A+ Marketing Automation Case Studies: Nurture and Deliver More Leads to Sales

MarketingJon Miller: MarketoJeff Serlin: Emptoris

Safe HarborSafe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of salesforce.com, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services.

The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, the outcome of intellectual property and other litigation, risks associated with possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of salesforce.com, inc. is included in our annual report on Form 10-K for the most recent fiscal year ended January 31, 2010. This documents and others are available on the SEC Filings section of the Investor Information section of our Web site.

Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.

Agenda

What is Marketing Automation? Why Lead Nurturing

and Lead Scoring?

Emptoris Case Study

Marketo Case Study

The Leaky Revenue Cycle

Lead Nurturing and Scoring Plug The Leak

“The art of maintaining permission to stay in front of your buyers as they educate themselves”

The ROI of Lead Nurturing

Fast Leads ( MQL <1

mo)

Slow Leads (MQL >1

mo)

Total Leads (MQL)

Cost / Lead (MQL)

Without Nurturing 20% 6.67% 26.67% $206.00

WithNurturing 20% 20.0% 40.0% $137.50

Source: Actual Marketo data; assumes $55 per prospect 3x!Results: 50% more marketing qualified leads from lead nurturing

The ROI of Lead Scoring

Source: CSO Insights

How Easy Is it To Get Access to Information About Prioritizing Sales Efforts?

What Are You Doing Today?

Have a process for handing leads back to marketing

Closed-loop tracking from source to conclusion

Have a process for nurturing leads not sales-ready

Have system for rating 'qualified' and 'warm' leads

Measure lead generation contribution to revenue

Collaborate with sales to define sales-ready leads

Use CRM system to manage lead process

0% 20% 40% 60% 80% 100%

28%

30%

39%

44%

44%

45%

51%

19%

27%

23%

18%

25%

20%

13%

53%

43%

38%

38%

31%

35%

36%

Yes, doing now No, but high priorityBack burner / not planned

Source: MarketingSherpa B2B Marketing Benchmark Survey 2009Methodology: Fielded April 15-20, 2009, N=1,147

Collaborate with sales to define sales-ready leads

Have a system for rating ‘qualified’ and ‘warm’ leads

Have a process for nurturing leads not-sales-ready

Have a process for handing leads back to marketing

Jeffrey SerlinEmptoris

Director Global Sales Operations

300 users across Sales, Marketing, Support and Services including Customer Portal & Partner Portal

Near 100% adoption driven top down

Emptoris is a world leader

in strategic supply and

enterprise contract

management software

solutions that empower

enterprises to realize best

value and accelerate

profitable growth. 

Emptoris solutions are used by successful Global 1000 companies in every industry. Emptoris customers:

Emptoris

30%+ growth in new business

Maximize ROI from all investments, including marketing

Marketing Automation Supports BOD and Executive Management Goals

Sales & Marketing Funnel Targets by Product & Region

* not actual data

How to “Sell” Marketing Automation to Sales

Critical that Sales engages with and understands Marketing

Automation. Talk to them in their language.

HIGHER QUALITYCONVERSATIONS

Would you like to know what a prospect wants

to talk about before you call or where they are

in their buying cycle?

SOFTEN THE BEACHES

When you ask a prospect “Have you heard of

Emptoris” would you like them to say “yes”?

LESS WASTED TIME

Do you want to talk to prospects who want

to talk to you?

Challenges Prior to Re-launch of Marketing Automation Solution

EFFECTIVENESS

What works, what does not work?

Difficult to link marketing programs/spend to pipeline KPIs and focus on winning

programs.

PROCESS

Free for all.

Lack of adherence to systematic and prescribed rules.

FLEXIBILITY

Emptoris is evolving. We need a solution

that is cost effective in evolving with us

VISIBILITY

Limited view into interactions.

Unorganized view so ignored.

How Marketo Address our Challenges

Complete Real-Time Visibility: Sales knows exactly how our prospects are engaging with us

Lead Scoring Not a Black Hole: Sales believes the scoring because they can see the details

Manageable Process: Follow up is more specific and appropriate in both timing and approach

Reporting and Analytics: Optimize programs and better demonstrate revenue impact

Complete Control: Ease deployment and administration. We own our process

AfterBefore

Real Results in our 1st 7 Months

30% Improvement in Quality Leads and SQLs per Month

(QL is step between MQL & SQL)

30%+ Decrease in Cost per Quality

4 months Payback from Marketo investment

Other areas of improvement– Conversion ratios

– Time to get to MQL, time to get to SQL

– % of pipeline with marketing programs as a source

(or less % of cold calling)

– Growth in SQL pipeline

Select a solution that is easy to administer by a non-technical person with low TCO

Develop your initial scoring models and nurturing campaigns on a white board first. Don’t be overly ambitious

Clean data for full value. Get control of Salesforce data (page layout, segmentation, duplicates, data enrichment)

Re-define lead management process to comprehend nurturing and scoring

Define KPIs and metrics and manage to them

Create a Steering Committee. Engage with Sales and include them in the process and scoring methodology. Their feedback is critical to optimizing value

Look outside organization for best practices. Someone has done it before!

