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12/19/2012 The Pedowitz Group ©2012 1
Revenue Marketing University Education for Marketing Executives
Final Course
The Pedowitz Group
12/19/2012 The Pedowitz Group ©2012 2
Welcome!
[email protected] 770-331-4443
Twitter: @revenuemarketer LI: dqaqish
Debbie Qaqish Partner & CRMO The Pedowitz Group Goal: To provide education based on real-life best practices and peer networking that will help marketing executives transform their organizations from cost centers to revenue centers.
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The Six Week Syllabus
October 17 o "Does Marketing Automation Really Matter?” October 30 o The Revenue Marketing Transformation: Revenue Marketing Journey November 14 o Technology: Marketing Automation Technology and CRM - The Value They Bring
Faculty: Jim Lenskold
Lenskold Group
Faculty: Amy Hawthorne
Rackspace
Faculty: Alan Scheik
Cisco Capital
Faculty: Nancy Harris
Sage
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The Six Week Syllabus November 28 o Strategy & People: Create a Revenue Marketing Center of Excellence & Key Roles Required for Revenue Marketing December 5 o Process & Content: The Revenue Marketing Process & Content is King December 19 o Results: Marketing Automation Delivers Measurement
Faculty: Liz McClellan PGi
Faculty: Patty Foley-Reid, Iron Mountain
Faculty: Jim Kanir Billtrust
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Attend, Test and Earn
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Jim Kanir
► SVP Sales/Marketing Billtrust ► CRO M5 Networks (sales & marketing) ► COO for Powerway, Inc. ► President / CEO Cohesia Corp Global sales and marketing executive positions: ► Reasoning Inc. ► Unify Corporation, CrossAccess
Corporation ► Pentawave ► Bell & Howell
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Some Background on How I learned Marketing
Sales Exec that had to fill a Marketing void It’s not CSO vs. CMO it’s CSMO Learned to Unite Sales & Marketing – “Smarketing” Learned that both S&M needed to agree on what success
is Rejected “traditional” intangible marketing methods
Who wants to debate the right orange color on the Tide box? Has a Brand manager really saved a company? Who wanted to fight the battle of “it is a qualified lead”?
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Experience vs. Knowledge
So what kind of clubs do I buy to get a hole in one??? 2 Eloqua installs and 1 Marketo First Eloqua system (Cohesia/Powerway) was a marginal
success and it took 8 months Second Eloqua system (M5) took two weeks to implement and
was productive in the first month, fully running in 6 months – Very successful implementation and utilization
Third Marketo system (Billtrust) took two weeks to implement and was fully functioning in 3 months – Very successful implementation and excellent utilization Excellent adoption across the organization Sales Team are raving fans of Marketing and Marketo Utilized in Operations and Support as well
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Goals for Today
Recap the 4 Types of the Marketer Life Cycle Why Revenue Marketing can help your career Share some lessons learned & best practice Discuss how you get to the Revenue Marketer Stage Explain what to expect on the journey Share some real world experiences, metrics, and
results!!!
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The sea is so big and my boat is so small…
Man & the World
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Tested with 1000’s of marketers..
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Revenue Marketing
Repeatable Predictable Scalable
500 at this stage of the Revenue Marketing Journey
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Revenue Marketing and your career Visionaries Exploit the Guru Gap
Time
Evolution of New Technologies/Business Trends Over Time
Expectations
Reality
Guru Gap $$$
Valu
e
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“Every project we take on starts with a question: How can we do what’s never been done before?”
…Stuart Hornery, CEO, Lend Lease
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HOW DO WE GET THIS PARTY STARTED?
