Revenue Marketing University - Pedowitz Grouprevmarketer.pedowitzgroup.com/rs/pedowitzgroup2/images/RMU Class... · based on real-life best ... //na11.salesforce.com/00OG0000004RBKw

12/19/2012 The Pedowitz Group ©2012 1

Revenue Marketing University Education for Marketing Executives

Final Course

The Pedowitz Group


Welcome!

[email protected] 770-331-4443

Twitter: @revenuemarketer LI: dqaqish

Debbie Qaqish Partner & CRMO The Pedowitz Group Goal: To provide education based on real-life best practices and peer networking that will help marketing executives transform their organizations from cost centers to revenue centers.

mailto:[email protected]


The Six Week Syllabus

October 17 o "Does Marketing Automation Really Matter?” October 30 o The Revenue Marketing Transformation: Revenue Marketing Journey November 14 o Technology: Marketing Automation Technology and CRM - The Value They Bring

Faculty: Jim Lenskold

Lenskold Group

Faculty: Amy Hawthorne

Rackspace

Faculty: Alan Scheik

Cisco Capital

Faculty: Nancy Harris

Sage


The Six Week Syllabus November 28 o Strategy & People: Create a Revenue Marketing Center of Excellence & Key Roles Required for Revenue Marketing December 5 o Process & Content: The Revenue Marketing Process & Content is King December 19 o Results: Marketing Automation Delivers Measurement

Faculty: Liz McClellan PGi

Faculty: Patty Foley-Reid, Iron Mountain

Faculty: Jim Kanir Billtrust


Attend, Test and Earn


Jim Kanir

► SVP Sales/Marketing Billtrust ► CRO M5 Networks (sales & marketing) ► COO for Powerway, Inc. ► President / CEO Cohesia Corp Global sales and marketing executive positions: ► Reasoning Inc. ► Unify Corporation, CrossAccess

Corporation ► Pentawave ► Bell & Howell


Some Background on How I learned Marketing

Sales Exec that had to fill a Marketing void It’s not CSO vs. CMO it’s CSMO Learned to Unite Sales & Marketing – “Smarketing” Learned that both S&M needed to agree on what success

is Rejected “traditional” intangible marketing methods

Who wants to debate the right orange color on the Tide box? Has a Brand manager really saved a company? Who wanted to fight the battle of “it is a qualified lead”?


Experience vs. Knowledge

So what kind of clubs do I buy to get a hole in one??? 2 Eloqua installs and 1 Marketo First Eloqua system (Cohesia/Powerway) was a marginal

success and it took 8 months Second Eloqua system (M5) took two weeks to implement and

was productive in the first month, fully running in 6 months – Very successful implementation and utilization

Third Marketo system (Billtrust) took two weeks to implement and was fully functioning in 3 months – Very successful implementation and excellent utilization Excellent adoption across the organization Sales Team are raving fans of Marketing and Marketo Utilized in Operations and Support as well


Goals for Today

Recap the 4 Types of the Marketer Life Cycle Why Revenue Marketing can help your career Share some lessons learned & best practice Discuss how you get to the Revenue Marketer Stage Explain what to expect on the journey Share some real world experiences, metrics, and

results!!!


The sea is so big and my boat is so small…

Man & the World


Tested with 1000’s of marketers..


Revenue Marketing

Repeatable Predictable Scalable

500 at this stage of the Revenue Marketing Journey


Revenue Marketing and your career Visionaries Exploit the Guru Gap

Time

Evolution of New Technologies/Business Trends Over Time

Expectations

Reality

Guru Gap $$$

Valu

e


“Every project we take on starts with a question: How can we do what’s never been done before?”

…Stuart Hornery, CEO, Lend Lease


HOW DO WE GET THIS PARTY STARTED?

