ACTIONABLE EXECUTIVE REPORTING. Elliott Lowe Director, Marketing Operations September 18, 2013

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1 ACTIONABLE EXECUTIVE REPORTING Elliott Lowe Director, Marketing Operations September 18, 2013

2 2 ABOUT CONDUCTOR Conductor Searchlight launched 2010 Customers: Systems: INC #13 fastest growing company

3 3 POLL What is your business model? B2B B2C Both

4 GOAL

5 GOAL This!

6 GOAL Not this!

7 7 GOALS Source: Lenskold Group, 2012 Lead Generation Marketing Effectiveness Study

8 WHERE TO START? Model your business(es) Identify KPIs / Metrics Establish Benchmarks Develop ROI Formulas Build Reports and Dashboards

9 9 MARKETING FUNNEL Source: Marketo

10 DEMAND WATERFALL 10

11 REVENUE CYCLE MODEL 11

12 REVENUE CYCLE MODEL Early Stage 12

13 REVENUE CYCLE MODEL Mid-Stage 13

14 REVENUE CYCLE MODEL Late Stage 14

15 15

16 PERFORMANCE METRICS Average marketing campaign response rate (2.2%) Number of new leads Percent of sales ready inquiries generated by marketing (4%) Number of MQLs Percent of marketing leads accepted by sales (58%) Percent of marketing leads that become opportunities (49%) Number of Opps Marketing generated opportunity pipeline revenue Opportunity to close rate (23%) Number of days from lead to Opp / Win Cost per Lead / Opp / Win

17 REVENUE METRICS Average revenue per won sale % of revenue contributed by marketing (15%) % of sales contributed by marketing Marketing generated won revenue Marketing generated opportunity pipeline revenue

18 EXECUTIVE PRESENTATION EXAMPLE

19 19 MKTG FUNNEL OVERVIEW 2013 Q2 xxx,xxx Website Visits xx% xx,xxx Responses xx% xx,xxx 1st Inquiries xx% ($xxx,xxx Cost $xx/lead xx%) xx,xxx MQLs xx% x,xxx Opportunities xx% xxx Wins x% ($xx.xm ACV x% - xx% of all ACV) xxx Influenced Wins ($xxxm ACV - xx% of all ACV) Note: percent changes are based on prior quarter values

20 20 MARKETING FUNNEL 2013 Q2 100 Inquiry a lead that proactively engages with Conductor for the first time 40.0% MQL an engaged lead that meets the minimum criteria of a Marketing Qualified Lead TQA Tele-Qualifier Accepted a MQL that has been accepted as a valid Lead by Sales. OP a lead is added as the Primary Contact in a new Salesforce Opportunity 33.3% 50.0% 1 Win Opportunity which has a signed contract 14.2%

21 MARKETING FUNNEL 21

22 MARKETING FUNNEL RATIOS 22

23 23 MARKETING FUNNEL 2013 Q2 Inquiry Prospect MQL TQA OPP WIN

24 MARKETING ACV 24

25 25 TOP LEAD SOURCES 2013 Q2 Lead Source # of New Leads % of Leads Converted to Opp Avg Days to Convert to Opp $/Lead # Wins Tradeshow (MKT) 1, $55 48 Sponsorship (MKT) $43 2 Website $10 16 List Import (MKT) Content Syndication (MKT) $60 2 Natural Search (MKT) Event (MKT) 35 0 N/A Paid Search (MKT) $ (MKT) Social Media (MKT) $38 1

26 26 DAYS TO CLOSE ALL OPPS Lead Source Number of Wins Amount Avg Days to Close Opp Website LinkedIn Recruiter Natural Search (MKT) Other Paid Search (MKT) Referral - Customer Referral - Employee Rep Sourced Sponsorship (MKT) Tradeshow (MKT) Grand Total 54 1,325,

27 NEW LEAD SOURCES 2013 Q2 27

28 28 TOP OPP SOURCES 2013 Q2 Lead Source # of Opps Conductor Website 89 Tradeshow (MKT) 61 Sponsorship (MKT) 52 Natural Search (MKT) 37 Marketing List Import (MKT) 11 Paid Search (MKT) 8 Event (MKT) 6 Social Media (MKT) 5 Content Syndication (MKT) 5 Webinar (MKT) 4 Online Ad (MKT) 3 Telemarketing (MKT) 1

29 WEBSITE ACTIVITY 29

30 BLOG ACTIVITY 30

31 31

32 OPERATIONS PRESENTATION EXAMPLE

33 DATABASE GROWTH 33

34 DATABASE COMPLETENESS 34

35 PROFILE FIT 35

36 DATABASE TITLE LEVELS 36

37 S 37

38 9 Critical KPI/ROI Lessons For improved measurability of Marketing ROI Prepared for Date September 2013 Jon Russo, Founder B2B Fusion Group 2013 B2B Fusion Group / Proprietary & Confidential

