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The Total Economic Impact of Marketo Engage

Marketo
Marketo
MarketoField Marketing Manager EMEA at Marketo um Marketo

In this webinar, you'll hear from a top marketing analyst on how the world of marketing is changing and why investment is crucial. Next, we’ll share the results of a recent ROI study commissioned by Adobe and conducted by Forrester Consulting, an independent research firm. This study quantifies the value of Marketo Engage, based on interviews with real customers. Finally, you'll hear from a Marketo Engage customer to hear her personal story of driving martech investments, transformation and value at her company.

The Total Economic Impact of Marketo Engage

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©2020 Adobe. All Rights Reserved. Adobe Confidential.
TheTotal Economic Impact
of Marketo Engage
Copyright © 2020 Adobe. All Rights Reserved.
Lori Wizdo
VP & Principal
Analyst
Forrester
Making the Martech Business Case
Jennifer Adams
Senior Consultant
Forrester
Lauren Andrasco
Sr Director, Mktg Ops
Seismic
Bob Conklin
Solutions Mktg
Leader
Adobe
TM
©2020 Adobe. All Rights Reserved. Adobe Confidential.
Lori Wizdo
VP & Principal Analyst
The Marketing
Automation Mandate
4
The customer
engagement model
for B2B firms has
been disrupted.
Customers
are self-
directed
Marketing
has a bigger
role and
remit
Digital engagement
is becoming the
norm
5© 2020 Forrester. Reproduction Prohibited.
The Covid-19 pandemic intensifies the disruption
29%
29%
29%
29%
30%
30%
31%
31%
32%
33%
34%
36%
36%
36%
36%
Direct email
General business websites
Vendor community
Industry associations
Peers
Industry websites
Technology industry…
Vendor sales phone/email
IT forums/message boards
Social media
Digital audio/video…
Technology information…
Search engines
Websites of technology…
Webinars
Increased importance or value
When considering any ongoing or upcoming organizational technology purchases, which of the following will have
the most change in their importance or value, in light of the COVID-19 pandemic?
20%
21%
21%
21%
21%
21%
22%
24%
25%
25%
25%
27%
27%
29%
37%
General business websites
SIs/consultants
Industry publications
Technology industry analysts
Vendor sales phone/email
Broadcast media
Vendor conferences/events
Industry conferences/trade…
Technology print publications
White papers
Direct mail
Business print publications
Catalogs
Signage
Vendor sales in person
Decreased importance or value
Forrester's Business Technographics Priorities And Journey Survey COVID-19 Recontact, 2020
Global, 500+ Employees
Base: Purchase influencers (past 12 months/next 12 months) who answered during COVID-19; ; N = 1,003 (Global COVID Recontact)
6
Topnotch sellers can
sell anything to
anyone who has a
pain and a budget —
Anzeige

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The Total Economic Impact of Marketo Engage

  • 1. ©2020 Adobe. All Rights Reserved. Adobe Confidential. TheTotal Economic Impact of Marketo Engage Copyright © 2020 Adobe. All Rights Reserved. Lori Wizdo VP & Principal Analyst Forrester Making the Martech Business Case Jennifer Adams Senior Consultant Forrester Lauren Andrasco Sr Director, Mktg Ops Seismic Bob Conklin Solutions Mktg Leader Adobe TM
  • 2. ©2020 Adobe. All Rights Reserved. Adobe Confidential.
