Marketo Secret Sauce for Revenue Revenue Rockstar 2011 Jon

8/4/2019 Marketo Secret Sauce for Revenue Revenue Rockstar 2011 Jon

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Marketo Secret

Sauce for Revenue

Jon MillerVP Marketing and Co-Founder, MarketoAuthor of Modern B2B Marketing blog



Fastest Growing SaaS Company

Year 0 Year 1 Year 2 Year 3 Year 4

Salesforce

SuccessFactors

Omniture

NetSuite

Constant Contact

Taleo

Marketo

All revenue numbers normalized to Marketo Year 1



Highly Efficient Revenue Engine

90 cents in Marketing for every $1 in Sales80% of revenue directly sourced bymarketing

$1.2M annual recurring revenue quota

0.00

0.50

1.00

1.50

2.00

Productivity (1-year New Customer Bookings / $M+S )



Buying Has Changed Forever

SALES REP SALES REP

BUYER

OLD DAYS: INFO SCARCITY1960s – Recent

TODAY: INFO ABUNDANCE



Marketo’s Revenue Cycle

A l l N a m e s

P r o s p e c t &

R e c y c l e d

L e a d

A W A R E N E S

S

E n g a g e d

Opportunity Customer

S a l e s

L e a d

MQL

SQLSAL

NurturingDatabase

Marketing SDR Sales



Risk and Branding in B2B

Fear Trust



SEO

Social

Offers

Scoring

Blogs

Definitive Guides

Resource Center

Marketo TV

Webinars

Benefits of Content Marketing



When To Ask For Registration

Early StageThought leadership and best

practices to build brand and

awareness

Middle StageBuyers guides, RFP templates and

industry information to help

structure research

Late StageCompany-specific information

to help evaluate and reaffirm

selection



Short Forms Outperform Long

Forms

Short Form (5 fields)

Conversion: 13.4%Cost per: $31.24

Medium Form (7 fields)


Long Form (9 fields)




Problems With Self-Submitted Data



Prospect Generation 2H2010

Source Prospects Cost Opps Velocity (Days)

Trade Show – Virtual 3,793 $25.44 45 813rd Party Email Blast 3,302 $34.65 27 43

Trade Show 2,703 $221.30 70 61

Paid Webinar 1,760 $68.50 14 60

PPC 990 $158.10 28 42Content Syndication 536 $82.84 4 59

Other Paid 208 $187.50 16 93

Website 2,871 196 27

Sales Prospecting1,888 80 46

Partner Co-Marketing 903 19 102

AppExchange 353 15 37

Referral 80 66 12

Other Inbound 370 42 19



Why Lead Nurturing: Stay in Touch

“The art of maintaining permission to stay in frontof your buyers as they educate themselves”

Building relationships with qualified prospectsregardless of their timing to buy, with the goal

of earning their business when they are ready.



The Value of Lead Nurturing

Fast Leads( MQL <1 mo)

Slow Leads(MQL >1 mo)

Total Leads(MQL)

Cost / Lead(MQL)

Without

Nurturing 20% 6.67% 26.67% $206.00

With

Nurturing20% 20.0% 40.0% $137.50

Source: Actual Marketo data; assumes $55 per

prospect

Marketo ROI Results

Results: 50% more marketing qualified leadsfrom lead nurturing



Lead Nurturing Relevance

DON’T PANIC!

1. Short content is good! (YouTube approach)2. Reuse and repurpose

3. Stay ahead of the drip

Start small, think big and adapt quickly

1. BUYING STAGES

• Early (Pre-MQL)• Mid (MQL)

• Late (Opportunity)

• Customer

2. BUYING PROFILES

• Industry: 82%

• Role: 67%

• Company Size: 49%

• Geography: 29%



Other Kinds of Lead Nurturing

Accelerators

Move prospects along the buying cyclefaster with relevant “nudges”triggered by specific behaviors

RecycledKey driver of messaging in activerecycling is the reason for disqualification

Limit number of reasons

Timeframe of months or quarters

Reconstituted

AKA “Wake the Dead”

Great place to experiment



The ROI of Lead Scoring

Source: CSO Insights



A Framework for Lead Scoring

ExplicitWhat the

prospect tells you

InferredWhat you

observe or infer

FitAre youinterested inthem?

• Demographics

• Firmographics• BANT

• Data quality

• Corporate vs. personal

email• Inferred from IP

(geography, ISPdomain)

InterestAre theyinterested inyou?

• BANT

• Latent behaviors(engagement)

• Active behaviors(sales readiness)



Fit Scoring

• Inferred Company is anISP -2

• Inferred Geography -6 to+5 based on country andzip

• Good First / Last Name +5

• Personal email address -5

• Complete profile +3

• VP or Director +5

• Student/Consultant etc -10

• Marketing or Sales role +5

• Target Industry +5

• Company Name “Self” -10

• Size• <$10M: +0

• $10M-$500M: +5

• $500M: +10

• CRM System = SFDC +10



Interest Scoring - Examples

• Early stage content +3

• Attend webinar: +5

• Visit any webpage / blog : +1

• Visit careers pages: -10

• Pricing pages:

• +10 regular, +15 detailed• Watch demos:

• +5 overview, +10 detailed

• Mid-stage content +8

• Late-stage content +12

•Searches for “Marketo” +8



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 6-15 16-19 20+

F i t

I n t e r e s t



Closed Loop Refinement



Lead Follow-up Process



No Lead Left Behind

Day 0 Notification

Day 1 In 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 If stale, alert executives



Sales Insights



Revenue Cycle Modeler



Understand The Metrics that Matter

Metrics that matter:

• Balance

• Flow

• Conversion

• Velocity

Trends over time



Marketo Revenue Cycle Model

Opportunities($2,400)

New Customers($6,000)

Leads($120)

Prospects2/3 paid ($83)

1/3 unpaid ($0)

($55 average)

20%

Active ProspectDatabase

4.0% / month 82%

PaidNames($33)

15%UnpaidNames

($0)

40%

Inactive(Last 6

Months)

40%

46% of prospects

eventually become a lead

80%

80% of all deals

follow this model

7% become SAL /1.4 leads per opty= 5% lead to opty

Lead TypeVariants

Source

Channel

Division

Size



Conversion Over Time

Predict conversions from stage to stage over time

Create plans / forecasts about future

y = 50.749x-0.571

R² = 0.4301

0

10

20

30

40

50

60

70

3 13 23 33 43 53 63 73

Marginal Conversion

y = 994.2x0.1352

R² = 0.9551

-

200

400

600

800

1,000

1,200

1,400

1,6001,800

2,000

3 13 23 33 43 53 63 73

Cumulative Conversion



Marketing Forecasts

Plan Forecast Actual



Key Takeaways

Grow revenue by making sales moreproductive, not just by hiring more reps

Focus on the entire revenue cycle, not justthe top of the funnel

Don’t contact a lead before its time

No lead left behind / service levelagreements

Use forecasting to turn marketing from acost center into a revenue driver



Marketo, Inc.901 Mariners Island

Suite 200

San Mateo, CA 94404

Direct: +1.650.376-2310

blog.marketo.com

www.marketo.com

JON MILLERVP Marketing

[email protected]

@jonmiller2

Contact Me

The “Definitive Guide to Lead Nurturing”

www.marketo.com/dg2-lead-nurturing

Marketo Secret Sauce for Revenue Revenue Rockstar 2011 Jon

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