39 About Jon #MOCCA 2013 B2B Fusion Group / Proprietary & Confidential 2

40 Connect Marketing investment to new revenue #MOCCA 2013 B2B Fusion Group / Proprietary & Confidential 3

41 What is your biggest challenge measuring Marketing impact? A Data Quality: We have incomplete, inaccurate, or missing data that impacts KPIs or makes measurement impossible B Alignment: Our sales and marketing nomenclature is not defined, agreed upon, documented, or consistently used system wise C Tools: We have marketing automation & CRM, but measure in Excel and the Excel reporting is not credible internally! D Random ROI: Marketing tags opportunities with campaigns we think we sourced or influenced E All of the Above #MOCCA 2013 B2B Fusion Group / Proprietary & Confidential 4

42 Agenda Presentation takeaways Provide framework of thinking around KPIs, ROI, and metrics from executive viewpoint Aspire to measure the business, not justify marketing s existence Think more about data as the fundamental ingredient Consider today s presentation as one step in your KPI/ROI journey #MOCCA 2013 B2B Fusion Group / Proprietary & Confidential 5

43 Perspective - chasing the Marketing seat at the table As regulation and legislation elevated the importance of firm financial reporting, so did the respect for and importance of the finance/accounting departments. Boardroom discussions centered more and more on the firm s financial statements, and, unfortunately, marketers weren t able to contribute to this discussion. Marketers may be able to talk about awareness, trial, or loyalty, but they are generally unable to connect these metrics to financial statements. #MOCCA CMO.COM Dr. David Rubenstein Wharton Professor, B2B Fusion Group / Proprietary & Confidential 6

44 Situation: Houston, we have a problem. 2 in 3 US CMOs are feeling pressure from executives or board to prove marketing s value 68% agreed that marketing s financial value is NOT clear to the business 45% expressed confidence that they know which metrics or business outcomes their key stakeholders care about IBM 2011, N=1733 The CMO Survey 2013 N=410 #MOCCA Forrester 2013 N=179 Marketers with budget 2013 B2B Fusion Group / Proprietary & Confidential 7

45 9 KPI/ROI Lessons 2013 B2B Fusion Group / Proprietary & Confidential 8

46 1. Create your KPI story around volume, velocity, behavior not a story around technology or tactics #MOCCA 2013 B2B Fusion Group / Proprietary & Confidential 9

47 2. Adapt (vs. adopt) frameworks, define, document, embed & measure Funnel Width = Quality + Quantity of Inbound/Outbound Leads Efficiency: Processes from Inquiry to Close Nurture All Names Inquiries MQL LGQL SAL SQL Customers Prospect & Recycled (Marketing Qualified Lead) Lead Gen Qual. Lead Sales Accepted Lead Sales Qualified Opportunity MARKETING LEAD GEN INSIDE SALES SALES #MOCCA 2013 B2B Fusion Group / Proprietary & Confidential 10

48 3. Create a global Marketing forecast Benefits: Ties marketing to sales Creates urgency around poorly performing areas Looks forward vs. rearview mirror #MOCCA 2013 B2B Fusion Group / Proprietary & Confidential 11

49 4. Compare & interpret instead of presenting An example of Bloated Funnel Miller Heiman 2013 Several dependencies to get to velocity within sales, marketing & systems #MOCCA 2013 B2B Fusion Group / Proprietary & Confidential 12

50 5. Data - unexploited ROI upside opportunity 10% of enterprises using Salesforce.com have a duplication solution in place 1 B2B Fusion #MOCCA 2013 B2B Fusion Group / Proprietary & Confidential 1. Ringlead

51 6. Translate data into C-Suite language Poor data inhibits revenue productivity: 25% of a field sales rep s selling time is wasted with incorrect data 30% of sales rep s overall time is spent on research High quality data correlates to 39% more closes & 66% more revenue #MOCCA Gartner 2013, IDC 2013, Alinean 2013, Discover.org 2013, Data.com 2013 B2B Fusion Group / Proprietary & Confidential 14

52 7. Maintain campaign continuity and credibility B2B Fusion, Dreamforce, Ringlead 2012 #MOCCA 2013 B2B Fusion Group / Proprietary & Confidential 15

53 8. Understand & work with your tools limitations Marketing Automation: Marketing Activities Limited CRM data to drill into Funnel progressions measurement limited (no sales or telesales) CRM: Sales Dashboards Campaign ROI on most recent touch, even on bounced Excessive ROI - 100% of total Opportunity amount to each campaign that touches the deal. Therefore, influenced revenue will always far exceed actual revenue and offer no meaningful metrics for comparison. #MOCCA 2013 B2B Fusion Group / Proprietary & Confidential 16

54 9. Ask the right questions Which questions, if answered, do you know would create business impact? How (and where) do we get a single version of the reporting truth? How do we stop breaking campaign visibility between suspect and close? How do we consistently report outcomes across leads and contacts? How do we create a reliable reporting structure? How do we get a more accurate regional list to market to within CAN- SPAM limits? How do we cleanse our data regularly without breaking anything? How do we set up attribution for marketing influenced revenue? How do we trust how our marketers measure their own campaign results? #MOCCA 2013 B2B Fusion Group / Proprietary & Confidential 17

