Rpm and funnel management tpma-2013-05

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 1

Is Your Marketing Working?

John Stetic

Egan Cheung


Buying Process Shifting …

Education Active Buying Closing

• Sales-dominated

• One-way, single channel, relationship-driven

Mark

etin

g


Buying Process Shifting to Marketing-Driven

Education Active Buying Closing

• Marketing plays critical role

• Buyers choice, analytics-driven

Marketing



The Flexibility to Manage Your Unique Business


You Need a True Multichannel Platform

Owned

Earned

Paid


Marketing ROI, RPIs, and Benchmarking


Median Cumulative Revenue Growth




Sample Size: 27

Sample Size: 155

Sample Size: 500

5X the

Growth! What do they

know that we

don’t?



Revenue Performance Management

A strategy for managing a company’s interactions with

buyers through the entire buying cycle that enables predictable, rapid and profitable

revenue growth.


Assessing the Financial Health of a Business

INCOME

STATEMENT

• Profit margin

• AR turnover

• AP turnover

• Inventory turns

BALANCE

SHEET

• Current ratio

• Quick ratio

• Leverage ratio

• ROI

CASH

FLOW

• External financing

index ratio

• Cash sources ratio

• Operating cash

index ratio


Assessing the Health of Your Revenue Engine

VALUE

• Weighted Marketing

Pipeline Value

• Weighted Sales

Pipeline Value

• Marketing/Sales

Pipeline Ratio

PERFORMANCE

• Reach

• Share of Audience

• Revenue Conversion

• Days Leads Outstanding

• Buy Cycle

• Sales Cycle

EFFICIENCY

• Customer Acquisition

Cost Ratio

• Campaign ROI

• Sales Sizing

• Economic Value of

Conversion


A Different Revenue Structure

Marketing

Responses

Clicks/Visits

Volume

Costs

Source

Executives

Revenue

Profitability

Cash-flow


A Different Revenue Structure

Marketing

Responses

Clicks/Visits

Volume

Costs

Source

Executives

Revenue

Profitability

Cash-flow

Revenue Steering Committee

Revenue Cycle Dynamics


Silos of Data = Incomplete Picture

Revenue

Prospect Qualified

Lead

Sales

Accepted Lead

(SAL)

Suspect

Sales

Qualified Lead

(SQL)

SFA systems

Call notes/(…more

spreadsheets

Email systems,

event systems (more

spreadsheets)

Web analytics,

social media

(spreadsheets)


The Right Revenue Process

Revenue

Prospect

Marketing

Qualified

Lead

(MQL)

Sales

Accepted Lead

(SAL)

Suspect

Sales

Qualified Lead

(SQL)

Evaluate Purchase Learn Justify Interest

Sales & Marketing

Process

Marketing

validates quality

of interest

Marketing

nurtures to

sales ready

Sales validates

and accepts

ownership

Sales validates

revenue criteria

Sales closes

revenue

opportunity

Buying Process


The Results


Questions your CEO should be asking And so should you!

Is there value weakness at a

particular stage in my funnel?

Do I have the expected number of leads in my funnel

stages?

Are leads converting as anticipated?

What tactics can improve this?

Are leads and opportunities getting ‘stuck’ in the funnel?

What tactics generate the

highest return?


Critical Insights to For Driving Revenue

Value

What’s the value of my pipeline?

Reach

Who can I target to drive value?

Conversion

What % of prospects will

become revenue?

Eloqua creates modern marketers that know exactly what their customers and

prospects want, enabling them to deliver a superior customer experience and to

drive revenue growth for their organizations

Velocity

How long will it take to realize revenue

from a prospect?

Return

What is the revenue return on my

marketing and

sales investment?


RPI: Reach Demo I don’t know if my

database is growing fast enough to hit my

revenue number.

What: Reach shows the number

of ‘reachable’ marketing contacts

for each month. Calculated as the

green additions less the red losses

of Contacts in the database).

Why: Reach helps executives

better allocate resources towards

database growth vs. prospect

engagement & conversion.

Reach, Conversion & Value can be

used to calculate long term

revenue forecasts. How many leads do we acquire and

lose over time?


RPI: Reach Demo

What is it: The Reach by Stage

shows the distribution of leads and

opportunities through the revenue

cycle for the time period selected.

You can toggle between a bar or

funnel view of the data.