Constantly evangelize and publicize wins…get Sales to publicize wins

Key Take-Aways

Jon Miller

VP Marketing, Marketo

Author Modern B2B Marketing

About Marketo

Revenue Performance Management solutions that optimize marketing and sales success for more than 800 mid-sized and enterprise worldwide

• Salesforce CRM• Jigsaw for Salesforce• Salesforce Community• Marketo Lead Management / Marketing Automation• Marketo Sales Insight• Marketo Revenue Cycle Analytics

Marketo’s Revenue Cycle

All N

am

es

Pro

sp

ect

&

Recycle

d

Lead

AW

AR

EN

ESS

En

gag

ed

Opportunity

Customer

Sale

sLead

MQLSQL

SAL

Nurturing Database

Marketing SDR Sales

When To Ask For Registration?

Early StageThought leadership and best practices to build brand and awareness

Middle StageBuyers guides, RFP templates and industry information to help structure research

Late StageCompany-specific information to help evaluate and reaffirm selection

NO

YES

YES+ NO

Marketo Prospect Generation 1H2010

Source Prospects Cost Opps Nurture Time

3rd Party Email Blast 2,476 $35 22 Medium

Trade Show –Virtual 2,019 $33 28 Medium

Sponsorship 1,296 $81 12 Medium

Trade Show 929 $104 38 High

Alliance 743 $40 13 Medium

PPC 686 $182 28 High

Content Syndication 89 $98 0 Medium

Website 2,586 178 Low

Partner 358 21 High

AppExchange 308 18 Low

Referral 302 49 Low

Sales Outbound 178 56 High

Inbound Call 91 33 Low

Blog 55 3 Medium

Lead Nurturing Relevance

Other Kinds of Lead Nurturing

Accelerators Move prospects along the buying cycle faster

with relevant “nudges” triggered by specific behaviors

Recycled Key driver of messaging in active recycling is the reason for disqualification Limit number of reasons Timeframe of months or quarters

Reconstituted AKA “Wake the Dead” Great place to experiment

Source: SiriusDecisions

Lead Scoring

Demographics (Qualification)

Active Behaviors(Buying Intent)

• Industry: +0 to 15• Company Size: +0 to 20• Inferred geography: -20 to 0• Data Quality: -15 to 0

• Visit pricing pages:• +10 regular, +15 detailed

• Timeline < 3 months: +15• Watch demos:

• +5 overview, +10 detailed• Download Marketo reviews: +12• Download buyers guides: +8• Download data sheets: +8• Searches for “Marketo”: +8• Heavy web activity: +5

Latent Behaviors (Engagement)

• Download thought leadership: +3• Visit any webpage / blog : +1• Visit careers pages: -10• No activity in 1 month: Decay

Sales Insights

Lead Follow-up Process

No Lead Left Behind

Day 0 Notification

Day 1 In untouched, reminder

Day 2 If untouched, reminder cc boss

Day 3 If untouched, alert executives

Day 7 If stale, reminder

Day 8 If stale, reminder cc boss

Day 9 If stale, alert executives

© 2010 Marketo, Inc.

Marketo Metrics

Conversion Over Time

Predict conversions from one stage to another over time

Create plans/forecasts about future

3 8 13 18 23 28 33 38 43 48 53 58 63 68 73 780

10

20

30

40

50

60

70

f(x) = 50.7486452521888 x^-0.57138477143868R² = 0.430133719514154

Marginal Conversion

3 8 13 18 23 28 33 38 43 48 53 58 63 68 73 78 -

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

f(x) = 994.202885818322 x^0.135210727928123R² = 0.95505216364088

Cumulative Conversion

Marketing Forecasts

Plan Forecast Actual

Key Takeaways

Grow revenue by making sales more

productive, not just by hiring more reps

Focus on the entire revenue cycle, not just

the top of the funnel

Don’t contact a lead before its time

No lead left behind/service level agreements

Use forecasting to turn marketing from a

cost center into a revenue driver

Continual evolution and closed-loop

optimization

Jon Miller

VP Marketing

Jeffrey Serlin

Director Global Sales Operations

Question & Answer

How Could Dreamforce Be Better? Tell Us!

Log in to the Dreamforce app to submit

surveys for the sessions you attendedUse the

Dreamforce Mobile app to submit

surveysEvery session survey you submit is

a chance to win an iPod nano!

OR