creating the perfect mix of art and science in your b2b marketing programs
DESCRIPTION
n this Marketo case study, Jon Miller, VP of Marketing at Marketo, explores the art and science of Marketo’s rapid growth. Leverage Jon’s own secret sauce to demand generation to help accelerate your marketing and improve your revenue performance. In this on-demand webinar, you’ll gain practical tips and ideas for immediate use in your marketing strategies, including best practices on: * Lead nurturing: Triple the amount of new leads using nurturing * Lead scoring: Improve ROI by prioritizing sales efforts to meet and achieve quota * Form building and registration: Learn when to ask for registration and increase conversion rates and lower cost per leadTRANSCRIPT
Creating the Perfect Mix of Art and
Science in Your B2B Marketing Programs:
Marketo Secret Sauce Case Study
© 2010 Marketo, Inc.
Jon Miller, VP Marketing and Co-Founder, MarketoAuthor of Modern B2B Marketing blog
Page 2
How Marketo Does It
About Marketo:
Marketing automation & sales effectiveness (SaaS)
700 mid-market and enterprise customers Tech, business services, manufacturing, finance, etc.
3 ½ years old, 110 employees
Highly efficient revenue cycle: 65% of revenue directly sourced by marketing
Sales reps carry $1.2M annual recurring revenue quota
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
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Marketing and Sales 1.0
© 2010 Marketo, Inc.
Page 4
Marketo’s Revenue Cycle
All
Nam
es
Pro
spec
t &
R
ecyc
led
Lead
Aw
aren
ess
Enga
ged
© 2010 Marketo, Inc.
Oppor-tunity
Cust-omer
Sale
s Le
ad
MQL
SQL SAL
Nurturing Database
Marketing SDR Sales
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Marketing as a Publisher
© 2010 Marketo, Inc.
Marketing as a Publisher
www.marketo.com/resources•180+ Best Practices•Two updates per week
blog.marketo.com•9,000+ subscribers•Multiple channels for
marketing, sales
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Traffic Sources (marketo.com Q310)
© 2010 Marketo, Inc.
Website Blog
Page 7
When To Ask For Registration?
© 2009 Marketo, Inc. Marketo Proprietary and Confidential
Example: SiriusDecisionsEarly 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
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Forms: Ask Only What You Really Need
© 2010 Marketo, Inc.
Short Form (5 fields)Conversion rate: 13.4%Cost per: $31.24
Medium Form (7 fields)Conversion rate: 12.0%Cost per: $34.94
Long Form (9 fields)Conversion rate: 10.0%Cost per: $41.90
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Marketo Prospect Generation 1H2010
Source Prospects Cost Opps Nurture Impact
3rd Party Email Blast 2,476 $35 22 Medium
Trade Show –Virtual 2,019 $33 28 Medium
Sponsorship 1,296 $81 12 Medium
Trade Show 929 $104 38 High
Alliance 743 $40 13 Medium
PPC 686 $182 28 High
Content Syndication 89 $98 0 Medium
Website 2,586 178 Low
Partner 358 21 High
AppExchange 308 18 Low
Referral 302 49 Low
Sales Outbound 178 56 High
Inbound Call 91 33 Low
Blog 55 3 Medium© 2010 Marketo, Inc.
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Why Lead Nurturing: Stay in Touch
© 2010 Marketo, Inc.
All
Nam
es
Pro
spec
t &
R
ecy
cled
Enga
ged
Lead Nurturing Le
ad Oppor-tunitySa
les
Lead
MQL
SQL SAL
“The art of maintaining permission to stay in front of your buyers as they educate themselves”
Building relationships with qualified prospects regardless of their timing to buy, with the goal of earning their business when they are ready.
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The Value of Lead Nurturing
Fast Leads( MQL <1 mo)
Slow Leads(MQL >1 mo)
Total Leads (MQL)
Cost / Lead (MQL)
WithoutNurturing
20% 6.67% 26.67% $206.00
WithNurturing
20% 20.0% 40.0% $137.50
© 2010 Marketo, Inc.
Source: Actual Marketo data; assumes $55 per prospect
Marketo ROI Results
Results: 50% more marketing qualified leads from lead nurturing
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Lead Nurturing Basics
© 2010 Marketo, Inc.
