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These are some of the ingredients of an end-to-end demand generation program: database maintenance and integration, PPC and ad retargeting, content creation, email marketing, marketing automation, social media, campaign execution and management, lead scoring and nurturing, lead follow-up and sales enablement. If it sounds like a lot, that’s because it is—and most companies don’t have the resources to dedicate a full-time employee (or even a part-time contractor) to each piece. This webinar explores staffing, execution, and budget challenges companies face when they attempt to establish a demand generation function—and presents some ways to address those challenges.
Citation preview
Overcoming Demand Gen Resource Constraints:
Headcount, Execution, and Budget
Source: 2012 B2B Marketing Benchmark Report, Marketing Sherpa
2 of 3 marketers lack resources!
62% Lack of resources in staffing, budgeting or time
Marketing-tech boom underway
•
•
By 2017 the CMO will Spend More on IT Than the CIO!
B2B’s “Killer App” Marketing Automation, now a $1.2B industry growing 50% CAGR!
$100 $225
$325
$500
$750
$1,200
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2009 2010 2011 2012 2013 2014
Reve
nue
Gro
wth
($M
)
Source: Raab Associates 2014 VEST
What is Marketing Automation? • Automate online campaigns • Dynamic database segmentation • Email Marketing • Lead nurturing • Lead Scoring • Integrate website with CRM • Website analytics
97%
85%
84%
75%
73%
62%
52%
40%
Creating enough Content at Reasonable Cost Data quality & Integration Poor Marketing Processes
Rethinking Legacy Processes Lack of Skilled Sta!
Lack of Funding Selecting Metrics
Senior Manageemnt Mindset
MOST CHALLENGING ASPECTS OF MARKETING AUTOMATION
Source: Gleanster Benchmark Report: Marketing Automation Q3 2013
.
But… Marketers underestimate challenges that come with Marketing Automation !
Headcount, Execution, and Budget
BUDGET Constraint #1
So how much does all this cost?
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nnualized $976,344
+
*Real example $15M Software company
But… how much do I need?
!"#$%&'()*%+"',-.%",)/%'%#"&0') 1"') 2%3) !"#) !"#456) )789::)) )789::)) )789::)) #$$%&''##40;<"=)!%,<") )>89::)) )>89::)) )>89::)) #"(%&''##??@) )AB8:::)) )AB8:::)) )AB8:::)) #&)%'''##C%3D<E%)F#%%="';%#) )G)))) )A8:::)) )A8:::)) #$%'''##H0D&'() )IJ9)) )IJ9)) )IJ9)) #(*&##*0+"<')K%',0#) )LJ)) )LJ)) )LJ)) #"$+##*"E"3"D%)K%',0#) )A8J::)) )A8J::)) )A8J::)) #,%+''##!M=&G+%,<")@0'E#";E0#) )>89::)) )>89::)) )>89::)) #"(%&''##2#%%="';%),%D<('%#) )9::)) )9::)) )9::)) #"%&''##K<,%0-N'E%#";&O%)*%O%=0P+%'E) )A98:::)) )G)))) )G))))#"&%'''##C%3D<E%)*%D<(')Q)*%O%=0P+%'E) )A:8:::)) )A:8:::)) )J:8:::)) #)'%'''##@0PRS#<E%#)F#%%="';%#) )G)))) )J::)) )J::)) #)''##!"#$%&'()TME0+"&0')40US"#%) )98J::)) )98J::)) )98J::)) #"&%+''##4E0;$)PV0E0D) )J:)) )J:)) )J:)) #+'##!"#$%&'()H"#,S"#%) )J8W::)) )G)))) )G)))) #$%(''##!"#$%&'()TME0+"&0')",,E=)+0,M=%) )G)))) )J8L::)) )G)))) #$%)''##?X)2#%%="';%#) )J89::)) )J89::)) )J89::)) #*%&''##C<#%)D%#O<;%)F%%D) )I::)) )I::)) )I::)) #(''##-./01# #*+%)2*## #+$%"2*## #+(%*2*###$'2%)+"##
= Annualized $976,344
+ ? =
Isn’t it just all about ROI?
