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Marketo Secret Sauce for Revenue Growth


 Liz Smyth
 Director Marketing EMEA




© 2011 Marketo, Inc.
Meet Marketo
   •       Powerful yet easy marketing automation, lead nurturing
           and lead scoring.
   •       Cloud based solution that helps companies
           • Expand lead flow
           • Increase sales effectiveness
           • Optimise sales and marketing investments
   •       >1,900 customers; 140% YOY growth
   •       New EMEA HQ to support growing European base



       #28 Most Promising      #1 Fastest Growing                   Marketing Solution          Best Marketing     Salesforce - Best
Page 2 Company in America   Private Silicon Valley Co.                  Winner                     Solution      Marketing Automation
© 2011 Marketo, Inc.                                     Marketo Proprietary and Confidential
The Changing Buyer

         INFO SCARCITY                                                     INFO ABUNDANCE




                       SALES REP                                          SALES REP




Page 3
© 2011 Marketo, Inc.               Marketo Proprietary and Confidential
Marketo’s Revenue Cycle




                                                                           MQL
              AWARENESS




                                                  Prospect &
                                                                                                 SAL
                          All Names




                                                   Recycled
                                        Engaged



                                                                                                          SQL




                                                                                             Sales
                                                                             Lead



                                                                                             Lead
                                                                                                       Opportunity   Customer




                                                               Nurturing
                                                               Database


                                      Marketing                                 SDR                    Sales


Page 4
© 2011 Marketo, Inc.                                      Marketo Proprietary and Confidential
The Five Horsemen of Opportunity
                               Spark                      Corporate Mid-Market Enterprise
                              Small-Biz                    10-100   101-1,500   1,500+

  % Marketing-Led             100%                             84%     80%        78%

          % Inbound            65%                             42%     31%        32%

          % Demand Gen         30%                             24%     23%        27%

          % Teleprospecting     0%                             12%     22%        12%

          % Referral            5%                               6%    3%         6%

  % Sales-Led                   0%                             16%     20%        22%
Page 5
© 2011 Marketo, Inc.            Marketo Proprietary and Confidential
Inbound, Content, and Social Marketing
Benefits of Content Marketing

                                            Risk Reduction
                                                                     SEO
                                                                 Social
                                                             Scoring


                  Blogs   Resource Center         Definitive Guides                Webinars   Video

Page 7
© 2011 Marketo, Inc.                        Marketo Proprietary and Confidential
Types of Content

                                            Early Stage
                                            Thought leadership and best
                                            practices to build brand and
                                            awareness


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


                                           Late Stage
                                           Company-specific information
                                           to help evaluate and reaffirm
                                           selection

Page 8
© 2011 Marketo, Inc.
                       Content must always be relevant and helpful
                                      Marketo Proprietary and Confidential
Forms: Ask only what you really need

  Short Form – (5 fields)
  Conv. Rate: 13.4%
  Cost: $31.24

  Medium Form – (7 fields)
  Conv. Rate: 12.0%
  Cost: $34.94

  Long Form – (9 fields)
  Conv. Rate: 10.0%
  Cost: $41.90




Page 9
© 2011 Marketo, Inc.         Marketo Proprietary and Confidential
Seed nurturing



                       Use “411” method
                       for nurturing Likes
Page 10
© 2011 Marketo, Inc.      Marketo Proprietary and Confidential
Demand Generation Pipeline
What Works in Demand Gen?




   Screenshots: Marketo Revenue Cycle Analytics, 12 months ending 10 May 2012
Page 12
© 2011 Marketo, Inc.                           Marketo Proprietary and Confidential
Marketo Prospect Generation 1H2011
                       Source   Prospects Invest- % Lead Velocity Opp Index
                                           ment 12 mo (Days)
                                                                   Lead to

   3rd Party Email Blast 19,039                     $43                     30%   147    0.2
   Trade Show            12,619                     $53                     29%   153    1.0
   Paid Social Media Ad 4,319                       $65                     30%   72     0.1
   Virtual Trade Show     4,120                     $40                     32%   213    1.6
   Paid Webinar           3,849                     $63                     36%   156    0.4
   Pay-Per-Click (PPC)    2,999                    $171                     48%   88     0.8
   Content Syndication    2,302                    $126                     40%   178    0.2
   AppExchange            1,306                     $26                     80%   26     0.9
   Website/Inbound        3,352                                             57%   75     2.8
   Referral / WOM          179                                              36%   158   10.9
   Sales Prospecting       440                                              28%   108    3.6
Page 13
© 2011 Marketo, Inc.                 Marketo Proprietary and Confidential
Automation Enables Scale
     40+ Programs a Month
                       Set and Use Tokens                                Integration




