Principles of Modern Marketing at NetSuite - Rob Israch (TOPO Demand Generation Council Event)

Principles of a Modern Marketing Team Rob Israch, Vice President, Global Marketing Programs, NetSuite .

Today’s Agenda

© NetSuite Inc. 2013 Confidential 2

NetSuite Situational Overview

NetSuite Marketing Program Strengths

Future of NetSuite Marketing

1 2

3

NetSuite: World’s #1 Cloud ERP Background

!   Publicly traded on NYSE: “N”

!   2400+ employees

!   $414.5M revenue in FY13

!   $123M revenue in Q1 FY14

Performance

!   World’s leading cloud business management system

!   Used by 20,000+ organizations

!   Fastest growing top 10 FMS WW

!   Used across 100+ countries

#1 Cloud ERP Suite

© NetSuite Inc. 2014

Our Marketing Challenge

Must Outpace & Out Move Competition

• Purchase is strategic,

risky decision

• Multi-department

support needed

• Requires CEO, CFO

sign off

•  Large incumbent

competitors,

deep pockets

• Diverse target market

• Small & growing, midsized,

large businesses

• Solutions: One system,

financials, ecommerce, CRM

• Smaller marketing

team compared to

peers

NetSuite Does Growth


41.7%

5.2% 0.90%

-1.50% -4%

NetSuite Microsoft Sage SAP Oracle Market Share Growth Fastest Growing Financial

Management System Vendor – 5 years running

(Gartner)

Revenue Growth

Share of Cloud Unicorns (companies with >$1B in valuation)

35% YoY Accelerating growth rate, YoY

15 out of 16 Next cloud unicorns are NetSuite customers

Bessemer Venture Partners, June 2014

NetSuite Marketing’s Contribution to Success

© NetSuite 2014 6

Marketing inputs built in to annual revenue forecast model

% of New Revenue from Marketing Leads

66%

42%

SaaS

Pee

rs

Net

Suite

Sirius Decisions evaluation: NetSuite contribution to sales 50%+ higher than SaaS peers

Where We Stand Out

7

Sales-Marketing Alignment

Science - based

Approach

Intent -based

Marketing Focus

Speed & Agility

Where We Stand Out

8


Science - based

Approach

Intent -based

Marketing Focus

Speed & Agility

1

Operating with Speed and Agility

•  Build a machine

–  Build the foundation you can add levels on top of

–  Look for repeatability and scalability

–  Use technology to accelerate progress

•  Force rank all decisions:

–  Must make trade-offs

–  Double-down on top performers

Publisher ROI - New Leads

ROI - New + Nurtured

Cost per Prospect

Lead to Prospect

Rate

AAA 11.8 15.3 $4,282 0.9%BBB 6.0 6.0 $2,380 37.5%CCC 5.3 5.3 $7,750 5.9%DDD 5.1 7.5 $4,333 2.4%EEE 4.0 7.2 $2,061 7.6%FFF 3.8 7.7 $6,038 3.1%GGG 3.4 3.4 $6,071 3.2%HHH 3.4 4.6 $1,642 5.3%III 3.3 3.3 $11,250 13.3%JJJ 3.0 4.9 $3,678 1.3%KKK 3.0 7.2 $21,813 7.0%LLL 2.9 2.9 $2,828 6.6%MMM 2.3 2.6 $8,100 0.6%NNN 2.0 3.2 $6,775 2.9%OOO 1.4 NA NA 2%PPP 1.2 NA NA 4%QQQ 1.4 1.4 $5,357 9.6%RRR 1.0 1.0 $13,066 7.5%SSS 0.0 19.1 $9,600 0.9%TTT 0.0 10.8 $11,055 0.5%UUU 0.0 7.6 $3,750 16.7%VVV 0.0 5.2 $3,714 2.5%WWW 0.5 2.4 $28,330 0.4%

•  Test and learn

–  Failure is success: Fail fast, learn fast

–  Constant optimization

–  Change course when data shows plans not working

•  Build culture of ownership, accountability, and specialization

Test Build Optimize

Marketing Agility Values

� Speed

� Data

� What works

� Jazz

� Customer Centric

� Talent: Drive & Curiosity

� Perfection

� Intuition

� What’s cool

� Symphony

� Integrated

� Talent: Experience

Vs

Homepage A/B Test


Experience A (Default) Experience B (New)

10.48% Increase in

Click Through

Rate

16.35% Increase in Conversion

Rate

Where We Stand Out

12


Science - based

Approach

Intent -based

Marketing Focus

Speed & Agility

2

Finding intent > target market match

•  70% of our leads and revenue intent-based •  Identify and maximize intent-based sources •  Optimize: landing page, web site, and program optimization •  Nurture leads to sale with educational content

•  80 / 20 rule: •  80%: Optimize and max out top ROI performers •  20%: Constantly identify and test growth areas

•  Forecast points of diminishing returns and plant seeds for future growth

Intent-Based Marketing Approach

26%

24% 21%

11%

19%

56% 18%

18%

8%

40%

35%

23%

1%

Original lead source Lead-to-prospect Prospect-to-customer

Channel* attribution across the funnel (2013)

*Channels include keyword paid, natural, online comparison tools, referrals, email, webinars, events, etc.