55 Vision Marketing predicts revenue for business 13% of all organizations use predictive analytics (Gartner BI MQ 2012) #MOCCA 2013 B2B Fusion Group / Proprietary & Confidential 18

56 Reinforcing closing thoughts Pivot the conversation from tactics and technology to volume, velocity, and behavior Aspire to measure the business, not justify marketing s existence Carefully inspect your existing data Ask the right questions Realize this is your unique journey, there is no silver bullet 2013 B2B Fusion Group / Proprietary & Confidential 19

57 DemandCon Oct 1 BOS Eloqua Experience - Oct 20 SFO 2013 B2B Fusion Group / Proprietary & Confidential 20

58 Our customers & key mentions Referenced by Forrester Research:, 2012, & 2013 Best B2B Best Practices, KPIs, and Buyers Journey Referenced in Forbes CMO section Argyle Group, Eloqua blog B2B Fusion Group / Proprietary & Confidential 21

59 If interested a white paper on data management for executives The 6 data pathogens Accuracy Duplication Incomplete Records Joe Smith John Smith Sally Smith John Smith Mis-targeting Incomplete Databases Mis-matched databases and how to deal with them 2013 B2B Fusion Group / Proprietary & Confidential 22

60 Benchmark and Metrics Resources Compiled by Elliott Lowe, Director Marketing Operations, Conductor, Inc Marketing Benchmarks: Awesome Stats and Essential Guidance to Rock Your Revenue Performance ( presentation by Jon Miller, Marketo, VP Marketing 10 Strategies for Content Marketing, Events & Marketing Automation Success ( Marketo / MarketingProfs webinar 2011 with numerous Marketo KPIs from 1H 2011 Marketo Benchmark on Marketing ( complete this brief online survey and receive a 27 page personalized report comparing your responses to industry averages Marketo Marketing Automation ROI Calculator ( includes default benchmark values that you can change Selling Your Marketing Budget to your CFO ( Marketo white paper from 2008 that includes benchmarks from several sources listed below Marketing Automation Statistics & Delivery Performance (bronto.com/resources/delivery-performance) Bronto stats for the last 3 months. Marketing Metrics Report: Australia ( Report.pdf) comprehensive 2H 2012 metrics from Vision 6 Marketing Benchmarks (mailchimp.com/resources/research/ -marketing-benchmarks-byindustry) MailChimp stats by industry from December 2012 Definitive Guide to Marketing Metrics & Analytics ( Marketo 2012 Lead Generation Marketing Effectiveness Study ( - Lenskold Group study into how the use of ROI metrics influence marketing performance and key lead generation outcomes

61 Benchmarks In their Sizing US Marketing 2006 report, Blackfriars Communications had these findings: B2B companies plan to spend 4.3% of their 2006 revenue on marketing (compared to 6.8% for their B2C counterparts). B2B companies spend 28% of their marketing budget on advertising (compared to 40% for B2C companies). Not surprisingly, most of the gap is made up for by B2B s increased spending on events (17% of the budget). Other significant categories include direct marketing at 12% and PR/AR at 8% of the budget. B2B companies spend more of their marketing budget online than B2C companies (17% for B2B versus 15% for B2C). This primarily reflects a higher portion of advertising going online, but also includes and website expenses. MarketingSherpa s Business Technology Benchmark for 2006 provides additional information for marketing spending at B2B technology companies in particular. This report will be updated in Q2 2008, but a few highlights from 2006: B2B technology companies spend anymore from 0.9% to 8.7% of revenue on marketing, with the average company spending 3.6%. (This number includes headcount and programs, but does not include any sales-related expenses.) Service companies and ASPs tend to be at the higher end of the range, while complex manufacturers and companies with fewer than 1,000 prospects tend to be at the lower end of the range. Young companies (under 10 years old) tend to spend more than average. Brand-new start-ups should use total cash in the bank as the baseline to set marketing budgets, rather than revenue. B2B technology companies on average spend a whopping 31% of their marketing budget online, with smaller tech companies spending an even higher percentage online (37% of the total). This reflects the fact that online channels can be easier to get into and test at lower overall costs than more traditional offline channels. IDC found similar numbers for IT vendor spend on marketing: IT vendors spend an average of 3.6% percent of revenue on marketing. Software vendors spend the most (6.5%), hardware makers spending 3.7%, and IT service firms spend only 1.1%. IT vendors spend 63.5% of their marketing budget on programs and 37.5% on headcount. IT vendors spend the biggest portion of their budget on advertising (23.2%). Other significant budget items are events (19.3% of the marketing budget); sales tools such as case studies, whitepaper, and interactive on-line tools (16.8%); direct marketing (12.9%); PR (6.5%) and AR (2.3%); and collateral (5.1%). Marketo Benchmark on Revenue Performance (as of Sept 15, 2012 n=489) % Pipeline Sourced from Marketing 45% MA users, 31% non-ma users %Sales Time Spent Selling 62% MA users, 51% non-ma users % Revenue Plan Attainment 84% MA users, 67% non-ma users