First Hurdle
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Story of the Winchester House
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“Fail Fast & Fall Forward.” …My favorite phrase
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“Success is the ability to go from failure to failure without losing your enthusiasm.” …Winston Churchill (as quoted by John Peterman)
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Sales & Marketing Process Flow (Early Whiteboard Model – Draft)
Inside Sales • Input ID; Validate ID in SF.com • Performs Conflict Check • Sends Go/No-Go email • Assigns Account
Marketing • Events • Live Chat • In-bound Web • Lists/Lumpy • Webinar •Campaign Responder • Downloads • Lead Nurture
Referral Partner • ID for Activant, Oracle, SAP, Micron, QAD
Reseller Partner • OSG • Workflow 1
Sales • Named Accounts • Self-generated • Client Referral
Sets “1st Appointment”
Task Status = Not Started
SF.com
Marketo Phone System
Special Sales Team
GoToMeeting No Travel
Characterize Opportunity
Qualify
Pipeline
Closed/ Lost
Do Nothing
Nurture
Director Of
Channels
Pipeline
Do Nothing Nurture
Marketing Certified Rep
Characterize Opportunity
Pipeline
Do Nothing Nurture
Expires 4 Days
ID Source Live Chat
Performs 1st meeting
Qualifies Opp
Completed or Defer Task
Closed/ Lost
< 5,000 BPM
Inside Sales • Qualifies ID • Converts ID to Opportunity “Not Yet Met”
< 5,000 BPM
Partner Certified
Rep
Sets Appt, Converts to
Opp in SF.com
Performs 1st meeting
Closed/ Lost
Characterize Opportunity
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“It used to be that the big ate the small. Now the fast eat the slow.”
… Geoff Yang, IVP/ (Institutional Venture Partners)
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Crucial Concept #1
Strategy Structure People
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Critical Concept #2 Key to Marketing Success
“The second best plan executed ruthlessly wins every time!”
…General George Patton
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MODEL OUT YOUR FUNNEL Implementation Secret
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Best Practice Lead to Close Model
RAW
MQL
SQL
SAL
WON!
Just a name and email address
Interest shown (email, web visit, click link, trade show)
Qualified and appointment set. When an MQL is changed to an SQL, it is assigned to sales person and task is set up
After a personal meeting has occurred and the Sales Representative decides the lead is an opportunity. Convert the lead in SFDC – this established the opportunity
Deal is closed. If lead is no longer opportunity, it can be moved and marked as disqualified or recycled
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The Process
Marketing segments lists by vertical, role, and geography and puts them into contact groups that feed automated email programs.
Inside Sales reviews the MQL’s and qualifies/disqualifies them as a Sales Qualified Lead (SQL).
Lists
RAW
Unique landing pages MQL www.billtrust.com
SQL
Closed Won
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“Reward excellent failures. Punish mediocre successes.”
…Phil Daniels, Sydney Exec
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GET THE SALES TEAM ON BOARD Implementation Secret #2
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How to drive Sales Team Adoption
Meet and agree to what success would look like “If you don’t know where you are going, any road will get you
there”.
What are the hard metrics you can agree on, share with the team, and measure together
WIIFM – Both sides Hold multiple meetings with spaced repetition
Once is not enough!!! Need constant reinforcement to succeed
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MAKE IT FUN!!! Communicate, Educate, and Innovate with Sales
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5 Tips to Keep Your Leads Alive
Add to nurtures
Add to your watch list
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5 Tips to Keep Your Leads Alive
Send Sales Insight emails Use links on the Z-drive
Z:\Sales\Marketo_Sales > Marketo PDF Links
Send your own files to Chrissy to convert to the web
31
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Upcoming Lead Generation Webinars
A Nightmare on Billing Street
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References and Testimonials
Both items are now being tracked in SFDC
Sales Reps responsibility to keep them updated
Instructions are found Z:\Sales\Testimonials and References in “References and Testimonials Checklist pdf”
Reports References https://na11.salesforce.com/00OG0000004RBKw
Testimonials https://na11.salesforce.com/00OG0000004R68h
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Recent Lead Generation Webinars
34
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Upcoming Lead Generation Webinars
Customer Centric Billing Webinar
A Nightmare on Billing Street
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Provide new cool Sales Tools Opportunity Influence Analyzer: TW Perry
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“The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.”
…Dee Hock
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MEASURE FOR SUCCESS Flying by the Numbers
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Marketing & Aviation – Fly by numbers
39
Vx — in aviation, the best angle-of-climb speed; the speed that gains the greatest amount of altitude in the shortest distance. In business, the best angle-of-attack for obstacle clearance; i.e., to attain optimal results over the shortest time using maximum thrust available.
