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Principles of a Modern Marketing Team
Rob Israch, Vice President, Global Marketing Programs, NetSuite
.
Today’s Agenda
© NetSuite Inc. 2013 Confidential 2
NetSuite
Situational
Overview
NetSuite
Marketing
Program
Strengths
Future of
NetSuite
Marketing
1
2
3
NetSuite: World’s #1 Cloud ERP
Background
!   Publicly traded on NYSE: “N”
!   2400+ employees
!   $414.5M revenue in FY13
!   $123M revenue in Q1 FY14
Performance
!   World’s leading cloud business
management system
!   Used by 20,000+ organizations
!   Fastest growing top 10 FMS WW
!   Used across 100+ countries
#1 Cloud ERP Suite
© NetSuite Inc. 2014
Our Marketing Challenge
Must Outpace & Out Move Competition
•  Purchase is strategic,
risky decision
•  Multi-department
support needed
•  Requires CEO, CFO
sign off
•  Large incumbent
competitors,
deep pockets
•  Diverse target market
•  Small & growing, midsized,
large businesses
•  Solutions: One system,
financials, ecommerce, CRM
•  Smaller marketing
team compared to
peers
NetSuite Does Growth
© NetSuite Inc. 2013 Confidential 5
41.7%
5.2%
0.90%
-1.50% -4%
NetSuite Microsoft Sage SAP Oracle
Market Share Growth
Fastest Growing Financial
Management System Vendor
– 5 years running
(Gartner)
Revenue Growth
Share of Cloud Unicorns
(companies with >$1B in valuation)
35% YoY
Accelerating growth rate, YoY
15 out of 16
Next cloud unicorns are NetSuite customers
Bessemer Venture Partners, June 2014
NetSuite Marketing’s Contribution to Success
© NetSuite 2014
6
Marketing inputs built in to annual revenue forecast model
% of New Revenue from Marketing Leads
66%
42%
SaaSPeers
NetSuite
Sirius Decisions evaluation:
NetSuite contribution to sales 50%
+ higher than SaaS peers
Where We Stand Out
7
Sales-Marketing Alignment
Science -
based
Approach
Intent -
based
Marketing
Focus
Speed &
Agility
Where We Stand Out
8
Sales-Marketing Alignment
Science -
based
Approach
Intent -
based
Marketing
Focus
Speed &
Agility
1
Operating with Speed and Agility
•  Build a machine
–  Build the foundation you can add levels
on top of
–  Look for repeatability and scalability
–  Use technology to accelerate progress
•  Force rank all decisions:
–  Must make trade-offs
–  Double-down on top performers
Publisher ROI - New
Leads
ROI - New
+ Nurtured
Cost per
Prospect
Lead to
Prospect
Rate
AAA 11.8 15.3 $4,282 0.9%
BBB 6.0 6.0 $2,380 37.5%
CCC 5.3 5.3 $7,750 5.9%
DDD 5.1 7.5 $4,333 2.4%
EEE 4.0 7.2 $2,061 7.6%
FFF 3.8 7.7 $6,038 3.1%
GGG 3.4 3.4 $6,071 3.2%
HHH 3.4 4.6 $1,642 5.3%
III 3.3 3.3 $11,250 13.3%
JJJ 3.0 4.9 $3,678 1.3%
KKK 3.0 7.2 $21,813 7.0%
LLL 2.9 2.9 $2,828 6.6%
MMM 2.3 2.6 $8,100 0.6%
NNN 2.0 3.2 $6,775 2.9%
OOO 1.4 NA NA 2%
PPP 1.2 NA NA 4%
QQQ 1.4 1.4 $5,357 9.6%
RRR 1.0 1.0 $13,066 7.5%
SSS 0.0 19.1 $9,600 0.9%
TTT 0.0 10.8 $11,055 0.5%
UUU 0.0 7.6 $3,750 16.7%
VVV 0.0 5.2 $3,714 2.5%
WWW 0.5 2.4 $28,330 0.4%
•  Test and learn
–  Failure is success: Fail fast, learn fast
–  Constant optimization
–  Change course when data shows plans
not working
•  Build culture of ownership, accountability, and
specialization
Test BuildOptimize
Marketing Agility Values
 Speed
 Data
 What works
 Jazz
 Customer Centric
 Talent: Drive & Curiosity
 Perfection
 Intuition
 What’s cool
 Symphony
 Integrated
 Talent: Experience
Vs
Homepage A/B Test
© NetSuite Inc. 2014 Confidential 11
Experience A (Default) Experience B (New)
10.48%
Increase in
Click
Through
Rate
16.35%
Increase in
Conversion
Rate
Where We Stand Out
12
Sales-Marketing Alignment
Science -
based
Approach
Intent -
based
Marketing
Focus
Speed &
Agility
2
Finding intent > target market match •  70% of our leads and revenue intent-based