First Hurdle


Story of the Winchester House


“Fail Fast & Fall Forward.” …My favorite phrase


“Success is the ability to go from failure to failure without losing your enthusiasm.” …Winston Churchill (as quoted by John Peterman)


Sales & Marketing Process Flow (Early Whiteboard Model – Draft)

Inside Sales • Input ID; Validate ID in SF.com • Performs Conflict Check • Sends Go/No-Go email • Assigns Account

Marketing • Events • Live Chat • In-bound Web • Lists/Lumpy • Webinar •Campaign Responder • Downloads • Lead Nurture

Referral Partner • ID for Activant, Oracle, SAP, Micron, QAD

Reseller Partner • OSG • Workflow 1

Sales • Named Accounts • Self-generated • Client Referral

Sets “1st Appointment”

Task Status = Not Started

SF.com

Marketo Phone System

Special Sales Team

GoToMeeting No Travel

Characterize Opportunity

Qualify

Pipeline

Closed/ Lost

Do Nothing

Nurture

Director Of

Channels

Pipeline

Do Nothing Nurture

Marketing Certified Rep


Pipeline

Do Nothing Nurture

Expires 4 Days

ID Source Live Chat

Performs 1st meeting

Qualifies Opp

Completed or Defer Task

Closed/ Lost

< 5,000 BPM

Inside Sales • Qualifies ID • Converts ID to Opportunity “Not Yet Met”

< 5,000 BPM

Partner Certified

Rep

Sets Appt, Converts to

Opp in SF.com

Performs 1st meeting

Closed/ Lost



“It used to be that the big ate the small. Now the fast eat the slow.”

… Geoff Yang, IVP/ (Institutional Venture Partners)


Crucial Concept #1

Strategy Structure People


Critical Concept #2 Key to Marketing Success

“The second best plan executed ruthlessly wins every time!”

…General George Patton


MODEL OUT YOUR FUNNEL Implementation Secret


Best Practice Lead to Close Model

RAW

MQL

SQL

SAL

WON!

Just a name and email address

Interest shown (email, web visit, click link, trade show)

Qualified and appointment set. When an MQL is changed to an SQL, it is assigned to sales person and task is set up

After a personal meeting has occurred and the Sales Representative decides the lead is an opportunity. Convert the lead in SFDC – this established the opportunity

Deal is closed. If lead is no longer opportunity, it can be moved and marked as disqualified or recycled


The Process

Marketing segments lists by vertical, role, and geography and puts them into contact groups that feed automated email programs.

Inside Sales reviews the MQL’s and qualifies/disqualifies them as a Sales Qualified Lead (SQL).

Lists

RAW

Unique landing pages MQL www.billtrust.com

SQL

Closed Won


“Reward excellent failures. Punish mediocre successes.”

…Phil Daniels, Sydney Exec


GET THE SALES TEAM ON BOARD Implementation Secret #2


How to drive Sales Team Adoption

Meet and agree to what success would look like “If you don’t know where you are going, any road will get you

there”.

What are the hard metrics you can agree on, share with the team, and measure together

WIIFM – Both sides Hold multiple meetings with spaced repetition

Once is not enough!!! Need constant reinforcement to succeed


MAKE IT FUN!!! Communicate, Educate, and Innovate with Sales


5 Tips to Keep Your Leads Alive

Add to nurtures

Add to your watch list


5 Tips to Keep Your Leads Alive

Send Sales Insight emails Use links on the Z-drive

Z:\Sales\Marketo_Sales > Marketo PDF Links

Send your own files to Chrissy to convert to the web

31


Upcoming Lead Generation Webinars

A Nightmare on Billing Street


References and Testimonials

Both items are now being tracked in SFDC

Sales Reps responsibility to keep them updated

Instructions are found Z:\Sales\Testimonials and References in “References and Testimonials Checklist pdf”

Reports References https://na11.salesforce.com/00OG0000004RBKw

Testimonials https://na11.salesforce.com/00OG0000004R68h

https://na11.salesforce.com/00OG0000004RBKw

https://na11.salesforce.com/00OG0000004RBKw


Recent Lead Generation Webinars

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Upcoming Lead Generation Webinars

Customer Centric Billing Webinar

A Nightmare on Billing Street


Provide new cool Sales Tools Opportunity Influence Analyzer: TW Perry


“The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.”

…Dee Hock


MEASURE FOR SUCCESS Flying by the Numbers


Marketing & Aviation – Fly by numbers

39

Vx — in aviation, the best angle-of-climb speed; the speed that gains the greatest amount of altitude in the shortest distance. In business, the best angle-of-attack for obstacle clearance; i.e., to attain optimal results over the shortest time using maximum thrust available.


