siriusdecisions

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 2 Comments

Summary of Iron Mountain Keynote at SiriusDecisions

At the SiriusDecisions’ (#SDS11) sold out conference featuring over 750 people, this year’s keynote featured both the head of sales Jerry Rulli and Colleen Langevin who heads marketing in a dialogue around historic performance, current activity, and a single go forward goal highlighting the tight sales/marketing relationship and the impact a relationship has on business results.  This is a summary of that keynote discussion along with a few of my previous blog posts and experiences on alignment.

Although they are early in proving the model out, the first key was it appeared there is/was a tight relationship between sales and marketing.  The relationship requires both parties to compromise, yet it’s proven when that cooperation happens, a better end result (i.e. more revenue conversions) happen.  One step to success was involving sale extensively in a marketing plan – which went back and forth in a series of negotiations to arrive at the final plan tailored by segment.  It probably helped the relationship and the overall marketing plan that they focused on a single goal – revenue production, instead of sales which typically focuses exclusively on revenue production without the help of marketing and marketing on just creating more MQLs.  A very interesting compromise approach was not using the MQL language at all, likely music to a sales person’s ears as the concern is driving revenue, not driving more MQLs that never close.

A major key to success in their overall approach was the agreement to leverage an outside 3rd party (i.e. a referee) to uncover the real problem, steer the overall stakeholder and change management process to implement.  The advantage of leveraging a 3rd party is it removes the emotion and ownership from either party and can uncover true issues – a brilliant decision on their part.

The approach at an executive level toward the team was ‘here’s the problem, now own solving it’.  Structurally, marketing aligned toward their ‘buyer personas’ and the actual sales segment.   One point that was not clear was how Iron Mountain gets it’s majority of new revenue which could be from existing customer base (in account selling) vs. net new customer acquisition – as a head of marketing it’s important to understand how and where the revenue is coming from as that will dictate the overall marketing strategy (ie focus on demand creation of MQLs vs. Sales enablement from SAL to close).

The relationship, referee, and team members agreed on common language within the waterfall beyond the common objective.  Their teams trained on this element – in  my own experience, implementing this kind of language on a global basis takes several iterations and can be a very time intensive activity as different people have different views of definitions.  However, just like implementing a new sales stage funnel in a company, with consistency in definition up front means better performance down the road.

The relationship between sales and marketing was cemented in a ‘prenuptial’ Service Level Agreement.  The SLA went one step further requiring all team members to sign off on the overall gameplan, thus eliminating any potential ‘whining’ from either sales (we need more leads) or marketing (you should close more leads).  This too in my experience is an easier said than done activity, particularly if a head of sales doesn’t clearly understand the objective (more revenue production) or is ‘older’ school (ie doesn’t understand the impact marketing waterfall can have or what a waterfall is, so why have an SLA!) – yet absolutely essential for total transparency.   So as a head of marketing looking to introduce the SLA concept, you may need to sell the concept before just pushing it forward.

The last key step was transparency and accountability:  on going transparency on key business levers – from Conversion metrics to SQL to pipeline metrics, the marketing lead funnel, and KPI reports of volume and days accepted vs actual, this was key to success.  As I listened to it, having ‘one view of the truth’ meaning one single report to operate from both sales and marketing was also a major key to success.  This one view also eliminated the dialogue of ‘here’s the marketing dashboard and here’s the sale’s dashboard,’ which is another important lesson learned.

It’s all about the journey when implementing this process and your own experience may vary widely depending on the size and scope of your company.  What have you found effective?

by Jon Russo Jon Russo 2 Comments

Revenue through Teleprospecting – a changing world!

Teleprospecting teams pursue inbound and/or outbound leads via a telephone, are owned 50% of the time by sales and 50% of the time by marketing in a B2B company with the trend heading toward marketing according to a Sales 2.0 recent conference.  The nature of the role has changed dramatically over the last few years with more ability to ‘intelligently prospect’ rather than pure cold call.  This function is often overlooked given its mundane, routine tactical calling strategy yet is pivotal in revenue acceleration.   It’s where the rubber meets the road for revenue recognition!

Beyond lead generation quantity, there are metrics to consider measuring – by tracking and trending deals that actually close from teleprospecting efforts, to the time it takes to close those efforts, to the cost per effort as one can not afford to hire an infinite number of teleprospectors!  It’s important to establish metrics early and often for this function.

There are many different models of teleprospecting from an organizational viewpoint – from centralized to decentralized, to one region vs many regions.  I’ve found the most effective is regional centralization – meaning, keep the resources as close together as possible so they can learn scripts and effective best practices from one another.  However, when looking at this globally, it’s best to have in region expertise that understands the culture and nuances of selling within that region.  Trying to centralize all teleprospecting for a global company is ineffective.

A teleprospector has an infinite number of tools to choose from today that didn’t exist 5 or 10 years ago – from ZoomInfo, to LinkedIn, to InsideView, to Dun&Bradstreet’s 360, each of these tools or when used in combination, can really hone in on information about organization, contact information, and report structure.  Note that these tools are very regional centric (in this case many are North American heavily used tools).  DemandBase is an effective tool to extract IP address, though mapping an IP address of someone who surfs on your web to an actual contact name can be challenging if that user does not have some relationship with you, either registered, in the form of a cookie, or other trackable means.  Getting a prospect ‘warmed up’ through lead nurturing marketing automation platforms which I’ve mentioned in previous posts is also helpful and increases the chance of a successful close.