•  Identify and maximize intent-based sources
•  Optimize: landing page, web site, and program optimization
•  Nurture leads to sale with educational content
•  80 / 20 rule:
•  80%: Optimize and max out top ROI performers
•  20%: Constantly identify and test growth areas
•  Forecast points of diminishing returns and plant seeds for future
growth
Intent-Based Marketing Approach
26%
24%21%
11%
19%
56%
18%
18%
8%
40%
35%
23%
1%
Original lead source Lead-to-prospect Prospect-to-customer
Channel*
attribution across
the funnel
(2013)
*Channels include keyword paid, natural, online comparison tools, referrals, email, webinars, events, etc.
X months Y months
SEO Performance
SEO Content Marketing
Where We Stand Out
16
Sales-Marketing Alignment
Science -
based
Approach
Intent -
based
Marketing
Focus
Speed &
Agility
3
Science-Based Marketing
§  Let data be your guide
§  Apply data to inform your entire marketing
strategy
§  Measure on true marketing ROI and invest
based on data
§  ROI > Quality
§  Use balanced scorecard approach
§  Communicate learnings to influence
organizational change
Marketing Reports We Use
Timing of
reports
Type of reports
Real time
Dashboards
and KPIs
•  New vs nurtured leads
•  By region, product, employee size, program
Prospects, customer conversion
In–system
reports
•  Lead category, source count by segments
•  Revenue by source by segments
Monthly Detailed
Marketing
Performance
•  New, nurtured leads by source, employee
size, sales team, industry, region, prospect,
customer, etc
Quarterly •  ROI campaign performance reporting
•  ROI reporting for all paid programs
•  ROI by paid keyword reporting
Full-funnel View
Optimize with Program Revenue Contribution
Measure All Programs Down to ROI
§  Measure and prioritize marketing program investments
§  Identify opportunities to expand and which programs to cut and optimize
§  Use balanced scorecard approach
Publisher ROI - New
Leads
ROI - New +
Nurtured
Leads
Cost per
Prospect
Lead to
Prospect
Lead to
Customer
TOP
AAA 40.4 40.4 $49,500 2.9% 2.9%
BBB 10.1 10.1 $2,679 9.4% 1.9%
AVE
DDD 0.2 0.2 $145,000 33.3% 33.3%
EEE 0.0 0.0 $169 7.7% -­‐
FFF 0.0 0.0 $3,300 5.0% -­‐
POOR
KKK 0.0 0.0 - 0.0% -­‐
LLL 0.0 0.0 - 0.0% -­‐
MMM 0.0 0.0 - 0.0% -­‐
OOO 0.0 0.0 - 0.0% -­‐
Data Impacts Far More Than Program Optimization
Segment
Lead to
Customer
Conversion
Opportunity
Count
Customer
Count
Target
Universe
Universe
Penetration
Rate
Reference
Customers Satisfaction
AAA 1.0% 92 15 73,944 0.04% 8 8.1
BBB 0.6% 69 12 42,956 0.14% 8 8.3
CCC 0.6% 17 6 51,177 0.11% 3 6.7
DDD 1.5% 59 9 7,558 0.16% 1 7.0
EEE 1.2% 31 5 16,415 0.07% 1 7.4
Prioritize
segments
and targets
Understanding
demand and
customer language
Improve
messaging
Improve web
site performance
Pitfalls of Data
1 You don’t always have
ROI
§  Look for predictors of sale (cost per
opportunity, lead to prospect
conversion, etc)
§  Use balanced scorecard approach
2 Paralysis analysis §  Value of data is directional: look for
patterns to find meaning
§  Some decision better than no decision
>> No deer in headlights
3 Data is only focused
on past, leaves no
room for creativity
§  Data provides focus for creativity to
leap off of. Testing validates best
creative approaches
§  Forecast points of diminishing returns
and clues to next growth channels
§  Use predictive modeling approaches
Data Highlights Future Opportunities
Early Funnel
Sources Not
Significant
Contributor to
Revenue
26%
24%21%
11%
19%
56%
18%
18%
8%
40%
35%
23%
1%
Original lead source Lead-to-prospect Prospect-to-customer
Channel*
attribution across
the funnel
(2013)
X months Y months
ERP Buying Experience
© NetSuite Inc. 2013 Confidential 24
NetSuite	
  Confiden.al	
  	