Snapshot of the Funnel

37,054 Leads & 12,245 Accts

1,428 Leads & 1,111 Accts

1657 Leads & 246 Accts

789 Leads 490 Accts

RAW

MQL

SQL

SAL

Average Time in Pipeline

Snapshot of Leads in the Pipeline

112 Days, 4% Conv.

74 Days, 12% Conv.

73 Days, 9% Conv.

59 Days, 20% Conv.

Closed Won


Target vs. Performance B2B


CSO Insights


Marketing Nurtured Deals

Percent of First Year Revenue Nurtured by Marketing:

79%


Website Update

Unique Visitors Sept: 10,506 56% increase from Q1

Time on Site Avg. 1:17

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Dec(2011)

Jan Feb Mar Apr May Jun July Aug Sept

Pageviews per Month

28,163

412,785 474,571

288,532

Alexa Rank


WHAT DOES ALL THIS GET YOU? Revenue Marketing with RPS


Integrated Marketing Automation Supports Growth

66% 50%

26% 38%

8% 12%

0%10%20%30%40%50%60%70%80%90%

100%

IntegratedMarketing

Automation

NoMarketing

Automation

How would you describe your firm's expected growth in the upcoming

year relative to your primary competitors?

Greater Growth Same Growth Slower Growth

Use Integrated with CRM

system 50%

Marketing Automation

not integrated

18%

No Marketing

Automation 32%

Do you use full-featured marketing automation in your

organization?

The half using marketing automation integrated with CRM systems have an advantage in outgrowing competitors

Source: 2012 Lenskold Group / Pedowitz Group Lead Gen Marketing Effectiveness Study Lenskold Group /


Pipeline Calculator

Value of SQL/SAL Pipeline Calculator Value of SAL Pipeline CalculatorAssumptions: Assumptions:Rev per bill $1.50 Rev per bill $1.50Conversion rate 12% Conversion rate 20%Prospects 299 Prospects 195

Total Bills per Month 28,928,425 Total Bills per Month 13,890,044Estimated Value of SQL/SAL Pipeline $43,392,638

Estimated Value of SQL/SAL Pipeline $20,835,066

Value per Lead $145,126 Value per Lead $106,846Number of Potential Customers 36

Number of Potential Customers39

Estimated Revenue of SQL/SAL Pipeline $5,207,117

Estimated Revenue of SQL/SAL Pipeline $4,167,013


ID to Future Revenue Forecast: October

48


ID to Revenue Forecast: Thru October

49

ID Forecast Actual 2 months later

Difference %

$ 48,181.43 $ 72,300.00 December $ 24,118.57 150%

$ 36,194.14 $ 35,610.00 January $ (584.14) 98%

$ 49,299.29 $ 44,891.00 Feb $ (4,408.29) 91%

$ 33,346.59 $ 48,871.00 March $ 15,524.41 147%

$ 41,153.53 $50,028.00 April $ 8,874.47 122%

$ 35,458.00 $63,210.00 May $ 27,752.00 178%

$ 49,467.00 $61,346.00 June $ 11,879.00 124%

$ 44,470.40 $71,206.00 July $ 26,735.60 160%

$ 45,166.19 $48,763.00 August $ 3,596.81 108%

$ 55,857.25 $76,831.00 September $ 20,973.75 138%

$ 50,765.66 $59,199.00 October $ 8,433.34 116%

$ 45,791.67

$ 54,838.48

Average: 130%

(This is the Holy Grail of Rev Marketing RPS)


December Sales: MRR $71,133

$0.00

$10,000.00

$20,000.00

$30,000.00

$40,000.00

$50,000.00

$60,000.00

$70,000.00

$80,000.00

$90,000.00

2/1/

2008

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2008

8/1/

2008

11/1

/200

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2/1/

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/200

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2/1/

2010

5/1/

2010

8/1/

2010

11/1

/201

0

Sold

Goal

Eloqua Installed

10 Reps 28 Reps


$6MM EBITDA 7 new sales reps, starting

Q4 +$15K/mo marketing spend 7 new developers 12 net new ops staff,

includes conversion team

$4.5MM EBITDA 10 new sales reps, starting

Q4 +$55K/mo marketing spend 15 new developers 13 net new operations staff

BOD Discussion: EBITDA or Growth in 2011

51


Prelim 2011 Plan: $6 mil EBITDA, ~25% topline growth, no other deals

Assumes no major 2011 upside initiatives and modest development ramp

2010 2011 2012 2013 2014Results ($ in 000s) PF FY Full Year Full Year Full Year Full Year

