Dashboards

by Jon Russo Jon Russo No Comments

Bigger deals that close faster!

We’re still not yet hitting the full promise of what marketing 2.0 could be delivering on.  In an informal poll of 3 CMOs of B2B companies with revenues from $50M to $5B, I asked about their progress with new revenue acquisition effectiveness around gaining bigger deal sizes with decreased sales cycle time by leveraging effective marketing automation deployments and other inbound techniques of marketing.  The findings mirror what MOCCA (Marketing Operations Community) reported in January 2012 in a webinar survey of over 200 companies – on balance, companies that invested in marketing automation platforms experienced better (and more) leads at a lower cost per lead, not yet bigger deals that closed or a faster close time.

How do you get better conversion and more effective utilization out of your technology investments, specifically around your marketing automation platform?  Here are 3 suggestions:

  • Data – I use the ‘sight on the rifle’ analogy with data.  If your rifle sight is off by the slightest, you’ll miss your target by a mile when you go to shoot at it.  The single biggest area which is most often misunderstood by executives is the integrity of your company data.  Without complete data (contact names, phone numbers, email addresses), sales teams invest an inordinate amount of research time to get the right information.  (see previous post on the cost of this).  There have been tools that have improved ascertaining some of this information (LinkedIn plugin to salesforce.com, Data.com, InsideView, RainKing, etc.) to start down this path.  However, even the tools in and of themselves do not solve for data integrity issues of appending, cleansing, and preventing duplications at the contact or account level.  With the right up front planning, sales effectiveness can be increased.
  • Buyer cycle knowledge – a surprising number of organizations way underestimate the need to build out content around their buying cycle.  First, organizations miss on understanding the ‘moments of truth’ of how their buyers actually buy and when buyers leverage digital technology to buy.  How they can get a better understanding here is through surveys, customer forums, and unpacking previously won deals to piece together successful elements.  The second area they miss out on is targeting the right content at the right time in the cycle.  As an example, Rackspace does an exceptional job of targeting end of funnel conversion by leveraging LinkedIn recommendations by clients such that other potential clients can see what their friends purchased.
  • Metrics/Reporting – probably the trickiest area of all and at the nexus of data, process, and content.  Without the other pieces in place, marketing ROI is a myth.  The vendors in the space are happy to sell you their capabilities which are either set up leveraging very specific use cases or require a fair amount of care and feeding to get operating correctly.  It will take people energy and an excel template to get the right data reported out on but without doing this, you won’t know what areas to improve in.  Veracity always comes into question when data is formatted outside of CRM systems, so be prepared to identify all assumptions in data gathering and use those assumptions consistently.

How have you improved your processes in getting bigger deals with shorter sales cycles?

by Jon Russo Jon Russo No Comments

MOCCA DC – Trends in Marketing Operations

Marketing Operations as a B2B discipline is rapidly growing.  As one data point that supports its growth, we had our largest attendance to date for today’s MOCCA meeting in Washington DC with Andrew Gaffney and Amanda Batista of Demand Gen Report covering recent readership survey results on trends in marketing measurement, changes in b2b buyers, and shifts in content preferences.  Rather than rehash the survey results which are available on DemandGen’s website, here are 4 key takeaways from our hour long question and answer session that followed the presentation:

Content:  this area was the theme and background of DemandGen, so it was not a surprise to hear this topic come up.  We spent considerable time discussing the pros and cons of webinars, both live and recorded, and came to the conclusion they are a worthy, cost effective tactic to consider as part of the overall marketing mix.  With today’s integration in marketing automation platforms, there are more benefits reporting wise to use webinars versus in years past.  Video is also a tactic that can be repurposed toward mobile devices and non-mobile devices.  There were a few audience members who suggested that having  4 videos of 5 minutes each were more powerful than one 20 minute video and easier for a buyer to digest.

Data Warehouse:  this is an emerging area for enterprise companies that are trying to do data manipulation and more sophisticated reporting.  B2B companies are realizing a shortcoming of their CRM systems and marketing automation systems in terms of lack of data reporting flexibility.  Thus, they are looking to front end load their systems with a data warehouse that interoperates with disparate data sets and can do sophisticated reporting through easier manipulation of data.

