bma phoenix keynote- marketo's jon miller on marketing in a digital world - february 12, 2014

© 2014 Marketo, Inc. Marketo Proprietary and Confidential

Marketo’s “Secret Sauce”Marketing in a Digital World: Case Study


• The Age of the Self-Directed Buyer

• Define The Buying Journey and Revenue Cycle

• Strategies for Top-of-Funnel• Strategies for Middle-of-

Funnel• The Right Metrics


INFORMATION SCARCITY

WE USED TO LIVE IN A WORLD OF


ABUNDANCEINFORMATION


Source: The Corporate Executive Board Company, “The Digital Evolution in B2B Marketing,” 2012.

Define The Buying Journey and Revenue

Cycle


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Opportunity Customer

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Nurturing Database

BOFU


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Nurturing Database

Exposed to us via content, brand, or word of mouth


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Nurturing Database

Feels a relationship and trust with us


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Names are just names.


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Meaningful interaction with us


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Nurture until ready for next step

Qualified potential customer


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Marketing qualified lead (score > 100) – SDR reach-out


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Qualified as sales-ready by Sales Development Rep (SDR)


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Accepted and actively worked by sales:marketing quota attainment


Sounds great, but I have millions of contacts!


Processes at scale

Top of the Funnel

Blog, e-books, research data, funny videos, curated lists, infographics, webinars

NO

YES

MOSTLYNO

Thought leadership and enjoyable content to build brand, awareness, and desire

Tools that help buyers find you when they are looking for solutions

Company-specific information to help evaluate and reaffirm selection

Buying guides, RFP templates, ROI calculators, definitive guides, analyst reports

Pricing, demos, services information, 3rd party reviews, customer case studies

Gated?Early Stage

Middle Stage

Late Stage


Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.



Inbound creates the best leads by far: high conversion, high velocity


Real-time Personalizatione.g. customized calls to action for

Customers



But we also use a Portfolio of programs


JUNEDATE:



Sponsored Email builds the database, but low conversion



Webinar, tradeshow, PPC, and virtual tradeshow are top paid TOFU



Paid Social & Display Ad drive brand and amplify inbound as well

Middle of the Funnel


Sales doesn’t want

names – they want

“Win Ready” leads

@jonmiller


Sales Ready

Source: RainToday

25%

50%

25%

2%

Need More Nurturing

Disqualified



Average days to Opportunity: 327 days


Lead Nurturing: Building relationships with

qualified prospects regardless of their timing to buy

-- @jonmiller


The ROI 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

WithNurturing 20% 20.0% 40.0% $137.50

Source: Actual Marketo data; assumes $55 per prospect 3X!

Marketo ROI Results

Results: 50% more marketing qualified leads from lead nurturing


RelevanceGet the “Definitive Guide to Lead Nurturing”

marketo.com/DG2LN


More Targeted Emails are More Relevant

100 1000 10000 1000000

50

100

150

200

250

300

350

400

Email Send Size

Enga

gem

ent S

core

Source: 100s of Marketo campaigns


2 31. BUYING STAGES

• Early: Be a Better Marketer• Mid: Why Marketing Automation• Late: Why Marketo• Customer: Success

2. BUYING PROFILES• Marketing, Sales, Exec


Dynamic Content

Industry, Geography, Company Size, Customer

vs. Prospect, etc.


The Key to Relevance is Behavioral TargetingTop Tactics to Increase Email Engagement


Example: Topic of Interest Triggers

• Attends event• Downloads content• Click email• Fills out form• Score is changed

Email

Social

Content

Technology


Standard Nurture Triggered Interests Lift

Open % 21.7% Open % 34.0% 57%

Click to Open % 23.4% Click to Open % 37.1% 59%

Click % 5.1% Click % 12.6% 147%

Scoring and Lead Management


Lead Scoring Defined“Shared sales and marketing methodology for ranking

leads in order to determine their sales readiness”

Nurture Nurture DisqualifyPass to Sales

Pass to Sales

Fit Interest Buying Stage


Demographic “Fit” Score

Positive Demographic Score• e.g., Marketing Manager title, known CRM customer,

known competitive solution customer

Negative Demographic Score• e.g., Generic email address, illegitimate phone number,

non-existent company (unemployed, self, looking)

Data Augmentation, Not Forms


• Click email: +1• Visit webpage / blog: +1• Early stage content +3• Attend webinar: +5• Decay inactivity:

-1, -5, -10

Latent Behaviors (Engagement)

• Free trial or Contact request: +15• Pricing pages: +10 • Demos: +10• Late-stage content +12• Searches for branded keyword

“Marketo” +8

Active Behaviors(Buying Intent)

Get the “Definitive Guide to Lead Scoring”marketo.com/DG2LS


One Way to Identify Marketing Qualified Leads

A Lead Lead Lead

B Lead Lead

C Lead

D4 3 2 1

Fit

Behaviors


No Lead Left Behind: Service Level Agreements

Day 0 Notification

Day 1 If 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


Stars and Flames show priority

Full list of Interesting Moments

Revenue Analytics


Why Measuring Return is Hard

• Multiple touches. Seven touches needed to convert a cold lead into a sale

• Multiple influencers.Typical buying committee has 5-21 people


Track All Touches Across People

Screenshot: Marketo Revenue Cycle Analytics


Example: Multi-Touch AttributionA deal worth $100,000 recently closed. Three people were involved in the deal:

• Person A attended Seminar A and Trade Show B• Person B attended Trade Show B• Person C was sent Direct Mail C

$100,000 Revenue

$25,000 $25,000 $25,000 $25,000

Seminar A$25,000

Tradeshow B$50,000

Direct Mail C$25,000


Source: Marketo Revenue Cycle Analytics, Nov 2013* Percentage of all programs in channel that achieve MT Ratio > 5

% Above Min*

89%

41%75%

57%

66%10.4

73%67%

76%



% Above Min*

89%

41%75%

57%

66%10.4

73%67%

76%

(MT) Ratio = Pipeline / Investment>10 is Great and <5 is Fail

Webinar = 54!, Tradeshow = 6.9, Sponsored Email = 3.8, Content Syndication = 9.6



% Above Min*

89%

41%75%

57%

66%10.4

73%67%

76%% Programs with MT Ratio > 5e.g. Content Syndication has good average but 43% programs “fail”


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BOFU


Revenue Cycle Modeler



Filter/Drill into data, e.g. by Program Type, Business Unit, Geography, etc.

Key topic areas:• Balance (Reach)• Flow• Conversion• Velocity

Trends over time



Use Metrics to Set & Justify Budgets

New TargetsNew MQLsScore>100

23,000

Inventory of Active MQLs

20,000

New Opps*

1,000

6 Month Created Opp Inv.

2,000

270

*Opps is bigger than SQLs because includes outbound and partner referrals

SDR capacity driven

Inb

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/ P

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120K(900K DB Total)

New Names

New SQLs

922

Win

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Inventory Of Active Targets

60,000

131,000

15.3%

10.5%

2.4%

1.9%

75%35%


Get the “Definitive Guide to Marketing Metrics & ROI”marketo.com/DG2MM


Tweetable Takeaways1. The way buyers buy has changed forever – the way we

market and sell must change as well

2. Define the stages of the buying cycle, in alignment with sales

3. Map content and marketing to the buyer’s journey: early, mid, late stage

4. Most leads are not “sales ready” – nurture relationships over time, use online body language to score leads

5. Use analytics to turn marketing from a cost center into a revenue driver

@jonmiller

Thank You

Jon Miller@jonmiller

[email protected]