revenue reporting: your genie in a bottle
TRANSCRIPT
Revenue Reporting:Your Genie in a Bottle
Today’s Speakers
Jessica KaoSenior Manager, Demand GenGuidespark
Brian GloverSenior Manager, Product MarketingMarketo
Companies lack quantitative metrics to demonstrate impact of marketing spend
Source: The CMO Survey (August 2014), Highlights & Insights Report
High growth companies rely on analytics for decision making
Source: The 2014 CMO Insights Survey, Accenture
86% of high-growth
companies use data and
analytics to improve
marketing impact
Vs.
65% of low-growth
companies
CMOs commit to mastering analytics
Source: The 2014 CMO Insights Survey, Accenture
Spending on marketing analytics expected to increase 73% in three years
Source: The CMO Survey (August 2014), Highlights & Insights Report
Increasing pressure to prove the value of marketing
Source: The CMO Survey (August 2014), Highlights & Insights Report
• Limited resources
• Prioritize what to do
• Prove Marketing Investment and ROI
• Prove Marketing Contribution
• Prove Marketing Matters
Marketers Challenges
• Overwhelmed by which metrics to choose
• Lack of tools
• Lack of expertise
• Low prioritization
• Not rewarded for reporting over tactics
Reporting can be Daunting
Does it:
• Answer WIIFM
• Use common language and vocab
• Stimulate conversation
How to make marketing metrics matter
What are the metrics that really matter?
Marketing’s contribution:
• Revenue
• Pipeline
• # of Opportunities
What is Revenue Reporting
Measuring the impact of all marketing strategies and tactics on the companies bottom line = Revenue
• Provide data to prove marketing is an investment and not a cost center
• Achieve alignment between sales and marketing
• Earn seat at the C-suite table
Power of Revenue Reporting
Cost of NOT doing Revenue Reporting
Cost of NOT doing Revenue Reporting
Let’s Do More
Tradeshows!
Topic Performance: Pipeline and Revenue
Topic Performance: Pipeline and Revenue
• Onboarding had the highest number of successes but lowest
close rate
• Open Enrollment created the most (MT) Pipeline and Revenue
Topic Performance: Pipeline and Revenue
$616,956
$1,869,881
$2,956,106
$1,028,095
$988,188
$195,307
$246,372
$830,615
$285,014
$298,304
$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000
Compensation Total
Onboarding Total
Open Enrollment Total
Performance Mangagement Total
Wellness Total
(MT) Revenue Won (MT) Pipeline Created
Identify what is not Working
Lowest (MT) Revenue Won to Cost
Compensation (MT) Pipeline and (MT) Revenue derived at the lowest
cost per dollar of pipeline and revenue
$12
$33
$40
$24
$22
$5
$6
$19
$6
$7
$0 $5 $10 $15 $20 $25 $30 $35 $40 $45
Compensation Total
Onboarding Total
Open Enrollment Total
Performance Mangagement Total
Wellness Total
(MT) Revenue Won to Cost (MT) Pipeline to Cost
Pipeline and Revenue to Cost
Channel: Pipeline and Revenue
What is the most successful channel and topic combination?
Identify the highest (MT) Revenue Won to Cost
Addressing the Important Questions with Revenue Reporting: RCA Model
Sourced
Influenced
How am I doing to plan?
Lead Lifecycle: How do I reach my goal?
Demand Waterfall
Digital-pi.net
Demand Waterfall
Digital-pi.net
I need more leads!
Digital-pi.net
Shorten late stage sale cycle
Digital-pi.net
Increase quality of leads to sales (MQL)
Digital-pi.net
• Create reports that lead to actionable insight
• What should you do?• Do more• Do less• Do something different
• Let the data teach you something you don’t know.
• Embrace being wrong
• Iterate
How do I get started?
How do I justify the need for reporting when I need reports to justify that need?
