building a business case for marketing automation
TRANSCRIPT
Business Case for Marketing
Automation
Jon Miller, VP Marketing and Co-Founder, Marketo
@jonmiller #BizCaseMA
Chris Roeckl, VP, WW Field Marketing, Fluke Networks
@croeckl
Today’s Topics
• Marketing automation overview
• Benefits of marketing automation – quantification
• Investments required for marketing automation
• Case study: Fluke Networks
• Q&A
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Raise your hand if… You have the ability to send marketing emails.
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Keep it raised if… You can easily create new landing pages for each campaign.
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Keep it raised if… You can set up the emails for a webinar up-front and let it run ‘lights-out’.
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Keep it raised if… You can measure the pipeline contribution of each marketing program
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If your hand is still up, you may leave the room
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Marketing automation is a…
Technology that streamlines and automates marketing tasks
so companies can
increase operational efficiency and
grow revenue faster
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Basic Marketing Automation Campaign: Event Send Event
Invitation
Wait 3 Days
If Not
Registered,
Send Reminder
Wait Until 1 Day
After Event
Send Different
Follow-Up to
Attendees vs.
Non-Attendees
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Why now?
Changing buyer behavior requires new marketing techniques
Downward pressure on budgets – marketers forced to do more with less
New marketing techniques (content, inbound) driving wider top of the funnel; manual processes don’t keep up
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Main features of marketing automation (not in CRM)
Email: batch and triggered
Landing pages / forms
A/B testing
Automate multi-touch programs / drip
marketing
CRM integration
Segmentation
Online behavior tracking
Program management
Lead scoring
Sales alerts and tasks
Webinars / event marketing
Mobile: emails and LPs, reporting
Social: profiles, tracking, campaigns,
sign-on, promotions.
Dynamic content
Data quality / cleanse / append
Program ROI analytics
Revenue cycle metrics
Security rules, workflow, approvals
Marketing calendar
Budgeting
= large variance in capabilities
among vendors with this feature
= less common
feature
= common
feature
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Common Misconceptions to Marketing Automation
Misconception Response
Doesn’t build the list MA does require leads, but complete systems include
functionality for lead generation programs (events, etc.)
Too email focused – not
social
While MA started with email, most solutions today offer or
integrate to social including social profiles, tracking,
campaigns, sign-on, and promotions.
Robotic, irrelevant, spam –
not about the customer
MA can be used for good marketing or bad marketing, but
behavioral segmentation and 1:1 targeting usually
improves relevance
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Three core benefits of marketing automation
Save money and time
Measure and optimize marketing investments
Faster revenue growth
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Save money and time
• Streamline and automate repeatable processes
• Do it yourself
• Simplify approvals, ensure compliance
• Fewer spreadsheets
Business cases based on cost savings are very strong
“We needed a way to automate our marketing campaigns so that we could focus our time and resources on the best opportunities. That’s the only way to really drive business.”
-- John Watton, VP, ShipServ
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Measure and optimize marketing investments
Marketing under pressure to be measurable
• Economic uncertainty puts budget and revenue process under scrutiny
• Highly measurable direct channels raise expectations for all marketing
• C-suite uneasy that so much rides on marketing these days
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Demonstrate impact on funnel
Prove program ROI
Measure / test / optimize
System of record
Measure and optimize marketing investments
Hard to make quantitative business case on improved
measurement, but can be a good way to convince CFO.
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Faster revenue growth
• Focus on the right prospects
• Develop relationships until buyer is ready
• Engage at the right time
• Scale personalized interactions (right message)
Now, let’s quantify this!
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Immediacy A framework No Marketing Automation
Marketing Automation
Names
MQL = Marketing Qualified Lead (ready to call)
SQL = Sales Qualified Lead (engaged in active opportunity)
Wins
Average Selling Price
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Marketing automation maturity
Revenue Performance Management
Integrated Pipeline
Demand Generation
Traditional Marketing
Improve business results through continuous analysis and optimization of sales and marketing resources
Embrace multi-channel program delivery
Lead scoring and nurturing
Alignment between sales and marketing
Integration to 3rd party systems
Enable business users to create content, manage campaigns and events
CRM Integration
Lead scoring practices
Leverage batch email or direct mail communications to stay in touch with customers
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Revenue Performance Management
Integrated Pipeline
Traditional Marketing
Improve business results through continuous analysis and optimization of sales and marketing resources
Embrace multi-channel program delivery
Lead scoring and nurturing
Alignment between sales and marketing
Integration to 3rd party systems
Enable business users to create content, manage campaigns and events
CRM Integration
Lead scoring practices
Leverage batch email or direct mail communications to stay in touch with customers
Marketing automation maturity
Basic Marketing Automation
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Revenue Performance Management
Traditional Marketing
Improve business results through continuous analysis and optimization of sales and marketing resources
Embrace multi-channel program delivery
Lead scoring and nurturing
Alignment between sales and marketing
Integration to 3rd party systems
