Just going through my files...2011 Dreamforce with Bill Binch and Jamie Mallinger on RPM. Great stuff.

1. 8 Ways to Establish Integrated Sales & Marketing
and Improve Sales Operations
Jamie Mallinger– VP Marketing and Growth Operations, Athenahealth
Craig Rosenberg – VP Focus Expert Network, Focus.com
Bill Binch – SVP Sales, Marketo
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2. Buying has Changed Forever
OLD NEW
BUYER
SALES REP SALES REP
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

3. The current sales and marketing model is
at best obsolete
15
94%
52%
60%
Year low onrate their Lead
Sales reps sales
Marketing DO NOT
Companiesqualified leads
productivityassales goals
Generationclose
will never
achieve their subpar
- Chief Sales Office,Sales Strategy Analysis
- CSO Insights 2010 Insights Study
SiriusDecisions
At worst it’s totally dysfunctional.
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

4. Incite a Revenue Revolution!
Production Logistics Revenue
1980s 1990s Today
Six Sigma Supply Chain Revenue Performance
Management Management
(Sales and Marketing
Alignment)
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

5. Revenue Performance Management
Align Marketing and Sales to Adapt to New Buyer
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

6. The 8 Levers
1. Lead Nurturing
Relationships Matter 5. Right Metrics
An Operating and
Communications Framework
2. Lead Scoring
Not all Leads are Created Equal 6. Revenue Metrics & Operations
Single View of Revenue Cycle
3. Sales Insights
Don’t Aim in the Dark 7. Provide ROI of Marketing
Highest Increment ROI
4. Opportunity Forecasting
Leading Indicator to Pipeline 8. The Modern Revenue Organization
Team Dynamics and Compensation
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

7. Lead Nurturing
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8. Why Lead Nurturing: Stay in Touch
Building relationships with qualified prospects
regardless of their timing to buy, with the goal of
earning their business when they are ready.
“The art of maintaining permission to stay in front
of your buyers as they educate themselves”
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

9. Lead Nurturing Relevance
1. BUYING STAGES
Stages 1 2 3
• Early (Pre-MQL)
A • Mid (MQL)
• Late (Opportunity)
B
• Customer
C
2. BUYING PROFILES
D
• Industry: 82%
• Role: 67%
• Company Size: 49%
• Geography: 29%
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

10. Lead Scoring
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11. Lead Scoring – Not all leads are created equal
The ROI of Lead Scoring
The Impact of Lead Scoring Other Benefits of Fewer
But Higher Quality Leads
• Higher Win Rates
• Shorter Sales Cycles
• Higher Revenue Per Rep
Source: CSO Insights
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

12. A Framework for Lead Scoring
Explicit Inferred
What the What you
prospect tells you observe or infer
• Demographics • Data quality
Fit • Firmographics • Corporate vs. personal email
Are you interested in
them? • Budget, Authority, • Inferred from IP (geography,
Need, Timeframe ISP domain)
• Budget, Authority, • Latent behaviors
Interest Need, Timeframe (engagement)
Are they interested • Active behaviors (sales
in you? readiness)
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

13. Interest Scoring - Examples
Latent Behaviors
(Engagement)
• Early stage content +3
• Attend webinar: +5
• Visit any webpage / blog : +1
• Visit careers pages: -10
Active Behaviors
(Buying Intent)
• Pricing pages:
• +10 regular, +15 detailed
• Watch demos:
• +5 overview, +10 detailed
• Mid-stage content +8
• Late-stage content +12
• Searches for “Marketo” +8
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

14. Sales Insights
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15. Sales Insights into Buyers
Prospect #1 Prospect #2
Senior Manager, High tech company Senior Manager, High tech company
Lead score 63 Lead score 68
 Viewed an online demo  Download your ‘best
 Went to pricing page yesterday practices’ white paper – 4
 Downloads your ‘social’ weeks ago
datasheet yesterday  Visited only the web page
 Tweets a question about your discussing Analytic
product capabilities
Should sales reps have the same initial discussion?
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

16. Sales Insight into Impact of Marketing Activity
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

17. Opportunity Forecasting
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18. Sales ‘Only’ Forecasting has Limited Visibility into Future
Typical Sales Forecast
? Put simply, the
?
shorter the sales
cycle the less
visibility the CSO
has into future
performance.
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

19. Trended Lead  Opportunity  Customer Forecasting
Plan Forecast Actual
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

20. Long Term ‘Opportunity’ Forecasting by Having
Visibility into Early Stage
Lead Sales Lead Opportunity Customer
20% 5% 50%
Marketing is uniquely able
to make these forecasts
because marketing has
visibility into the the early
stages of the revenue cycle.
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

21. Right Metrics
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22. Where Metrics Go Wrong
Vanity Metrics
Sound good and impress
people, but don’t measure
impact on revenue or
profitability
Activity Metrics
Measure what you do
instead of what results
and impact you have
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

23. The Right Metrics
Sales Metrics Deal and opportunities
Aggregate impact on company
Revenue Metrics
revenue
Marketing
Incremental contribution and ROI of
Program
individual marketing programs
Performance
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

24. Revenue Operations
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25. Key Idea: Model the Revenue Cycle
MQL
AWARENESS
SAL
Prospect &
All Names
Recycled
SQL
Engaged
Sales
Lead
Lead
Opportunity Customer
Nurturing
Database
Marketing SDR Sales
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

26. The Single Most Important Metric
Revenue Engine
Effectiveness
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

27. 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?
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

28. Prove Marketing ROI
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29. CEOs Give a Low Grade to Marketing
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

30. What Profits Can Be Generated With 10% More
Budget?
Improve profits by
12% more than 20%
Improve profits by
10% to 20%
44% 20% Improve profits up
to 10%
No major change in
15% profits generated
Don't Know
9%
#1 Answer:
Don’t Know
Source: 2010 Lenskold Group / eMedia Lead Generation Marketing ROI Study
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

31. Building the ROI for Marketing
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

32. The Modern Revenue Organization
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33. 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, 90% Sales
Alliances, Operations
High stock compensation, High cash compensation,
MBO + company performance commissions
Repeatable process and Meeting target for this quarter
predictable outcomes
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

34. Career progression to Chief Revenue Officer
COO
VP of Sales
Operations
VP of Sales
Chief Revenue
Officer
CMO
VP of Marketing
General
Manager
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

35. The 8 Takeaways
1. Lead Nurturing
Relationships Matter 5. Right Metrics
An Operating and
Communications Framework
2. Lead Scoring
Not all Leads are Created Equal 6. Revenue Metrics & Operations
Single View of Revenue Cycle
3. Sales Insights
Don’t Aim in the Dark 7. Provide ROI of Marketing
Highest Increment ROI
4. Opportunity Forecasting
Leading Indicator to Pipeline 8. The Modern Revenue Organization
Team Dynamics and Compensation
© 2011
#RevEngine Marketo, Inc. Marketo Proprietary and Confidential

36. 8 Ways to Establish Integrated Sales &
Marketing and Improve Sales Operations
Get this presentation: SMS your email to +1.650.262.0099
#RevEngine