  
NetSuite	
  Confiden.al	
  	
  
Buyer
Stage
Status	
  Quo	
  	
  
Understand	
  
Requirements/	
  
Op5ons	
  
Engage	
  Vendor(s)	
  
Iden5fy	
  Problem/
Opportunity	
  
Make	
  Decision/
Purchase	
  
Key
Question
How do I manage
basic finance
operations?
How do I support
growth triggers/
scenarios?
How are my peers
addressing similar
challenges?
Which vendor solves
my problems easily
and quickly?
Will the exec team
(CFO) buy into this
vendor?
Next Step
Requirement
Potential
Roadblock
NetSuite	
  Confiden.al	
  	
   NetSuite	
  Confiden.al	
  	
   NetSuite	
  Confiden.al	
  	
   NetSuite	
  Confiden.al	
  	
  
NetSuite	
  Confiden.al	
  	
   NetSuite	
  Confiden.al	
  	
   NetSuite	
  Confiden.al	
  	
   NetSuite	
  Confiden.al	
  	
   NetSuite	
  Confiden.al	
  	
  
Buyer
Activity
NetSuite	
  Confiden.al	
  	
  
	
  
NetSuite	
  Confiden.al	
  	
  
	
  
NetSuite	
  Confiden.al	
  	
  
NetSuite	
  Confiden.al	
  	
  

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Principles of Modern Marketing at NetSuite - Rob Israch (TOPO Demand Generation Council Event)

