2012 marketing benchmarks: awesome stats and essential guidance to rock your revenue performance
DESCRIPTION
Jon Miller reveals the groundbreaking 2012 Revenue Performance Benchmark results on what’s working – and what’s not – for today’s marketing organizations.TRANSCRIPT
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2012 Marketing Benchmarks: Awesome Stats and Essential Guidance to
Rock Your Revenue Performance
Jon Miller
Co-founder and VP of Marketing, Marketo
@jonmiller
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Jon Miller, VP of Marketing and
Co-Founder, Marketo
• Co-author of the Modern B2B Marketing Blog
• About Marketo: • Powerful but easy solutions to help
companies grow revenue faster (marketing automation and sales effectiveness)
• 1,800 customers: fastest-growing private company in Silicon Valley
• Highly efficient revenue cycle
@jonmiller
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Can your organization answer
these questions?
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How sophisticated are our marketing and sales processes compared to our competition?
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What are the best practices of the companies with the most productive revenue engines?
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What ROI would we see from adopting these best practices?
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How much should we be investing in marketing as a percent of revenue?
What % of pipeline should Marketing drive for Sales?
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
We Designed The Benchmark on Revenue Performance to Give You
Personalized Answers
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Today’s Topics
• About the Benchmark Methodology
• Revenue Performance Management Maturity
• Revenue Performance Management Metrics
• Moving up the Maturity Curve
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Benchmark database
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
300+ Responders Across B2B Industries
Software & Internet
32%
Business Services
22%
Manufacturing & Hardware
10%
Telco 5%
Advertising 4%
Financial 3%
Health / Pharma
3%
Other 21%
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Responders Across Multiple Company Sizes
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Under 10 11-100 101-1,000 1,001+
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Part I:
Revenue Performance Maturity
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Revenue Performance Management Maturity
Revenue Performance Management
Integrated Pipeline
Demand Generation
Traditional Marketing
Improve business results through continuous analysis and optimization of sales and marketing resources
Embrace multi-channel program delivery
Lead scoring and nurturing
Alignment between sales and marketing
Integration to 3rd party systems
Enable business users to create content, manage campaigns and events
CRM Integration
Lead scoring practices
Leverage automated email or direct mail communications to stay in touch with customers
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Revenue Performance Management
Integrated Pipeline
Demand Generation
Traditional Marketing
Improve business results through continuous analysis and optimization of sales and marketing resources
Embrace multi-channel program delivery
Lead scoring and nurturing
Alignment between sales and marketing
Integration to 3rd party systems
Enable business users to create content, manage campaigns and events
CRM Integration
Lead scoring practices
Leverage automated email or direct mail communications to stay in touch with customers
Revenue Performance Management Maturity
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Revenue Performance Management
Integrated Pipeline
Demand Generation
Traditional Marketing
Improve business results through continuous analysis and optimization of sales and marketing resources
Embrace multi-channel program delivery
Lead scoring and nurturing
Alignment between sales and marketing
Integration to 3rd party systems
Enable business users to create content, manage campaigns and events
CRM Integration
Lead scoring practices
Leverage automated email or direct mail communications to stay in touch with customers
Revenue Performance Management Maturity
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Revenue Performance Management
Integrated Pipeline
Demand Generation
Traditional Marketing
Improve business results through continuous analysis and optimization of sales and marketing resources
Embrace multi-channel program delivery
Lead scoring and nurturing
Alignment between sales and marketing
Integration to 3rd party systems
Enable business users to create content, manage campaigns and events
CRM Integration
Lead scoring practices
Leverage automated email or direct mail communications to stay in touch with customers
Revenue Performance Management Maturity
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Revenue Performance Management Maturity
Source: Marketo Benchmark on Revenue Performance as of May 11, 2012 (N=300)
15.7%
43.7%
32.0%
8.7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Traditional Marketing
Demand Generation
Integrated Pipeline
Revenue Performance Management
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Maturity by Industry
10%
48%
24%
18% 15%
64%
18%
3%
9%
32%
46%
13%
24%
45%
29%
2%
0%
10%
20%
30%
40%
50%
60%
70%
Traditional Marketing
Demand Generation
Integrated Pipeline Revenue Performance Management
Business Services
Manufacturing
Software & Internet
Other
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Maturity by Employee Count
17%
55%
17%
12% 14%
37% 38%
11%
16%
43%
36%
6%
17%
50%
30%
3%
0%
10%
20%
30%
40%
50%
60%
Traditional Marketing
Demand Generation
Integrated Pipeline Revenue Performance Management
<10
11-100
101-1,500
1,501+
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Marketing Automation Evolving into RPM Revenue Performance Management