  • 3. Lori Wizdo VP & Principal Analyst The Marketing Automation Mandate
  • 4. 4 The customer engagement model for B2B firms has been disrupted. Customers are self- directed Marketing has a bigger role and remit Digital engagement is becoming the norm
  • 5. 5© 2020 Forrester. Reproduction Prohibited. The Covid-19 pandemic intensifies the disruption 29% 29% 29% 29% 30% 30% 31% 31% 32% 33% 34% 36% 36% 36% 36% Direct email General business websites Vendor community Industry associations Peers Industry websites Technology industry… Vendor sales phone/email IT forums/message boards Social media Digital audio/video… Technology information… Search engines Websites of technology… Webinars Increased importance or value When considering any ongoing or upcoming organizational technology purchases, which of the following will have the most change in their importance or value, in light of the COVID-19 pandemic? 20% 21% 21% 21% 21% 21% 22% 24% 25% 25% 25% 27% 27% 29% 37% General business websites SIs/consultants Industry publications Technology industry analysts Vendor sales phone/email Broadcast media Vendor conferences/events Industry conferences/trade… Technology print publications White papers Direct mail Business print publications Catalogs Signage Vendor sales in person Decreased importance or value Forrester's Business Technographics Priorities And Journey Survey COVID-19 Recontact, 2020 Global, 500+ Employees Base: Purchase influencers (past 12 months/next 12 months) who answered during COVID-19; ; N = 1,003 (Global COVID Recontact)
  • 6. 6 Topnotch sellers can sell anything to anyone who has a pain and a budget —
  • 7. 7 Marketers can no longer operate with the techniques of the past.
  • 8. 8 To be relevant to today’s business buyer, marketing needs to target specific buyers with specific needs.
  • 9. 9 Chris Blaik, VP of integrated global marketing campaigns at Dell EMC “The best enterprise marketing today is embracing digital at scale to do what great salespeople have always done — personalize their engagement and offer a great experience.” Source: Forrester Report, “What B2B Buyers Crave” May,2020
  • 10. 10 It’s the job of marketing to guide the buyer through the buying journey. While 73% of B2B marketers have buyer journeys, only 19% build GTM strategies around buyer use cases vs. products.
  • 11. 11 You must calibrate your process to the buyer’s journey.
  • 12. 12 It’s all about aligned engagement Digital Social In Person Tele Digital The “hard handoff” is dead.
  • 13. 13© 2020 Forrester. Reproduction Prohibited. This new engagement model requires new tools.
  • 14. 14© 2020 Forrester. Reproduction Prohibited. Marketing Automation Enables 21st Century Marketing Scaling outbound campaigns targeting finely segmented audiences. Driving inbound traffic with integrated cont ent marketing campaigns. Easier to develop and scale multi- channel campaigns Ability to design a journey-based multi-channel engagement Insight into customer behavior and engagement to personalize engagement, consistently across channels New marketing/sale s process automation (e.g. lead scoring, lead matriculation) Ability to measure/analy ze/ attribute in new ways … to become data driven.
  • 15. 15 15© 2019 FORRESTER. REPRODUCTION PROHIBITED. Technology accounts over a fifth of the budget. Base: 668 global B2B marketing decision-makers Source: Forrester Analytics Global Business Technographics Marketing Survey, 2019 Personnel 26% Marketing Programs 27% Technology 21% Market research/ data services 19% Other 7% 46% of B2B marketers say they lack the tech they need 60% of B2B firms will increase spend on Martech
  • 16. 16 16© 2019 FORRESTER. REPRODUCTION PROHIBITED. Technology spend is projected to outpace services 9.3% 9.6% 10.9% 4.0% 2.4% 3.8% Source: Forrester Report, The US Marketing Technology And Services Outlook, 2017 to 2022
  • 17. 17 17© 2019 FORRESTER. REPRODUCTION PROHIBITED. And that raises C-suite questions Is it worth it? What are the total costs of ownership? How will we know if we've achieved positive ROI?
  • 18. 18© 2020 Forrester. Reproduction Prohibited. Don't view building your business case as a necessary evil to get funding. It’s your chance to make sure you: • Clarify your initiative. • Align all stakeholders. • Resource the initiative properly. • Assess risk and future flexibility. • Define your unique path to value realization. MA investment requires a strong business case
  • 19. 19© 2020 Forrester. Reproduction Prohibited. • Improving end-to-end conversion ratios. • Increasing average deal size. • Improving deal velocity. • Increasing contribution to pipeline and revenue. Marketing Automation pioneers have proven the payoff.
