eloqua and forrester on revenue performance management

Making the Right Investments in Sales & Marketing

The Secret of Top Performing Companies

#EloquaRPM

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Meet the Speakers

Suresh VittalVP, Customer Intelligence Forrester Research@sureshvittal

Brian KardonCMOEloqua Corp.@bkardon

Data Data Everywhere: How To Create Customer Insight To Power RevenueSuresh Vittal, Vice President & Practice Leader

© 2010 Forrester Research, Inc. Reproduction Prohibited4 © 2009 Forrester Research, Inc. Reproduction Prohibited

Suresh Vittal, Vice President & Practice Leader

September 1, 2010

Mass customer data presents challenge for marketers

How Customer and Business Intelligence can help

Next steps for CEOs

Agenda

© 2010 Forrester Research, Inc. Reproduction Prohibited5


“Every two days we create as much information as we did from the dawn of civilization up until 2003.”

-Google CEO Eric Schmidt

Five stumbling blocks keep marketers from turning data into insightMeasurement skills


Measurement tops the list of marketing challenges


January 2009 “Marketing Technology Adoption 2009”

Popular metrics are not most effective

© 2010 Forrester Research, Inc. Reproduction Prohibited9August 2007 “Redefining B2B Marketing Measurement”

Five stumbling blocks keep marketers from turning data into insight

Organizational silos

Splinternet

Measurement skills


Data disparity

Technology gaps

As a result…

Multiple views of customer

Enterprisewide


Enterprisewidecustomer knowledge

remains elusive

Marketers struggle with analytics and measurement


Next steps for CEOs

Agenda


Analytics provide a glimmer of hope

� Not all customers are created equal

� Customer Intelligence provides marketers with the analytics they need to value customer accurately, target the right audience, and improve the effectiveness of their marketing budgets

� Business Intelligence provides an additional set of methodologies,


� Business Intelligence provides an additional set of methodologies, processes, architectures, and technologies that transform raw data into meaningful and useful information.

Customer Intelligence drives results


October 2009 “The Intelligent Approach To Customer Intelligence”

BI is another key player

� Growing BI interest and adoption is driven by:

– Ever-growing data volumes

– Increased scope and complexity of global operations

– A web of regulatory reporting requirements

– Competitive differentiation based on improved or faster decisions


BI adoption continues to skyrocket

“What are your firm's plans to adopt the following i nformation and knowledge management software technologies?”

Business intelligence software (e.g., analytics, reporting, data mining, dashboard s, business performance management)

16%

24%

30%

Planning to implement in the next 12 months

Implemented, not expanding

Expanding/upgrading implementation 11% in 2008

20% in 2008


2%

6%

14%

9%

Don't know

Not interested

Interested but no plans

Planning to implement in a year or more

months

Source: Enterprise And SMB Software Survey, North America And Europe, Q4 2009 andEnterprise And SMB Software Survey, North America And Europe, Q4 2008

Base: 921 North American and European IT software decision-makers (2009) ; 1,015 North American and European IT decision-makers (2008)

30% in 2008

Business Intelligence (BI) provides support for marketing performance management


October 2009 “The Marketing And Customer Analytics Software Lands cape”

Marketers struggle with analytics and measurement


Next steps for CEOs

Agenda


Prioritize marketing strategy and innovation

1. Realign sales and marketing

2. Invest in analytics to build customer insight

3. Focus on customer retention


1. Close the loop between sales activity and marketing results

� Integrate analytics tools with marketing management tools

� Inject measurement throughout the funnel

� Utilize dashboards to demonstrate marketing effectiveness and increase visibility


Marketing measurement must extend beyond the front of the pipeline


September 2007 “Best Practices: B2B Marketing Measurement”

Best practices aid marketers throughout the marketing funnel


September 2007 “Best Practices: B2B Marketing Measurement”

2. Invest in analytics

� Prioritize metrics

� Focus on attribution

� Consider media mix modeling


The Next Frontier …

Brian Kardon

CMO

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CMO

September 1, 2010

Competitive Advantage of Ideas

1910 199019701950

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TQM

(Juran & Deming)

Supply Chain

Management

Stopwatch, clipboardStatistical Control

Systems

Barcodes,

Satellite tech, ERP

Scientific

Management (Taylor)

Vertical Integration &

Mass Production

Measurement &

Control Methods

JIT Inventory

Mgmt Concepts

Technology

Processes & Concepts

Competitive Advantage of Ideas

So what’s next?

26

Growth is THE big issue for many companies

Top CEO Challenges

27

Source: Conference Board

Example: Software Industry

Sales and Marketing Expense

Sales & Marketing is ~ 40% of Revenue in the software industry

Share of Net Revenue

Other industries report lower, but still significant sales and

Source: SIIA Benchmarking

but still significant sales and marketing spend

Digital Body Language enables RPM

Old WayOld WayOld WayOld Way New Way

Revenue Performance Management (RPM)

A strategy for managing a company’s

interactions with buyers through the entire

purchase process that enables dramatically

30

purchase process that enables dramatically

more predictable, rapid and profitable

revenue growth.

CEO: How do we grow 20%?

Sales: “I need 20% more sales people.”

Marketing: “I need 20% more budget to

run campaigns.”

How do you shine a light on the true

drivers and impediments to growth?

31

Revenue Performance Management

Today’s “One View of the Truth”

Client example – from MQL to Close

RPM: focus on two areas …

Revenue Acceleration

+

34

Investment Optimization

+

0%

200%

400%

600%

800%

1000%

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000 Campagin Cost Revenue Attribtution Q2 ROI

All Campaigns that influenced Q1 Wins

Top 10

-200%

0%

$0

$50,000

0%

200%

400%

600%

800%

1000%

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000 Campagin Cost Revenue Attribtution Q2 ROI

All Campaigns that influenced Q1 Wins

Bottom 10

-200%

0%

$0

$50,000

Customer example: 2 reps

Missing quota … about to be fired

37

Beating quota … packing for President’s Club

Customer example: 2 reps

Missing quota: at 60%Win rate: 40%Lead follow up: 85%

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Beating quota: at 45% Win rate: 15%Lead follow up: 20%

Getting it Done … and Doing It Right

100%

39

LeadFollow up

Win Rate

0%0% 25% 50%

Result – Sales & Marketing BFFs

40

Thank you

Brian Kardon

+1 647-477-7083

[email protected]

@bkardon

www.eloqua.com

www.eloqua.com/grande

www.eloqua.com

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eloqua and forrester on revenue performance management

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