Enable business users to create content, manage campaigns and events
CRM Integration
Lead scoring practices
Leverage batch email or direct mail communications to stay in touch with customers
Marketing automation maturity
Refined Marketing Automation
Basic Marketing Automation
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Revenue Performance Management
Refined Marketing Automation
Basic Marketing Automation
Traditional Marketing
Improve business results through continuous analysis and optimization of sales and marketing resources
Embrace multi-channel program delivery
Lead scoring and nurturing
Alignment between sales and marketing
Integration to 3rd party systems
Enable business users to create content, manage campaigns and events
CRM Integration
Lead scoring practices
Leverage batch email or direct mail communications to stay in touch with customers
Marketing automation maturity
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Benchmark survey: marketing automation maturity
18.6%
42.9%
29.7%
8.8% 0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Traditional Marketing (91)
Basic Marketing Automation (210)
Refined Marketing Automation
(145)
Revenue Performance Management (43)
Source: Marketo Benchmark on Revenue Performance as of Sept 15, 2012 (N=489)
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Percentage of sales time spent directly on selling
48% 55% 59% 73%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Traditional Marketing (91)
Basic Marketing Automation (210)
Refined Marketing Automation
(145)
Revenue Performance Management (43)
Source: Marketo Benchmark on Revenue Performance as of Sept 15, 2012 (N=489)
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Target revenue plan achieved: last 12 months
56% 74% 81%
101%
0%
20%
40%
60%
80%
100%
120%
Traditional Marketing (91)
Basic Marketing Automation (210)
Refined Marketing Automation
(145)
Revenue Performance Management (43)
Source: Marketo Benchmark on Revenue Performance as of Sept 15, 2012 (N=489)
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Revenue Performance Management
Refined Marketing Automation
Basic Marketing Automation
Traditional Marketing
Name to MQL: 11% MQL to SQL: 20% SQL to Win: 21% 1 in 221
Funnel conversion rate by maturity
Name to MQL: 28% MQL to SQL: 25% SQL to Win: 22% 1 in 66
Name to MQL: 24% MQL to SQL: 30% SQL to Win: 27% 1 in 53
Name to MQL: 33% MQL to SQL: 38% SQL to Win: 39% 1 in 20
MQL = Marketing Qualified Lead (ready to call) SQL = Sales Qualified Lead (engaged in active opp)
Source: Marketo Benchmark on Revenue Performance as of Sept 15, 2012 (N=489)
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Companies with $5 million
to $500 million revenue
“Core” Marketing
Automation
Source: Raab Associates' 2012 B2B Marketing
Automation Vendor Selection Tool (VEST)
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How Much Does Marketing Automation Cost?
Usually Based on Edition + Number of Contacts + Contract Term
Vendor Edition 10K contacts 100K contacts Quarterly Option
Eloqua Marketer $2,000 Call No
Eloqua Team $4,000 Call No
Hubspot Professional $1,400 (20k) $4,600 (20k) No?
Marketo Spark $995 $2,495 Yes
Marketo Standard $1,995 $3,995 Yes
Pardot Professional $1,000 (30k) $2,200 (120k) Yes
Pardot Enterprise starts $2K/mo, Pardot Ultimate at $3K/mo.
Hubspot Enterprise starts at $1.8K/mo for 20k contacts. (Hubspot Basic does not include Marketing Automation.)
Marketo Select starts at $3,195/mo. Marketo and Eloqua also offer Enterprise editions.
Sample Published Pricing as of 15 Sept 2012 (per month, paid annually)
Review each edition carefully to understand what functionality each package offers. Note: Act-On and Silverpop do not publish pricing. Act-on website says “Pricing starts at $500 per month”.
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Additional Costs and Considerations
Software subscription is typically 25-40 percent of overall investment required for success:
• Process definition, consulting
• Staff and skills, training
• Data: cleansing, augmentation, appending
• Content
• Lead generation (inbound/outbound)
• CRM implementation upgrades
Revenue Performance Management
Refined Marketing Automation
Basic Marketing Automation
Traditional Marketing
Less Investment More Investment
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Chris Roeckl
VP WW Field Marketing
@croeckl
Marketing automation evolves
Way back when (5 years)
• Send some email – all leads were good leads
• Nurture leads – read one white paper, here’s another
• Route MQLs – sales starving or drowning
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Now
• Digital body language
• Impact
• Operational efficiency
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Fluke networks deployment
y
• Budget
• Headcount
• Waste
Under pressure
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Details matter
• Listen
• Align, realign
• Operationalize
• Results
• Quota
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‘It’s arithmetic’
[Goal X Marketing Contribution (%)] / ASP / Win
Rate] /
[Oppty Conversion Rate /
Qualified Lead Conversion
Rate] / [Sales Reps
/ 208 X 5] =
Leads per rep per week
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2009 2010 2011 2012
% Marketing Source Revenue for AMM
• Revenue contribution
• Funnel contribution
• Program success /
velocity
Visible contribution
* 2012 YTD
• Forecast revenue from marketing
• Social and event integration
• Increase campaign effectiveness
• Increase conversion rates
• Return On Marketing Investment
Key Takeaways
1. Changing buyer behavior requires new marketing techniques – and technologies
2. Marketing automation is much more than email
3. Business case for marketing automation: saves money, measures marketing ROI, and drives faster revenue growth
4. Maturity matters: the more you put into marketing automation, the more you get out
5. Sales alignment is critical for success
6. Dream big, start small, get fast results, build from there
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Additional Resources
B2B Marketers Must Prepare For Marketing Automation
Personalized Benchmark on Revenue Performance http://www.marketo.com/RPM
The ROI of Marketing Automation
Marketing Automation Buyer's Kit
Magic Quadrant for CRM Lead Management
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Jon Miller
VP Marketing and Co-
Founder, Marketo
@jonmiller
Chris Roeckl
VP WW Field Marketing,
Fluke Networks
@croeckl
#BizCaseMA