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3/8/2013 The Pedowitz Group ©2012 1
Revenue Marketing University Education for Marketing Executives
Winter 2013
Changing the Status Quo
Class 3: The CMO Dashboard
The Pedowitz Group
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Welcome!
jeff@pedowitzgroup.com 404.590.9416
Twitter: @revenuemarketer LI: jeffpedowitz
Jeff Pedowitz President and CEO 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.
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Connections
Tweet if you hear something worth sharing! @revenuemarketer
Tell your friends and colleagues to join Register Have access to all replays
Connect with me on LinkedIn!
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Winter 2013 Schedule Changing the Status Quo
Selling the Vision for Change - February 7th - 2:00pm ET Managing Change - February 21st - 2:00pm ET The CMO Dashboard - March 7th - 2:00pm ET Building the Revenue Continuum: Marketing & Sales
Alignment - March 21st - 2:00pm ET Revenue Marketing Organization: Structure & Team -
April 4th - 2:00pm ET
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Taking the CMO Back to School Language of a CMO Dashboard
Series of Viewpoint articles at DM Confidential taking the CMO back to school to learn how to drive repeatable, predictable, scalable revenue performance from marketing. We call this Revenue Marketing.
POP QUIZ! I’ll give you a word and you tell
me what you think it means. Then, I’ll give you the definition in terms of Revenue Marketing.
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Question #1: What is ROI?
“Did you say Roy? I’ve never seen someone spell their name this way. I think someone made a spelling error.” LOL. ROI stands for Return on
Investment and it is fast becoming the standard of measurement for B2B CMOs.
ROI is calculated as: Gain from investment – Cost of investment
Cost of investment
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Question #2: What is Revenue?
“As in Internal Revenue? I just saw a PBS special about the history of moonshiners and it seems like the cops chasing them were Revenuers?” Say it with me – R-E-V-E-N-U-E.
This is the new responsibility for today’s CMOs. It’s measured by metrics such as:
%/$ contribution to pipeline %/$ to booked business
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Question #3: What is Lead Management?
“I don’t manage leads, I toss them over the wall to sales and it’s hard work! Lead management is the
combined processes of marketing and sales that tracks and manages the entire life cycle of a lead. Every step and conversion point is tracked and reported on.
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Question 4: What is Sales & Marketing Alignment and Why does it Matter to Metrics?
“Well, in my company, we play the Sales & Marketing Angry Birds game. We’re completely aligned in our mistrust and lack of respect for one another and take lots of pot shots. Our aim is excellent!” OK, OK. No more violence! For the
Revenue Marketer, sales and marketing alignment is a key ingredient of success. In companies where this alignment has occurred, you will see a synergistic revenue team comprised of marketing and sales all striving and accountable for the same number. Oh, and you guys need a new game.
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Question #5: What is forecasting?
“What, like in the weather? That’s not in my job description!” You missed again. The hallmark
of a Revenue Marketer is they show up to a senior management meeting and not only report on their revenue impact last quarter, but also forecast the impact they’ll have on revenue in the upcoming quarter.
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From Classroom to Real World…
CMO Dashboard at Sage Nancy Harris, GM
CMO Dashboard at BillTrust Jim Kanir, SVP Sales & Marketing
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My background
SVP/GM at Sage 25 year career in high tech companies Product marketing, product
management, R&D, services and GM roles
RPM champion at two different companies
RPM is way that executives MUST think
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Background
Sage 50 Canadian Edition business unit
Sage North America
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Key Indicators
INCOME STATEMENT
• Revenue • Expenses • Net income
BALANCE SHEET
• Assets • Liabilities • Shareholder equity
CASH FLOW
• Cash sources • Expenses • Operating cash
VALUE • Pipeline • Leads • Ratio leads/close
PERFORMANCE
• Reach • Conversion rate • Velocity
EFFICIENCY
• Acquisition cost
• Close rate • ROI
Business indicators
RPM indicators
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Journey to Metrics That Matter
Sales and marketing metrics BEFORE
Marketing
Visitors Clicks Leads Dollars spent
Sales
Opportunities Forecast Win rate Quota attainment
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A Rigorous Revenue-Based Approach
Web (PPC, SEO)
A framework to measure, refine, collaborate and optimize top line revenue
Recycle Deferred, Unresponsive Leads
13% Close Rate
50% SAL Rate
15% MQL Rate
80% Activity Conversion Rate
Lead Aggregators
Webinars
Campaigns
Reach, Value, Conversion, Velocity, Return
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Metrics Focus on Results not Activities
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Jim Kanir
SVP Sales/Marketing Billtrust
CRO M5 Networks COO for Powerway, Inc. President / CEO Cohesia
Corp Global sales and marketing
executive positions: Reasoning Inc. Unify Corporation,
CrossAccess Corporation Pentawave Bell & Howell
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You Know You Need to Revisit Your Marketing Metrics When…
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Billtrust Before Focusing on Metrics that Matter
Dirty Data Input = Lack of data around lead source ROI Length of sales cycle = ??? Size of the funnel = ??? No measurement on the effectiveness of marketing
programs No insight into the number of deals that marketing
influenced Gathering data to present to the CEO
took hours of excel sorting Not enough data to forecast
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Listen Up and STOP
If you were given a 10% budget increase, which
lead sources would you allocate it to based on ROI?
What percent of your company’s closed-won deals has marketing influenced?
How much revenue did marketing contribute to in 2012?
What is your forecasted revenue for Q2 2013?
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ALIGN SALES AND MARKETING GOALS
2012: Sales & Marketing AGREED to increase revenue by 50% The team crushed the goal of 50% Year over Year Then we signed on for a stretch goal of 120% and delivered total
revenue of 141% of the original plan
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Sales Did Their Part…
Reps Ramping Period Standard Operating Procedure
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Marketing Did Their Part…
Analyzed New & Clean Data From Sales Started to Focus on Funnel Size & Velocity
Measured Marketing Influence Via Marketo
Deals Nurtured by Marketing
70%
Forecasting
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Lessons Learned
Sales and marketing alignment is ALWAYS step one The metrics that the C-Suite wants start with clean data
input by sales PS: They don’t care about the # of clicks and likes MQL’s are interesting, SAL’s are key!
A dedicated marketing team member should focus on the metrics that matter
Fail Fast and Fall Forward!
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Q & A
Jim Kanir SVP
Sales & Marketing Billtrust
Nancy Harris GM
Sage Canada
Jeff Pedowitz CEO
The Pedowitz Group jeff@pedowitzgroup.com
404.590.9416 Twitter: @revenuemarketer
LI: jeffpedowitz
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