Mobile:  this area remains an enigma for b2b marketers (my data points extend beyond this session with the CMOs of both Cisco and Xerox confirming this same data).  Contrary to what is happening in the market, marketers are just not yet ready to think about rendering b2b campaigns in mobile, either through their marketing automation platform or through companies like Litmus Technologies.  One company mentioned it was beginning to source 15% of its lead flow (not web traffic) from mobile devices yet the majority were not optimizing campaigns or content specifically toward mobile devices.  There are likely too many other competing priorities for marketers to be focused on, thus crowding out mobile for the moment.  Everyone knows they should be doing it (like working out at a gym), but few actually do it.

Reporting:  the majority of companies were at the early stages of connecting marketing investment to new revenue struggling with both systems as well as cultural – cultural meaning does marketing ‘source’ revenue or do they ‘influence’ revenue.  The theory models would suggest marketing does both, but not every culture absorbs that methodology.

We didn’t have time to cover it, but data and its accuracy seems to be the next hot topic for MOCCA to talk about.  What areas in marketing operations are you seeing that is hot?

 

 

by Jon Russo Jon Russo No Comments

LIKE: new SiriusDecisions Demand Waterfall

Yesterday in the 106 degree Arizona weather, we received a needed waterfall – SiriusDecisions unveiled their upgraded view of the latest demand waterfall model at their annual conference.  With an array of color codes and arrows, the new direction is spot as it accounts for revenue sourcing across all elements of the business rather than taking a more myopic view of just what marketing does for the business for net new revenue.  It is no longer the ‘marketing waterfall’ but the ‘business waterfall’ in the 2.0 approach.

 

Here are my views of the new structure and why it is positive:

  • At an executive level, one should be measuring the velocity and cost of the source of leads converting to new revenue, regardless of the source (inbound, outbound, teleprospecting, sales).  According to Adobe’s 2012 CMO report, fewer than 20% measure their ROI on marketing, this framework will help contribute to defining the ROI element.
  •  At a more tactical inquiry level, a senior marketer needs to make a more intentional decision around resource allocation across inbound and outbound marketing mix and tactics.  When the demand creation model was created 10 years ago, social media (LinkedIn as an example) was less prevalent than that of today).
  • The model highlights the importance of the teleprospecting function in accepting, qualifying leads, and generating leads – this function’s importance is often underestimated or routinely outsourced without thinking through strategic revenue implications.  (See previous post here).  It’s the toughest job in the business in my opinion.  By explicitly calling out outbound teleprospecting accountability, a key skillset for account executives, sales leaders should welcome this new framework as it also spells out a clearer career path for teleprospectors.
  • Within the marketing qualification step, by putting more accountability within teleprospecting to ‘accept’ the leads rather than work all leads by marketing, the chances of marketing dumping several unqualified leads onto sales is further reduced.

There are nuances depending on the type of business that the model may need to be tweaked for – specifically around channel partners or other 3rd party mechanisms that generate revenue though the idea and flow should largely be the same.   Also, what’s not discussed is how to implement this kind of waterfall depending on the current stage of current processes – it will take an organization a committed period of time, so phasing and testing should be key to implementation. Lastly, I’ve surprisingly found a number of organizations, particularly larger ones, dancing around the conversation of ‘sourced’ vs. ‘influenced’ revenue, with some larger companies driving in one direction or the other rather than looking at both.   As SAP CMO @jbecher tweeted from the audience yesterday, ‘culture eats strategy’.  Specifically, one needs to be aware of the rigor and thoroughness this model represents and the willingness of the company to absorb the model.

It is critical for companies to do this kind of measuring to improve performance.  It is the right thing to do.

What are your views of the model?

by Jon Russo Jon Russo No Comments

Improving Conversions – what to measure?

Many B2B companies look to improve conversions from lead to revenue and increase the productivity of their direct sales arm.  Here are 4 reports that can be run immediately in your CRM that can impact conversion positively without having to invest more money in new marketing programs.

