8 ways to establish integrated sales & marketing and improve sales operations

#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


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


1980sSix Sigma

Production Revenue

1990sSupply Chain Management

Logistics

TodayRevenue Performance

Management(Sales and Marketing

Alignment)

Incite a Revenue Revolution!


Revenue Performance Management

Align Marketing and Sales to Adapt to New Buyer


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



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.


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



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


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)


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



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?


Sales Insight into Impact of Marketing Activity

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Opportunity Forecasting



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.


Trended Lead Opportunity Customer Forecasting

Plan Forecast Actual


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



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


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



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


The Single Most Important Metric

Revenue Engine Effectiveness


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



CEOs Give a Low Grade to Marketing


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


Building the ROI for Marketing

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The Modern Revenue Organization



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


Career progression to Chief Revenue Officer

COO

VP of Sales Operations

VP of Sales

CMO

General Manager

Chief Revenue Officer

VP of Marketing


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


8 ways to establish integrated sales & marketing and improve sales operations

Business

marketo proprietary

sales insightsdont

integrated sales marketing

sales strategy analysis60

sales strategy analysis52

confidentialthe current

sales goals cso insights

typical sales forecastput