The Model for the New Revenue - Centric Marketer

ELOQUA DemandGen Report

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The Model for the New Revenue – Centric Marketer



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Today’s SpeakersSpeaker:Andrew Gaffney EditorDemandGen Report

Speaker:Jim WilliamsSenior Director of Product Marketing Eloqua


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About DemandGen Report

- Launched in 2007 to track best practices in lead generation

- Newsletter has grown to more than 25,000 readers

- We also offer a menu of research and best practices reports

- New audio/video podcasts at DemandGenReport.com @DG_Report

linkd.in/DG_Specialists


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89%

11%

Has your company increased on Marketing Measurement over the past 12-24 months?

YesNo


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Neeed for deeper intelligence on customer segments

Sales team looking for more leads

Management's push for better pipeline visibility

Pressure to justify spend

45%

58%

65%

68%

If yes, what are the business drivers that have increased the focus on marketing measurement?

(check all that apply)


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Actively tracked by CFO

Actively tracked by CEO

Tracked by VP of Sales

Included in marketing reports from CMO

How much visibility is there currently within your execu-tive management team into marketing measurement and

its impact on revenue? (check all that apply)

63%

43%

21%

42%


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Marketing resource management system

Content management system (CMS)

Email service provider (ESP)

Marketing automation platform

Web analytics

CRM system

Which technology is your company currently using to measure and track marketing's impact on

sales/revenue performance? (check all that apply)

12%

30%

30%

72%

54%

69%


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Number of leads generated

Web traffic

Contact/lead quality

Campaign quality

Lead conversion at funnel stages

Marketing sourced leads

Database growth

Influence on revenue/deals

Social media refferrals

Productivity gains

What metrics are you currently using to track marketing performance/ROI? (check all that apply)

43%

9%

37%

63%

64%

88%

66%

66%

44%

72%


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Lead Nurturing


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43%

27%

30%

Is your company currently measuring the impact of lead nurturing campaigns?

YesNo Not Yet, but plan to within the next 3-6 months


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Conversion rate of nurtured leads to opportunities

Shortened sales cycles on nurtured leads

Number of re-engaged leads

Improved intelligence for sales prioritization

If yes, which lead nurturing metrics are you currently collecting and analyzing?

36%

72%

33%

39%


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No

Yes 47%

Is your marketing department currently responsible for a revenue goal?

53%


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If yes, what is marketing’s revenue contribution as a percentage of company’s total revenue goal?

30%

19%23%

12%

16%

<40%30-40%20-30%10-20%1-10%


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Number of leads

Conversion metrics

Web site traffic

Database growth

Number of sales meetings

If your marketing department is NOT currently responsible for a revenue goal, what are the metrics marketing is held accountable for?

(check all that apply)

54%

35%

18%

6%

33%


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Campaign influence/attribution

Predictability of lead conversion

Trends over time

Deeper campaign analysis

Additional pipeline forecasting capabilities

Cost per qualified lead

Cost per opportunity

Outbound telemarketing (cold calling)

Looking ahead, what type of additional marketing analytics & metrics would you want to access? (check all that apply)

46%

61%

54%

64%

55%

46%

45%

21%

© 2011 Eloqua, Inc. Confidential 17

The Model for the New Revenue - Centric Marketer

Jim Williams, Sr. Director, Product MarketingAugust 3, 2011


The CEO’s #1 Challenge


Median Cumulative Revenue Growth

Sample Size: 500

Notes: • Source: MSN, Hoovers, and SEC filings



Sample Size: 155

Sample Size: 500

Notes: • Source: MSN, Hoovers, and SEC filings



Sample Size: 27

Sample Size: 155

Sample Size: 500

Notes: • Source: MSN, Hoovers, and SEC filings• The Eloqua RPM index and the Eloqua Pre-RPM index are mutually exclusive

78%


A Different Revenue Structure

MarketingResponsesClicks/VisitsVolumeCostsSource

ExecutivesRevenueProfitabilityCash-flow


A Different Revenue Structure

MarketingResponsesClicks/VisitsVolumeCostsSource

ExecutivesRevenueProfitabilityCash-flow

Revenue Steering CommitteeRevenue Cycle Dynamics


RPM Adopters Follow a Better PlanWhere is our next revenue

opportunity?