  • Lead disposition reports:  when this report is run, it gives an overall status of how marketing is doing with handling of leads to and through the inside sales function.  Symptoms of problems in this area are a large pool of ‘open’ leads with no disposition.  what this means is inside sales is not taking action on these, which is cause for root cause analysis as marketing is producing a great quantity with no quality conversions.

 

  • Opportunity reports – look at the ‘closed opportunity’ status pick list (if there is one).  If there are choices that speak to ‘not qualified’ ask yourself or your team, why is it that they were promoted to an opportunity prior to being not qualified?  Within opportunities, look at aging reports, the number of days on average a deal sits in any one cycle.  Because an arthimetic mean is provided, give careful study to the outliers of deals that have sat in queue for a very long time.

 

  • Funnel metric reports – do an analysis by either lead and/or opportunity (sales accepted opportunity) to study the entire shape of the ‘funnel’.  Is it indeed a funnel or is it a snowman (heavy bottom) or inverted funnel (due to deals getting clogged up in legal review).  Against the backdrop of aging reports, funnel metric reports can be very helpful for sales and for marketing to determine what sales enablement strategy need to be put in place.

 

  • Duplication reports – do some basic analysis in/around fields within the record structure of your CRM – account duplications, lead duplications, and contact duplications.  Salesforce administrators sometimes overlook plugins that can prevent these duplications from happening – consequently, poor performing outbound campaign performance is symptomatic of the cause of poor data hygiene practices.  Poor campaigns = poor conversion.

What reports have you found helpful?

by Jon Russo Jon Russo No Comments

Wow, what a year!

Wow, what a year!  As 2012 revs back up, I want to take a moment to reflect and share some brief accomplishments of my company that started the second half of last year.  It was an exhilarating ride that only gets better each day!  Here are a subset of the highlights.

  • My B2B client base expanded to 6 different companies – helping them predict their revenue by tying their marketing investments to new revenue activities at an executive level.  These companies were global in nature with headquarters throughout the US with revenues ranging from $50M to $15B+ spanning a range of industries.  I am very grateful for the opportunity for my company to help them!
  • Forrester Research cited my company in their first report on best practices for business to business key performance marketing indices (KPIs). This was very exciting for me!
  • I spoke at a number of engagements including presenting with one with one of my customers showcasing how we established KPIs for her business by working through key process elements.  We also spoke at the leading demand generation conference on this same topic.

Interesting observation across my 2H11 experiences – each of my clients had a different set of sales and marketing technology choices around marketing automation (as an example Eloqua, Marketo, Manticore, Leadformix) and CRM/data sourcing (Zoominfo, Jigsaw, Data.com, Dun and Bradstreet) leading to very different outcomes in segmentation, data quality, campaign effectiveness, and overall marketing ROI.  There was a strong correlation to those first working on their business strategy, then selecting their technology to support the strategy, in terms of sales and marketing ROI effectiveness.

2012 looks very promising so far – there is an underserved need at an executive level of connecting marketing to new revenue – in large part because there are so many technological combinations and a varying skillset of people.

Thank you again to my clients!  Good luck to all in 2012!

by Jon Russo Jon Russo No Comments

CMO Roundtable @Velocidi

Along with 35 others, I participated in a terrific CMO roundtable hosted by digital agency @Velocidi moderated by @MargaretMolloy in NYC.  @JeffreyHayzlett, the recent head of marketing for Kodak and current head of The Hayzlett Group, was our guest speaker for heads of marketing in a variety of B2B and B2C companies.  Velocidi is the next generation digital agency leader in NYC with global offices and definitely a company to keep an eye on what’s happening next in the digital marketing space.