Depending on the size of your company, your team might consider using a tool called LookAcross.  LookAcross gives the teleprospecter the ability to scan social media profiles to optimize when the best time is to connect with that person telephonically and also provides much of the data of a prospects’ professional presence online.  It graphically shows a teleprospector the times and days that they are most active online, and what time and day of the week the prospect is likely to be reached.

Revenue recognition is critical and this function is where the rubber meets the roads.   How have you maximized the impact of your teleprospector function?

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 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?

by Jon Russo Jon Russo No Comments

Revenue through Marketing Automation

Increasing Productivity through Marketing Automation Platforms (MAPs)

My experience in this post comes from implementing MAPs in 3 different companies – in one of those companies, the MAP providers (Eloqua, Marketo, Aprimo) were a channel of distribution for us, so I had unique visibility as to their effectiveness.  When a process is followed, time efficiencies can be gained;  skipping implementation steps risks losing significant time to see effectveness.  When investing in these systems, you have to commit as an organization to move QUICKLY else you risk the ‘Ferrari collecting dust syndrome…’

You’ve heard of the brand new Ferrari collecting dust syndrome – someone buys a new car and it collects dust due to lack of use.   This same analogy has been used in investing in what is perceived as expensive marketing automation software to run routine marketing campaigns to accelerate revenue.  Implementation of these systems is very challenging to say the least in larger enterprises – outlining business process, integrating with sales ready tools, identifying KPIs and metrics, getting buy in, etc.  There are several key considerations when evaluating the need to increase productivity through marketing automation efficiency.

1.        Map out your lead flow process from inquiry to close by studying your Salesforce.com information, your marketing automation information, and interviewing your key sales stakeholders.  I’ve done this in two different companies and have found stunning results in both the process and in the experience that sales expects from marketing.

2.       Implement lead scoring through progressive form input/dialogue.  The progressive lead scoring will allow only the most qualified prospects deemed worthy a real time conversation (which is more costly than an automated touch).  The idea is to pass only the best qualified along to a telequalifying or inside sales entity.

3.       With the MAP platform, synthesize ALL campaigns to maximize effectiveness, to include SEO (search engine optimization).   It’s no good just to have campaigns for the sake of campaigns.   Some of the MAP platform providers are VERY early in on this process themselves which is somewhat shocking but true!

4.       Engage your marketing automation vendor early and often in your process flow (Eloqua, Marketo, soon to be Netsuite).  They do have best practice information as does other companies like SiriusDecisions.  You are better off engaging the MAP platform provider directly.

5.       Engage an outside party to help to move things more quickly.  An outside party can take the pressure off difficult conversations and can have the added insight of having been through other operational deployments.

What have you found that works for you?

by Jon Russo Jon Russo No Comments

Connect B2B Marketing to Revenue!

This is the first in a series of posts of tying B2B marketing result to revenue.  This is the framework for the discussion on how marketing drives revenue for their enterprise organization.

A key aspect for business to business marketing to focus on is delivering activity (sales qualified leads or sales ready leads) that close to actual revenue – ‘revenue’ is language the head of sales, CEO, CFO, and board of directors understand.

But what do I measure as someone in a B2B marketing organization?

Too often, marketing teams and leaders measure their internal impact for the sake of measuring and are not making the direct connection from their activities to revenue either by channel type or geographic region.  Some call it ‘activity’ vs. ‘impact’.  Measuring followers on Twitter, Facebook fans, webviews, etc. while impressive to those in marketing really have no true tie to what non-marketers truly understand – the contribution to revenue.  This is what drives business!

Let’s take an explicit example.  The contribution marketing makes can vary widely by the type of company and it’s distribution channels.  I’ve been involved with companies that marketing has sourced 16% of annual contract value and have seen other companies, particularly SaaS companies sourcing beyond 50% of revenue through their marketing activity.  Benchmark companies like Forrester and SiriusDecisions also have similar percentage contributions for enterprise companies – your percentage will vary on company type, geography, and buying cycle characteristics.

Look for this trend to continue of more revenue getting sourced through marketing – prospects today are spending more time in online communities or researching online their needs before engaging with sales organizations.

To do this kind of measuring, automation fundamentals need to be in place (Eloqua, Marketo, Aprimo), processes need to be installed, and an executive agreement needs to be discussed on outcome.  Our next posting will dig into key steps on how we will tie revenue to results in these areas!

http://www.alphainventions.com/

by Jon Russo Jon Russo 2 Comments

Revenue Traction = Sales+Marketing Alignment

alignment_one_per_customer_med

To maximize a company’s revenue result and customer experience, B2B Sales and Marketing teams need to align around similar objectives.  Recent trends point to both sales and marketing are getting increased scrutiny for the following reasons:

  1. Suspect to prospect to deal close time has increased significantly these last two quarters compared to quarters past due to the economy.
  2. ROI is demanded in all investments – Marketing is an investment (typically 5-7% of revenues of B2B companies >$500M  – or expenditure if you are a CFO  )

In most B2B companies that are $50M+ in revenue size, there are typically separate heads of marketing and sales, thus leading to an increased chance that marketing is disconnected from the sales process, sales people, or customers.   Consequently, marketing could celebrate their own ‘lead quantity’ which is handed off to sales versus the actual impact marketing makes on actual revenue.  So what approach could sales and marketing better work with one another in this economic environment?