MRR 32,787 40,393 50,973 65,852 84,921 NRR 3,951 4,804 6,094 7,757 9,254

Total Revenue 36,738 45,197 57,067 73,609 94,175 y-o-y growth 23.0% 26.3% 29.0% 27.9%

COGS (18,733) (22,013) (26,858) (33,873) (42,142)

Gross Margin 18,005 23,184 30,209 39,736 52,034 % 49.0% 51.3% 52.9% 54.0% 55.3%

Sales & Marketing (6,063) 16.5% (7,474) 16.5% (9,537) 16.7% (11,940) 16.2% (13,307) 14.1%

Development (2,289) 6.2% (2,590) 5.7% (3,796) 6.7% (4,597) 6.2% (5,180) 5.5%

G&A (6,611) 18.0% (7,112) 15.7% (7,760) 13.6% (8,420) 11.4% (8,993) 9.5%

EBITDA $3,042 $6,008 $9,116 $14,778 $24,554

8.3% 13.3% 16.0% 20.1% 26.1%

Cash Balance * $2,725 $1,886 $6,481 $19,198 $42,825Op Cash Flow * $194 $2,740 $6,950 $12,717 $23,626

* Does not include impact of taxes in out-years


Alternative: $4.5 mil EBITDA, 30% growth

2010 2011 2012 2013 2014

Results ($ in 000s) PF FY Full Year Full Year Full Year Full YearMRR 27,657 40,538 53,373 71,766 94,006 NRR 9,081 5,304 7,190 9,187 10,960

Total Revenue 36,738 45,842 60,563 80,953 104,966 y-o-y growth 24.8% 32.1% 33.7% 29.7%

COGS (18,733) (22,173) (28,107) (36,300) (45,781)

Gross Margin 18,005 23,669 32,455 44,653 59,185 % 49.0% 51.6% 53.6% 55.2% 56.4%

Sales & Marketing (6,063) 16.5% (8,435) 18.4% (10,739) 17.7% (12,947) 16.0% (14,272) 13.6%

Development (2,289) 6.2% (3,702) 8.1% (4,620) 7.6% (5,897) 7.3% (6,342) 6.0%

G&A (6,611) 18.0% (7,061) 15.4% (7,601) 12.5% (8,237) 10.2% (8,843) 8.4%

EBITDA $3,042 $4,472 $9,496 $17,572 $29,728

8.3% 9.8% 15.7% 21.7% 28.3%

Cash Balance * $2,725 $1,592 $6,802 $22,682 $52,005Op Cash Flow * $194 $1,967 $7,564 $15,880 $29,323

* Does not include impact of taxes in out-years

Heavy 2011 investments in sales reps & marketing and development


Snapshot: Marketing & Sales Together = Enables Major Turnarounds!!!


Tremendous Sales Traction we are at 120% of Plan!!! Q1,Q3, & Q4 were Record Sales Quarters

Consistent and Growing New Client Sales


In Closing

Focus becoming a Revenue Marketer with RPS If you embark on the Marketing Automation Journey hire

a Good Guide it will save you money and headaches Fail fast and fall forward!!! Dare to try new things!!! Get Sales to join you on the journey and become a

Smarketing Organization Measure, Measure, Measure!!! Be bold and continue to push the envelope!


The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. …Michelangelo


Q & A

[email protected] 770-331-4443 Twitter: @revenuemarketer LI: dqaqish

Jim Kanir SVP Sales & Marketing Billtrust [email protected] 609-235-0814



Documents

Revenue Marketing University - Pedowitz Grouprevmarketer.pedowitzgroup.com/rs/pedowitzgroup2/images/RMU Class... · based on real-life best ... //na11.salesforce.com/00OG0000004RBKw