  • 20. The Total Economic Impact Of Marketo Engage Jennifer Adams Senior TEI Consultant
  • 21. 21© 2020 Forrester. Reproduction Prohibited. 21 Agenda Introduction What is TEI? Executive summary Customer journeys Study results Question and answer Please note: This slide presentation is an abridged, graphical, and complementary representation of a case study. For a full explanation of methodology and details on model calculations, please refer to the full case study (The Total Economic Impact of Marketo Engage, July 2020)
  • 22. 22© 2020 Forrester. Reproduction Prohibited. “Next-level” business case justifications are increasingly important for technology investments TCO ROI TEI IT impact IT costs IT cost savings Business impact User efficiency Business effectiveness Risk/ uncertainty Risk mitigation Risk versus reward Strategic impact Scalability Flexibility What is an effective business case?
  • 23. 23© 2020 Forrester. Reproduction Prohibited. Project approach Forrester took a multistep approach to evaluate the impact of Marketo Engage DUE DILIGENCE CUSTOMER INTERVIEWS COMPOSITE AND FINANCIAL MODEL WRITE CASE STUDY REVIEW AND FINALIZE
  • 24. 24 Background • Marketers look to technology to collect data, generate insights, target audiences, and deliver relevant interactions to continuously improve and enhance customer engagement. • Forrester has found that B2B companies using marketing automation solutions grow revenue faster than their competitors. • Forrester is also seeing increased adoption of these solutions in B2C use cases, particularly with high- consideration purchase decisions that need an approach more like B2B marketing than traditional B2C marketing.
  • 25. 25© 2020 Forrester. Reproduction Prohibited. “Marketo is the keystone to how we work as a marketing organization. We are so happy with the relationship. We love this vendor. Their support is active, they are helpful. Sometimes we need very quick support if we do something funky, and they’re responsive. This relationship is going to be a long-term one for us.” Forrester has determined the following three-year impact: — Senior director of demand generation, cybersecurity ROI 267% BENEFITS $15.7M NPV $11.4M
  • 26. 26© 2020 Forrester. Reproduction Prohibited. • A US telecom services company with $24 billion of annual revenue and 45,000 employees. Fifty employees use Marketo Engage to support both B2B and B2C marketing. • A global technology company with $54 billion of annual revenue and 54,000 employees. Approximately 40 employees use Marketo Engage to support both B2B and B2C marketing • A global cybersecurity company with $3 billion of annual revenue and 7,000 employees. Seventy-five employees use Marketo Engage to support B2B marketing. • A software company operating in the US and Europe with $12,500,000 of annual revenue and 1,100 employees. Twenty-five employees use Marketo Engage to support B2B marketing. • A US software company with $200 million of annual revenue and 800 employees. Thirty employees use Marketo Engage to support B2B marketing. • An APAC health and lifestyle company with $10 million of annual revenue. Fifteen employees use Marketo Engage to support B2C marketing. Forrester interviewed 6 users of Marketo Engage
  • 27. 27© 2020 Forrester. Reproduction Prohibited. Prior challenges Drivers to make the investment • The companies had limited visibility into their customers’ buyer journeys • Lead nurturing was limited • Content was not personalized • The marketing teams spent a lot of time on back-office work • The legacy platforms were difficult to use
  • 28. 28 Key results Impacts from the investment • Marketo Engage enhanced B2B customer engagement at multiple touchpoints • Marketo Engage improved audience segmentation, lead nurturing and lead management • Sales team effectiveness improved • Marketing teams spent more time on higher value-added work • Marketing teams could quickly pivot campaigns if necessary • Marketo Engage easily integrated with CRMs and other marketing tools
  • 29. “We do the majority of our marketing out of Marketo, whether it’s email campaigns, event campaigns, or webinars with full integration with our sales and customer success teams.” — Senior manager of marketing operations, software
  • 30. 30© 2020 Forrester. Reproduction Prohibited. Creating a business case for Marketo Engage Forrester created a composite organization to convey the aggregate financial analysis REVENUE $10B EMPLOYEES 20,000 ORGANIZATION Global B2B AVERAGE ORDER VALUE $50,000 MARKETO ENGAGE USERS 40 POWER USERS 15
