2012 Marketing Benchmarks: Awesome Stats and Essential Guidance to Rock Your Revenue Performance

2012 Marketing Benchmarks: Awesome Stats and Essential Guidance to

Rock Your Revenue Performance

Jon Miller

Co-founder and VP of Marketing, Marketo

@jonmiller

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© 2011 Marketo, Inc. Marketo Proprietary and Confidential

@jonmiller

Jon Miller, VP of Marketing and

Co-Founder, Marketo

• Co-author of the Modern B2B Marketing Blog

• About Marketo: • Powerful but easy solutions to help

companies grow revenue faster (marketing automation and sales effectiveness)

• 1,800 customers: fastest-growing private company in Silicon Valley

• Highly efficient revenue cycle

@jonmiller

Can your organization answer

these questions?

How sophisticated are our marketing and sales processes compared to our competition?

What are the best practices of the companies with the most productive revenue engines?

What ROI would we see from adopting these best practices?

How much should we be investing in marketing as a percent of revenue?

What % of pipeline should Marketing drive for Sales?

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We Designed The Benchmark on Revenue Performance to Give You

Personalized Answers

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Today’s Topics

• About the Benchmark Methodology

• Revenue Performance Management Maturity

• Revenue Performance Management Metrics

• Moving up the Maturity Curve

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Benchmark database

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300+ Responders Across B2B Industries

Software & Internet

32%

Business Services

22%

Manufacturing & Hardware

10%

Telco 5%

Advertising 4%

Financial 3%

Health / Pharma

3%

Other 21%

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Responders Across Multiple Company Sizes

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Under 10 11-100 101-1,000 1,001+

Part I:

Revenue Performance Maturity

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Revenue Performance Management 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 automated email or direct mail communications to stay in touch with customers

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Integrated Pipeline

Demand Generation








CRM Integration




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Integrated Pipeline

Demand Generation








CRM Integration




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Integrated Pipeline

Demand Generation








CRM Integration




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Source: Marketo Benchmark on Revenue Performance as of May 11, 2012 (N=300)

15.7%

43.7%

32.0%

8.7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%


Demand Generation

Integrated Pipeline


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Maturity by Industry

10%

48%

24%

18% 15%

64%

18%

3%

9%

32%

46%

13%

24%

45%

29%

2%

0%

10%

20%

30%

40%

50%

60%

70%


Demand Generation

Integrated Pipeline Revenue Performance Management

Business Services

Manufacturing

Software & Internet

Other

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Maturity by Employee Count

17%

55%

17%

12% 14%

37% 38%

11%

16%

43%

36%

6%

17%

50%

30%

3%

0%

10%

20%

30%

40%

50%

60%


Demand Generation


<10

11-100

101-1,500

1,501+

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Marketing Automation Evolving into RPM Revenue Performance Management

Integrated Pipeline

Demand Generation








CRM Integration



Automate marketing processes

Transform revenue

operations

Part II:

Revenue Performance Metrics

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Benchmark Questions Asked

• Percentage of Pipeline Sourced By Marketing

• Percentage of Sales Time Spent Directly on Selling

• Target Revenue Plan Achieved: Last 12 Months

• Revenue Growth Compared to Industry Average

• Marketing Budget Ratio (% Revenue)

• Revenue Cycle Conversion Rates • Name to MQL

• MQL to SQL

• SQL to Win

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Percentage of Pipeline Sourced by Marketing


18%

32%

48% 55%

0%

10%

20%

30%

40%

50%

60%


Demand Generation

Integrated Pipeline


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@jonmiller

Percentage of Sales Time Spent Directly on Selling


46% 54%

60% 69%

0%

10%

20%

30%

40%

50%

60%

70%

80%


Demand Generation

Integrated Pipeline


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Target Revenue Plan Achieved: Last 12 Months


57% 73%

83% 101%

0%

20%

40%

60%

80%

100%

120%


Demand Generation

Integrated Pipeline


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Revenue Growth Rate Compared to Industry

Average (% Above or Below Average)


24% 22%

35%

48%

15%

20%

25%

30%

35%

40%

45%

50%


Demand Generation

Integrated Pipeline


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Marketing Budget Ratio (Marketing / Revenue)


10% 11%

10%

13%

0%

2%

4%

6%

8%

10%

12%

14%


Demand Generation

Integrated Pipeline


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Marketing Pipeline and Budget By Industry

13%

8%

10% 11%

0%

2%

4%

6%

8%

10%

12%

14%

Marketing Budget Ratio

36%

31%

41%

36%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

% Pipeline Marketing Sourced


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Marketing Pipeline and Budget By Employee #

13%

11% 10%

8%

0%

2%

4%

6%

8%

10%

12%

14%

< 10 11-100 101-1,500 1,501 +

Marketing Budget Ratio

38%

43%

34%

23%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

< 10 11-100 101-1,500 1,501 +

% Pipeline Marketing Sourced


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Revenue Cycle Conversion Rate by Maturity

11%

28% 24%

33%

24%

18%

23%

31%

37%

26%

16%

22%

28%

40%

25%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%


Demand Generation


Average

Name to MQL

MQL to SQL

SQL to Win


MQL = Marketing Qualified Lead (ready to call) SQL = Sales Qualified Lead (engaged in active opportunity)

1 in 325

1 in 73

1 in 48

1 in 21

1 in 63

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Revenue Cycle Conversion Rate by Industry

