1. Lead Lifecycle Analytics Essential Metrics for Perpetual Revenue Growth Ian Michiels Gleanster @InsightFanatic Sponsored by:

2. #AOWEB About the Research Findings 2 Lead Prioritization Gleansight (Nov 2011) Top Performers: Respondents that achieved Top Quartile performance in key KPI’s Everyone Else: Everyone Else TODAY’S STATS Total survey responses: 432 Qualified survey responses: 321 REVENUE AVG CLICK-THROUGH LEAD-TO-SALES CONVERSION Marketing Automation Gleansight (Dec 2011) Growth in:

3. #AOWEB Agenda for Today… 3 Managing by Revenue by the numbers: – Buying Cycle – Sales Cycle – Lead Lifecycle Define how to actually measure the sales pipeline? Lead Lifecycle Dashboard 3 Tactics You Can’t Succeed Without

4. #AOWEB “How about we raise the marketing budget by 1%.” “Can we do it ? ” “How about we raise the marketing budget by 1%.” “Can we do it ? ” 4 In a world… Mr. CEO We need more leads. Mary, what will it take to increase sales by 2x year-over-year ? We need more leads. Mary, what will it take to increase sales by 2x year-over-year ? “The Board wants to raise our sales targets this year… I think we need to beef up our Marketing!” “The Board wants to raise our sales targets this year… I think we need to beef up our Marketing!”

5. #AOWEB 5 One woman fights for success… Mary VP of Marketing What are my options?

6. #AOWEB “I just don’t know…” 6 Option 1: Tell Him Yes, and Hope We Can Mary VP of Marketing Marketing Spend + Sales Effort = ? ? ? ? ? # I’m not sure exactly how effective my marketing spend was last year? But, we reached our targets.

7. #AOWEB 7 Option 2: Go Check the Numbers I’ll check my Lead Lifecycle Analytics Dashboard! It tells me: Exactly how many leads I need to reach 2x sales growth. Exactly what it will cost me to generate those leads. Exactly how I can set realistic expectations with sales about meeting our targets… If we both deliver on our plan. And I can make a tangible case for why I need a 10% increase in budget and not 2%. Mary VP of Marketing

8. #AOWEB A basic understanding of key concepts… What do Top Performers measure? What should you measure? What are the best practices for measuring the lead lifecycle? 8 First the Groundwork

9. #AOWEB Gleanster Research : 9 out of 10 B2B marketers use “revenue growth” as the primary metric for measuring marketing success. 62% of Top Performers measure MQL to SAL conversion 9 Hope Is Not a Strategy

10. #AOWEB What’s MQL and SAL? …Let’s dive into some key concepts 10

11. #AOWEB Buying Cycle Sales Cycle Lead Lifecycle 11 Demand Generation Concepts What’s with all the cycles and circles?

12. #AOWEB 12 The Birds Eye View of Lead Generation LeadsProspectsCustomers An inquiry into a product, a potential prospect. Expressed interest in solving a problem. A qualified decision making individual with budget and authority to influence a sale. A person or organization that has purchased goods or services. Psst… that’s the Customer Lifecycle

13. #AOWEB 13 The Birds Eye View of Lead Generation Buying Cycle Sales Cycle Service Customer Lifecycle LeadsProspectsCustomers

14. #AOWEB Attention Known Problem? Interest Recognized need Desire Seek solution to need Action 14 1) Buying Cycle Goal #1: Become a trusted advisor – DON’T SELL! Goal #2: Relevant communications Email Website Search Social Media Video Mobile Banner Ads Webinars Events PR Advertisements Direct Mail Re-Targeting Microsites Affiliations MARKETING

15. #AOWEB Traditional “funnels” are less useful in the context of sales these days – Prospects are educated beforehand – Sales performance can be predictable 71% of Top Performers implement Lead Scoring to increase sales productivity – Sales enablement is the name of the game: Meaningful value added dialogs Marketing shares responsibility Minimize sales qualification The input and output matter most, not what happens in-between. 15 2) Sales Cycle Engagement

16. #AOWEB Marketing tactics used to acquire new prospects should be applied to existing customers You probably have LOADS of info on your customers, use it for micro-targeting – Earn their loyalty with relevant communications 16 3) Service

17. #AOWEB Metrics and Measurements Revenue Growth Cost per Lead # of qualified leads generated Close rate on marketing-sourced leads Conversion rate Marketing-sourced deals as share of pipeline Response rates Marketing cost per revenue dollar Cost per lead Incremental revenue from marketing efforts Marketing-sourced revenue Click-Through Rate Open Rate Bounced Emails 17 Lead Lifecycle Management BUYING CYCLE SALES CYCLE CUSTOMER SERVICE Nurture Opportunities “Not Ready to Buy” Cross-Selling and Up-Selling MAXIMIZE REVENUE

18. #AOWEB 18 What are the levers that impact revenue? Hint: There’s more than one.