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Snapshot of the Funnel
37,054 Leads & 12,245 Accts
1,428 Leads & 1,111 Accts
1657 Leads & 246 Accts
789 Leads 490 Accts
RAW
MQL
SQL
SAL
Average Time in Pipeline
Snapshot of Leads in the Pipeline
112 Days, 4% Conv.
74 Days, 12% Conv.
73 Days, 9% Conv.
59 Days, 20% Conv.
Closed Won
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Target vs. Performance B2B
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CSO Insights
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Marketing Nurtured Deals
Percent of First Year Revenue Nurtured by Marketing:
79%
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Website Update
Unique Visitors Sept: 10,506 56% increase from Q1
Time on Site Avg. 1:17
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Dec(2011)
Jan Feb Mar Apr May Jun July Aug Sept
Pageviews per Month
28,163
412,785 474,571
288,532
Alexa Rank
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WHAT DOES ALL THIS GET YOU? Revenue Marketing with RPS
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Integrated Marketing Automation Supports Growth
66% 50%
26% 38%
8% 12%
0%10%20%30%40%50%60%70%80%90%
100%
IntegratedMarketing
Automation
NoMarketing
Automation
How would you describe your firm's expected growth in the upcoming
year relative to your primary competitors?
Greater Growth Same Growth Slower Growth
Use Integrated with CRM
system 50%
Marketing Automation
not integrated
18%
No Marketing
Automation 32%
Do you use full-featured marketing automation in your
organization?
The half using marketing automation integrated with CRM systems have an advantage in outgrowing competitors
Source: 2012 Lenskold Group / Pedowitz Group Lead Gen Marketing Effectiveness Study Lenskold Group /
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Pipeline Calculator
Value of SQL/SAL Pipeline Calculator Value of SAL Pipeline CalculatorAssumptions: Assumptions:Rev per bill $1.50 Rev per bill $1.50Conversion rate 12% Conversion rate 20%Prospects 299 Prospects 195
Total Bills per Month 28,928,425 Total Bills per Month 13,890,044Estimated Value of SQL/SAL Pipeline $43,392,638
Estimated Value of SQL/SAL Pipeline $20,835,066
Value per Lead $145,126 Value per Lead $106,846Number of Potential Customers 36
Number of Potential Customers39
Estimated Revenue of SQL/SAL Pipeline $5,207,117
Estimated Revenue of SQL/SAL Pipeline $4,167,013
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ID to Future Revenue Forecast: October
48
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ID to Revenue Forecast: Thru October
49
ID Forecast Actual 2 months later
Difference %
$ 48,181.43 $ 72,300.00 December $ 24,118.57 150%
$ 36,194.14 $ 35,610.00 January $ (584.14) 98%
$ 49,299.29 $ 44,891.00 Feb $ (4,408.29) 91%
$ 33,346.59 $ 48,871.00 March $ 15,524.41 147%
$ 41,153.53 $50,028.00 April $ 8,874.47 122%
$ 35,458.00 $63,210.00 May $ 27,752.00 178%
$ 49,467.00 $61,346.00 June $ 11,879.00 124%
$ 44,470.40 $71,206.00 July $ 26,735.60 160%
$ 45,166.19 $48,763.00 August $ 3,596.81 108%
$ 55,857.25 $76,831.00 September $ 20,973.75 138%
$ 50,765.66 $59,199.00 October $ 8,433.34 116%
$ 45,791.67
$ 54,838.48
Average: 130%
(This is the Holy Grail of Rev Marketing RPS)
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December Sales: MRR $71,133
$0.00
$10,000.00
$20,000.00
$30,000.00
$40,000.00
$50,000.00
$60,000.00
$70,000.00
$80,000.00
$90,000.00
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2/1/
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5/1/
