building a business case for marketing automation

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