how to deliver the right metrics to your cmo and earn...

On LinkedIn:

How to Deliver the Right Metrics to Your CMO and Earn More Recognition for Marketing

Terry FlahertyVP of Strategy and Best PracticesBulldog Solutions

Jon VlockDirector of Client Marketing Strategy, UBM TechWeb

© 2011 Bulldog Solutions. All rights reserved. www.bulldogsolutions.com

On LinkedIn:

AgendaThe Scorecard of the C-Suite

– Marketing’s Role in the C-Suite Scorecard

– The Integrated Sales and Marketing Process

– 5 Critical Metric Categories for the CMO

Meeting & Exceeding CXOs and Business Leaders Expectations in the Real World– Expectations of You and Marketing is Shifting

– CEOs and Business Stakeholders Expectations

– Key Recommendations & Approaches

– How to Avoid Metrics Traps


On LinkedIn:

About Bulldog Solutions

Demand-generation agency for BtoB.

We provide BtoB marketing with new capabilities to grow revenue and prove its influence.

How do you measure up?Take the Executive Benchmark Assessment at

eba.bulldogsolutions.com

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On LinkedIn:

CMO Role is Evolving…Compelled to drive revenue

Integrate marketing and sales – deliver value throughout the sales and marketing process

Balance revenue growth and cost of sales/marketing

Bring process best practices to marketing and sales

“CMOs need to speak about business in business terms to their peers, using words and metrics like revenue, cash flow, and profitability.”


On LinkedIn:

Speaking the Right Language


On LinkedIn:

The C-Suite Scorecard


On LinkedIn:

CMO Impacts 2 Key Metrics


On LinkedIn:

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

-5.00% -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00%

Rev Growth and S/M Efficiency 09-10

Revenue Growth

S/M Efficiency


On LinkedIn:

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

-5.00% -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00%


Revenue Growth

S/M Efficiency

Driving Growth Gaining Efficiencies

Losing RevenueCosts Escalating

Buying Market?

Overaggressive Cost Reduction?


On LinkedIn:

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

-5.00% -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00%


Revenue Growth

S/M Efficiency


On LinkedIn:

Why Scorecards Matter to the CEO

2 Competitors in Enterprise Software

–Similar Solutions

–Similar Business Model (SAAS)

–Similar Revenue (~$200M)

Company A Company B

Rev. Growth 32.1% 25.4%


On LinkedIn:

Looking a Little Deeper…

Aggregate Impact – B has a $26M Competitive Advantage

Driven by efficiencies in Sales/Marketing process (i.e. the demand waterfall)

Company A(HiGrowth)

Company B(Efficiency)

Rev. Growth 32.1% 25.4%

S/M % Rev 47.7% 27.7%

2 Competitors in Enterprise Software Similar Solutions Similar Business Model

(SAAS) Similar Revenue (~$200M)

Every dollar of revenue costs company B 27.7cents… and company A 47.7 cents in sales and marketing costs


On LinkedIn:

The Challenge for the CMO

Issues Process disconnect Visibility Predictability Repeatability Scalability Accountability

Mar

ketin

g

?

Sal

es

?


On LinkedIn:

??

The Gap in the Process

Opportunity to Closed/Won

Supported by CRM

Somewhat repeatable process and defined stages

Standard metrics

Communicated via sales pipeline and forecasts

Needs AnalysisSolutions Presentation

LOI/ProposalContracts

Closed/ Won

Marketing Programs Often manual, Transitioning to Marketing Automation Limited visibility post-inquiryMetrics not linked to revenue Limited understanding of metrics outside of marketing


On LinkedIn:

Integrated Sales and Marketing Funnel

Critical stages in the marketing and sales process:

• Manages lead hand-off between marketing and sales• Provides closed loop feedback throughout the funnel


On LinkedIn:

Integrated Sales and Marketing Process

$$$Revenue GrowthSa

les

and

Mar

ketin

gC

osts


On LinkedIn:

Key Metric Categories

Types of Funnel Metrics

Business Strategy

Volume (and trends)

Conversion rates

Velocity

Program/Asset Performance


On LinkedIn:

Business Strategy Metrics

Recurring Revenue

39%

New Revenue -Marketing Initiated

32%

New Revenue - Sales

Initiated29%

Marketing Initiated Revenue sourced by marketing programs

CMO accountable for specific revenue goals


On LinkedIn:

Stage Volume and Trends

Inventory Metric – can accumulate inventory – no SLA

Service-level based – time sensitive


On LinkedIn:

Conversion Rates

Average Strong Best-in-class

Suspect-Inquiry

0.5% 1.0% 1.5%

Inquiry -MQL

3.9% 5.8% 9.7%

MQL -SAL

58.3% 65.6% 74.5%

SAL -SQL

49.1% 56.4% 60.5%

SQL -CL/W

23.1% 26.9% 30.7%

Sirius Decisions


On LinkedIn:

The Impact of Efficient Funnels

BudgetCompany A (average)

Company B (strong)

Total Budget Required $ 935,973 $ 459,314

Waterfall Stages RequiredCompany A (average)

Company B (strong)

Inquiries Required 17,509 8,940 MQLs Required 753 519SALs Required 439 353Opportunities (SQL) Required 230 196Deals Required 56 56

Key Performance MetricsCompany A (average)

Company B (strong)