Integrated Pipeline
Demand Generation
Traditional Marketing
Improve business results through continuous analysis and optimization of sales and marketing resources
Embrace multi-channel program delivery
Lead scoring and nurturing
Alignment between sales and marketing
Integration to 3rd party systems
Enable business users to create content, manage campaigns and events
CRM Integration
Lead scoring practices
Leverage automated email or direct mail communications to stay in touch with customers
Automate marketing processes
Transform revenue
operations
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Part II:
Revenue Performance Metrics
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Benchmark Questions Asked
• Percentage of Pipeline Sourced By Marketing
• Percentage of Sales Time Spent Directly on Selling
• Target Revenue Plan Achieved: Last 12 Months
• Revenue Growth Compared to Industry Average
• Marketing Budget Ratio (% Revenue)
• Revenue Cycle Conversion Rates • Name to MQL
• MQL to SQL
• SQL to Win
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Percentage of Pipeline Sourced by Marketing
Source: Marketo Benchmark on Revenue Performance as of May 11, 2012 (N=300)
18%
32%
48% 55%
0%
10%
20%
30%
40%
50%
60%
Traditional Marketing
Demand Generation
Integrated Pipeline
Revenue Performance Management
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Percentage of Sales Time Spent Directly on Selling
Source: Marketo Benchmark on Revenue Performance as of May 11, 2012 (N=300)
46% 54%
60% 69%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Traditional Marketing
Demand Generation
Integrated Pipeline
Revenue Performance Management
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Target Revenue Plan Achieved: Last 12 Months
Source: Marketo Benchmark on Revenue Performance as of May 11, 2012 (N=300)
57% 73%
83% 101%
0%
20%
40%
60%
80%
100%
120%
Traditional Marketing
Demand Generation
Integrated Pipeline
Revenue Performance Management
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Revenue Growth Rate Compared to Industry
Average (% Above or Below Average)
Source: Marketo Benchmark on Revenue Performance as of May 11, 2012 (N=300)
24% 22%
35%
48%
15%
20%
25%
30%
35%
40%
45%
50%
Traditional Marketing
Demand Generation
Integrated Pipeline
Revenue Performance Management
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Marketing Budget Ratio (Marketing / Revenue)
Source: Marketo Benchmark on Revenue Performance as of May 11, 2012 (N=300)
10% 11%
10%
13%
0%
2%
4%
6%
8%
10%
12%
14%
Traditional Marketing
Demand Generation
Integrated Pipeline
Revenue Performance Management
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Marketing Pipeline and Budget By Industry
13%
8%
10% 11%
0%
2%
4%
6%
8%
10%
12%
14%
Marketing Budget Ratio
36%
31%
41%
36%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
% Pipeline Marketing Sourced
Source: Marketo Benchmark on Revenue Performance as of May 11, 2012 (N=300)
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Marketing Pipeline and Budget By Employee #
13%
11% 10%
8%
0%
2%
4%
6%
8%
10%
12%
14%
< 10 11-100 101-1,500 1,501 +
Marketing Budget Ratio
38%
43%
34%
23%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
< 10 11-100 101-1,500 1,501 +
% Pipeline Marketing Sourced
Source: Marketo Benchmark on Revenue Performance as of May 11, 2012 (N=300)
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Revenue Cycle Conversion Rate by Maturity
11%
28% 24%
33%
24%
18%
23%
31%
37%
26%
16%
22%
28%
40%
25%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Traditional Marketing
Demand Generation
Integrated Pipeline Revenue Performance Management
Average
Name to MQL
MQL to SQL
SQL to Win
Source: Marketo Benchmark on Revenue Performance as of May 11, 2012 (N=300)
MQL = Marketing Qualified Lead (ready to call) SQL = Sales Qualified Lead (engaged in active opportunity)
1 in 325
1 in 73
1 in 48
1 in 21
1 in 63
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Revenue Cycle Conversion Rate by Industry
22% 21%
28% 24%
29%
23% 26% 26%
30%
12%
27%
22%
0%
5%
10%
15%
20%
25%
30%
35%
Business Services Manufacturing Software & Internet Other
Name to MQL MQL to SQL SQL to Win
Source: Marketo Benchmark on Revenue Performance as of May 11, 2012 (N=300)
MQL = Marketing Qualified Lead (ready to call) SQL = Sales Qualified Lead (engaged in active opportunity)
1 in 53
1 in 175
1 in 52
1 in 71
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Conversion Rate by Employee #
23% 24%
28%
23% 26% 26%
30%
19%
22%
27% 26%
18%
0%
5%
10%
15%
20%
25%
30%
35%
< 10 11-100 101-1,500 1,501 +
Name to MQL MQL to SQL SQL to Win
Source: Marketo Benchmark on Revenue Performance as of May 11, 2012 (N=300)
MQL = Marketing Qualified Lead (ready to call) SQL = Sales Qualified Lead (engaged in active opportunity)
1 in 73 1 in 62 1 in 46
1 in 129
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Value of a Sales Development Function
21% 22% 24%
51%
28% 32% 30%
60%
0%
10%
20%
30%
40%
50%
60%
70%
Name to MQL MQL to SQL SQL to Win % Sales Time Spent Selling
No SDR Function
SDR Function
Source: Marketo Benchmark on Revenue Performance as of May 11, 2012 (N=300)
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Part III:
Moving up the Maturity Curve
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Hig
h
1. ROI: Maturity of approach to planning for and measuring ROI We have a disciplined process that includes setting ROI goals up front, regularly looking back to measure ROI of each program, and discontinuing programs that don’t meet our thresholds
2. ROI: Ability to measure marketing’s overall impact on revenue We are able to predict what will happen to lead flow and forecast what impact marketing will have on pipeline and/or revenue in future periods
3. Leads and Opps: Overall maturity of marketing programs We efficiently design, execute, measure and reuse optimized programs across multiple channels including online and offline, mobile, social, etc.
