Revenue Reporting: Your Genie in a Bottle
Transcript of Revenue Reporting: Your Genie in a Bottle
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Revenue Reporting:Your Genie in a Bottle
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Today’s Speakers
Jessica KaoSenior Manager, Demand GenGuidespark
Brian GloverSenior Manager, Product MarketingMarketo
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Companies lack quantitative metrics to demonstrate impact of marketing spend
Source: The CMO Survey (August 2014), Highlights & Insights Report
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High growth companies rely on analytics for decision making
Source: The 2014 CMO Insights Survey, Accenture
86% of high-growth
companies use data and
analytics to improve
marketing impact
Vs.
65% of low-growth
companies
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CMOs commit to mastering analytics
Source: The 2014 CMO Insights Survey, Accenture
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Spending on marketing analytics expected to increase 73% in three years
Source: The CMO Survey (August 2014), Highlights & Insights Report
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Increasing pressure to prove the value of marketing
Source: The CMO Survey (August 2014), Highlights & Insights Report
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• Limited resources
• Prioritize what to do
• Prove Marketing Investment and ROI
• Prove Marketing Contribution
• Prove Marketing Matters
Marketers Challenges
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• Overwhelmed by which metrics to choose
• Lack of tools
• Lack of expertise
• Low prioritization
• Not rewarded for reporting over tactics
Reporting can be Daunting
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Does it:
• Answer WIIFM
• Use common language and vocab
• Stimulate conversation
How to make marketing metrics matter
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What are the metrics that really matter?
Marketing’s contribution:
• Revenue
• Pipeline
• # of Opportunities
What is Revenue Reporting
Measuring the impact of all marketing strategies and tactics on the companies bottom line = Revenue
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• Provide data to prove marketing is an investment and not a cost center
• Achieve alignment between sales and marketing
• Earn seat at the C-suite table
Power of Revenue Reporting
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Cost of NOT doing Revenue Reporting
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Cost of NOT doing Revenue Reporting
Let’s Do More
Tradeshows!
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Topic Performance: Pipeline and Revenue
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Topic Performance: Pipeline and Revenue
• Onboarding had the highest number of successes but lowest
close rate
• Open Enrollment created the most (MT) Pipeline and Revenue
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Topic Performance: Pipeline and Revenue
$616,956
$1,869,881
$2,956,106
$1,028,095
$988,188
$195,307
$246,372
$830,615
$285,014
$298,304
$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000
Compensation Total
Onboarding Total
Open Enrollment Total
Performance Mangagement Total
Wellness Total
(MT) Revenue Won (MT) Pipeline Created
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Identify what is not Working
Lowest (MT) Revenue Won to Cost
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Compensation (MT) Pipeline and (MT) Revenue derived at the lowest
cost per dollar of pipeline and revenue
$12
$33
$40
$24
$22
$5
$6
$19
$6
$7
$0 $5 $10 $15 $20 $25 $30 $35 $40 $45
Compensation Total
Onboarding Total
Open Enrollment Total
Performance Mangagement Total
Wellness Total
(MT) Revenue Won to Cost (MT) Pipeline to Cost
Pipeline and Revenue to Cost
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Channel: Pipeline and Revenue
What is the most successful channel and topic combination?
Identify the highest (MT) Revenue Won to Cost
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Addressing the Important Questions with Revenue Reporting: RCA Model
Sourced
Influenced
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How am I doing to plan?
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Lead Lifecycle: How do I reach my goal?
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Demand Waterfall
Digital-pi.net
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Demand Waterfall
Digital-pi.net
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I need more leads!
Digital-pi.net
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Shorten late stage sale cycle
Digital-pi.net
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Increase quality of leads to sales (MQL)
Digital-pi.net
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• Create reports that lead to actionable insight
• What should you do?• Do more• Do less• Do something different
• Let the data teach you something you don’t know.
• Embrace being wrong
• Iterate
How do I get started?
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How do I justify the need for reporting when I need reports to justify that need?