Should we invest more in sales or marketing?

How do we optimize revenue investments?

How do we close more deals?

What drives the best demand?

How do we generate more leads?

Demand Generation & Lead Management


RPM Adopters Follow a Better PlanWhere is our next revenue

opportunity?

Should we invest more in sales or marketing?

How do we optimize revenue investments?

How do we close more deals?

What drives the best demand?

How do we generate more leads?

Demand Generation & Lead Management

One View of the Truth


They Follow the Right Revenue Process

Revenue

ProspectQualified

Lead

Sales Accepted

Lead (SAL)Suspect

Sales Qualified

Lead (SQL)

Evaluate PurchaseLearn JustifyInterest

Sales &MarketingProcess

Marketing validates quality of interest

Marketing nurtures to sales ready

Sales validates and

accepts ownership

Sales validates revenue criteria

Sales closes revenue

opportunity

Buying Process


Parlez-vous Exécutif?

INCOME STATEMENT

• Profit margin

• AR turnover

• AP turnover

• Inventory turns

BALANCE

SHEET

• Current ratio

• Quick ratio

• Leverage ratio

• ROI

CASH

FLOW

• External financing index ratio

• Cash sources ratio

• Operating cash index ratio


Revenue Engine Lingua Franca

VALUE

• Weighted Marketing Pipeline Value

• Weighted Sales Pipeline Value

• Marketing/Sales Pipeline Ratio

PERFORMANCE

• Reach

• Share of Audience

• Revenue Conversion

• Days Leads Outstanding

• Buy Cycle

• Sales Cycle

EFFICIENCY

• Customer Acquisition Cost Ratio

• Campaign ROI

• Sales Sizing

• Economic Value of Conversion

Actionable Analytics

VALUE:Is there value weakness at a

particular stage in my funnel? What is the cause and how

can I increase value by stage?

REACH:Do I have the

expected number of leads in my funnel stages?

Which leads can I influence to change the

dynamics of my funnel?

CONVERSION:Are leads

converting as anticipated? Are there conversion

problems at specific stages? What tactics can

improve this?

VELOCITY:Are leads and opportunities

getting ‘stuck’ in the funnel? What

are the best tactics to increase velocity?

RETURN:What tactics generate the

highest return? What is my cost per stage? How

can I better allocate my resources?


RPI: Velocity – Average Time in Integrated Funnel

• Presenter NameDate


RPI: Velocity – Average Time in Integrated Funnel

• Presenter NameDate

For period X, what is the average time to close?

For period X, how many deals closed?

Drill Down: For month X, What is the velocity

distribution?

By stage type, how have I trended and how do I

compare?

32

Revenue Performance Management

is a strategy for managing a company’s interactions with buyers through the

entire buying cycle that enables predictable, rapid and profitable

revenue growth.


Why Another *#! 3-Letter Acronym?

“What we’re trying to do is correlate some reasonable patterns of behavior that will tell us how things are going to happen … It’s the equivalent of going from driving using the rear view mirror, to driving with GPS.”Dr. Christopher Boorman, CMO, Informatica


The Benefits of Leadership

Increase MQL to SQL from 23 to 31%, driving $12m to bottom line.

Lead flow up 82% over past three years and revenues are up 34%.

Increased pipeline conversion rate by 1% = offsetting <$1 million in sales expense.


The Benefits of Leadership

Eloqua.com/Revenue


Thank You!

Jim Williams,

Sr. Director, Product Marketing

[email protected]

Eloqua.com/revenue


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