4. ROI: Ability to measure the ROI of specific marketing programs Predict the marginal impact of each program over time, by measuring a program's influence in acquiring new leads or moving them through the revenue cycle (multi-touch revenue attribution)
Me
diu
m
5. Leads and Opps: Process for non sales-ready leads
6. Leads and Opps: Level of targeting in marketing campaigns
7. Sales Productivity: Marketing and sales alignment
Low
8. Sales Productivity: Focusing sales on hottest leads and opps
9. Sales Productivity: Quality of info sales receives about each lead
10. Sales Productivity: Monitor and ensure follow-up on leads (SLAs)
Importance for Top Revenue Performance
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
• Start tracking leads and conversions through basic waterfall stages: Name to MQL, MQL to SQL, SQL to Win
• Develop basic lead nurturing tracks for two or three personas
• Implement basic lead scoring (single score)
• Build a weekly and monthly dashboard to track and communicate marketing’s impact on sales
Traditional Marketing
Demand Generation
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Lead Nurturing
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Lead Scoring
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
• Expand your portfolio of lead generation channels, embrace content marketing
• Define every stage of your revenue cycle…
• … then identify pinch-points and take action
• Score demographics and behaviors separately
• Report on quality (revenue impact) not quantity
Demand Generation
Integrated Pipeline
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
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Revenue Cycle Modeler
Screenshot: Marketo Revenue Cycle Analytics
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Filter/Drill into data, e.g. by Program Type, Business Unit, Geography, etc.
Key topic areas: • Balance • Flow • Conversion • Velocity
Trends over time
SLA violations
Screenshot: Marketo Revenue Cycle Analytics
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
• Use conversion rates knowledge to make forecasts for impact on future revenue
• Plan ROI goals for all programs up-front, and use multi-touch attribution to measure results
• Add additional lead nurturing tracks, including specific tracks for recycled leads
• Review and iterate lead scoring at least quarterly
Integrated Pipeline
Revenue Performance Management
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Example: Multi-Touch Attribution
Screenshot: Marketo Revenue Cycle Analytics
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Marketo Services to Help You At Every Stage of
Revenue Performance Management Maturity
Grow the Number of Leads and
Opportunities
• Foundation Course • MLM Fundamentals • Guided Migration
Services • Standard Support
• Configure Social Widgets for Landing Pages
• Campaign Design Launch Pack
• Standard Support
• Measure Lead & Success Attribution
• Revenue Driven Marketing Launch Pack
• Premier Plus Support
• Understand Program Reporting & Analysis
• Revenue Cycle Analytics Launch Pack
• Premier Plus Support
Improve Sales Productivity
• MSI Fundamentals • CRM Integration
Services • Standard Support
• Enable Marketo Program to SFDC Campaign Sync
• Sales Insight Launch Pack
• Premier Support
• Sync a Marketo Program w/ a SFDC Campaign
• Business Process Review & Scoring Workshop
• Revenue Cycle Modeler Fundamentals
• Revenue Cycle Analytics Data Analyst
Optimize Sales and Marketing
ROI
• Measure Lead & Success Attribution
• Revenue Driven Marketing Launch Pack
• Standard Support
• MLM Analytics • Assessment and
Recommendations Service
• Premier Support
• Revenue Cycle Modeler Fundamentals
• Revenue Cycle Analytics Data Analyst
• Premier Support
• Revenue Cycle Explorer Fundamentals
• Revenue Strategy Workshop
• Premier Plus Support
RPM Traditional Marketing
Demand Generation
Integrated Pipeline
Education Support Services Professional Services
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Resources to Learn More
• The Definitive Guide to Marketing Metrics and Marketing Analytics
• The Definitive Guide to Lead Scoring
• The Definitive Guide to Lead Nurturing
• Marketing Automation Cheat Sheet
• The Marketing Measurement Cheat Sheet
• Coordinating Marketing and Sales Across the Entire Revenue Cycle
Get all this and more at www.marketo.com/rpm-resources
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Like the RPM Benchmark? Take the Email One!
www.marketo.com/benchmark
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© 2011 Marketo, Inc. Marketo Proprietary and Confidential
@jonmiller
Marketo, Inc. 901 Mariners Island Suite 200 San Mateo, CA 94404
JON MILLER VP Marketing
[email protected] @jonmiller
Contact Me
Participate in the Benchmark now! www.marketo.com/rpm