  • 1. Principles of a Modern Marketing Team Rob Israch, Vice President, Global Marketing Programs, NetSuite .
  • 2. Today’s Agenda © NetSuite Inc. 2013 Confidential 2 NetSuite Situational Overview NetSuite Marketing Program Strengths Future of NetSuite Marketing 1 2 3
  • 3. NetSuite: World’s #1 Cloud ERP Background !   Publicly traded on NYSE: “N” !   2400+ employees !   $414.5M revenue in FY13 !   $123M revenue in Q1 FY14 Performance !   World’s leading cloud business management system !   Used by 20,000+ organizations !   Fastest growing top 10 FMS WW !   Used across 100+ countries #1 Cloud ERP Suite © NetSuite Inc. 2014
  • 4. Our Marketing Challenge Must Outpace & Out Move Competition •  Purchase is strategic, risky decision •  Multi-department support needed •  Requires CEO, CFO sign off •  Large incumbent competitors, deep pockets •  Diverse target market •  Small & growing, midsized, large businesses •  Solutions: One system, financials, ecommerce, CRM •  Smaller marketing team compared to peers
  • 5. NetSuite Does Growth © NetSuite Inc. 2013 Confidential 5 41.7% 5.2% 0.90% -1.50% -4% NetSuite Microsoft Sage SAP Oracle Market Share Growth Fastest Growing Financial Management System Vendor – 5 years running (Gartner) Revenue Growth Share of Cloud Unicorns (companies with >$1B in valuation) 35% YoY Accelerating growth rate, YoY 15 out of 16 Next cloud unicorns are NetSuite customers Bessemer Venture Partners, June 2014
  • 6. NetSuite Marketing’s Contribution to Success © NetSuite 2014 6 Marketing inputs built in to annual revenue forecast model % of New Revenue from Marketing Leads 66% 42% SaaSPeers NetSuite Sirius Decisions evaluation: NetSuite contribution to sales 50% + higher than SaaS peers
  • 7. Where We Stand Out 7 Sales-Marketing Alignment Science - based Approach Intent - based Marketing Focus Speed & Agility
  • 8. Where We Stand Out 8 Sales-Marketing Alignment Science - based Approach Intent - based Marketing Focus Speed & Agility 1
  • 9. Operating with Speed and Agility •  Build a machine –  Build the foundation you can add levels on top of –  Look for repeatability and scalability –  Use technology to accelerate progress •  Force rank all decisions: –  Must make trade-offs –  Double-down on top performers Publisher ROI - New Leads ROI - New + Nurtured Cost per Prospect Lead to Prospect Rate AAA 11.8 15.3 $4,282 0.9% BBB 6.0 6.0 $2,380 37.5% CCC 5.3 5.3 $7,750 5.9% DDD 5.1 7.5 $4,333 2.4% EEE 4.0 7.2 $2,061 7.6% FFF 3.8 7.7 $6,038 3.1% GGG 3.4 3.4 $6,071 3.2% HHH 3.4 4.6 $1,642 5.3% III 3.3 3.3 $11,250 13.3% JJJ 3.0 4.9 $3,678 1.3% KKK 3.0 7.2 $21,813 7.0% LLL 2.9 2.9 $2,828 6.6% MMM 2.3 2.6 $8,100 0.6% NNN 2.0 3.2 $6,775 2.9% OOO 1.4 NA NA 2% PPP 1.2 NA NA 4% QQQ 1.4 1.4 $5,357 9.6% RRR 1.0 1.0 $13,066 7.5% SSS 0.0 19.1 $9,600 0.9% TTT 0.0 10.8 $11,055 0.5% UUU 0.0 7.6 $3,750 16.7% VVV 0.0 5.2 $3,714 2.5% WWW 0.5 2.4 $28,330 0.4% •  Test and learn –  Failure is success: Fail fast, learn fast –  Constant optimization –  Change course when data shows plans not working •  Build culture of ownership, accountability, and specialization Test BuildOptimize
  • 10. Marketing Agility Values  Speed  Data  What works  Jazz  Customer Centric  Talent: Drive & Curiosity  Perfection  Intuition  What’s cool  Symphony  Integrated  Talent: Experience Vs
  • 11. Homepage A/B Test © NetSuite Inc. 2014 Confidential 11 Experience A (Default) Experience B (New) 10.48% Increase in Click Through Rate 16.35% Increase in Conversion Rate
  • 12. Where We Stand Out 12 Sales-Marketing Alignment Science - based Approach Intent - based Marketing Focus Speed & Agility 2
  • 13. Finding intent > target market match •  70% of our leads and revenue intent-based •  Identify and maximize intent-based sources •  Optimize: landing page, web site, and program optimization •  Nurture leads to sale with educational content •  80 / 20 rule: •  80%: Optimize and max out top ROI performers •  20%: Constantly identify and test growth areas •  Forecast points of diminishing returns and plant seeds for future growth Intent-Based Marketing Approach 26% 24%21% 11% 19% 56% 18% 18% 8% 40% 35% 23% 1% Original lead source Lead-to-prospect Prospect-to-customer Channel* attribution across the funnel (2013) *Channels include keyword paid, natural, online comparison tools, referrals, email, webinars, events, etc. X months Y months