  • 31. 31 Three-year risk- adjusted benefits Based on interviews with current customer organizations, as applied to the composite $4.5M $9.3M $744.2K $1.2M Increased customer engagement Improved lead conversion Enhanced marketing team productivity Avoided marketing support costs Benefits (Three-Year)
  • 32. 32© 2020 Forrester. Reproduction Prohibited. Marketers use Marketo Engage to better understand their customers and to create resonant marketing CUSTOMER EXPERIENCE CAPTURING VALUE FINANCIAL IMPACT “Marketo’s audience segmentation is super valuable. We have a portfolio of products, and it makes sure that we understand who’s who and what they are interested in.” 20% improvement in email open rate 15% increase in clickthrough rate 33% increase in leads at events 50% increase in webinar attendance 47,800 additional engaged annual leads $4.5M Increased customer engagement Senior director of demand generation, cybersecurity
  • 33. 33© 2020 Forrester. Reproduction Prohibited. With Marketo Engage, the organization had more information about how to convert leads to sales. “We use the Marketo activity history to see customer intent. It saves the sales team a ton of time, energy, and effort because they’re not calling the phone book, and it’s helping their close rate.” – Senior marketing manager, telecom services 25% increase in conversion rate 2,500 additional MQLs to SQLs annually $31.25M increase in incremental revenue annually $9.3M risk-adjusted 3 year PV
  • 34. 34© 2020 Forrester. Reproduction Prohibited. The marketing team can now spend more time on creative activities to drive engagement and growth CUSTOMER EXPERIENCE CAPTURING VALUE FINANCIAL IMPACT “The simplicity of Marketo and the ease of use allow us to do more things. My team isn’t spending hours coding an email. They can move onto things where they are able to push the envelope and drive revenue for the company.” 20% improvement in marketing team productivity 50% of hours saved are converted into productive time for the organization 40 Marketo Engage users 15 power users $744K Enhanced marketing team productivity Senior marketing operations manager, telecom services
  • 35. 35© 2020 Forrester. Reproduction Prohibited. The organization brought marketing-related vendor services in house Calculation variables Year 1 - 3 Legacy marketing automation software annual cost $200,000 Reduction in ad agency fees $400,000 • Six months after installing the platform, the organization decommissioned their legacy marketing automation software, saving $200,000 per year. • The platform makes it easier and faster for the internal marketing team to run campaigns, so the organization spends less on third-party services. The cost savings are phased in, and by Year 2, the organization saves $400,000 per year. Three-year PV: $1.2 million
  • 36. 36© 2020 Forrester. Reproduction Prohibited. Quickly repivoted marketing campaigns Enabled cross- channel coordination Supported secondary marketing use cases There are benefits to using Marketo Engage that the customers couldn’t quantify
  • 37. 37 Customers incurred two areas of cost Marketo Engage installation and subscription costs • The composite organization deployed Marketo Engage and integrated it with its CRM system • $1.9M PV three-year risk-adjusted total Internal team to support Marketo Engage • The composite organization dedicated a cross- functional internal team to install and maintain Marketo Engage. • $2.4M three-year risk-adjusted total
  • 38. 38 Financial summary “With Marketo, if I find out creative is failing and we’re getting no opens, no hits, and no clicks, that’s fine. I can pivot very, very fast.” - Senior marketing operations manager, telecom services ROI 267% NPV $11.4M
  • 39. 39 Disclosures The audience should be aware of the following: • This document is an abridged webinar version of a full case study (Forrester Total Economic Impact of Marketo Engage, July 2020). • The study is commissioned by Adobe and delivered by the Forrester Consulting group. • Forrester makes no assumptions as to the potential return on investment that other organizations will receive. Forrester strongly advises that readers should use their own estimates within the framework provided in the report to determine the appropriateness of an investment in Marketo Engage. • Adobe reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study. • The customer names for the interviews were provided by Adobe. • Forrester does not endorse Adobe.
  • 46. ©2020 Adobe. All Rights Reserved. Adobe Confidential.Copyright © 2020 Adobe. All Rights Reserved. Lori Wizdo VP & Principal Analyst Forrester Jennifer Adams Senior Consultant Forrester Lauren Andrasco Sr Director, Mktg Ops Seismic Bob Conklin Solutions Mktg Leader Adobe Q&A