ROMI 10.68 21.77Performance Improvement over Current Client Baseline 1.00 2.04

1.70% 4.3%

58.3%52.3%

24.2%

2.50% 5.8%

68.1%55.4%

28.4%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Contact to Inquiry

Inquiry to MQL

MQL to SAL SAL to SQL SQL to Closed Won

Company A (average) Company B (strong)

Goal : Generate $10M incremental marketing initiated revenue

Avg. Deal Size: 180K


On LinkedIn:

Velocity

Measures velocity of change across pipeline stage

Key component (with conversion) of pipeline forecast

Identify service level issues

02468

10121416

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

MQL to SAL

SAL to SQL

Average Days for Conversion

105

110

115

120

125

130

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

MQL to C/Win

Average Days for Conversion


On LinkedIn:

Asset Performance

Understand Funnel Performance for each Campaign

–Units Generated at Stage

–Cost

–Return on Marketing $ Invested

Waterfall Stages Generated Cmpg001 Cmpg002 Cmpg003

Inquiries Generated 966 1368 548MQLs Generated 82 86 31SALs Generated 48 41 15Opportunities (SQL) Generated

22 21 8

Deals Generated 6 5 2

Cost Per Waterfall Stage Cmpg001 Cmpg002 Cmpg003Cost Per Inquiry $30 $48 $45 Cost Per MQL $352 $767 $798 Cost Per SAL $604 $1,616 $1,612 Cost Per SQL $1,324 $3,095 $2,964 Cost Per Closed-Won $4,815 $13,227 $11,227

Cmpg001 Cmpg001 Cmpg003

ROM$I $37.38 $13.61 $16.03


On LinkedIn:

CMO Planning Across Waterfall

Attract

Engage

Convert


On LinkedIn:

Evolution of Demand Gen Budget Over Time

UBM TechWeb Strategy & Business Model

Pg 26

Business Information Marketing-as-a-Service

• Education & Conferences

• Training & Certification

• Research & Analytics

• Websites, Events, Newsletters & Mags

• Media Solutions• Lead Lifecycle• Exhibitions &

Sponsorships• Communities• Content

Development• Custom Solutions

50% 50%

Business Information Fuels Insights For Tech Decision Making

Enabling People and Organizations to Harness the Power of Technology

The Tide ShiftFrom Mad Men to Math Men

What Do C-level Execs Expect and Value?First Take Reality

“More revenue.” “Less sass.” “Total agreement with everything I say.” “More credit given to John (the CFO) and me.”

Tactics Have Changed but Principles are the SameWhat do CXOs Value and Expect?

• Defined success metrics• Clear Opportunity or Problem Definition• Agreed-Upon expected outcomes

– faster growth, new customers, revenue and profit…

• Milestones and timeframe with frequent and clear communications

- Tony Uphoff, CEO UBM TechWeb

Meeting CXOs & Business Leaders Expectations?Key Recommendations

Everything in Context

Its All About Growth

Plan for Your Environment

Agile Development vs. Big Bang

Test, Test, and Test Some More

Marketer Beware and Learn from Past MistakesThe Metric Traps – They Are Everywhere

Irrelevant or Misleading Metrics

Metrics In Isolation

Artificial Expectations

Efficiency vs. Effectiveness

One and Done

On LinkedIn:

Funnel Scorecard Scenarios

Determining best actions for various pipeline conversion issues


On LinkedIn:

1. Losing to No Decision

Prospects are stalling -"Lots of deals, but can't get them across the finish line"

Not losing to competitors - but do lose deals to "no decisions"

13.8%

49.1%

58.3%

8.5%


On LinkedIn:

1. Losing to No Decisions - CMO Strategy

Focus on economic buyers

Sales enablement tools

Tighten definition for MQL/SAL


On LinkedIn:

2. Marketing and Sales Not Aligned

"Marketing Leads Stink"/ "Sales Never follows up on the great leads we produce"-

23.1%

27.1%

18.3%

65.3%


On LinkedIn:

2. Marketing/Sales Alignment–CMO Strategy

Re-evaluate definition of MQL/SAL

Establish and measure bi-directional service level agreements

Introduce lead scoring and lead nurturing

–Route qualified leads based on profile fit and engagement

–Establish nurture programs based on: Profile (Role, industry)

Stage of the buying cycle


On LinkedIn:

3. Starving for Leads

"We're starving for leads - Just get me someone to talk to“

Current scenario has high conversion rates from Inquiry to SAL

Often leads to “No Decisions” or Un-alignment

5.5%

69.4%

67.9

87.5%


On LinkedIn:

Starving for Leads – CMO StrategyQuality is more important than Quantity (no matter how

hard they complain)

Create personas and specifications for MQLs that have rigor

–Drive relevant messages for very defined markets

Leverage the "Rule of 5" for content development

–“Hard Hitting” Content

–Try new marketing channels and track closely

Nurture existing database – but also cleanse!


On LinkedIn:

SummaryFinancial ViewIntegrated and Aligned ProcessesConversion Rates Rule!

On LinkedIn:

Thank You For Your Time!

Terry FlahertyVP of Strategy and Best PracticesBulldog [email protected]@Tflaherty

Jon VlockDirector of Client Marketing Strategy, UBM [email protected]

mailto:[email protected]�

mailto:[email protected]�

how to deliver the right metrics to your cmo and earn...

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