Download pptx - Collaboration Between Marketing and Sales #IS12

How Collaboration Between Sales and Marketing Has Changed the Lead Generation Game

© 2012 Marketo, Inc.

Jon Miller, VP Marketing and Co-FounderAuthor of Modern B2B Marketing blog@jonmiller2

Page 2© 2012 Marketo, Inc. Marketo Proprietary and Confidential

Bay Area’s Fastest Growing Company

Year 0 Year 1 Year 2 Year 3 Year 4

SalesforceSuccessFactorsOmniture NetSuiteConstant ContactMarketo

All revenue numbers normalized to Marketo Year 1


Highly Efficient Revenue Engine

• 80% of revenue sourced by marketing

• $1.2M annual recurring revenue quota

• 93% quota attainmentCAC Productivity


Buying Has Changed Forever

SALES REP SALES REP

BUYER

OLD DAYS: INFO SCARCITY1960s – Recent

TODAY: INFO ABUNDANCE


Nam

e

Pros

pect

Marketo’s Revenue Cycle

Awareness Friend

Generating Awareness and “Like”

Developing Relationships(Email, Social, Offline)

Opportunity CustomerLead

Sale

s Le

ad

Nurturing Database


Nam

e

Pros

pect


Awareness Friend




Sale

s Le

ad

Nurturing Database

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


Nam

e

Pros

pect


Awareness Friend




Sale

s Le

ad

Nurturing Database

Feels a relationship and trust with us


Nam

e

Pros

pect


Awareness Friend




Sale

s Le

ad

Nurturing Database

Names are just names.


Nam

e

Pros

pect


Awareness Friend




Sale

s Le

ad

Nurturing Database

Meaningful interaction and qualified demographics, sent to nurturing


Nam

e

Pros

pect


Awareness Friend




Sale

s Le

ad

Nurturing Database

Showing buying signs or significant engagement.


Nam

e

Pros

pect


Awareness Friend




Sale

s Le

ad

Nurturing Database

Qualified as sales-ready by a human.


Nam

e

Pros

pect


Awareness Friend




Sale

s Le

ad

Nurturing Database

Accepted and actively worked by sales


Brand awareness

Brand preference

Risk reduction

Popular Blogs Definitive GuidesResource Center Marketo TVWebinars

Content Marketing for Brand and Like


Early StageThought leadership and best practices to build brand and awareness

Types of Content

Middle StageBuyers guides, RFP templates and industry information to help structure research

Late StageCompany-specific information to help evaluate and reaffirm selection

NO

YES

MOSTLYNO

Registration?


Marketo Prospect Generation Source Prospects Cost % Lead Velocity (Days) Lead to Opp Index

3rd Party Email Blast 9,049 $36 20% 32 0.5Trade Show 3,786 $36 22% 29 1.8Trade Show – Virtual 3,125 $18 17% 48 1.0Paid Webinar 1,971 $71 26% 33 0.7PPC 1,494 $135 45% 15 1.8AppExchange 1,128 $41 72% 3 2.4Content Syndication 881 $69 18% 29 1.2Social Media 588 $94 33% 16 0.2Other Paid 1,645 $45 25% 32 0.9Website/Inbound 5,133 58% 9 1.9Referral / WOM 564 21% 32 1.4Sales Prospecting 349 19% 71 3.9


Marketo Prospect Generation Source Prospects Cost % Lead Velocity (Days) Lead to Opp Index

3rd Party Email Blast 9,049 $36 20% 32 0.5Trade Show 3,786 $36 22% 29 1.8Trade Show – Virtual 3,125 $18 17% 48 1.0Paid Webinar 1,971 $71 26% 33 0.7PPC 1,494 $135 45% 15 1.8AppExchange 1,128 $41 72% 3 2.4Content Syndication 881 $69 18% 29 1.2Social Media 588 $94 33% 16 0.2Other Paid 1,645 $45 25% 32 0.9Website/Inbound 5,133 58% 9 1.9Referral / WOM 564 21% 32 1.4Sales Prospecting 349 19% 71 3.9

Most prospects not ready to be leads when they come in


All N

am

es

Pro

sp

ect

&

Recycle

d

En

gag

ed LeadNurturi

ng

Lead Nurturing Plugs the LeakBuilding relationships with qualified prospects regardless of their timing to buy, with the goal of earning their business when they are ready.

Lead

OpportunityS

ale

sLead

MQLSAL

SQL

50% More Sales Leads


Lead Nurturing Relevance

A

B

C

D

1 23

Stages1. BUYING STAGES• Early (Pre-MQL)• Mid (MQL)• Late (Opportunity)• Customer

2. BUYING PROFILES• Industry: 82%• Role: 67%• Company Size: 49%• Geography: 29%

Get The “Definitive Guide to Lead Nurturing”http://bit.ly/DGtoLN

http://bit.ly/DGtoLN


The ROI of Lead Scoring

• Higher Win Rates• Shorter Sales Cycles• Higher Revenue Per Rep

Source: CSO Insights

How Easy Is it To Get Information About Prioritizing Sales Efforts?