X months Y months

SEO Performance

SEO Content Marketing

Where We Stand Out

16


Science - based

Approach

Intent -based

Marketing Focus

Speed & Agility

3

Science-Based Marketing

§  Let data be your guide

§  Apply data to inform your entire marketing strategy

§  Measure on true marketing ROI and invest based on data

§  ROI > Quality

§  Use balanced scorecard approach

§  Communicate learnings to influence organizational change

Marketing Reports We Use

Timing of reports

Type of reports

Real time

Dashboards and KPIs

•  New vs nurtured leads

•  By region, product, employee size, program Prospects, customer conversion

In–system reports

•  Lead category, source count by segments

•  Revenue by source by segments

Monthly Detailed Marketing Performance

•  New, nurtured leads by source, employee size, sales team, industry, region, prospect, customer, etc

Quarterly •  ROI campaign performance reporting

•  ROI reporting for all paid programs

•  ROI by paid keyword reporting

Full-funnel View

Optimize with Program Revenue Contribution

Measure All Programs Down to ROI

§  Measure and prioritize marketing program investments

§  Identify opportunities to expand and which programs to cut and optimize


Publisher ROI - New Leads

ROI - New + Nurtured

Leads

Cost per Prospect

Lead to Prospect

Lead to Customer

TOP

AAA 40.4 40.4 $49,500 2.9% 2.9%BBB 10.1 10.1 $2,679 9.4% 1.9%AVE DDD 0.2 0.2 $145,000 33.3% 33.3%EEE 0.0 0.0 $169 7.7% -‐FFF 0.0 0.0 $3,300 5.0% -‐POOR

KKK 0.0 0.0 - 0.0% -‐LLL 0.0 0.0 - 0.0% -‐MMM 0.0 0.0 - 0.0% -‐OOO 0.0 0.0 - 0.0% -‐

Data Impacts Far More Than Program Optimization

Segment

Lead to Customer Conversion

Opportunity Count

Customer Count

Target Universe

Universe Penetration Rate

Reference Customers Satisfaction

AAA 1.0% 92 15 73,944 0.04% 8 8.1 BBB 0.6% 69 12 42,956 0.14% 8 8.3 CCC 0.6% 17 6 51,177 0.11% 3 6.7 DDD 1.5% 59 9 7,558 0.16% 1 7.0 EEE 1.2% 31 5 16,415 0.07% 1 7.4

Prioritize segments

and targets

Understanding demand and

customer language

Improve messaging

Improve web site performance

Pitfalls of Data

1 You don’t always have ROI

§  Look for predictors of sale (cost per opportunity, lead to prospect conversion, etc)


2 Paralysis analysis §  Value of data is directional: look for patterns to find meaning

§  Some decision better than no decision >> No deer in headlights

3 Data is only focused on past, leaves no room for creativity

§  Data provides focus for creativity to leap off of. Testing validates best creative approaches

§  Forecast points of diminishing returns and clues to next growth channels

§  Use predictive modeling approaches

Data Highlights Future Opportunities

Early Funnel Sources Not Significant

Contributor to Revenue

26%

24% 21%

11%

19%

56% 18%

18%

8%

40%

35%

23%

1%

Original lead source Lead-to-prospect Prospect-to-customer

Channel* attribution across the funnel (2013)

X months Y months

ERP Buying Experience


NetSuite Confiden.al

NetSuite

Con

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Buyer Stage Status Quo

Understand Requirements/

Op5ons Engage Vendor(s) Iden5fy Problem/

Opportunity Make Decision/

Purchase

Key Question

How do I manage basic finance operations?

How do I support growth triggers/scenarios?

How are my peers addressing similar challenges?

Which vendor solves my problems easily and quickly?

Will the exec team (CFO) buy into this vendor?

Next Step Requirement

Potential Roadblock


NetSuite Confiden.al NetSuite Confiden.al


NetSuite Confiden.al NetSuite Confiden.al NetSuite Confiden.al NetSuite Confiden.al NetSuite Confiden.al

Buyer Activity

NetSuite

Con

fiden

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NetSuite

Con

fiden

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NetSuite

Con

fiden

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NetSuite

Con

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Principles of Modern Marketing at NetSuite - Rob Israch (TOPO Demand Generation Council Event)

Marketing

Transcript of Principles of Modern Marketing at NetSuite - Rob Israch (TOPO Demand Generation Council Event)