© 2012 Forrester Research, Inc. Reproduction Prohibited Webinar The State Of Lead-To-Revenue Management: Advice For Tech Marketers On Moving From Current To Better Practices Lori Wizdo, Principal Analyst June 21, Call in at 10:55 a.m. Eastern time

© 2012 Forrester Research, Inc. Reproduction Prohibited Agenda How B2B companies are investing in L2RM Key issues for executives and practitioners The transformative impact of L2RM 2

© 2012 Forrester Research, Inc. Reproduction Prohibited 3 A set of integrated processes, goals, and metrics that frame marketing practices from lead generation to sales close and that calibrate marketing results with sales results The end-to-end marketing/sales process Attract Capture Nurture Convert Expand Source: May 8, 2012, “The State Of Lead-To-Revenue Management” Forrester report

© 2012 Forrester Research, Inc. Reproduction Prohibited Research sources we’ll see today Q B2B Marketing Organizations And Investments Survey 2011 Technology Marketing Tactics Survey >100 client inquiries 4

© 2012 Forrester Research, Inc. Reproduction Prohibited How do you believe your marketing function’s budget will be allocated across the following marketing activities for 2012? The L2RM Zeitgeist 5

© 2012 Forrester Research, Inc. Reproduction Prohibited Base: 864 B2B marketing executives in companies with 100 or more employees; Source: Q B2B Marketing Organizations And Investments Online Survey The Forrester marketing flywheel “How do you believe your marketing function’s budget will be allocated across the following marketing activities for 2012?” Lead origination Marketing operations Customer community management Product marketing Customer and market intelligence Field enablement Channel enablement Branding/ awareness Lead nurturing 12% 10% 11% 13% 8% 10% 9% 20% 22% 22% of B2B marketing budgets are allocated to lead management.

© 2012 Forrester Research, Inc. Reproduction Prohibited Q. Which best describes your lead management process? The L2RM Zeitgeist 7

© 2012 Forrester Research, Inc. Reproduction Prohibited Base: 266 marketing and sales leaders; Source: May 2011 State Of Demand Generation Online Survey The state of lead management 8 There is room for improvement in lead management.

© 2012 Forrester Research, Inc. Reproduction Prohibited Key metrics for B2B marketing execs “What are the most important metrics used by your marketing organization?” (Select up to four) 9 Base: 864 B2B marketing executives in companies with 100 or more employees; Source: Q B2B Marketing Organizations And Investments Online Survey

© 2012 Forrester Research, Inc. Reproduction Prohibited B2B marketing execs see lead-to-revenue management as a strategic issue. The L2RM Zeitgeist 10 50% of inquiries are with a top marketing executive.

© 2012 Forrester Research, Inc. Reproduction Prohibited Calibrate the marketing team to the goal of revenue. Revenue focus Balance process rigor with flexible creativity. Process rigor Align with the sales executive team on new processes and goals. Sales alignment Top 3 executive concerns with L2RM 11

© 2012 Forrester Research, Inc. Reproduction Prohibited Keep rewarding on traditional metrics. Introduce new metrics: Pipeline contribution Revenue contribution Lead the “culture” shift. Revenue focus Forrester’s advice 12

© 2012 Forrester Research, Inc. Reproduction Prohibited Crawl. Walk. Run. Identify the subprocesses. Define. Set metrics. Measure/improve. Process rigor Forrester’s advice 12 Marketing execs cite “instituting marketing process change” as the No. 1 weakness of their marketing organizations.

© 2012 Forrester Research, Inc. Reproduction Prohibited Communicate. Build trust. Stand firm. Sales alignment Forrester’s advice 12 54% of marketing execs reported weak or mixed collaboration with sales.

© 2012 Forrester Research, Inc. Reproduction Prohibited Marketing practitioners are struggling for firm footing on shifting tactical sands. The L2RM Zeitgeist 15 75% of inquiries include a discussion of marketing tactics.

© 2012 Forrester Research, Inc. Reproduction Prohibited 16 B2B marketers deal with early-stage entropy Base: 136 marketing decision-makers at North American high-tech B2B companies with 100 or more employees; Source: Q North American B2B Technology Marketing Tactics And Benchmarks Online Survey 75% of respondents reported that they were using 15 of the 26 techniques. 50% of respondents reported that they were using 23 of the 26 techniques. “Which of the following marketing tactics do you use?”