                                                                              25
    Clone                                                                   Best-
      to                                                                   Practice
    Reuse                                                                 Templates

Page 14
© 2011 Marketo, Inc.              Marketo Proprietary and Confidential
Middle of the Funnel
The Leaky Revenue Cycle




                                                                 Development
                                                                                             MQL
                                         Prospect &
                                                                                                     SAL
                   All Names




                                          Recycled
                               Engaged




                                                                    Lead
                                                                                                               SQL




                                                                    Gap




                                                                                                    Sales
                                                                                             Lead



                                                                                                    Lead
                                                                                                            Opportunity




Page 16
© 2011 Marketo, Inc.                                  Marketo Proprietary and Confidential
Lead Nurturing Plugs the Leak
                                                        Building relationships with qualified prospects
                                                        regardless of their timing to buy, with the goal
                                                        of earning their business when they are ready.



                                                                                             MQL
                                         Prospect &
                                                                                                     SAL
                   All Names




                                          Recycled
                               Engaged




                                                                                                               SQL
                                                           Lead




                                                                                                    Sales
                                                                                             Lead



                                                                                                    Lead
                                                                                                            Opportunity
                                                         Nurturing




                   “The art of maintaining permission to stay in front of
                        your buyers as they educate themselves”
Page 17
© 2011 Marketo, Inc.                                  Marketo Proprietary and Confidential
Lead Nurturing Relevance
                  Stages   1            2
                                                                                   1. BUYING STAGES
                                                                               3

                   A
                                                                          •        Early (Pre-MQL)
                                                                          •        Mid (MQL)
                                                                          •        Late (Opportunity)
                   B
                                                                          •        Customer
                       2. PERSONA
              •CMolly Marketer                                           DYNAMIC CONTENT
              • Sam Sales                                  •    Industry Wrappers
              •DJack Executive                             •    Size Specific Examples
                                                           •    Localization
                                                           •    Social Signatures
                                                           •    “What’s New”

                               Get The “Definitive Guide to Lead Nurturing”
                               http://bit.ly/DGtoLN
Page 18
© 2011 Marketo, Inc.                    Marketo Proprietary and Confidential
The Value of Lead Nurturing
        Marketo ROI Results
                              Fast Leads   Slow Leads Total Leads Cost / Lead
                              ( MQL <1 mo) (MQL >1 mo)  (MQL)       (MQL)
         Without
         Nurturing                20%                     6.67%                              26.67% $206.00
           With
         Nurturing                20%                     20.0%                              40.0%   $137.50
      Source: Actual Marketo data; assumes $55 per prospect




               Results: 50% more marketing qualified leads from lead nurturing

Page 19
© 2011 Marketo, Inc.                                  Marketo Proprietary and Confidential
Modeler




      Screenshot: Marketo Revenue Cycle Analytics
Page 20
© 2011 Marketo, Inc.                      Marketo Proprietary and Confidential
Lead scoring defined
              “Shared sales and marketing methodology for ranking
                leads in order to determine their sales readiness””




Page 21
© 2011 Marketo, Inc.               Marketo Proprietary and Confidential
What’s the Value of Lead Scoring?

          How Easy Is it To Get Information                                    Other Benefits of Fewer
           About Prioritizing Sales Efforts?                                   But Higher Quality Leads

                                                                  • Higher Win Rates
                                                                  • Shorter Sales Cycles
                                                                  • Higher Revenue Per Rep




      Source: CSO Insights

Page 22
© 2011 Marketo, Inc.                    Marketo Proprietary and Confidential
A Framework for Lead Scoring
                             Explicit                                          Inferred
                       What the prospect tells you                         What you observe or infer
                                                                          • Data quality
        Fit           • Demographics                                      • Data append
        Are you       • Firmographics                                     • Corporate vs. personal
        interested in
                      • BANT                                                email
        them?
                                                                          • Location
        Interest                                                          • Latent behaviors
        Are they                                                            (engagement)
                      • BANT
        interested in                                                     • Active behaviors (sales
        you?                                                                readiness)
                       Get The “Definitive Guide to Lead Scoring”
                       http://bit.ly/DGtoLS
Page 23
© 2011 Marketo, Inc.               Marketo Proprietary and Confidential
Interest Scoring - Examples


                                               •      Early stage content +3
                                               •      Attend webinar: +5
                                               •      Visit any webpage / blog : +1
                                               •      Visit careers pages: -10