CAC = Cost to Acquire a Customer
CAC = Total $ marketing & sales expense(n)
Total # new customers acquired(n)
CAC = $119,613
13
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
+
Jan Acquisition Costs • Marketing = $88,362 • 5 Sales FTE = $31,250 • Total = $119,612 CAC = $9,201 per customer
CLV = Customer Lifetime Value
CLV = ARPA(n) (Aver recurring $/Client) * GM%
Churn rate(n)
CLV = $18,342 * 78%
23%
CLV = $62,203 $0
$15,000
$30,000
$45,000
$60,000
Cumulative Revenue
Marketing & Sales E"cacy… CAC Ratio
CAC Ratio = CLV
CAC
$62,203
$9,201 = 6.76:1 =
CAC and CLV
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$1,500
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Monthly Expense/Revenue
$0
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Ax
is T
itle
Cumulative Expense/Revenue
Expense Revenue
Months to Recover CAC
-$10,000
$0
$10,000
$20,000
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$60,000
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Months to recover CAC = CAC
Average Recurring Revenue per Customer & GM%
9 months to recover customer acquisition costs
Simple Model
X%O%'M%)/0"=) YJ98:::8:::))5Z<D&'(-X%'%S"=)#%O%'M%) YJ:8:::8:::))!"#$%&%"'()*"%+*,()%,*$%-./$%0* 1234443444**TO%#"(%)S<')D<[%) Y798:::))\)0F)S<'D)'%%,%,) )>>]>7))^)4_.)`)C<') J9^)\)4_.aD)'%%,%,) )J>>]>7))^)4T.)`)4_.) W:^)\)4T.aD)'%%,%,) )JW>]I:))^)!_.)`)4T.) 9^)\)!_.aD)'%%,%,) )98WJ9]WI))
Add Nurture & Re-Marketing
Go on to buy 80%
Never buy 20%
% of Leads DQ’d by Sales*
* Source: Sirius Decisions
Add Nurture & Re-Marketing X%O%'M%)/0"=) YJ98:::8:::))5Z<D&'(-X%'%S"=)#%O%'M%) YJ:8:::8:::))!"#$%&%"'()*"%+*,()%,*$%-./$%0* 1234443444**TO%#"(%)S<')D<[%) Y798:::))\)0F)S<'D)'%%,%,) )>>]>7))^)4_.)`)C<') J9^)\)4_.aD)'%%,%,) )J>>]>7))^)4T.)`)4_.) W:^)\)4T.aD)'%%,%,) )JW>]I:))^)!_.)`)4T.) 9^)\)!_.aD)'%%,%,) )98WJ9]WI))bM#EM#%)N+P";E)
\)4T.D) )JW>]I:))\)4_.D) )J>>]>7))\)4T.D)*_a,) )JW]>I))^)*_a,)EV"E)3MR) B:^)\)4T.D)("<'%,) )JI]7:))4"=%D)/"<') YL::8:::)
Factor Conversion Velocity
c?N) GI!) GJ!) GA!) !A) !J) !I) !L) !9) !>) !7) !B) !W)!A:)!AA)!AJ)
\)S<'D)'%%,%,) )>>]7)) 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 ^)4_.)`)C<') J9^)
\)*"RD)4_.`C<') )L9))\)4_.D)'%%,%,) )J>7)) 22 22 22 22 22 22 22 22 22 22 22 22 ^)4T.)`)4_.) W:^)\)*"RD)4T.`4_.) )A:))\)4T.D)'%%,%,) )JW>) 74 74 74 74 74 74 74 74 74 74 74 74 ^)!_.)`)4T.) B^)
\)*"RD)!_.`4T.) )I:))\)!_.D)'%%,%,) 98WJ9) 494 494 494 494 494 494 494 494 494 494 494 494
Marrying Budget & MQL’s
2M''%=)!%E#<;) \) Y-\)
\)0F)S<'D)'%%,%,) )>>]>7)) YW8J:A)
\)4_.aD)'%%,%,) )J>>]>7)) YJ8I::)
\)4T.aD)'%%,%,) )JW>]I:)) YJ8:7:)
\)!_.aD)'%%,%,) )98WJ9]WI)) YA:L)
CAC = $9,201 per customer
Monthly budget & MQL Quota
c?N) GI!) GJ!) GA!) !A) !J) !I) !L) !9) !>) !7) !B) !W)!A:)!AA)!AJ)
\)S<'D)'%%,%,) )>>]7)) 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 \)4_.D)'%%,%,) )J>7)) 22 22 22 22 22 22 22 22 22 22 22 22 \)4T.D)'%%,%,) )JW>) 74 74 74 74 74 74 74 74 74 74 74 74 \)!_.D)'%%,%,) 98WJ9) 494 494 494 494 494 494 494 494 494 494 494 494
(5,925 MQL’s) * ($104/MQL) / (12 months) = $51,376/mo
What to do?
