Benchmark Survey: Marketo Benchmark on Revenue Performance Custom Report For: Justin Gray

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1 Benchmark Survey: Marketo Benchmark on Custom Report For: Justin Gray

2 Dear Justin Gray, and sales executives are constantly asking their organizations questions such as: How much should we be investing in marketing as a percent of revenue? What percent of pipeline should drive for Sales? What conversion rates we should expect for marketing leads into revenue How much time should Sales spend on revenue-driving activities versus administration? Perhaps even more importantly, executives want to know the best practices of the companies with the highest growth and most productive revenue engines, aka the " Leaders". Get the answers now - here are your personalized benchmarks and recommendations based on 's performance maturity. About this report The "Marketo Benchmark on " combines an innovative revenue performance maturity model with rigorous research into the sales and marketing practices of organizations across multiple industries. The report examines revenue performance maturity and performance metrics across three categories: Growing Number and Quality of Leads and Opportunities Improving Sales Productivity Optimizing Sales and ROI Based on responses in each category, companies are grouped into one of four levels of revenue performance maturity:,, and. Then, the key performance metrics in each category are benchmarked for each maturity level to quantify the impact of improving revenue marketing and sales practices. Benchmarks for each industry are also collected, as well as the difference between companies with or without marketing automation. The result is a customized assessment of each organization's maturity and personalization recommendations for action. Here's just a taste of some of the insights you'll find in this report: RPM Leaders achieve 128% greater revenue versus their plan than average companies, and 178% more than the least mature companies. At RPM companies, sales reps spend 72% of time selling (versus administration, training, etc.), compared to 59% for average companies. generates 57% of pipeline for RPM companies, but only 40% of pipeline for average companies, and only 22% at companies with the least mature processes. The insights to drive more revenue with less work At Marketo, we thrive on sharing best practices, educating marketers, and helping companies of all sizes to improve revenue performance. That s why we re uniquely qualified to help expand lead flow, improve sales effectiveness, and optimize marketing and sales investments. Please encourage others to take the Benchmark Survey the results get better and better each time someone fills it out. Here's to your best, Jon Miller VP of, Marketo jon@marketo.com

3 Part I: Maturity Based on your answers to Part I of the assessment, your Maturity level is: Mangement 50.0 Maturity (shown as %) Here's how the maturity levels break down by category and process Marketo, Inc MKTO (6586)

4 Part II: Benchmarks Companies with higher revenue performance management maturity generate more pipeline from their marketing efforts, which allows their sales teams to spend less time prospecting and more time selling. As a result, more mature companies achieve better sales productivity, and higher revenue growth. Pipeline, Sales Productivity, and Growth generates 57% of pipeline at companies, but only 40% of pipeline for average companies, and only 22% at companies with the least mature processes. 100 Percentage of Pipeline Sourced by When marketing takes a larger share of responsibility for pipeline generation and uses lead nurturing and lead scoring to help sales focus on the hottest leads and opportunities, it frees the sales team to focus their time on productive activities such as selling. At RPM companies, sales reps spend 72% of time selling, compared to 59% for average companies and 47% for the least mature companies. 100 Percentage of Sales Reps Time Spent Directly on Selling Marketo, Inc MKTO (6586)

5 When companies become more mature at revenue performance management, they generate more revenue and achieve faster revenue growth. RPM Leaders achieve 96% of their target revenue plans, while average companies achieve only 75% and the least mature companies achieve only 54%. This means that RPM Leaders achieve 128% greater revenue versus their plan than average companies, and 178% more than the least mature companies. 100 Percentage of Target Plan Achieved Over the Last 12 Months performance management is about growth, so another way to look at the impact of improved maturity is to see how fast companies are growing versus the competition. (Though it is worth noting Lake Wobegon effect here, in which people overestimate their achievements in relation to others; on average, our responders are reporting above-average growth.) 90 Growth Rate Compared to Industry (% Above or Below ) Marketo, Inc MKTO (6586)

6 More mature companies invest more in marketing to achieve these results. On average, survey responders are investing 9% of revenue into marketing (aka Budget Ratio). 40 Budget Ratio (Total Budget as a % of ) Marketo, Inc MKTO (6586)