                                                • Pricing pages:
                                                    • +10 regular, +15 detailed
                                                • Watch demos:
                                                    • +5 overview, +10 detailed
                                                • Mid-stage content +8
                                                • Late-stage content +12
                                                • Searches for “Marketo” +8
Page 24
© 2011 Marketo, Inc.   Marketo Proprietary and Confidential
Identifying Marketing Qualified Leads

                       Super-
                21+    Target
                                                            Lead        Lead    Lead

               9-20    Target                                           Lead    Lead
Fit




                 2-8   Other                                                    Lead

                  <2
Interest




                  Engagement    <20                      20-44          45-89   90+

                Buying Intent   <6                          6-12        13-18   19+

Page 25
© 2011 Marketo, Inc.             Marketo Proprietary and Confidential
Stars and Flames for Sales




Page 26
© 2011 Marketo, Inc.   Marketo Proprietary and Confidential
Proving — and Improving —
Marketing’s Impact on Revenue
Model the Full Revenue Cycle




      Screenshot: Marketo Revenue Cycle Analytics

Page 28
© 2011 Marketo, Inc.                      Marketo Proprietary and Confidential
Key topic areas:
                                       • Balance
                                       • Flow
                                       • Conversion
                                       • Velocity




                                                                                  Trends over time




                       Filter/Drill into
                       data, e.g. by                                   SLA violations
                       Program Type,
                       Business Unit,
                       Geography, etc.

Screenshot: Marketo Revenue Cycle Analytics
Page 29
© 2011 Marketo, Inc.                       Marketo Proprietary and Confidential
Marketo Revenue Cycle Metrics
                                          New Customers
                                             ($5,000)
                                                                                   • Lead to Sales Lead: 10%
                                                                                   • Sales Lead to Opp: 74%
                                                                                   • 1.4 people per Opp
                                            Opportunities                          1,000 Leads = 54 Opps
         Lead Type Variants                   200 / mo
         • Business Unit                      ($1,860)
         • Source
         • Channel                                 Leads
                                                3,700 / mo
                                                  ($101)
                                                                                4.5% / month      75%
           27,000 / mo
                                       19%
                    Paid
                  Names                                                      Active Prospect
                   ($14)         Prospects                                      Database
                                 6,500 / mo                                                    319K Total
                           24%
                 Unpaid             ($57)                  81%                                 55K Prospects
                 Names                                                               10%   Inactive
                  ($0)                                                                      (Last 6
                                                                                           Months)
Page 30
© 2011 Marketo, Inc.                  Marketo Proprietary and Confidential
Programs Effectiveness




                       First-touch allocation, multi-touch
                       allocation, investment, volume, etc

 Screenshot: Marketo Revenue Cycle Analytics
Page 31
© 2011 Marketo, Inc.                    Marketo Proprietary and Confidential
Track All Touches Across People




 Screenshot: Marketo Revenue Cycle Analytics
Page 32
© 2011 Marketo, Inc.                   Marketo Proprietary and Confidential
Key Takeaways
   1. Buying behaviour has changed forever; marketing and
      sales must change as well
   2. 80% of qualified prospects are not ready to buy when
      you meet them. Nurturing is critical.
   3. Use relevant content to help people find you
   4. Getting on the same page with sales, agreeing
      processes so no lead gets left behind
   5. Growing revenue by making sales more
      productive, scoring flags their best bets
   6. Measuring and analysing program effectiveness so you
      know where to reinvest
   7. Focusing on the entire revenue cycle, not just the top
      of the funnel
   8. Use forecasting to turn marketing from a cost center
      into a revenue driver
Page 33
© 2011 Marketo, Inc.                     Marketo Proprietary and Confidential
Additional Resources
                       The Definitive Guide to Lead Nurturing
                       http://bit.ly/DGtoLN


                       The Definitive Guide to Lead Scoring
                       http://bit.ly/DGtoLS


                       The Definitive Guide to Marketing Metrics & ROI
                       http://bit.ly/DG2MM



                       Personalized Benchmark on Email Marketing
                       http://www.marketo.com/benchmark

Page 34
© 2011 Marketo, Inc.           Marketo Proprietary and Confidential
Contact Me


                                                               Marketo EMEA Ltd.
                       LIZ SMYTH                               Cairn House
                       Director Marketing                      South County Business Park
                       lizs@marketo.com                        Leopardstown,
                                                               Dublin 18, Ireland
                       @lizsmyth

                                                               Direct: +353.1.242.3000
                                                               blog.marketo.com
                                                               www.marketo.com




Page 35
© 2011 Marketo, Inc.                    Marketo Proprietary and Confidential

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Marketing automation for nurturing, scoring and delivering leads - Marketo