The topic of conversation was CMOs – what are the key issues we face and was based on some research Jeff had completed.  He had several areas that were important to consider as part of his research and he prompted breakout sessions to validate (or not validate) the research based on our own experiences.  In our breakout session, we had 4 takeaways that were mostly business oriented vs. marketing tactic oriented:

  • Be accountable to ROI – this was a reaffirmation of the research findings, though there was some side debate about ‘just because something could be measured, doesn’t necessarily mean it needs to get measured’.   There was also some side debate about the actual connection to some activity to meaningful results as there is not always a 1 for 1 correlation.
  • Be the steward of change and growth – swing for the fence when culturally appropriate.  The visual of ‘swing for the fences’ seemed to resonate well with others.  Although there was some debate about the degree a company could change, there was no debate that the CMO had to be the steward of the process.
  • Have courage in making tough decisions.  Whether it be people that work for the team or with the team, this element seemed to be a really important area for those that were responsible for implementing change in the organization.
  • Plan for a 3 month to 12 month horizon rather than do an extended planning process.  Technology is changing too quickly to plan beyond this time frame.   Be prepared to adapt people and processes for this planning horizon – there was a published article in Marketing Week that reaffirmed this view.

It was an excellent conversation.   What have you found in your experiences?

by Jon Russo Jon Russo No Comments

Executive Marketing Dashboards – 5 Lessons Learned

Here are 5 lessons to consider when creating an executive level marketing dashboard to measure marketing impact and ROI.  This topic is something I’ll be leading a discussion on at DemandCon next week and I look forward to hearing how others are looking at this situation.

1.       Know where you are
2.       Know where you want to head
3.       Speak the same internal language
4.       Measure KPIs, not metrics
5.       Leverage a 3rd party


Know where you are: 

There are so many variables to consider when planning a dashboard, and it starts with cultural situational awareness as the project you are about to embark on can be perceived as very healthy from some parties (CEO, GM, CFO), yet to some parties may feel like an audit or measuring things that have never been measured before  (Sales, Marketing, Inside Sales) – so anticipate some organizational discomfort.  Understand your company’s culture, it’s appetite for embarking on this kind of project, the importance of sales and marketing in the overall company strategy – some companies may be product focused, or they may have a focus other than the customer.  At the same time, it’s important as a marketing leader to understand the revenue and profitability model – where do the revenues come from geographically, from what products or solutions, and what is the dynamic of the sales cycle.  See this blog post to learn more on sales cycles.

Know where you want to head

This is an ambitious project to launch, so it is wise to show the outcome – the destination first vs. getting caught in the weeds.  This is the opportunity for sales and marketing to align (see post) on an outcome rather than focus on details – because if you get caught in the details, you’ll never hit the end target.  It’s best to approach the objective with executive alignment around the outcome (CEO, GM, CSO/CMO), then work through the rest of the company.  I refer to a ‘referee’ later in the post which is pivotal in this discussion.

Translate:  Speak the same internal language

In the world of marketing, we have our own ‘proprietary’ Star Trek language  – the language of inquiries, marketing qualified leads, sales qualified leads, a marketing funnel, sales enablement, etc.  It’s easy for a marketer to talk in their own language without being situationally aware – understand that non-marketers think in other terms – revenue, speed to acquire new revenue, retention, pipeline, investment, payoff, etc.  As a leader of this process, it’s important to speak the same language – and where there is ambiguity, try to align on an understanding of a definition.

Measure KPIs, not metrics

Leaders measure for impact, followers measure activity.  Facebook followers, LinkedIn Group members, Twitter follower activity- – while important to integrate into an overall mix, are less important to measure activity unless it can be tied to business impact.  At it’s simplest terms, impact means what revenue marketing has sourced and/or influenced and at what overall cost for each.  You’ll soon see my presentation here on this topic on a follow on post.

Leverage a 3rd party

I’m going to eventually write a separate post on this, but as I think back of my own experience, having an unbiased 3rd party ‘referee’ or negotiate across stakeholders could be very valuable speed and cultural wise.  First, having a 3rd party changes the internal social dynamic completely – so the consultant is on the hook for raw accountability and can make raw observations without ramifications – and parties like sales and marketing can work toward a unified theme and objective rather than feeling like one is auditing the other.  Here is a successful case study of a 3rd party leveraged effectively.  The investment will pay off in spades down the road!

