revenue reporting: your genie in a bottle

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@spunkyscientistjkao@guidespark.comSenior Manager, Demand GenGuidespark

Brian Glover@brianjgloverbglover@marketo.comSenior Manager, Product MarketingMarketo