  • A pipeline commitment: Marketing needs to take a more active role getting involved with the traditional sales pipeline.  With better sales pipeline visibility (ala Salesforce.com), marketing needs to create the right programs to accelerate deals in the later stages of the pipeline.  Specifically, competitive positioning talking points to best arm the sales organization, references of positive customers, or business case tools (Alinean, Mindseye Analytics) that help meet net new objections in the latter part of the selling cycles.
  • A Marketing SLA (service level agreement) between the head of sales who is the primary internal customer and her marketing counterpart, initiated by the marketing leader:  Sales should demand lead quality SLA—how many leads and under what conditions are a lead considered a keeper by a sales organization?
  • Deal autopsy—figure out how deals become deals (both wins and the rare losses companies experience).  What programs are impacting the selling cycles, what messages, what ROI tools?  Once this feedback is gained, test drive what are the winning concepts with a prospect to calibrate feedback.  The resulting information becomes the genesys of a deal play book to help calibrate new sales efforts.

It’s all about sales and marketing effectiveness in our new economy!  What have you found effective to push your revenue cycles and why is that effective for you?

http://www.alphainventions.com/

by Jon Russo Jon Russo 1 Comment

Accelerate Revenue NOW: Be a Student of the Game

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While President Obama was across town in Tempe, Arizona giving a commencement speech emphasizing how to keep studying beyond school, I attended the annual SiriusDecisons Best Practices Summit for Sales & Marketing leaders (see Twitter) in sunny Scottsdale, Arizona.   My objective in attending this year’s conference was to study and gain a more complete understanding of how to best drive new revenue in a challenging economic environment–by either  driving existing prospecting opportunities or net new opportunities–and then listen to what marketing programs make a visible impact in accelerating revenue in these areas.  In attendance with me were sales and marketing leaders fromOmniture,  Cisco, Symantec, Ilumina, PerkinElmer, Pitney Bowes, IBM, HP, BlueCoat, Cox, Ariba, McAfee, SAP, Aspect, and Juniper among others.

In the interest of full disclosure, I’ve been a Sirius customer for nearly 6 years and have attended a number of their annual conferences.  In this time, I’ve worked with them to help drive my revenue stream at iPass where as head of marketing,  we nearly quadrupled revenue to $200M – Sirius helped benchmark other company performance and helped my team embark on an aggressive field marketing strategy to support the growth.

Here are 10 key takeaways from the Summit of LEADING SALES AND MARKETING ORGANIZATIONS…these organizations are:

1.  innovating around marketing structure to leverage assets and impact sales productivity (function of company size and channel strategy)
2. leveraging technologies focused on sales enablement and pipeline transparency/analysis (function of investment in sales + marketing automation)
3. applying marketing resources across the entire opportunity life cycle, driving close collaboration between sales and marketing (marketing operations plays a key role here)
4. mandating marketing ROI, which sharpens measurement and drives greater alignment with sales (seems obvious in this economic environment, surprising # of companies work in progress here).

5. leveraging new marketing technologies to increase reach and quality, decrease costs and measure results (social media helps in this regard)

6.  blazing a trail with social media, and linking reputation and demand creation activities (see my prior posts here on this topic)
7. enabling sales via a progressive approach to building sales playbooks (start in increments, prove that it works, then grow it)
8. architecting their channel programs using three lenses: supplier-to-partner, partner-to-customer, and supplier-to-customer
9. optimizing the entire demand life cycle (nurturing leads becomes more important-every lead counts)
10.closing the enormous marketing skills gap created by new marketing technologies and requirements (new technologies creates new opportunties)

Statistics prove that organizations that have embraced an integrated sales and marketing approach vastly outperform (revenue and profit) than those that have not.   To get this synergy, Marketing needs to drive a closed loop lead system that has a specific hand off and visibility to sales with the right measurement mechanisms in place.   Both Sales and Marketing should have joint visibility to the sales pipeline (ie prospects at various stages of the sales funnel).    The benefit to sales in sharing pipeline visibility is becoming one of those firms that wildly succeed versus a marginally performing organization.

In addition to the presentations, I found value in Alinean, one of the many participating vendors given their ability to help provide prospects with a clear TCO/ROI proposition (more on this later.)

This event was well worth the time and money investment for any attendee;  if you are debating about attending or sending a sales or marketing leader next year, do not hesitate.  The ROI is proven based on money saved on not making mistakes and money gained by being a ‘student of the game’ –by studying the best practices of how to best accelerate revenue NOW in a challenging economic climate.

http://www.alphainventions.com