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Establishing Reporting Vision
Presentation:
• RCA Model
• Reporting Vision
• Establish Sales and Marketing Alignment
• Marketing Goal Contributions
– Revenue
– Pipeline
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Data:
• Company Revenue Goals ($)*
• FY
• QTR
• Avg Deal Size ($)*
• Length of Sales Cycle (Days)*
• Avg Close Rate (%)
How to easily set your goals by the end of this week
Who to Talk To:
• Sales
• Sales Ops/CRM
• Finance
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FY15Q1 FY15Q2 FY15Q3 FY15Q4
Rev $10M $25M $25M $40M
Divide by avg deal size $10M/50K $25M/50K $25M/50K $40M/50K
# of Closed Opps 200 500 500 800
Divide by close rate $10M/0.1 $25M/0.1 $25M/0.1 $40M/0.1
Pipeline $100M $250M $250M $400M
# of Open Opps 2000 5000 5000 8000
Quick Calculations – Acme Co.
• $100M Revenue
• $50K Avg Deal Size
• 90 day Sales Cycle
• 10% or 1:10 Close Rate –Determines how much pipeline you need
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FY15Q4 Marketing Sourced (20%)
MarketingInfluenced (40%)
Rev $40M $8M $16M
# of Closed Opps 800 160 320
Pipeline $400M $80M $160M
# of Open Opps 8000 1600 3200
What is Marketing’s Contribution
• Marketing Sourced Goal = First Touch = 20%
• Marketing Influenced Goal = 40%
• 90 day sales cycle = Start FY15Q3
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Marketo set up and utilization not optimal
• Acquisition Programs
• Channels
• Progression statuses
• Program structure
• Lead Source
• Scoring
Before R. C. A. – State of Marketo Implementation Oct 2014
SFDC Reporting
• Lots of dashboards
• Lots of time and resources to maintain dashboards
• Not designed with marketers in mind
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Marketing Reporting Needs
• Multiple programs influencing a person’s decision to buy (MT)
• Acquisition (FT)
• Dates of entering program/campaign
• Leads characteristic associated with program not the lead as a static field
• Multi-dimensional reporting
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• More engagement and conversations between sales and marketing• Weekly marketing updates at sales team
• Monthly marketing and sales leadership meeting
• Weekly marketing and inside sales meeting
• Monthly marketing report out C-suite
• Intradepartmental changes
• What do we call a success
• How do we measure the impact on pipeline and revenue
Changing the Conversation and Increasing Alignment
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I’m ready to get started today:
• Strategic
• Understand resource needs
• Set aside dedicated time each week
• Set goals
• Tactical
• Audit lead sources
• Audit channels, successes, and program Statuses
• Acquisition programs
So Now What. . . If
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I want to plan ahead for revenue reporting in the future:
• Audit Lead Sources
• Audit Channels, Successes, and Program Statuses
• Acquisition Programs
So Now What. . . if
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Huh? I’m overwhelmed:
Then start with this at a minimum
• Create static lists with descriptive nomenclature
• Consistent Nomenclature for Lead Source Detail
• Tradeshow-AABB-021415
• Webinar-Revenue Reporting-021815
• List Purchase-ABC-031414
• Hire/Train designated person
• Ask for Help• Marketo Professional Services
• Hire an Agency: Digital Pi
• Marketo User Group
• Local Linkedin User Group
• Summit 2015
So Now What. . .
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• Revenue reporting empowers your company and your career
• Set goals and measure against them
• Do something different today to address revenue reporting – try Demand Waterfall
Wrap up - summary
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Special Thanks:
http://summit.marketo.com/2014/replay/
Resources:
Webinar: Find the Right Marketing Automation
Solution for your Company
http://www.marketo.com/webinars/
(Good explanation of multi-touch attribution)
Demand waterfall spreadsheet available at digital-pi.net
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Thank You!
Jessica Kao, PhD@[email protected] Manager, Demand GenGuidespark
Brian Glover@[email protected] Manager, Product MarketingMarketo