7 Cycle Conversion Rates Every company wants to know how many of the names they generate should turn into leads, and how those leads should turn into opportunities, and how those opportunities should turn into closed won customers. Although benchmarks and averages are important, it s critical to understand that there will always be a tradeoff between how strictly you define a lead, and the conversion rates you see as a result. For example, some companies pass all leads directly to the Sales team. Since Sales time is scarce and expensive, it makes sense for these companies to have a strict definition of an MQL (marketing qualified lead). These companies should expect a low conversion of new names to MQL, but a high conversion of MQLs into sales qualified opportunities. On the other hand, other companies may use relatively inexpensive lead qualification or sales development reps. This means it is competitively cheap to call an incremental lead, especially compared to the "cost" of missing out on a potential deal. These companies are looser in their Lead definition, and would expect to see higher conversion of name to MQL and lower conversion of MQL to opportunity. As a result, there is not a particularly strong correlation between revenue performance maturity and conversion rate from Name to Lead to Opportunity. On average, 25% of new names convert into Qualified Leads (MQLs) each month, and 26% of MQLs convert into opportunities. 50 New Name Conversion to Qualified Lead (MQL) MQL Conversion to Sales Qualified Opportunity (SQL) Marketo, Inc MKTO (6586)

8 On the other hand, there is relationship between RPM maturity and opportunity win rates. On average, 22% of Sales Qualified Opportunities (aka Sales Qualified Lead / SQL in the SiriusDecisions framework) convert into closed won customers, but RPM Leaders see an opportunity win rate of 35%. 80 Sales Qualified Opportunity (SQL) Conversion to Closed Won Customer Marketo, Inc MKTO (6586)

9 Impact of Programs The more mature a company is at revenue performance, the more they are likely to say that RPM programs are driving more qualified leads, improving conversion of lead to opportunity, and raising win rates, and lowering customer acquisition costs. 90 Percent Saying the RPM Programs are Increasingly Driving More Qualified Leads Percent Saying that Conversion Rate of Leads to Opportunities is Increasing Because of RPM Programs Marketo, Inc MKTO (6586)

10 70 Percent Saying that Their Win Rate is Increasing Because of RPM Programs On average, companies that are seeing more qualified leads say that qualified leads have increased by 49% as a result of their revenue performance management programs. Companies that are seeing improved conversion of leads to opportunities see an average improvement of 45% from their RPM initiatives. And companies that are raising their win rates report an average increase of 33% from their RPM initiatives. Finally, the survey also examined how customer acquisition costs are changing. Many companies are not reporting decreasing customer acquisition costs (likely an indication of the increasing complexity of the revenue process), but more mature companies are more likely to report decreasing costs. On average, companies that are reporting lower costs indicating an average decrease of 31%. 50 Percent Saying that Customer Acquisition Costs are Decreasing Marketo, Inc MKTO (6586)

11 Summary In summary, RPM Leaders have more productive revenue engines that: Increase marketing-driven pipeline - generates 57% of pipeline for RPM companies, compared to 40% of pipeline for average companies Increase sales productivity - At RPM companies, sales reps spend 72% of time selling (versus administration, training, etc.), compared to 59% for average companies. Improve opportunity to closed won customer rate RPM companies see an opportunity win rate of 35%, compared to 22% for average companies. Interestingly there are no key trends in the early stages of the funnel. Make a larger investment in marketing - RPM companies invest 16% of revenue into marketing, compared to 9% for average companies. Improve predictability RPM companies achieve 96% of their target revenue plans, while average companies achieve only 75%. This means that RPM Leaders achieve 128% greater revenue versus their plan than average companies, and 178% more than the least mature companies Marketo, Inc MKTO (6586)

12 10 Tips to Improve Your Here are personalized recommendations for based on your Maturity Level of Mangement : NO RESPONSE 2012 Marketo, Inc MKTO (6586)

