”

Nurture

Fit
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Pass to
Sales

Pass to
Sales

Interest
@jonmiller

Nurture

Disqualify

Buying Stage
Demographic “Fit” Score
Positive Demographic Score
• e.g., Marketing Manager title, known CRM customer,
known competitive solution customer
Negative Demographic Score
• e.g., Generic email address, illegitimate phone number,
non-existent company (unemployed, self, looking)

Data Augmentation, Not Forms
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Latent Behaviors
(Engagement)
•
•
•
•
•

Click email: +1
Visit webpage / blog: +1
Early stage content +3
Attend webinar: +5
Decay inactivity:
-1, -5, -10

Active Behaviors
(Buying Intent)
•
•
•
•
•

Free trial or Contact request: +15
Pricing pages: +10
Demos: +10
Late-stage content +12
Searches for branded keyword
“Marketo” +8

Get the “Definitive Guide to Lead Scoring”

marketo.com/DG2LS
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Fit

One Way to Identify Marketing Qualified Leads

A
B
C
D

Lead

Lead

Lead

Lead
Lead

4
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Lead

3

2

Behaviors
@jonmiller

1
No Lead Left Behind: Service Level Agreements
Day 0
Day 1

If untouched, reminder

Day 2

If untouched, reminder cc boss

Day 3

If untouched, alert executives

Day 7

If stale, reminder

Day 8

If stale, reminder cc boss

Day 9
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Notification

If stale, alert executives

@jonmiller
Stars and Flames
show priority

Full list of Interesting Moments
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Revenue Analytics
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@jonmiller
Why Measuring Return is Hard

• Multiple touches.
Seven touches needed to
convert a cold lead into a sale

• Multiple influencers.
Typical buying committee has
5-21 people
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Track All Touches Across People

Screenshot: Marketo Revenue Cycle Analytics
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@jonmiller
Track All Touches Across People

Screenshot: Marketo Revenue Cycle Analytics
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@jonmiller
Example: Multi-Touch Attribution
A deal worth $100,000 recently closed.
Three people were involved in the deal:
• Person A attended Seminar A and Trade Show B
• Person B attended Trade Show B
• Person C was sent Direct Mail C

$100,000 Revenue
$25,000

Seminar A
$25,000
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$25,000

$25,000

Tradeshow B
$50,000
@jonmiller

$25,000

Direct Mail C
$25,000
% Above
Min*

89%
76%
75%
41%
57%
73%
67%
Source: Marketo Revenue Cycle Analytics, Nov 2013
* Percentage

of all programs in channel that achieve MT Ratio > 5

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10.4 66%
% Above
Min*

89%
76%
75%
41%

(MT) Ratio = Pipeline / Investment
>10 is Great and <5 is Fail

Webinar = 54!, Tradeshow = 6.9, Sponsored
Email = 3.8, Content Syndication = 9.6
Source: Marketo Revenue Cycle Analytics, Nov 2013
* Percentage

of all programs in channel that achieve MT Ratio > 5

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57%
73%
67%
10.4 66%
% Above
Min*

89%

% Programs with MT Ratio > 5
e.g. Content Syndication has good
average but 43% programs “fail”

76%
75%
41%
57%
73%
67%

Source: Marketo Revenue Cycle Analytics, Nov 2013
* Percentage

of all programs in channel that achieve MT Ratio > 5

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@jonmiller

10.4 66%
Sales
Lead

Lead

Target

Engaged

Name

Friend

Awareness

Opportunity Customer

Nurturing
Database

TOFU
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MOFU
@jonmiller

BOFU
Revenue Cycle Modeler

Screenshot: Marketo Revenue Cycle Analytics
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@jonmiller
Key topic areas:
• Balance (Reach)
• Flow
• Conversion
• Velocity

Filter/Drill into data, e.g.
by Program Type, Business
Unit, Geography, etc.
Screenshot: Marketo Revenue Cycle Analytics
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Trends over time
Use Metrics to Set & Justify Budgets

New Targets

15.3%

60,000

2.4%

23,000

131,000
Inventory Of
Active Targets

New MQLs
Score>100

922

20,000
10.5%

Inventory of
Active MQLs

120K

New SQLs

1.9%

SDR
capacity
driven

New Opps*

75%

270

1,000
6 Month
Created
Opp Inv.

35%

Wins

Inbound /
Programs

New
Names

2,000

(900K DB
Total)

*Opps is bigger than SQLs because includes outbound and partner referrals
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Get the “Definitive Guide to Marketing Metrics & ROI”

marketo.com/DG2MM
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Tweetable Takeaways
1. The way buyers buy has changed forever – the way
we market and sell must change as well
2. Define the stages of the buying cycle, in alignment
with sales

3. Map content and marketing to the buyer’s journey:
early, mid, late stage
4. Most leads are not “sales ready” – nurture
relationships over time, use online body language to
score leads
5. Use analytics to turn marketing from a cost center
into a revenue driver
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@jonmiller
Thank You

Jon Miller
@jonmiller
jon@marketo.com