A+ Marketing Automation Case Studies:A+ Marketing Automation Case Studies: Nurture and Deliver More Leads to Sales

MarketingJon Miller: MarketoJeff Serlin: Emptoris

Safe HarborSafe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-l ki t t t th t i l i k t i ti d ti If h t i ti t i li if f thlooking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of theassumptions proves incorrect, the results of salesforce.com, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new planned or upgraded services or technology developments and customer contracts or use of ourconcerning new, planned, or upgraded services or technology developments and customer contracts or use of our services.

The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, the p g g p y g youtcome of intellectual property and other litigation, risks associated with possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of salesforce.com, inc. is included in our annual

t F 10 K f th t t fi l d d J 31 2010 Thi d t d th il blreport on Form 10-K for the most recent fiscal year ended January 31, 2010. This documents and others are available on the SEC Filings section of the Investor Information section of our Web site.

Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available Salesforce com inc assumes no obligation and does notdecisions based upon features that are currently available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.

Agenda

What is Marketing Automation? Why Lead Nurturing and Lead Scoring?and Lead Scoring?

Emptoris Case Study

Marketo Case Study Marketo Case Study

The Leaky Revenue Cycle

Lead Nurturing and Scoring Plug The Leak

“The art of maintaining permission to stay in front of your buyers as they educate themselves”

The ROI of Lead Nurturing

Fast Leads( MQL <1 mo)

Slow Leads(MQL >1 mo)

Total Leads (MQL)

Cost / Lead (MQL)( Q ) ( Q ) ( Q ) ( Q )

WithoutNurturing 20% 6.67% 26.67% $206.00

WithNurturing 20% 20.0% 40.0% $137.50

Source: Actual Marketo data;  assumes $55 per prospect

Results: 50% more marketing qualified leads from lead nurturing

The ROI of Lead ScoringH E I i T G A I f iHow Easy Is it To Get Access to Information 

About Prioritizing Sales Efforts?

Source: CSO Insights

What Are You Doing Today?

51% 13% 36%Use CRM system to manage lead process

Yes, doing now No, but high priority Back burner / not planned

Collaborate with sales to define sales‐

44%

45%

25%

20%

31%

35%

Measure lead generation contribution to revenue

Collaborate with sales to define sales-ready leads

sales to define salesready leadsHave a system for rating ‘qualified’ and 

39%

44%

23%

18%

38%

38%

Have a process for nurturing leads not sales-ready

Have system for rating 'qualified' and 'warm' leads

‘warm’ leads

Have a process for nurturing leads not‐

28%

30%

19%

27%

53%

43%

Have a process for handing leads back to marketing

Closed-loop tracking from source to conclusion

nurturing leads not‐sales‐ready

Have a process for handing leads back

0% 20% 40% 60% 80% 100%

Source: MarketingSherpa B2B Marketing Benchmark Survey 2009Methodology: Fielded April 15-20, 2009, N=1,147

handing leads back to marketing

Jeffrey SerlinEmptoris

Director Global Sales Operations

Emptoris

Emptoris solutions are used by successful Global 1000 companies in every industry.Emptoris customers:

300 users across Sales Marketing

Emptoris is a world leader in strategic supply and

enterprise contract 300 users across Sales, Marketing, Support and Services including Customer Portal & Partner Portal

Near 100% adoption driven top down

enterprise contract

management software

solutions that empower

enterprises to realize best

value and accelerate Near 100% adoption driven top down value and accelerate

profitable growth.

Marketing Automation Supports BOD and Executive Management Goals

30%+ growth in new business

Executive Management Goals

% g

Maximize ROI from all investments, including marketing

Sales & Marketing Funnel Targets by Product & Region

* not actual data

How to “Sell” Marketing Automation to Sales

Critical that Sales engages with and understands Marketing Automation. Talk to them in their language.

HIGHER QUALITYCONVERSATIONS

SOFTEN THE BEACHES

LESS WASTED TIME

Would you like to know what a prospect wants to talk about before you call or where they are in their buying cycle?

When you ask a prospect “Have you heard of

Emptoris” would you like them to say “yes”?

Do you want to talk to prospects who want

to talk to you?

Challenges Prior to Re-launch of Marketing Automation SolutionAutomation Solution

EFFECTIVENESSPROCESS FLEXIBILITYVISIBILITY

What works, what does not work?

Difficult to link marketing

Free for all.

Lack of adherence to systematic and

Emptoris is evolving. We need a solutionthat is cost effective in evolving with us

Limited view into interactions.

Unorganized view gprograms/spend to pipeline KPIs and focus on winning

programs.

yprescribed rules.

ggso ignored.