• Start with knowing your CAC, CLV, and CAC Ratio to before developing a budget
• Underpin your sales goal with # of MQL’s needed • Calculate your cost per lead • Fight for your defensible budget that underpins
revenue (not programs)
EXECUTION Constraint #2
97%
85%
84%
75%
73%
62%
52%
40%
Creating enough Content at Reasonable Cost Data quality & Integration Poor Marketing Processes
Rethinking Legacy Processes Lack of Skilled Sta!
Lack of Funding Selecting Metrics
Senior Manageemnt Mindset
MOST CHALLENGING ASPECTS OF MARKETING AUTOMATION
Source: Gleanster Benchmark Report: Marketing Automation Q3 2013
.
But… Marketers underestimate challenges that come with Marketing Automation !
Why is the Marketing Automation space talking content?
It’s not software, it’s… the content that converts
Marketo’s Videos Eloqua’s Whitepapers Sales Engine’s webinars
So why is content ‘development’ such a problem?
3 buying stages x 3 buying personas
= 9 Pieces of content
So why is content ‘development’ such a problem?
3 buying stages x 3 buying personas
= 9 Pieces of content x 4 formats/mediums
= 36 Pieces of content
So why is content ‘development’ such a problem?
3 buying stages x 3 buying personas
= 9 Pieces of content x 4 formats/mediums
= 36 Pieces of content + 96 eNews pieces
= 132 pieces of content
So why is content ‘development’ such a problem?
3 buying stages x 3 buying personas
= 9 Pieces of content x 4 formats/mediums
= 36 Pieces of content + 96 eNews pieces
= 132 pieces of content
+ 52 weekly
blog posts
+ 12 monthly webinars + SEO landing
pages…
1/keyword
Content Map & Editorial Calendar
What to do?
• Start one over-arching content piece for each buying phase (not persona, or topic based)
• Develop with an editorial calendar with all of your programs and channels
• Re-purpose, re-purpose, re-purpose, • Video>podcast>transcript>article(s)>informs infographic • Contextualize the content by persona
• Develop the discipline to create content for the calendar
HEADCOUNT Constraint #3
Fractional ‘skills’ to run B2B Lead-gen
The one who “keeps it all on track”
10% 25% 50% 75% 90%
San Jose, CA $60,150 $71,670 $86,652 $104,471 $123,488 Austin, TX $47,076 $55,568 $66,633 $79,767 $93,719 West Monroe, LA $38,757 $46,134 $55,813 $67,402 $79,832
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
$175,000
$200,000
Compensation Bands
!"#$%&'()?#0(#"+)!"'"(%#)5d?5XN5b@5e))9)R%"#D)Nb*f4gXhe))b0E)4P%;<i%,)6X/TbNjTgN6b)e))?#<O"E%)4%;E0#)@0+P"'R))
3456375#83936:;#<++%++,#
The Marketing “techie”
10% 25% 50% 75% 90%
San Jose, CA $59,913 $72,311 $86,816 $102,977 $119,822 Austin, TX $48,445 $58,520 $70,128 $82,820 $95,736 West Monroe, LA $40,306 $50,478 $62,082 $74,657 $87,386
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
$175,000
$200,000
Compensation Bands
!"#$%&'()TME0+"&0')!"'"(%#)5d?5XN5b@5e))I)R%"#D)Nb*f4gXhe))b0E)4P%;<i%,)6X/TbNjTgN6b)e))?#<O"E%)4%;E0#)@0+P"'R))
3456375#83936:;#<*'%"$2#
The “web geek/artist”
10% 25% 50% 75% 90%
San Jose, CA $42,931 $51,342 $61,788 $74,349 $88,881 Austin, TX $29,838 $35,566 $42,549 $50,738 $59,882 West Monroe, LA $23,258 $28,104 $34,057 $41,143 $49,247
