Marketing Contribution to Revenue… Best Practices from Advanced Demand Generation Professionals...

Marketing Contribution to Revenue…

Best Practices fromAdvanced DemandGeneration Professionals

The Pedowitz GroupQ4 2008

Debbie Qaqish, Principal

The Pedowitz Group©, All Rights Reserved Proprietary and Confidential

About The Pedowitz Group• Demand Generation is

an emerging category• We are early adopters

and practitioners in the field

• We are not a research company…we are experts in Demand Generation

• I’ve sat in your seat


The Study

• Part I: Qualitative = “Observations”– 18 One-on-One discussions with Demand Generation

leaders

• Part II: Quantitative = “Data”– On-going now through the OnLine Marketing Summit– 10 Questions– www.pedowitzgroup.com

• Both Studies:– B2B focused


Demand Generation

The revenue focused set ofactivities of both sales andmarketing that:1. Get quality leads into

the top of the sales funnel

and 2. Pull opportunities

through the funnel quicker.

Discussion 1: What measurable contribution does marketing make to the company?

• Observation 1 – Used the language of business results

• Observation 2 – Frequent & formal reporting

• Observation 3 – Not afraid of the “R” word – Revenue!

• Quote 1: “Anyone in a management position in the last 3-5 years knows that marketing is no longer about nice ads or hiring ad agencies, it is about getting results for the company.”

• Quote 2: “Focus on things that draw results in terms of revenue with the executive team- you are not the "make it pretty department.”

• Quote 3: “Lead generation was important last year, but it is EVERYTHING this year!”


OnLine Survey:Percent of budget for Lead Generation?


4%

13%

25%

56%

100%

75% - 99%

50% to 74%

Less than 50%

OnLine Survey:To whom do your report these metrics?


7%

13%

15%

37%

62%

Not sure

No one outside ofmarketing

Board

Sales

Senior managementteam

Discussion 2: What gets measured?

• Observation 1: Metrics were specific and top of mind

• Observation 2: Metrics mattered to the business

• Observation 3: What they measured changed over time

• Quote 1: “Never confuse activity with results.”

• Quote 2: “When asked a traditional marketing metrics question, I would respond with - Who cares?”

• Quote 3: “I abandoned early metrics because the business did not care about them. What I measured 2 years ago was a joke.”

• Quote 4: “Start with measuring something and keep asking yourself, “Is this the best I can do?"


OnLine Survey:What metrics do you track and report on?


13%

19%

45%

47%

50%

57%

Other

None of the above

Amount of business closed frommarketing generated leads

# of opportunities created frommarketing leads

# of inquiries

# of leads generated by marketing

Discussion 3: Change in Role

• Observation 1: Major change in role is occurring

• Observation 2: Where hired from– 50% hired from within– 50 % brought in with this focus

or this capability• Business backgrounds

• Observation 3: Quota and Variable Compensation

• Quote 1: “My role went from being all about brand to all about leads!”

• Quote 2: “My role has changed in three ways – it is less creative, more people management focused and very measurement driven.”

• Quote 3: “I was hired because I had a background in sales, operations and demand generation.”

• Quote 4: “It's like marketing is now the secret and silent new sales person in the company.”


OnLine Survey:Which is true about your role?


11%

22%

26%

41%

You don't have responsibility for leadgeneration

You were hired from outside thecompany to come in and build out a

lead generation competency

You have sales or sales opsexperience in your background

You grew into the current leadgeneration role from inside the

company

OnLine Survey:Variable Compensation?


4%

19%

23%

54%

All of my variable compensation is tiedto lead generation results

None of my variable compensation istied to lead generation results

Part of my variable compensation istied to lead generation results

I do not have variable compensation

Discussion 4: Challenges

• Observation 1: Balance

• Observation 2: Reporting & Systems

• Observation 3: People

• Quote 1: “It’s hard to focus. There are so many things to do, it’s hard to know which way to go.”

• Quote 2: “Everybody wants something different. You have to work hard to set expectations.”

• Quote 3: “My biggest challenge is integration of systems - revenue, CRM and marketing.”

• Quote 4: “One of my biggest challenges was changing the mindset of my traditional marketing team.”

• Quote 5: “One of my biggest challenges was educating the senior mgt team - getting the right data to the right execs at the right time.”


OnLine Survey:What are your biggest challenges?


13%

24%

32%

34%

47%

51%

63%

Other

System integration between sales andmarketing systems

Generating enough leads

Collaboration and communication withsales

Time

Tracking and reporting on metrics

Generating higher quality leads

Discussion 5: Advice

• Observation 1: Work with sales

• Observation 2: Measurement that Counts

• Observation 3: You don’t know what you don’t know

• Quote 1: “View sales as your #1 constituency, create a real relationship with sales to the extent you won't want to let each other down.”

• Quote 2: “It takes a village to sell.”

• Quote 3: “ Track everything and continually look for how to convert your metrics into meaningful information.”

• Quote 4: “You don't know what you don't know until you get going.”

• Quote 5: “If you are going to fail, fail fast and make sure you fail forward!”


OnLine Survey:Sales and Marketing Alignment?


17%

24%

26%

29%

32%

43%

Marketing and sales in my company do notcollaborate on lead generation requirements

Marketing and sales in my company do not have awell defined lead hand-off process

Marketing and sales in my company have a welldefined lead hand-off process

Marketing and sales in my company do not have acommon set of agreed upon lead definitions

Marketing and sales in my company have acommon set of agreed upon lead definitions

Marketing and sales in my company collaborate onlead generation requirements

Key Learnings

1. Demand Generation is the NEW core competency required for marketing success

2. Education and Communication

3. Technology is an enabler

4. Get comfortable with accountability and revenue

• Quote 1: “There is a huge learning curve in demand generation and expect that what you think is important when you start, may not be important once you are in it.”

• Quote 2: “Deciding who gets what information, in what format and how often, is critical to success and depends on if you are a marketing, sales or ops driven organization.”

• Quote 3: “Tracking, measurement, and metrics are all necessary and inevitable for marketing.”

• Quote 4: “There is no silver bullet.”


What are your demand generation challenges?

• Number of leads?• Quality of leads?• Sales & Marketing

Alignment?• Metrics?• Systems?• Lots of other stuff???

Q & A• Resources: DemandGen Report, iGNITE Series from

www.pedowitzgroup.com, Marketing Profs, Sirius Decisions, & OMS Community

• Go to www.pedowitzgroup.com to participate in the survey

• Give me your card with “PPT” written on back to get final copy of this presentation

• Call me at 770-331-4443 or e-mail me at [email protected]

• Thank you!


http://www.pedowitzgroup.com/

mailto:[email protected]

About The Researcher

• Debbie Qaqish, Principal • Over 25 years sales &

marketing experience• Led national sales & marketing

teams• An innovator and implementer

of Web 2.0 technologies• Passionate about the

combined power of sales, marketing, and Web 2.0 technologies


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