© 2012 Forrester Research, Inc. Reproduction Prohibited To attract the right prospects, top performers practice the fine art of being found. Attract Capture Nurture Convert Expand 17

© 2012 Forrester Research, Inc. Reproduction Prohibited “For what stage of marketing do you use these tactics?” Awareness (drive brand awareness) 18 Base: 75 marketing decision-makers at North American high-tech B2B companies with 100 or more employees; Source: Q North American B2B Technology Marketing Tactics And Benchmarks Online Survey Top performers use an artful mix of old and new

© 2012 Forrester Research, Inc. Reproduction Prohibited To capture prospects for lead origination, all respondents cite their website as their first choice. 19 Attract Capture Nurture Convert Expand

© 2012 Forrester Research, Inc. Reproduction Prohibited Lori Wizdo “For what stage of marketing do you use these tactics?” Origination (generate new leads) 20 Base: 75 marketing decision-makers at North American high-tech B2B companies with 100 or more employees; Source: Q North American B2B Technology Marketing Tactics And Benchmarks Online Survey Early reports indicate that social sign-on improves conversions by 25% to 30%.

© 2012 Forrester Research, Inc. Reproduction Prohibited Top performers use lead nurturing to guide prospects through the buying process. 21 Attract Capture Nurture Convert Expand

© 2012 Forrester Research, Inc. Reproduction Prohibited Source: October 4, 2006, “Improving B2B Lead Management” Forrester report Lead nurturing circa 2006 Lead origination Lead nurturing Sales Marketing’s key focus was getting new names into the funnel. The primary role of lead nurturing was to stop “warm” leads from leaking out of the funnel. 22

© 2012 Forrester Research, Inc. Reproduction Prohibited Lead nurturing guides the buyer to the decision Nurture Consider scope/plan 23

© 2012 Forrester Research, Inc. Reproduction Prohibited 24 What the buyer’s journey really looks like Source: Forthcoming Forrester report

© 2012 Forrester Research, Inc. Reproduction Prohibited First-generation lead generation was, all too often about us, not the customer’s journey.... drip marketing on steroids.... systematic sales harassment. First generation of lead nurturing didn’t work SellerBuyer Eventual sale Serial touches 25

© 2012 Forrester Research, Inc. Reproduction Prohibited Next-generation lead nurturing 26

© 2012 Forrester Research, Inc. Reproduction Prohibited Top performers engage for lead nurturing “For what stage of marketing do you use these tactics?” Nurturing (cultivate leads to sales qualified status) 27 Base: 75 marketing decision-makers at North American high-tech B2B companies with 100 or more employees; Source: Q North American B2B Technology Marketing Tactics And Benchmarks Online Survey Bottom performers use passive techniques.

© 2012 Forrester Research, Inc. Reproduction Prohibited Key elements for effective lead nurturing Map the key decision-makers journey. Establish a “touch strategy” for each nurtured segment. Design a content strategy to underpin the nurturing process. Mix targeted e-touches and offers with human interactions. 28

© 2012 Forrester Research, Inc. Reproduction Prohibited Top performers carefully manage the “hand-off” for sales conversion. 29 Attract Capture Nurture Convert Expand

© 2012 Forrester Research, Inc. Reproduction Prohibited Top performers have high standards for SQLs 30 Base: 77 marketing decision-makers at North American high-tech B2B companies with 100 or more employees; Source: Q North American B2B Technology Marketing Tactics And Benchmarks Online Survey 35% more likely to consider time frame Twice as likely to have identified need/pain

© 2012 Forrester Research, Inc. Reproduction Prohibited Nurture MQL Marketing Engage Inside sales Adjust Marketing Score Marketing Engage Inside sales Recycle Marketing Top performers define a 2-way lead flow 31

© 2012 Forrester Research, Inc. Reproduction Prohibited L2RM can have a transformative impact on B2B marketing. The L2RM Zeitgeist 32

© 2012 Forrester Research, Inc. Reproduction Prohibited Top performers max contribution to pipeline 33 Top performers contribute to 38% of sales pipeline versus 25%.

© 2012 Forrester Research, Inc. Reproduction Prohibited The ROMI for a managed L2RM process Nurturing investment Average conversion ratios from Forrester’s Research Lead origination Lead nurturing Pipeline readyWon deal End-to- end Worst performers 34%30%24%20%0.49% Top performers 38%34%28%25%0.90% 50%: six or more touches Nearly double the end-to-end conversion rates 34 Base: 136 marketing decision-makers at North American high-tech B2B companies with 100 or more employees; Source: Q North American B2B Technology Marketing Tactics And Benchmarks Online Survey It matters!

© 2012 Forrester Research, Inc. Reproduction Prohibited L2RM helps drive sales/marketing collaboration 35 Base: 522 B2B high-tech marketing executives at companies with 100 or more employees; Source: Q Marketing Organization And Investments Online Survey L2RM drives 8% to13% better collaboration.

© 2012 Forrester Research, Inc. Reproduction Prohibited Key takeaways 36

© 2012 Forrester Research, Inc. Reproduction Prohibited Key takeaways Don’t abandon the old to embrace the new.Get serious about social marketing.Use tactics that engage your prospects.Carefully orchestrate sales interaction.It matters. L2RM can move the needle! 37

© 2012 Forrester Research, Inc. Reproduction Prohibited Thank you Lori Wizdo Engage beyond this event Community: Blog: Twitter::