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
$175,000
$200,000
Compensation Bands
C%3)*%D<('%#)5d?5XN5b@5e))9)R%"#D)Nb*f4gXhe))b0E)4P%;<i%,)6X/TbNjTgN6b)e))?#<O"E%)4%;E0#)@0+P"'R))
3456375#83936:;#<)$%&)(#
The one who “makes you look good”
10% 25% 50% 75% 90%
San Jose, CA $48,390 $57,685 $69,065 $82,651 $98,391 Austin, TX $36,655 $43,010 $50,856 $60,149 $70,626 West Monroe, LA $28,228 $33,358 $39,768 $47,423 $56,097
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
$175,000
$200,000
Compensation Bands
T#E)*<#%;E0#)5d?5XN5b@5e))9)R%"#D)Nb*f4gXhe))b0E)4P%;<i%,)6X/TbNjTgN6b)e))?#<O"E%)4%;E0#)@0+P"'R))
3456375#83936:;#<&'%2&+#
“The Voice” of your brand - Campaigns
10% 25% 50% 75% 90%
San Jose, CA $41,501 $50,486 $60,845 $73,235 $88,742 Austin, TX $32,110 $38,133 $45,150 $53,431 $63,350 West Monroe, LA $26,301 $31,513 $37,554 $44,576 $52,758
$0
$25,000
$50,000
$75,000
$100,000
Ax
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itle
Chart Title
@0PRS#<E%#)h5TX4)62)5d?5XN5b@5e))9)Nb*f4gXhe))b0E)4P%;<i%,)6X/TbNjTgN6b)gh?5e))?#<O"E%)4%;E0#)@0+P"'R)
)3456375#83936:;#<)&%"&'#
Fractional Skills to run B2B Lead-gen
Role
Marketing Program Manager
Marketing Automation Manager
Web Designer Art Director Copywriter TOTAL
Salary $66,663 $70,128 $42,549 $50,856 $45,150 $396,321 % FTE Needed 50% 25% 25% 15% 20% Fractional Cost $33,332 $17,532 $10,637 $7,628 $9,030 $78,159
Fractional Skills to run B2B Lead-gen
So, who manages all this?
But no ONE Person has ALL these skills
Marketing Program Manager
Marketing Automation Manager
Web Designer Art Director Copywriter TOTAL
$66,663 $70,128 $42,549 $50,856 $45,150 $396,321
50% 25% 25% 15% 20%
$33,332 $17,532 $10,637 $7,628 $9,030 $78,159
“The owner” of strategy and oversight
10% 25% 50% 75% 90%
San Jose, CA $103,492 $123,734 $147,020 $172,547 $198,746 Austin, TX $82,222 $100,197 $120,075 $141,056 $161,873 West Monroe, LA $68,481 $87,396 $108,116 $129,669 $150,877
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
$175,000
$200,000
Compensation Bands
*%+"',)/%'%#"&0')*<#%;E0#)5d?5XN5b@5e))A:)R%"#D)Nb*f4gXhe))b0E)4P%;<i%,)6X/TbNjTgN6b)e))?#<O"E%)4%;E0#)@0+P"'R))
3456375#83936:;#<"$'%(*&#
Staffing Constraints
*<#%;E0#)0F)*%+"',G/%'%#"&0'))YAJ:8W79)
Marketing Program Manager
Marketing Automation Manager
Web Designer Art Director Copywriter TOTAL
$66,663 $70,128 $42,549 $50,856 $45,150 $396,321
50% 25% 25% 15% 20%
$33,332 $17,532 $10,637 $7,628 $9,030 $78,159
$78,159 + $120,975 = $199,134
What to do?
• Identify the skills required to execute the editorial calendar and content development
• Honest assessment of current team • Look for skill combinations • Sta! the function as a mission-critial business
process, not a side project
Conclusion • Budget
• First understand your CAC, CLV, and CAC Ratio • Build a budget based on lead requirements
• Execution • Build an editorial calendar • Build a content development plan that supports the
calendar that heavily re-purposes assets
• Sta"ng • Identify the skills required to execute the calendar • Look for skill combinations
Sales Engine’s MaaS Offering
Q&A