22% 21%

28% 24%

29%

23% 26% 26%

30%

12%

27%

22%

0%

5%

10%

15%

20%

25%

30%

35%

Business Services Manufacturing Software & Internet Other

Name to MQL MQL to SQL SQL to Win



1 in 53

1 in 175

1 in 52

1 in 71

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Conversion Rate by Employee #

23% 24%

28%

23% 26% 26%

30%

19%

22%

27% 26%

18%

0%

5%

10%

15%

20%

25%

30%

35%

< 10 11-100 101-1,500 1,501 +

Name to MQL MQL to SQL SQL to Win



1 in 73 1 in 62 1 in 46

1 in 129

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Value of a Sales Development Function

21% 22% 24%

51%

28% 32% 30%

60%

0%

10%

20%

30%

40%

50%

60%

70%

Name to MQL MQL to SQL SQL to Win % Sales Time Spent Selling

No SDR Function

SDR Function


Part III:

Moving up the Maturity Curve

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Hig

h

1. ROI: Maturity of approach to planning for and measuring ROI We have a disciplined process that includes setting ROI goals up front, regularly looking back to measure ROI of each program, and discontinuing programs that don’t meet our thresholds

2. ROI: Ability to measure marketing’s overall impact on revenue We are able to predict what will happen to lead flow and forecast what impact marketing will have on pipeline and/or revenue in future periods

3. Leads and Opps: Overall maturity of marketing programs We efficiently design, execute, measure and reuse optimized programs across multiple channels including online and offline, mobile, social, etc.

4. ROI: Ability to measure the ROI of specific marketing programs Predict the marginal impact of each program over time, by measuring a program's influence in acquiring new leads or moving them through the revenue cycle (multi-touch revenue attribution)

Me

diu

m

5. Leads and Opps: Process for non sales-ready leads

6. Leads and Opps: Level of targeting in marketing campaigns

7. Sales Productivity: Marketing and sales alignment

Low

8. Sales Productivity: Focusing sales on hottest leads and opps

9. Sales Productivity: Quality of info sales receives about each lead

10. Sales Productivity: Monitor and ensure follow-up on leads (SLAs)

Importance for Top Revenue Performance

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@jonmiller

• Start tracking leads and conversions through basic waterfall stages: Name to MQL, MQL to SQL, SQL to Win

• Develop basic lead nurturing tracks for two or three personas

• Implement basic lead scoring (single score)

• Build a weekly and monthly dashboard to track and communicate marketing’s impact on sales


Demand Generation

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Lead Nurturing

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Lead Scoring

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• Expand your portfolio of lead generation channels, embrace content marketing

• Define every stage of your revenue cycle…

• … then identify pinch-points and take action

• Score demographics and behaviors separately

• Report on quality (revenue impact) not quantity

Demand Generation

Integrated Pipeline

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Revenue Cycle Modeler

Screenshot: Marketo Revenue Cycle Analytics

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Filter/Drill into data, e.g. by Program Type, Business Unit, Geography, etc.

Key topic areas: • Balance • Flow • Conversion • Velocity

Trends over time

SLA violations


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• Use conversion rates knowledge to make forecasts for impact on future revenue

• Plan ROI goals for all programs up-front, and use multi-touch attribution to measure results

• Add additional lead nurturing tracks, including specific tracks for recycled leads

• Review and iterate lead scoring at least quarterly

Integrated Pipeline


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Example: Multi-Touch Attribution


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Marketo Services to Help You At Every Stage of


Grow the Number of Leads and

Opportunities

• Foundation Course • MLM Fundamentals • Guided Migration

Services • Standard Support

• Configure Social Widgets for Landing Pages

• Campaign Design Launch Pack

• Standard Support

• Measure Lead & Success Attribution

• Revenue Driven Marketing Launch Pack

• Premier Plus Support

• Understand Program Reporting & Analysis

• Revenue Cycle Analytics Launch Pack


Improve Sales Productivity

• MSI Fundamentals • CRM Integration

Services • Standard Support

• Enable Marketo Program to SFDC Campaign Sync

• Sales Insight Launch Pack

• Premier Support

• Sync a Marketo Program w/ a SFDC Campaign

• Business Process Review & Scoring Workshop

• Revenue Cycle Modeler Fundamentals

• Revenue Cycle Analytics Data Analyst

Optimize Sales and Marketing

ROI

• Measure Lead & Success Attribution

• Revenue Driven Marketing Launch Pack

• Standard Support

• MLM Analytics • Assessment and

Recommendations Service

• Premier Support

• Revenue Cycle Modeler Fundamentals

• Revenue Cycle Analytics Data Analyst

• Premier Support

• Revenue Cycle Explorer Fundamentals

• Revenue Strategy Workshop


RPM Traditional Marketing

Demand Generation

Integrated Pipeline

Education Support Services Professional Services

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@jonmiller

Resources to Learn More

• The Definitive Guide to Marketing Metrics and Marketing Analytics

• The Definitive Guide to Lead Scoring

• The Definitive Guide to Lead Nurturing

• Marketing Automation Cheat Sheet

• The Marketing Measurement Cheat Sheet

• Coordinating Marketing and Sales Across the Entire Revenue Cycle

Get all this and more at www.marketo.com/rpm-resources

http://www.marketo.com/rpm-resources



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http://www.marketo.com/benchmark

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@jonmiller

Marketo, Inc. 901 Mariners Island Suite 200 San Mateo, CA 94404

JON MILLER VP Marketing

[email protected] @jonmiller

Contact Me

Participate in the Benchmark now! www.marketo.com/rpm