These are tips and tactics that work for me, I’m curious, what has worked for you?

by Jon Russo Jon Russo No Comments

4 Steps to help Sales work Marketing Leads to DRIVE REVENUE!

I recently met with a Field Marketing leader for a successful B2B company recently and she had echoed a similar concern that is common in our industry  –  her concern was as follows:

“The marketing leads we give to sales aren’t being worked by sales, so it’s difficult to justify the marketing investment when the marketing leads aren’t closing or being worked.”

Here are 4 points to consider when trying to address the situation she faces – to net it out, it’s ACCOUNTABILITY:

1.       Inspect the lead definitions in the company by segment, by region, and by channel to make sure a qualified marketing lead is indeed qualified from a salesperson’s viewpoint.  It’s imperative marketing understands how sales qualifies and defines their own leads (not inquiries) as a starting point – what definitions they use, how they establish a need – with that definition in hand, it should MATCH what the marketing inside sales team has as a definition.  An outside, independent audit is helpful as it removes any sales/marketing tension with a disinterested 3rd party;  if that is not feasible, doing it directly from marketing to sales is the next best alternative.

2.       Establish a service level agreement with the head of sales on sales ACCEPTED leads (not sales qualified) AND  incent the inside sales team on sales ACCEPTED leads.   This is tricky – most heads of sales would want to know what to expect or count on from marketing as it makes their job easier.  The tricky part is that not all heads of sales understand the need or what an SLA is – particularly sales 1.0 executives.  So there may be significant internal selling on this point not to overlook!

3.       Establish metrics on a per rep basis –  THIS IS THE MOST IMPORTANT STEP – specifically measure  on a per sales rep basis the quantity of leads that marketing sources, the quantity of leads that sales sources, the close rates and close TIMING for each sourcing category.  With this quantitative information in hand, a more mature discussion can be held with the sales leadership as to what is actually happening with marketing qualified leads.  Your marketing automation platform or Salesforce.com should help with this measuring.  One intangible point here – this data will force conversations, so treat the discussions with the heads of sales respectfully, not as a hammer.  The objective is to improve or close gaps on business challenge areas, not to hammer reps for how you might think of their performance!

4.       Benchmark similar sized company performance so expectations are set at the executive level.  At a tactical level, there is a great alignment opportunity between the head of sales and head of marketing in this scenario that she poses.  In other SaaS environments, according to SiriusDecisions and Marketo, I’ve seen upward to 60% of closed revenue sourced by marketing (note a more typical average for B2B SaaS is in the 18% to 33% range with Marketo pushing the envelope at 60%+).   The head of sales should want to know what marketing’s funnel is as it is less the head of sales team needs to do revenue wise at days end.  The board of directors will also want to know what marketing’s contribution is to revenue.

This lady was impressive, she had all the right business instincts identifying the challenge and just needed a bit more push as what to do next.  What do you find works for you?  Would love to hear a sales person’s perspective!

by Jon Russo Jon Russo No Comments

4 Reasons why Marketing Automation changes a Marketer’s SaaS Career.

I just read an interesting post from a fellow EMEA CMO/head of marketing @JWATTON with a thought provoking viewpoint that marketing automation for SaaS (software as a service) US headquartered companies would have less need for heads of regional marketing in locations like EMEA as automation replaces local headcount.    My view is slightly different.  As a head of marketing  for 3 software and service companies with 2 successful exits, I’ve hired in region expertise, spent significant time in Europe, and implemented MAP (marketing automation platforms).   He had some really interesting viewpoints that I wanted to elaborate on – some of which I agreed with and some my view differs.