Content
1. Map your existing content
2. Blank cells determine your content roadmap
3. Short content is good! (YouTube approach)
4. Test and optimize
5. Start small, think big and adapt quickly
Buying Stages• Early (Pre-MQL)• Mid (MQL)• Late (Opportunity)• Customer
Buying Profiles• Industry: 82%• Role: 67%• Company Size: 49%• Geography: 29%
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Other Kinds of Lead Nurturing
Accelerators Move prospects along
the buying cycle faster with relevant “nudges” triggered by specific behaviors
Recycled Key driver of messaging in active
recycling is the reason for disqualification
Limit number of reasons Timeframe of months or quarters
Reconstituted AKA “Wake the Dead” Great place to experiment
© 2010 Marketo, Inc.
Source: SiriusDecisions
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The ROI of Lead Scoring
97%
72%79%
50%
0%
20%
40%
60%
80%
100%
120%
% Revenue Plan Achieved % Reps Meeting/Beating Quota
Easy
Hard
Source: CSO Insights
How Easy Is it To Get Access to Information About Prioritizing Sales Efforts?
© 2010 Marketo, Inc.
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Sample Scoring Rules
© 2010 Marketo, Inc.
Demographics: Up to 30 points based on
demographics -20 to 0 based on inferred country
Latent Buying Behavior: Attend webinar: +5 Download thought leadership: +3 Visit any webpage : +1 Visit careers pages: -10
Active Buying Behavior: Install AppExchange app: +15 Download Marketo reviews: +12 Search for “Marketo”: +10 Visit pricing pages: +10 Download buyers guides: +8 Visit website 2X in one week: +5 Watch demos: +5 each
No activity in one month: Score > 30: -15 points Score 0 to 30: -5 points
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The Importance of Timely Response
© 2010 Marketo, Inc.
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Lead Follow-up Process
© 2010 Marketo, Inc.
Page 18
No Lead Left Behind
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
Trigger: New Status = Sales Lead
… plus 7 more steps
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Sales Insights
© 2010 Marketo, Inc.
Page 20© 2010 Marketo, Inc.
Page 21
Marketo Revenue Cycle Model
Opportunities($2,000)
New Customers($5,800)
Leads($120)
Prospects2/3 paid ($83)
1/3 unpaid ($0)
($55 average)
28%Active Prospect
Database
3.0% / month 75%
Paid Names($33)
15%UnpaidNames
($0)
40%
Inactive (Last 6
Months)
34.5%
46% of prospects eventually become a lead
Lead Type Variants• Source• Channel• Division• Size
72%
© 2010 Marketo, Inc.
65% of all deals follow this model
8.4% of leads / 1.4 leads per opty= 6% lead to opty
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Demand Gen Metrics Dashboard
Prospect Lead Opportunity Win
© 2010 Marketo, Inc. Marketo Confidential and Proprietary
Page 23
Marketing Forecasts
Leads Apr May Jun Jul Aug Sep Oct Nov
Plan 760 800 825 1000 1069 1374 1434 1512Mar 810 850 875Apr 685 850 875 925May 818 875 900 915Jun 909 1000 1069 1374Jul 924 1200 1374 1434Aug 1280 1414 1450 1512
Opps Apr May Jun Jul Aug Sep Oct NovPlan 67 81 82 90 94 100 104 109Apr 83 83 90 93May 81 88 90 94Jun 91 93 95 101Jul 70 90 100 103Aug 92 101 104 109
Prospects Q2 2010 Q3 2010 Q4 2010
Plan 6,635 7,814 9,150May 7,000 7,520Jun 8,380 8,500Jul 8,500Aug 8,800 10,000
Plan Forecast Actual
© 2010 Marketo, Inc. Marketo Confidential and Proprietary
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Key Takeaways
1. Focus on the entire revenue cycle, not just the top of the funnel
2. Don’t contact a lead before its time
3. Grow revenue by making sales more productive, not just by hiring more reps
4. Use forecasting to turn marketing from a cost center into a revenue driver
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Marketo, Inc.901 Mariners IslandSuite 200San Mateo, CA 94404
Direct: +1.650.376-2310
blog.marketo.comwww.marketo.com
JON MILLERVP Marketing
[email protected]@jonmiller2
Contact Me
Download the “Definitive Guide to Lead Nurturing”www.marketo.com/dg2-lead-nurturing
© 2010 Marketo, Inc.
© 2010 Marketo, Inc.