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2010
11/1
/201
0
Sold
Goal
Eloqua Installed
10 Reps 28 Reps
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$6MM EBITDA 7 new sales reps, starting
Q4 +$15K/mo marketing spend 7 new developers 12 net new ops staff,
includes conversion team
$4.5MM EBITDA 10 new sales reps, starting
Q4 +$55K/mo marketing spend 15 new developers 13 net new operations staff
BOD Discussion: EBITDA or Growth in 2011
51
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Prelim 2011 Plan: $6 mil EBITDA, ~25% topline growth, no other deals
Assumes no major 2011 upside initiatives and modest development ramp
2010 2011 2012 2013 2014Results ($ in 000s) PF FY Full Year Full Year Full Year Full Year
MRR 32,787 40,393 50,973 65,852 84,921 NRR 3,951 4,804 6,094 7,757 9,254
Total Revenue 36,738 45,197 57,067 73,609 94,175 y-o-y growth 23.0% 26.3% 29.0% 27.9%
COGS (18,733) (22,013) (26,858) (33,873) (42,142)
Gross Margin 18,005 23,184 30,209 39,736 52,034 % 49.0% 51.3% 52.9% 54.0% 55.3%
Sales & Marketing (6,063) 16.5% (7,474) 16.5% (9,537) 16.7% (11,940) 16.2% (13,307) 14.1%
Development (2,289) 6.2% (2,590) 5.7% (3,796) 6.7% (4,597) 6.2% (5,180) 5.5%
G&A (6,611) 18.0% (7,112) 15.7% (7,760) 13.6% (8,420) 11.4% (8,993) 9.5%
EBITDA $3,042 $6,008 $9,116 $14,778 $24,554
8.3% 13.3% 16.0% 20.1% 26.1%
Cash Balance * $2,725 $1,886 $6,481 $19,198 $42,825Op Cash Flow * $194 $2,740 $6,950 $12,717 $23,626
* Does not include impact of taxes in out-years
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Alternative: $4.5 mil EBITDA, 30% growth
2010 2011 2012 2013 2014
Results ($ in 000s) PF FY Full Year Full Year Full Year Full YearMRR 27,657 40,538 53,373 71,766 94,006 NRR 9,081 5,304 7,190 9,187 10,960
Total Revenue 36,738 45,842 60,563 80,953 104,966 y-o-y growth 24.8% 32.1% 33.7% 29.7%
COGS (18,733) (22,173) (28,107) (36,300) (45,781)
Gross Margin 18,005 23,669 32,455 44,653 59,185 % 49.0% 51.6% 53.6% 55.2% 56.4%
Sales & Marketing (6,063) 16.5% (8,435) 18.4% (10,739) 17.7% (12,947) 16.0% (14,272) 13.6%
Development (2,289) 6.2% (3,702) 8.1% (4,620) 7.6% (5,897) 7.3% (6,342) 6.0%
G&A (6,611) 18.0% (7,061) 15.4% (7,601) 12.5% (8,237) 10.2% (8,843) 8.4%
EBITDA $3,042 $4,472 $9,496 $17,572 $29,728
8.3% 9.8% 15.7% 21.7% 28.3%
Cash Balance * $2,725 $1,592 $6,802 $22,682 $52,005Op Cash Flow * $194 $1,967 $7,564 $15,880 $29,323
* Does not include impact of taxes in out-years
Heavy 2011 investments in sales reps & marketing and development
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Snapshot: Marketing & Sales Together = Enables Major Turnarounds!!!
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Tremendous Sales Traction we are at 120% of Plan!!! Q1,Q3, & Q4 were Record Sales Quarters
Consistent and Growing New Client Sales
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In Closing
Focus becoming a Revenue Marketer with RPS If you embark on the Marketing Automation Journey hire
a Good Guide it will save you money and headaches Fail fast and fall forward!!! Dare to try new things!!! Get Sales to join you on the journey and become a
Smarketing Organization Measure, Measure, Measure!!! Be bold and continue to push the envelope!
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The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. …Michelangelo
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Q & A
[email protected] 770-331-4443 Twitter: @revenuemarketer LI: dqaqish
Jim Kanir SVP Sales & Marketing Billtrust [email protected] 609-235-0814