Here’s how I’m seeing things on what changes marketing automation means for a marketer and her/his career:

  • Marketing automation on its own with no marketer senior level supervision is like a train running downhill without tracks.  The potential to do more harm than good exists when investing in these systems without a clearly defined business objective up front.  The caboose is the MAP, the engine is the objective, the trains that link the caboose to the engine are the process.
  • Marketing automation is a means to an end, not the end itself.   A measurable business outcome should be set with sales tying them to the outcome of the process and also involving them on why this benefits y/our selling cycle.  When automation is performing correctly, revenue is accelerated and sales teams are more informed about their prospects prior to actually contacting them.  A marketer now needs to run that dialogue, that is a new dialogue for ‘dated’ skill set sales people as well as ‘dated’ skill set marketers – it can also be ‘dated’ skillsets for board members who do not know how to measure marketing, adding another complex communication vector to the equation.
  • As @JWATTON identifies in his blog post, Marketers who are not proficient in the latest digital tactics are not going to survive in this new world.   Those that are not steeped in the language of Eloqua, Marketo, SilverPop, Pardon, Hubspot, or any other marketing software that integrates with Salesforce.com will become known as the ‘marketers of the 80s’.  Those that are not proficient in social media like LinkedIn, Facebook and Twitter (follow me @b2bcmo) and understand the social media tie to business objectives will also be ‘80s marketers’.   Lastly, those not proficient in SEO techniques an integrating SEO into the MAP platforms for B2B will also be yesterday’s marketers (NOTE:  today’s integration is challenging).
  • In my mind and contrary to his post, there is always a need to be geographically close to both internal customers (sales) and external prospects and/or customers.  It is nearly impossible for a head of marketing in the US to know and understand the marketing nuances of in region challenges.  Marketing within Germany is a challenge in and of itself;  it’s often a NA centric software company *incorrectly thinks* EMEA is one ubiquitous region to market into (just like the US!) without understanding each country has a different market and a different way of receiving information.   Privacy laws differ dramatically in EMEA and in certain countries moreso than that of the US;  this makes a marketers job in both EMEA and US more complex and raises the bar for a marketer to continually learn, as his post correctly points out.  Also note that contact software today (Dun and Bradstreet, InsideView) are largely North American centric databases, thus requiring another level of thought from an in region marketer.

It’s a round world and we all see things from different viewpoints – how do you see things if this relates to you?

by Jon Russo Jon Russo 1 Comment

Dashboards – Marketing and Sales – Driving Revenue!

There are several challenges to establish ‘board level’ dashboards that report on marketing activity that tie directly to revenue generation.  Here are 5 tips that I’ve used in creating dashboards for executive level reporting.  (NOTE – LETS TALK REAL TIME IF YOU NEED HELP IN CREATING A DASHBOARD, I HAVE ACTUAL EXAMPLES OF THEM.)

  • With new automation tools like Eloqua and Marketo, from interviews I’ve done with a number of CMOs of B2B companies, a surprising number of teams use Excel to report out on activity despite having capabilities elsewhere. Whether it’s Cognos, Salesforce.com, Eloqua, or Excel, the tool really doesn’t matter as long as the data is consistently measured month over month or quarter over quarter.  The trick is to baseline the activity based on current information, especially as a new leader or CMO.
  • Dashboards (or numbers) can sometimes not paint a complete picture as a stand alone entity on campaign effectiveness.  I augmented my quarterly board dashboards with a ‘green, yellow, red’ status indicator on QUALITATIVE indicators in addition to QUANTITATIVE indicators to help paint a more complete picture of actual marketing activity that impacted revenue.
  • Measure global/regional impact and channel impact that marketing had on sourced revenue – in other words, what did marketing contribute and at what cost point by region.   This analysis can be further filtered on a timeframe to close, no different from a sales funnel, where leads are predicted to close. (predictive analytics).  Also, be aware for you global marketers – activity within region should be compared within region and not across regions.
  • Web traffic is worth measuring as is the impact social media has on web traffic.  Social media in and of itself did not contribute to my dashboard foundation, my experience so far is social media (linkedin, twitter, facebook), more of an enabler than an actual converter of revenue in B2B marketing.  LinkedIn seems to be the most relevant here (I plan to create another post on this later).
  • Tracking contacts to opportunities allowed for better tracking of marketing influence/sourced, this is particularly true for those that leverage the campaign module of Eloqua.  This tracking can be further augmented by the Microsoft Outlook plug in leveraging Eloqua.

Dashboards vary with mileage and will change as your company changes it’s needs and growth patterns.  What dashboards have you found to be effective for you?