  • 1. Marketo Secret Sauce for Revenue Growth Liz Smyth Director Marketing EMEA © 2011 Marketo, Inc.
  • 2. Meet Marketo • Powerful yet easy marketing automation, lead nurturing and lead scoring. • Cloud based solution that helps companies • Expand lead flow • Increase sales effectiveness • Optimise sales and marketing investments • >1,900 customers; 140% YOY growth • New EMEA HQ to support growing European base #28 Most Promising #1 Fastest Growing Marketing Solution Best Marketing Salesforce - Best Page 2 Company in America Private Silicon Valley Co. Winner Solution Marketing Automation © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 3. The Changing Buyer INFO SCARCITY INFO ABUNDANCE SALES REP SALES REP Page 3 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 4. Marketo’s Revenue Cycle MQL AWARENESS Prospect & SAL All Names Recycled Engaged SQL Sales Lead Lead Opportunity Customer Nurturing Database Marketing SDR Sales Page 4 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 5. The Five Horsemen of Opportunity Spark Corporate Mid-Market Enterprise Small-Biz 10-100 101-1,500 1,500+ % Marketing-Led 100% 84% 80% 78% % Inbound 65% 42% 31% 32% % Demand Gen 30% 24% 23% 27% % Teleprospecting 0% 12% 22% 12% % Referral 5% 6% 3% 6% % Sales-Led 0% 16% 20% 22% Page 5 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 6. Inbound, Content, and Social Marketing
  • 7. Benefits of Content Marketing Risk Reduction SEO Social Scoring Blogs Resource Center Definitive Guides Webinars Video Page 7 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 8. Types of Content Early Stage Thought leadership and best practices to build brand and awareness Middle Stage Buyers guides, RFP templates and industry information to help structure research Late Stage Company-specific information to help evaluate and reaffirm selection Page 8 © 2011 Marketo, Inc. Content must always be relevant and helpful Marketo Proprietary and Confidential
  • 9. Forms: Ask only what you really need Short Form – (5 fields) Conv. Rate: 13.4% Cost: $31.24 Medium Form – (7 fields) Conv. Rate: 12.0% Cost: $34.94 Long Form – (9 fields) Conv. Rate: 10.0% Cost: $41.90 Page 9 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 10. Seed nurturing Use “411” method for nurturing Likes Page 10 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 12. What Works in Demand Gen? Screenshots: Marketo Revenue Cycle Analytics, 12 months ending 10 May 2012 Page 12 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 13. Marketo Prospect Generation 1H2011 Source Prospects Invest- % Lead Velocity Opp Index ment 12 mo (Days) Lead to 3rd Party Email Blast 19,039 $43 30% 147 0.2 Trade Show 12,619 $53 29% 153 1.0 Paid Social Media Ad 4,319 $65 30% 72 0.1 Virtual Trade Show 4,120 $40 32% 213 1.6 Paid Webinar 3,849 $63 36% 156 0.4 Pay-Per-Click (PPC) 2,999 $171 48% 88 0.8 Content Syndication 2,302 $126 40% 178 0.2 AppExchange 1,306 $26 80% 26 0.9 Website/Inbound 3,352 57% 75 2.8 Referral / WOM 179 36% 158 10.9 Sales Prospecting 440 28% 108 3.6 Page 13 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 14. Automation Enables Scale 40+ Programs a Month Set and Use Tokens Integration 25 Clone Best- to Practice Reuse Templates Page 14 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 15. Middle of the Funnel
  • 16. The Leaky Revenue Cycle Development MQL Prospect & SAL All Names Recycled Engaged Lead SQL Gap Sales Lead Lead Opportunity Page 16 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 17. Lead Nurturing Plugs the Leak Building relationships with qualified prospects regardless of their timing to buy, with the goal of earning their business when they are ready. MQL Prospect & SAL All Names Recycled Engaged SQL Lead Sales Lead Lead Opportunity Nurturing “The art of maintaining permission to stay in front of your buyers as they educate themselves” Page 17 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 18. Lead Nurturing Relevance Stages 1 2 1. BUYING STAGES 3 A • Early (Pre-MQL) • Mid (MQL) • Late (Opportunity) B • Customer 2. PERSONA •CMolly Marketer DYNAMIC CONTENT • Sam Sales • Industry Wrappers •DJack Executive • Size Specific Examples • Localization • Social Signatures • “What’s New” Get The “Definitive Guide to Lead Nurturing” http://bit.ly/DGtoLN Page 18 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 19. The Value of Lead Nurturing Marketo ROI Results Fast Leads Slow Leads Total Leads Cost / Lead ( MQL <1 mo) (MQL >1 mo) (MQL) (MQL) Without Nurturing 20% 6.67% 26.67% $206.00 With Nurturing 20% 20.0% 40.0% $137.50 Source: Actual Marketo data; assumes $55 per prospect Results: 50% more