How Marketo Address our Challenges Complete Real-Time Visibility: Sales knows exactly how our prospects are engaging with us

Lead Scoring Not a Black Hole: Sales believes the scoring because they can see the details

Manageable Process: Follow up is more specific and appropriate in both timing and approach

Reporting and Analytics: Optimize programs and better demonstrate revenue impact

Complete Control: Ease deployment and administration. We own our process

AfterBefore

Real Results in our 1st 7 Months

30% Improvement in Quality Leads and SQLs per Month (QL is step between MQL & SQL)

30%+ Decrease in Cost per Quality

4 months Payback from Marketo investment

Other areas of improvement– Conversion ratios

– Time to get to MQL, time to get to SQL

– % of pipeline with marketing programs as a source (or less % of cold calling)

– Growth in SQL pipeline

Key Take-Aways

Select a solution that is easy to administer by a non-technical person with low TCO

Develop your initial scoring models and nurturing campaigns on a white Develop your initial scoring models and nurturing campaigns on a white board first. Don’t be overly ambitious

Clean data for full value. Get control of Salesforce.com data (page layout, segmentation, duplicates, data enrichment)

Re-define lead management process to comprehend nurturing and scoring

Define KPIs and metrics and manage to them

C t St i C itt E ith S l d i l d th i Create a Steering Committee. Engage with Sales and include them in the process and scoring methodology. Their feedback is critical to optimizing value

Look outside organization for best practices. Someone has done it before!Look outside organization for best practices. Someone has done it before!

Constantly evangelize and publicize wins…get Sales to publicize wins

Jon MillerVP Marketing, Marketo

Author Modern B2B MarketingAuthor Modern B2B Marketing

About Marketo

Revenue Performance Management solutions that optimize marketing and sales success for more than 800 mid-sized and enterprise worldwide

• Salesforce CRM• Jigsaw for Salesforce• Salesforce Community• Marketo Lead Management / Marketing Automation• Marketo Sales Insight• Marketo Revenue Cycle Analytics

Marketo’s Revenue Cycle

mes t &

edES

S

edMQL

SQLSAL

All

Nam

Pros

pect

Recy

cle

Lead

AWA

REN

Enga

ge Opportunity Customer

Sale

sLe

ad

SAL

Nurturing Database

Marketing SDR Sales

When To Ask For Registration?

Early StageThought leadership and best practices to build brand andpractices to build brand and awareness

Middle StageBuyers guides, RFP templates and industry information to help structure research

Late Stagef fCompany‐specific information 

to help evaluate and reaffirm selection

Marketo Prospect Generation 1H2010Source Prospects Cost Opps Nurture Time

3rd Party Email Blast 2,476 $35 22 Medium

Trade Show –Virtual 2 019 $33 28 MediumTrade Show –Virtual 2,019 $33 28 Medium

Sponsorship 1,296 $81 12 Medium

Trade Show 929 $104 38 High

$Alliance 743 $40 13 Medium

PPC 686 $182  28 High

Content Syndication 89 $98 0 Medium

Website 2,586 178 Low

Partner 358 21 High

AppExchange 308 18 Lowpp g

Referral 302 49 Low

Sales Outbound 178 56 High

Inbound Call 91 33 LowInbound Call 91 33 Low

Blog 55 3 Medium

Lead Nurturing Relevance

Other Kinds of Lead Nurturing

Accelerators Move prospects along the buying cycle faster 

with relevant “nudges” triggered by specific behaviorswith relevant  nudges  triggered by specific behaviors

Recycled Key driver of messaging in active recycling is the reason for disqualification Key driver of messaging in active recycling is the reason for disqualification Limit number of reasons Timeframe of months or quarters

Reconstituted AKA “Wake the Dead” Great place to experiment

Source: SiriusDecisions

Lead Scoring

• Industry: +0 to 15• Company Size: +0 to 20• Inferred geography: ‐20 to 0• Data Quality: 15 to 0

• Visit pricing pages:• +10 regular, +15 detailed

• Timeline < 3 months: +15• Watch demos:• Data Quality: ‐15 to 0 • Watch demos: 

• +5 overview, +10 detailed• Download Marketo reviews: +12• Download buyers guides: +8y g• Download data sheets: +8• Searches for “Marketo”: +8• Heavy web activity: +5

• Download thought leadership: +3• Visit any webpage / blog : +1• Visit careers pages: ‐10• No activity in 1 month: Decay

Sales Insights

Lead Follow-up Process

No Lead Left Behind

Day 0 Notification

Day 1 In untouched, reminder

Day 2 If untouched, reminder cc boss

Day 3 If untouched, alert executives

Day 7 If stale, reminder

Day 8 If stale, reminder cc boss

Day 9 If stale, alert executives

© 2010 Marketo, Inc.

Marketo Metrics

Conversion Over Time Predict conversions from one stage to another over time

Create plans / forecasts about future Create plans / forecasts about future

Marginal Conversion Cumulative Conversion

y = 50.749x-0.571

R² = 0.430140

50

60

70

y = 994.2x0.1352

R² = 0.95511 0001,200 1,400 1,600 1,800 2,000

0

10

20

30

-200 400 600 800

1,000

3 13 23 33 43 53 63 73 3 13 23 33 43 53 63 73

Marketing Forecasts

Plan Forecast Actual

Key Takeaways

1. Grow revenue by making sales more productive, not just by hiring more reps

2. Focus on the entire revenue cycle, not just the top of the funnel

3. Don’t contact a lead before its time

4. No lead left behind / service level agreements

5. Use forecasting to turn marketing from a cost center into a revenue driver

6. Continual evolution and closed‐loop optimization

Question & AnswerQuestion & Answer

Jon MillerVP Marketing

Jeffrey SerlinyDirector Global Sales Operations