19. #AOWEB 19 It’s Not a Handoff… It’s a Team Effort Buying Cycle Sales Cycle Service Customer Lifecycle LeadsProspectsCustomers  Marketing  Sales  Marketing  Sales  Marketing  Sales

20. #AOWEB 20 Follow the Revenue Buying Cycle Sales Cycle Service Customer Lifecycle LeadsProspectsCustomers Revenue CUSTOMERS UP-SELLING / CROSS SELLING Revenue PROSPECTS DROP OUT OF PIPELINE Revenue

21. #AOWEB 21 There is no Golden Metric Buying Cycle Sales Cycle Service Customer Lifecycle LeadsProspectsCustomers Revenue CUSTOMERS UP-SELLING / CROSS SELLING Revenue PROSPECTS DROP OUT OF PIPELINE Revenue Measurement Revenue is a byproduct of marketing Lead Lifecycle Analytics measure the levers that impact revenue

22. #AOWEB 22 What should you measure? When the prospect purchases they become a customer, requiring ongoing service and support. Customers can also be nurtured to encourage up- selling and cross-selling. Marketing Qualified Leads (MQL). Inquiry. (Unknown buying intent) Sales Accepted Lead (SAL) = Prospect Sales Qualified Lead (SQL) = Valid Opportunity Buying Cycle Sales Cycle Service Customer Lifecycle LeadsProspectsCustomers

23. #AOWEB 23 Back to Mary Exactly how many leads I need to reach 2x sales growth. Exactly what it will cost me to generate those leads. Exactly how I can set realistic expectations with sales about meeting our targets… If we both deliver on our plan. How do I justify more budget? Mary VP of Marketing

24. #AOWEB 15 Critical Metrics But, don’t be overwhelmed… 24 Lead Lifecycle Metrics

25. #AOWEB 25 Lead Lifecycle Analytics Dashboard Period of Measurement: _____________________ Total # of Inquiries Track with: web analytics, marketing automation, search analytics, etc. Total # of Marketing Qualified Leads (MQLs) Ratio of Inquiry to MQL Use as basis for optimization Spend / Channel # Inquiries / Channel Automate with technology Ratio of MQL to SAL Use as basis for optimization Cost per SAL Add Sales overhead to marketing spend Total # of Sales Qualified Leads (SQLs) Track in CRM Cost per Marketing Qualified Lead Total # of Sales Accepted Leads (SALs) Track in CRM Sales Cycle-Time Average sales cycle length # SQL Not Ready to Purchase Sent back to marketing Cross-Selling & Up-Selling Revenue Growth/Decline SQL to Closed Sales Ratio Use as basis for optimization Average Deal Size MARKETING SUCCESS METRICS MARKETING & SALES ALIGNMENT METRICS SALES SUCCESS METRICS LIFECYCLE REVENUE METRICS

26. #AOWEB 26 Lead Lifecycle Analytics Dashboard Period of Measurement: _____________________ Total # of Inquiries Track with: web analytics, marketing automation, search analytics, etc. Total # of Marketing Qualified Leads (MQLs) Ratio of Inquiry to MQL Use as basis for optimization Spend / Channel # Inquiries / Channel Automate with technology Ratio of MQL to SAL Use as basis for optimization Cost per SAL Add Sales overhead to marketing spend Total # of Sales Qualified Leads (SQLs) Track in CRM Cost per Marketing Qualified Lead Total # of Sales Accepted Leads (SALs) Track in CRM Sales Cycle-Time Average sales cycle length # SQL Not Ready to Purchase Sent back to marketing Cross-Selling & Up-Selling Revenue Growth/Decline SQL to Closed Sales Ratio Use as basis for optimization Average Deal Size MARKETING SUCCESS METRICS MARKETING & SALES ALIGNMENT METRICS SALES SUCCESS METRICS LIFECYCLE REVENUE METRICS