Establishing Reporting Vision
Presentation:
• RCA Model
• Reporting Vision
• Establish Sales and Marketing Alignment
• Marketing Goal Contributions
– Revenue
– Pipeline
Data:
• Company Revenue Goals ($)*
• FY
• QTR
• Avg Deal Size ($)*
• Length of Sales Cycle (Days)*
• Avg Close Rate (%)
How to easily set your goals by the end of this week
Who to Talk To:
• Sales
• Sales Ops/CRM
• Finance
FY15Q1 FY15Q2 FY15Q3 FY15Q4
Rev $10M $25M $25M $40M
Divide by avg deal size $10M/50K $25M/50K $25M/50K $40M/50K
# of Closed Opps 200 500 500 800
Divide by close rate $10M/0.1 $25M/0.1 $25M/0.1 $40M/0.1
Pipeline $100M $250M $250M $400M
# of Open Opps 2000 5000 5000 8000
Quick Calculations – Acme Co.
• $100M Revenue
• $50K Avg Deal Size
• 90 day Sales Cycle
• 10% or 1:10 Close Rate –Determines how much pipeline you need
FY15Q4 Marketing Sourced (20%)
MarketingInfluenced (40%)
Rev $40M $8M $16M
# of Closed Opps 800 160 320
Pipeline $400M $80M $160M
# of Open Opps 8000 1600 3200
What is Marketing’s Contribution
• Marketing Sourced Goal = First Touch = 20%
• Marketing Influenced Goal = 40%
• 90 day sales cycle = Start FY15Q3
Marketo set up and utilization not optimal
• Acquisition Programs
• Channels
• Progression statuses
• Program structure
• Lead Source
• Scoring
Before R. C. A. – State of Marketo Implementation Oct 2014
SFDC Reporting
• Lots of dashboards
• Lots of time and resources to maintain dashboards
• Not designed with marketers in mind
Marketing Reporting Needs
• Multiple programs influencing a person’s decision to buy (MT)
• Acquisition (FT)
• Dates of entering program/campaign
• Leads characteristic associated with program not the lead as a static field
• Multi-dimensional reporting
• More engagement and conversations between sales and marketing• Weekly marketing updates at sales team
• Monthly marketing and sales leadership meeting
• Weekly marketing and inside sales meeting
• Monthly marketing report out C-suite
• Intradepartmental changes
• What do we call a success
• How do we measure the impact on pipeline and revenue
Changing the Conversation and Increasing Alignment
I’m ready to get started today:
• Strategic
• Understand resource needs
• Set aside dedicated time each week
• Set goals
• Tactical
• Audit lead sources
• Audit channels, successes, and program Statuses
• Acquisition programs
So Now What. . . If
I want to plan ahead for revenue reporting in the future:
• Audit Lead Sources
• Audit Channels, Successes, and Program Statuses
• Acquisition Programs
So Now What. . . if
Huh? I’m overwhelmed:
Then start with this at a minimum
• Create static lists with descriptive nomenclature
• Consistent Nomenclature for Lead Source Detail
• Tradeshow-AABB-021415
• Webinar-Revenue Reporting-021815
• List Purchase-ABC-031414
• Hire/Train designated person
• Ask for Help• Marketo Professional Services
• Hire an Agency: Digital Pi
• Marketo User Group
• Local Linkedin User Group
• Summit 2015
So Now What. . .
• Revenue reporting empowers your company and your career
• Set goals and measure against them
• Do something different today to address revenue reporting – try Demand Waterfall
Wrap up - summary
Special Thanks:
http://summit.marketo.com/2014/replay/
Resources:
Webinar: Find the Right Marketing Automation
Solution for your Company
http://www.marketo.com/webinars/
(Good explanation of multi-touch attribution)
Demand waterfall spreadsheet available at digital-pi.net
Thank You!
Jessica Kao, PhD@[email protected] Manager, Demand GenGuidespark
Brian Glover@[email protected] Manager, Product MarketingMarketo