  • 16. Where We Stand Out 16 Sales-Marketing Alignment Science - based Approach Intent - based Marketing Focus Speed & Agility 3
  • 17. Science-Based Marketing §  Let data be your guide §  Apply data to inform your entire marketing strategy §  Measure on true marketing ROI and invest based on data §  ROI > Quality §  Use balanced scorecard approach §  Communicate learnings to influence organizational change
  • 18. Marketing Reports We Use Timing of reports Type of reports Real time Dashboards and KPIs •  New vs nurtured leads •  By region, product, employee size, program Prospects, customer conversion In–system reports •  Lead category, source count by segments •  Revenue by source by segments Monthly Detailed Marketing Performance •  New, nurtured leads by source, employee size, sales team, industry, region, prospect, customer, etc Quarterly •  ROI campaign performance reporting •  ROI reporting for all paid programs •  ROI by paid keyword reporting Full-funnel View
  • 19. Optimize with Program Revenue Contribution
  • 20. Measure All Programs Down to ROI §  Measure and prioritize marketing program investments §  Identify opportunities to expand and which programs to cut and optimize §  Use balanced scorecard approach Publisher ROI - New Leads ROI - New + Nurtured Leads Cost per Prospect Lead to Prospect Lead to Customer TOP AAA 40.4 40.4 $49,500 2.9% 2.9% BBB 10.1 10.1 $2,679 9.4% 1.9% AVE DDD 0.2 0.2 $145,000 33.3% 33.3% EEE 0.0 0.0 $169 7.7% -­‐ FFF 0.0 0.0 $3,300 5.0% -­‐ POOR KKK 0.0 0.0 - 0.0% -­‐ LLL 0.0 0.0 - 0.0% -­‐ MMM 0.0 0.0 - 0.0% -­‐ OOO 0.0 0.0 - 0.0% -­‐
  • 21. Data Impacts Far More Than Program Optimization Segment Lead to Customer Conversion Opportunity Count Customer Count Target Universe Universe Penetration Rate Reference Customers Satisfaction AAA 1.0% 92 15 73,944 0.04% 8 8.1 BBB 0.6% 69 12 42,956 0.14% 8 8.3 CCC 0.6% 17 6 51,177 0.11% 3 6.7 DDD 1.5% 59 9 7,558 0.16% 1 7.0 EEE 1.2% 31 5 16,415 0.07% 1 7.4 Prioritize segments and targets Understanding demand and customer language Improve messaging Improve web site performance
  • 22. Pitfalls of Data 1 You don’t always have ROI §  Look for predictors of sale (cost per opportunity, lead to prospect conversion, etc) §  Use balanced scorecard approach 2 Paralysis analysis §  Value of data is directional: look for patterns to find meaning §  Some decision better than no decision >> No deer in headlights 3 Data is only focused on past, leaves no room for creativity §  Data provides focus for creativity to leap off of. Testing validates best creative approaches §  Forecast points of diminishing returns and clues to next growth channels §  Use predictive modeling approaches
  • 23. Data Highlights Future Opportunities Early Funnel Sources Not Significant Contributor to Revenue 26% 24%21% 11% 19% 56% 18% 18% 8% 40% 35% 23% 1% Original lead source Lead-to-prospect Prospect-to-customer Channel* attribution across the funnel (2013) X months Y months
  • 24. ERP Buying Experience © NetSuite Inc. 2013 Confidential 24 NetSuite  Confiden.al     NetSuite  Confiden.al     Buyer Stage Status  Quo     Understand   Requirements/   Op5ons   Engage  Vendor(s)   Iden5fy  Problem/ Opportunity   Make  Decision/ Purchase   Key Question How do I manage basic finance operations? How do I support growth triggers/ scenarios? How are my peers addressing similar challenges? Which vendor solves my problems easily and quickly? Will the exec team (CFO) buy into this vendor? Next Step Requirement Potential Roadblock NetSuite  Confiden.al     NetSuite  Confiden.al     NetSuite  Confiden.al     NetSuite  Confiden.al     NetSuite  Confiden.al     NetSuite  Confiden.al     NetSuite  Confiden.al     NetSuite  Confiden.al     NetSuite  Confiden.al     Buyer Activity NetSuite  Confiden.al       NetSuite  Confiden.al       NetSuite  Confiden.al     NetSuite  Confiden.al