27. #AOWEB 27 Lead Lifecycle Analytics Dashboard Period of Measurement: _____________________ Total # of Inquiries Track with: web analytics, marketing automation, search analytics, etc. Total # of Marketing Qualified Leads (MQLs) Ratio of Inquiry to MQL Use as basis for optimization Spend / Channel # Inquiries / Channel Automate with technology Ratio of MQL to SAL Use as basis for optimization Cost per SAL Add Sales overhead to marketing spend Total # of Sales Qualified Leads (SQLs) Track in CRM Cost per Marketing Qualified Lead Total # of Sales Accepted Leads (SALs) Track in CRM Sales Cycle-Time Average sales cycle length # SQL Not Ready to Purchase Sent back to marketing Cross-Selling & Up-Selling Revenue Growth/Decline SQL to Closed Sales Ratio Use as basis for optimization Average Deal Size MARKETING SUCCESS METRICS MARKETING & SALES ALIGNMENT METRICS SALES SUCCESS METRICS LIFECYCLE REVENUE METRICS

28. #AOWEB 28 Lead Lifecycle Analytics Dashboard Period of Measurement: _____________________ Total # of Inquiries Track with: web analytics, marketing automation, search analytics, etc. Total # of Marketing Qualified Leads (MQLs) Ratio of Inquiry to MQL Use as basis for optimization Spend / Channel # Inquiries / Channel Automate with technology Ratio of MQL to SAL Use as basis for optimization Cost per SAL Add Sales overhead to marketing spend Total # of Sales Qualified Leads (SQLs) Track in CRM Cost per Marketing Qualified Lead Total # of Sales Accepted Leads (SALs) Track in CRM Sales Cycle-Time Average sales cycle length # SQL Not Ready to Purchase Sent back to marketing Cross-Selling & Up-Selling Revenue Growth/Decline SQL to Closed Sales Ratio Use as basis for optimization Average Deal Size MARKETING SUCCESS METRICS MARKETING & SALES ALIGNMENT METRICS SALES SUCCESS METRICS LIFECYCLE REVENUE METRICS

29. #AOWEB Exactly how many leads do I need to reach 2x sales growth? 29 Lead Lifecycle Analytics in Action Assumptions: Using predictable marketing channels: web, search, email Average Deal size is known Average SQL to Close Ratio is known ?

30. #AOWEB How do I justify more budget? 30 Lead Lifecycle Analytics in Action If Marketing and Sales performance remain consistent then: Cost per MQL = $345 To reach $2M in Sales, I need $345 x 1018= $351,210… a 9% increase in my budget!

31. #AOWEB Yes… almost Check out the stats on Top Performers 31 Awesome, but does anyone do this? Source: Q4’11 Marketing Automation, n= 378

32. #AOWEB 32 How do Top Performers Calculate Metrics Source: Q4’11 Marketing Automation, n= 378 Currently Using Tool

33. #AOWEB Top 3 Critical to Success Factors for Top Performers (Tactics you can’t succeed without…) 33

34. #AOWEB 34 1) CRM Integration is Key

35. #AOWEB 83% of Top Performers document the definitions for: – Marketing Qualified Leads – Sales Accepted Leads – Sales Qualified Leads Lead Scoring with Marketing Automation tools is a form of standardizing definitions Be consistent about measurement and calculations – You can’t benchmark on a moving target 35 2) Standardize Definitions for Measurement

36. #AOWEB Turn to technology for multi-channel measurement – More channels = more measurement Email, Website, SEM, Webinar Integration, Social Media Integration Keep as much of the measurement in a system as possible – 2 out of 3 Top Performers adopt standardized out of the box metrics from Marketing Automation 36 3) Let Technology do the Heavy Lifting

37. Q&A 37 Thanks! Ian Michiels Gleanster @InsightFanatic

38. #AOWEB 38 Guide to Lead Lifecycle Analytics Deep Dive: Lead Lifecycle Analytics All registered attendees will be getting a complimentary copy via Act-On!

39. #AOWEB Thank You! Within 24 hours: You will receive an email with webinar recording, slides and Act-On Information. Learn more about Act-On: Join our weekly 30-minute live demo Customer case study webinars And more: www.actonsoftware.comwww.actonsoftware.com