marketing qualified leads from lead nurturing Page 19 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 20. Modeler Screenshot: Marketo Revenue Cycle Analytics Page 20 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 21. Lead scoring defined “Shared sales and marketing methodology for ranking leads in order to determine their sales readiness”” Page 21 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 22. What’s the Value of Lead Scoring? How Easy Is it To Get Information Other Benefits of Fewer About Prioritizing Sales Efforts? But Higher Quality Leads • Higher Win Rates • Shorter Sales Cycles • Higher Revenue Per Rep Source: CSO Insights Page 22 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 23. A Framework for Lead Scoring Explicit Inferred What the prospect tells you What you observe or infer • Data quality Fit • Demographics • Data append Are you • Firmographics • Corporate vs. personal interested in • BANT email them? • Location Interest • Latent behaviors Are they (engagement) • BANT interested in • Active behaviors (sales you? readiness) Get The “Definitive Guide to Lead Scoring” http://bit.ly/DGtoLS Page 23 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 24. Interest Scoring - Examples • Early stage content +3 • Attend webinar: +5 • Visit any webpage / blog : +1 • Visit careers pages: -10 • Pricing pages: • +10 regular, +15 detailed • Watch demos: • +5 overview, +10 detailed • Mid-stage content +8 • Late-stage content +12 • Searches for “Marketo” +8 Page 24 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 25. Identifying Marketing Qualified Leads Super- 21+ Target Lead Lead Lead 9-20 Target Lead Lead Fit 2-8 Other Lead <2 Interest Engagement <20 20-44 45-89 90+ Buying Intent <6 6-12 13-18 19+ Page 25 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 26. Stars and Flames for Sales Page 26 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 27. Proving — and Improving — Marketing’s Impact on Revenue
  • 28. Model the Full Revenue Cycle Screenshot: Marketo Revenue Cycle Analytics Page 28 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 29. Key topic areas: • Balance • Flow • Conversion • Velocity Trends over time Filter/Drill into data, e.g. by SLA violations Program Type, Business Unit, Geography, etc. Screenshot: Marketo Revenue Cycle Analytics Page 29 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 30. Marketo Revenue Cycle Metrics New Customers ($5,000) • Lead to Sales Lead: 10% • Sales Lead to Opp: 74% • 1.4 people per Opp Opportunities 1,000 Leads = 54 Opps Lead Type Variants 200 / mo • Business Unit ($1,860) • Source • Channel Leads 3,700 / mo ($101) 4.5% / month 75% 27,000 / mo 19% Paid Names Active Prospect ($14) Prospects Database 6,500 / mo 319K Total 24% Unpaid ($57) 81% 55K Prospects Names 10% Inactive ($0) (Last 6 Months) Page 30 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 31. Programs Effectiveness First-touch allocation, multi-touch allocation, investment, volume, etc Screenshot: Marketo Revenue Cycle Analytics Page 31 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 32. Track All Touches Across People Screenshot: Marketo Revenue Cycle Analytics Page 32 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 33. Key Takeaways 1. Buying behaviour has changed forever; marketing and sales must change as well 2. 80% of qualified prospects are not ready to buy when you meet them. Nurturing is critical. 3. Use relevant content to help people find you 4. Getting on the same page with sales, agreeing processes so no lead gets left behind 5. Growing revenue by making sales more productive, scoring flags their best bets 6. Measuring and analysing program effectiveness so you know where to reinvest 7. Focusing on the entire revenue cycle, not just the top of the funnel 8. Use forecasting to turn marketing from a cost center into a revenue driver Page 33 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 34. Additional Resources The Definitive Guide to Lead Nurturing http://bit.ly/DGtoLN The Definitive Guide to Lead Scoring http://bit.ly/DGtoLS The Definitive Guide to Marketing Metrics & ROI http://bit.ly/DG2MM Personalized Benchmark on Email Marketing http://www.marketo.com/benchmark Page 34 © 2011 Marketo, Inc. Marketo Proprietary and Confidential
  • 35. Contact Me Marketo EMEA Ltd. LIZ SMYTH Cairn House Director Marketing South County Business Park lizs@marketo.com Leopardstown, Dublin 18, Ireland @lizsmyth Direct: +353.1.242.3000 blog.marketo.com www.marketo.com Page 35 © 2011 Marketo, Inc. Marketo Proprietary and Confidential

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