Other Benefits of Fewer But Higher Quality Leads


A Framework for Lead Scoring

ExplicitWhat the prospect tells you

InferredWhat you observe or infer

FitAre you interested in them?

• Demographics• Firmographics• BANT

• Data quality• Corporate email?• Location• Data append (Data.com)

InterestAre they interested in you?

• BANT• Latent behaviors

(engagement)• Active behaviors (sales

readiness)

Get The “Definitive Guide to Lead Scoring”http://bit.ly/DGtoLS

http://bit.ly/DGtoLS


Interest Scoring - Examples

• Early stage content +3• Attend webinar: +5• Visit any webpage / blog : +1• Visit careers pages: -10

Latent Behaviors (Engagement)

• Pricing pages: • +10 regular, +15 detailed

• Watch demos: • +5 overview, +10 detailed

• Mid-stage content +8• Late-stage content +12• Searches for “Marketo” +8

Active Behaviors(Buying Intent)


Identifying Marketing Qualified Leads

21+ Super-Target Lead Lead Lead

9-20 Target Lead Lead

2-8 Other Lead

<2

Engagement <20 20-44 45-89 90+

Buying Intent <6 6-12 13-18 19+

Fit

Inte

rest


Sales Development Reps (SDRs) Pass The Baton from Marketing to Sales

• Faster, more consistent, & better quality follow-up on leads

• Better economics• The human touch

enhances lead nurturing

• Better data and more metrics

• Talent development for sales

Best place for dramatic improvements in business performance are handoffs between functions


The Right Metrics for Sales and Marketing Alignment and ROI


Why Measuring ROI is Hard

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

• Multiple influencers. Typical buying committee has 5-21 people

• Tyranny of time. The money you invest today will have an uncertain impact at an uncertain point in the future


Track All Touches Across People

Screenshot: Marketo Revenue Cycle Analytics


Example: Multi-Touch Attribution



Revenue Cycle Modeler



Filter/Drill into data, e.g. by Program Type, Business Unit, Geography, etc.

Key topic areas:• Balance• Flow• Conversion• Velocity

Trends over time

SLA violationsScreenshot: Marketo Revenue Cycle Analytics


Marketo Revenue Cycle Metrics

Opportunities 200 / mo($2,000)

New Customers($5,000)

Leads3,800 / mo($105.25)

Prospects6,000 / mo

($67)

20%Active Prospect

Database

4.0% / month 75%

Paid Names

($25.80)

10%UnpaidNames

($0)

33%

Inactive (Last 6

Months)

Lead Type Variants• Source• Channel• Division• Size

80%

80% of all deals follow this model

• Lead to Sales Lead: 10% • Sales Lead to Opp: 74%• 1.4 people per Opp1,000 Leads = 53 Opps

18,000 / mo


Conversion Over Time

• Predict conversions from one stage to another over time

• Create plans / forecasts about future

3 8 13 18 23 28 33 38 43 48 53 58 63 68 73 780

10

20

30

40

50

60

70

f(x) = 50.7486452521888 x^-0.57138477143868R² = 0.430133719514154

Marginal Conversion

3 8 13 18 23 28 33 38 43 48 53 58 63 68 73 78 -

200 400 600 800

1,000 1,200 1,400 1,600 1,800 2,000

f(x) = 994.202885818322 x^0.135210727928123R² = 0.95505216364088

Cumulative Conversion


Marketing Forecasts

Get The “Definitive Guide to Marketing Metrics & ROI”http://bit.ly/DG2MM

http://bit.ly/DG2MM


Key Takeaways

1. Sales makes more money when marketing handles pipeline development

2. Use content to help leads find you

3. Focus on the entire revenue cycle, not just the top of the funnel – nurturing and scoring are essential

4. No lead left behind / service level agreements

5. Use forecasting to turn marketing from a cost center into a revenue driver


Marketo, Inc.901 Mariners IslandSuite 200San Mateo, CA 94404

Direct: +1.650.376-2310

blog.marketo.comwww.marketo.com

JON MILLERVP Marketing

[email protected]@jonmiller2

Contact Me


Discussion Topics

• How do you handle leads that are not yet ready for sales?

• How does your organization use lead scoring?

• What is the process for recycling leads?

• What lead generation metrics are most important to sales?


Additional ResourcesThe Definitive Guide to Lead NurturingSMS your email to +1.650.262.0066http://bit.ly/DGtoLN

The Definitive Guide to Lead ScoringSMS your email to +1.650.262.0066http://bit.ly/DGtoLS

The Definitive Guide to Marketing Metrics & ROISMS your email to +1.650.262.0066http://bit.ly/DG2MM

Personalized Benchmark on Email Marketinghttp://www.marketo.com/benchmark

http://bit.ly/DGtoLN

http://bit.ly/DGtoLS

http://bit.ly/DG2MM

http://www.marketo.com/benchmark


Sales Insights