Vision Document for Unica OnDemand Marketing/Sales “Machine”
March 13, 2009
2008 Unica Corporation2
On-Premises versus On-Demand Software Models
TRADE-OFF• Less Flexible• Easier, faster to buy and deploy• Lower up-front costs• Business Led
• Highly customizable• Harder, slower deployment• Larger up-front costs• IT Led
“Off the Rack”
On Demand
“Tailored”
On Premises
2008 Unica Corporation3
In Today’s Marketing Software Market, “Mid-Market” has broad overlap with “On Demand”
On Demand On Premises
Ent
erpr
ise
Mid
-Mar
ket
Appropriate Solution
Com
pany
Siz
e
Unica’s OnDemand Product Line is Primarily Focused on Mid-market
Enterprise will also have interest in it.
2008 Unica Corporation4
The OD/MM Sales/Marketing Model Is Different
Marketing delivers a greater % of pipeline
Marketing carries leads further
Smaller deals means higher volume of deals & leads
Shorter sales cycles
Mar
ketin
g
Sales
Enterprise OnDemand/MM
What doesn’t change? Conversion ratios Use of channel partners (i.e. both use them in
various ways)
E.g. 3000 vs 30,000 Leads Processed/Yr
2008 Unica Corporation5
Work harder to promote retention and expansion
The Sales/Marketing “Machine” Must Work Differently
Use scalable, low-cost means (marketing) to progress prospects instead of high-cost ones (1to1 sales calls).
Tightly managed, well instrumented process to enable continuous improvement
Automated Lead Scoring and Nurturing
SEM
Even
t
Oth
er
Emai
l
PR
Content is King! (i.e. Info Consumption)• Drives leads through SEO and viral • Prospect self-service to lower sales/mktg costs• Engagement lets us learn via web analytics
Search becomes more critical. Other marketing mix may also change.
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2008 Unica Corporation6
What Gaps Must We Overcome? Marketing Automation:
− We aren’t gathering enough insights from prospects’ web behavior
− We can’t automate “lead nurturing” campaigns
− MarketingCentral SFDC instance not merged with Unica SFDC
Resources:− Sales/marketing *budget ratios will differ from Enterprise (FY’10 planning process)
− How do we invest in building future capabilities while still meeting lead commitments?
Content:− Do we have sufficient amount? Is it valuable enough?
− Maintaining “freshness” so that prospects return
Measurements:− Need to define/model the “funnel” (single approach across products)
− Does SFDC + MBD provide the measurability we need yet?
*See next slides for Benchmark Data
2008 Unica Corporation7
Benchmark SummarySalesforce.com (SF), Eloqua (E), Concur (C):
− Pipe Sources: SF=95% NOT from partners and “mainly” marketing generated for Mid-Market; E: 70% from marketing; C: 40% from partners, 40% marketing, and 20% sales.
− SF: Cost Per Lead & Pipe: MM=$50/lead & $200/pipe, ENT=$1000/lead & $5000/pipe.
− SF: Conversion ratios don’t change for MM vs ENT, volumes do (80+% of 25K leads/mo = MM).
− ADRs: SF: Did very little MM outbound calling, lots of lead-maturation. C: Primarily inbound.
− Average deal size & sales cycle: SF: MM=$20K & 3 Months, ENT=$100K & 7 Months E: MM=$40-50K & 3 Months C: $10K & 3 Months
Mid-Market Price Points (Input from Unica Alliances):− Axciom MM (6.5M Customers) $350K Subsc Fee + $140K Data + $140K Services = $630K
− $100M Company will spend $221K on whole solution $121K on IMOD
− $500M Company will spend $360K on whole solution $240K on IMOD
− $1B Company will spend $515K on whole solution $315K on IMOD
Unica Target 40-70% Source
= Marketing
$50-100/lead
Same Conver. Ratios
ADR=LeadMat
Deal size should be larger, cycle is 3-4 Months
* Consider that the marketing software space and channel is unique.
2008 Unica Corporation8
Benchmark Summary
From Benchmark Report of 35 SaaS Companies $5M-225M ’07 Revenues
OMTR FY07: $143M Revenues, S&M Expenses $61M (43%), 713 Employees
Key Take-Aways: Sales = 41.9%, Marketing=20.6% of NB All sizes = 1 Marketer per 3 Salespeople. Direct selling is most popular not reselling. 90%-SaaS spend 3X more on Mkt vs Non-Saas
2008 Unica Corporation9
Proposed Timeline
1. Invest in “building the machine” as part of the 2H’09 MarketingCentral marketing plan
− Strong product + ops, ready sales force, value prop still valid
2. Be ready to support Interactive Marketing OD after early September public launch
3. NetInsight OnDemand after IMOD.
March April May June July August Sept Oct Nov Dec
Plan Build “Machine” for MktgCtrl IM-OD NI-OD?
2008 Unica Corporation10
Proposed Next Steps
Gain alignment around vision for “marketing/sales machine” Identify gaps between vision and current state; develop plan to
close themGenerate specific targets and metrics by modeling the OD/MM
funnelMarketingCentral 2H’09 Marketing Plan: with MC-specific goals
for moving towards the machineIM-OD GTM Plan: with goals for having “machine” in place to
maximize value of September launchAddress gaps by end of fiscal year
AppendixBenchmark Metrics
2008 Unica Corporation12