13 Resources to Learn More What are you doing to explore new opportunities for optimizing your? Do you set aside time to sit down and learn from others, or do you mostly go it alone on an ad hoc basis? With these online resources, you can access best practices from multiple industries and develop action-oriented plans for campaigns that deliver the results your business needs. The Definitive Guide to Metrics and Analytics The Definitive Guide to Lead Scoring The Definitive Guide to Lead Nurturing Automation Cheat Sheet The Measurement Cheat Sheet Coordinating and Sales Across the Entire Cycle View all these resources at Marketo Suite With Marketo's Suite you can: Visually define and map all the stages of your revenue cycle, and establish rules on how leads transition from one stage to the next. Customize and automate triggered and multi-step marketing campaigns that incrementally deepen your prospect relationships and convert customers over time. Score leads using demographics and BANT attributes, as well as prospect behaviors. Provide sales teams insights within their CRM that enables them to understand, prioritize, and interact with the hottest leads and opportunities. A new class of out-of-the-box interactive data visualizations for the key metrics marketers and revenue teams should focus on. Fully customizable reports and dashboards with an intuitive drag and drop UI built for marketers not for reporting specialists or IT Marketo, Inc MKTO (6586)

14 Visually define and map all the stages of your revenue cycle A Cycle Model is a visual representation of the marketing and sales business processes that define how a potential customer proceeds through various qualification, opportunity and revenue stages to become an actual customer. Define and map all the stages of your revenue cycle Establish clear set of rules governing how leads transition from one stage to the next Assign Service Level Agreements to send alerts when leads "get stuck" Map your stages to industry benchmarks such as Qualified Leads (MQL), Sales Accepted Lead (SAL), and Sales Qualified Lead (SQL) 2012 Marketo, Inc MKTO (6586)

15 Don t Just Prospects Engage Them in a Dialogue and Score Leads as they Engage The days of batch marketing campaigns with low response rates are over. It's time to use targeted marketing with 1:1 dialogue marketing capabilities. These include drip campaigns with automated lead nurturing and the ability to trigger follow-up activities. For example, imagine being able to send a campaign and then automatically send a personal reminder a week later if the prospect did not open the first communication. By segmenting and targeting prospects based on specific behaviors, such as whether the prospect opened a prior or visited a specific webpage, marketers can increase open rates by more than 50% and increase conversion rates by more than 350% (Jupiter Research)' With powerful yet easy B2B marketing software from Marketo, B2B marketers can create, execute, and measure sophisticated dialogue campaigns with a simple drag and drop user interface Marketo, Inc MKTO (6586)

16 Enable sales to understand, prioritize and close the hottest sales leads Provide sales teams synthesis or analysis of granular activity data to highlight what really matter to sales. Best Bets and Watch List - Focus instantly on the hottest leads and opportunities Interesting Moments - Monitor the key moments that really matter to sales Insight to Action Enable sales reps to use marketing template and add leads to campaigns Custom Views - Roll-up or create custom views of best bets and interesting moments 2012 Marketo, Inc MKTO (6586)

17 Out-of-the-box interactive data visualizations A new class of intuitive, interactive data visualizations built by marketers for marketers. These include the Opportunity Analyzer that helps build credibility by proving how marketing programs drive conversion and accelerate leads and the Program Effectiveness Analyzer that monitors program effectiveness and identifies which programs and events are yielding the highest return on investment Marketo, Inc MKTO (6586)

18 Track the Metrics that Matter with Easy Dashboards and Powerful Ad-hoc Reports Marketo Cycle Explorer makes it easy for marketers to measure, understand, and optimize revenue performance with customized dashboards and powerful, yet easy-to-use interactive reports powered by a robust analytics engine. Create ad hoc reports, dashboards, and metrics with an intuitive drag-and-drop UI built for marketers not for reporting specialists or IT Focus on metrics that matter to marketing and sales executives including program cost, program ROI, and conversions Gain immediate access to trends and comparisons by revenue stage, program channel, and lead owners across time periods Create custom executive dashboards that provide at-a-glance views of the metrics that matter most 2012 Marketo, Inc MKTO (6586)

19 Marketo Client Services At Marketo, we know that executing a successful marketing strategy takes more than just creativity and the right tools. Marketo Client Services inspire sustainable customer success throughout the entire revenue journey as a proven partner with real-world experience and best practices expertise. Marketo University provides a learning path to gives you the skills, knowledge, and best practices to succeed. Marketo Customer Enablement gets you up and running quickly while Marketo Professional Services help you achieve maximize value out of your Marketo investment. Marketo Customer Support is there to help you along the way with over 95% service level agreement (SLA) achievement. Here's how you can learn more or schedule your personalized demo of Marketo: Visit Call us at MKTO (6586) us at sales@marketo.com 2012 Marketo, Inc MKTO (6586)

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