Download - Revenue Performance Management
#RevEngine
8 Ways to Establish Integrated Sales & Marketing and Improve Sales Operations
Jamie Mallinger– VP Marketing and Growth Operations, AthenahealthCraig Rosenberg – VP Focus Expert Network, Focus.comBill Binch – SVP Sales, Marketo
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#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
Buying has Changed Forever
BUYER
OLD
SALES REP SALES REP
NEW
#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
The current sales and marketing model is at best obsolete
At worst it’s totally dysfunctional.
Marketing qualified leads will never close- SiriusDecisions
94%Sales reps DO NOTachieve their sales goals- CSO Insights 2010 Sales Strategy Analysis
52%Companies rate their Lead Generation as subpar- CSO Insights 2010 Sales Strategy Analysis
60%Year low on sales productivity- Chief Sales Office, Insights Study
15
#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
1980sSix Sigma
Production Revenue
1990sSupply Chain Management
Logistics
TodayRevenue Performance
Management(Sales and Marketing
Alignment)
Incite a Revenue Revolution!
#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
Revenue Performance Management
Align Marketing and Sales to Adapt to New Buyer
#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
The 8 Levers
Lead NurturingRelationships Matter1.Lead ScoringNot all Leads are Created Equal2.Sales InsightsDon’t Aim in the Dark3.Opportunity ForecastingLeading Indicator to Pipeline4.
Right Metrics5.Revenue Metrics & OperationsSingle View of Revenue Cycle6.Provide ROI of MarketingHighest Increment ROI7.The Modern Revenue OrganizationTeam Dynamics and Compensation8.
An Operating and Communications Framework
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Lead Nurturing
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#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
Why Lead Nurturing: Stay in Touch
“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.
#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
Lead Nurturing Relevance
A
B
C
D
1 2 3Stages
1. BUYING STAGES• Early (Pre-MQL)• Mid (MQL)• Late (Opportunity)• Customer
2. BUYING PROFILES• Industry: 82%• Role: 67%• Company Size: 49%• Geography: 29%
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Lead Scoring
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#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
Lead Scoring – Not all leads are created equal
• Higher Win Rates• Shorter Sales Cycles• Higher Revenue Per Rep
Source: CSO Insights
The Impact of Lead Scoring Other Benefits of Fewer But Higher Quality Leads
The ROI of Lead Scoring
#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
A Framework for Lead Scoring
ExplicitWhat the
prospect tells you
InferredWhat you
observe or infer
FitAre you interested in them?
• Demographics• Firmographics• Budget, Authority,
Need, Timeframe
• Data quality• Corporate vs. personal email• Inferred from IP (geography,
ISP domain)
InterestAre they interested in you?
• Budget, Authority, Need, Timeframe
• Latent behaviors (engagement)
• Active behaviors (sales readiness)
#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
Interest Scoring - Examples
• Early stage content +3• Attend webinar: +5• Visit any webpage / blog : +1• Visit careers pages: -10
Latent Behaviors (Engagement)
• Pricing pages: • +10 regular, +15 detailed
• Watch demos: • +5 overview, +10 detailed
• Mid-stage content +8• Late-stage content +12• Searches for “Marketo” +8
Active Behaviors(Buying Intent)
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Sales Insights
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#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
Sales Insights into Buyers
Prospect #1Senior Manager, High tech companyLead score 63
Prospect #2Senior Manager, High tech companyLead score 68
Viewed an online demo Went to pricing page yesterday Downloads your ‘social’
datasheet yesterday Tweets a question about your
product
Download your ‘best practices’ white paper – 4 weeks ago
Visited only the web page discussing Analytic capabilities
Should sales reps have the same initial discussion?
#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
Sales Insight into Impact of Marketing Activity
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Opportunity Forecasting
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#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
Sales ‘Only’ Forecasting has Limited Visibility into Future
??
Typical Sales Forecast
Put simply, the shorter the sales cycle the lessvisibility the CSO has into future performance.
#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
Trended Lead Opportunity Customer Forecasting
Plan Forecast Actual
#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
Long Term ‘Opportunity’ Forecasting by Having Visibility into Early Stage
Lead Opportunity CustomerSales Lead
20%
Marketing is uniquely able to make these forecasts because marketing has visibility into the the early stages of the revenue cycle.
5% 50%
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Right Metrics
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#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
Where Metrics Go Wrong
Vanity MetricsSound good and impress people, but don’t measure impact on revenue or profitability
Activity MetricsMeasure what you do instead of what results and impact you have
#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
The Right Metrics
Sales Metrics Deal and opportunities
Revenue Metrics Aggregate impact on company revenue
Marketing Program Performance
Incremental contribution and ROI of individual marketing programs
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Revenue Operations
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#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
Key Idea: Model the Revenue Cycle
All
Nam
es
Pros
pect
&
Recy
cled
Lead
AWA
REN
ESS
Enga
ged
Opportunity Customer
Sale
sLe
ad
MQLSAL
SQL
Nurturing Database
Marketing SDR Sales
#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
The Single Most Important Metric
Revenue Engine Effectiveness
#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
Other Metrics Across Marketing and Sales to Optimize Revenues
• What profits can be generated with 10% more budget?
• What is the LTV of a customer?
• How much can I afford to spend in customer acquisition? What is the cost today?
• What is the impact of Lead Nurturing?
• How many opportunities do Reps need to make quota? What % should be generated by Marketing? By Segment?
• Where are the bottlenecks in the customer acquisition funnel?
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Prove Marketing ROI
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#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
CEOs Give a Low Grade to Marketing
#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
12%
20%
15%9%
44%
Improve profits by more than 20%Improve profits by 10% to 20%Improve profits up to 10%No major change in profits generatedDon't Know
What Profits Can Be Generated With 10% More Budget?
#1 Answer:Don’t Know
Source: 2010 Lenskold Group / eMedia Lead Generation Marketing ROI Study
#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
Building the ROI for Marketing
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The Modern Revenue Organization
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#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
The Role of the Chief Revenue Officer
Chief Revenue Officer VP of SALES and Marketing
Operational View Deal-centric View
Long-term Short-term
Balanced: Marketing, Sales, Alliances, Operations
90% Sales
High stock compensation, MBO + company performance
High cash compensation, commissions
Repeatable process and predictable outcomes
Meeting target for this quarter
#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
Career progression to Chief Revenue Officer
COO
VP of Sales Operations
VP of Sales
CMO
General Manager
Chief Revenue Officer
VP of Marketing
#RevEngine© 2011 Marketo, Inc. Marketo Proprietary and Confidential
The 8 Takeaways
Lead NurturingRelationships Matter1.Lead ScoringNot all Leads are Created Equal2.Sales InsightsDon’t Aim in the Dark3.Opportunity ForecastingLeading Indicator to Pipeline4.
Right Metrics5.Revenue Metrics & OperationsSingle View of Revenue Cycle6.Provide ROI of MarketingHighest Increment ROI7.The Modern Revenue OrganizationTeam Dynamics and Compensation8.
An Operating and Communications Framework
#RevEngine
8 Ways to Establish Integrated Sales & Marketing and Improve Sales Operations
Get this presentation: SMS your email to +1.650.262.0099