Why: Executives want to know how

marketing and sales teams are

doing at filling the funnel. The Reach

by Stage drill down lets users to

compare the volume of leads and

opportunities in the revenue cycle

against earlier time periods, and

assess whether this volume is

enough to meet forward revenue

targets.

What does my revenue cycle look like today and how does

that compare against prior time frames?


RPI: Reach Demo

What is it: The Reach Trend and

Benchmark chart shows the trend in

Reach for the four standard stage

types and provides a comparison of

your Reach growth rate to the

Eloqua Benchmark Index.

Why: You grew your pipeline by

15%, but how does that compare to

top performers? Benchmarking

helps executives understand how

their organizations stack up against

others and pinpoint where

processes can be improved to

generate more revenue over time.

By stage type, how has my change in reach trended and how do I compare?


RPI: Conversion Demo What is the ratio of won deals to

new prospects in a time period?

What: Conversion is the percent of a

‘class’ of leads that progress through

the entire funnel to Closed Revenue.

The Conversion RPI is an indicator of

marketing and sales efficiency. The

Orange line shows the number of

closed opportunities divided by the

number of prospects entering a

revenue cycle. The Blue line (RPI)

shows true conversion of leads over

time (ratio of lead from this period that

eventual close).

Why: Conversion answers the

question – “what percent of interested

prospects will become closed deals?”

– a critical measure of revenue

production. It is also the key to long

term forecasting.

What percent of leads generated

actually convert to revenue?


RPI: Conversion Demo How are my

leads converting through stages?

How does my conversion rate

compare to industry standards?

What: The Conversion Rate by

Stage shows the stage-to-stage

conversion rate through the

integrated sales and marketing

funnel for the month highlighted.

Why: This tells you where to

focus to have the biggest impact

(for example, small conversion

rate improvements at the top of

the funnel can yield big revenue

gains at the bottom).


RPI: Value Demo

Are we consistently

adding Value to our revenue

cycle?

What: Value is the total revenue

expected from the current lead

inventory in end-to-end revenue

pipeline.

Why: The Value RPI helps

executives understand the

revenue dollars associated with

each stage of the revenue cycle

– from clicks all the way to

closed deals. It answers the

question “Are my sales and

marketing investments creating

revenue opportunities?”


RPI: Value Demo Which stages of the revenue cycle

are weakest?

What: The Value by Stage chart

shows a snapshot of the value

distribution throughout the

stages of the integrated sales

and marketing funnel for the time

period selected.

Why: Executives can use this

chart to compare time periods

and assess where the funnel

may be losing or gaining value.


RPI: Velocity Demo

Presenter Name

Date

Drill Down: For month X, What is the velocity

distribution?

What: Velocity is the average time it

takes for potential buyers to reach an

end point in the revenue cycle. The

blue trend line shows the average

number of days between Prospect

and Closed Revenue for deals closed

in the month highlighted. The green

bars represent the volume of revenue

cycles that were closed in that time

period.

Why: Time creates huge

inefficiencies in your revenue cycle.

After all, the longer your revenue

cycle, the fewer opportunities your

sales team can close in a given

period of time.

How long will it take for today’s leads to convert into revenue?


RPI: Velocity Demo

What: The upper right hand

chart presents the distribution of

closed deals grouped by average

cycle length. On the bottom, your

average Velocity for the time

period is compared to the Eloqua

Benchmark Index.

Why: It is likely that executives

would want to have the trends by

stage analyzed in detail and ask

their revenue steering committee

or marketing operations team

drill into underlying data to

investigate velocity by deal size,

region, product sku or lead

source.

In what stage are slowdowns

occurring and how can we optimize?


RPI: Return Demo

What: Return shows the Return

percentage for each month (revenues

generated divided by the costs spent).

By adjusting the slider at the bottom

of the chart, the specific 12 months

included in the analysis can be

changed.

Why: Every executive wants to know

how their marketing and sales

expense translate into revenue. In

fact, most financial types want an

answer to the question: “What will

one more dollar in investment in sales

& marketing yield in revenue?” This

dashboard aggregates that up to an

overall return on dollars spent within a

set time period.

What return have we realized on the

marketing investments in a

given time period?

How much revenue has been created

from the spend in a given time period?


RPI: Return Demo

What: The upper right hand chart in

provides a snapshot of when sales

and marketing campaign investments

break-even and begin to have a

profitable impact on revenue growth.

The lower right chart provides a

snapshot into your overall Return on

sales and marketing campaign

investments.

Why: Executives want to know what

is working so it can be repeated.

Periods of time with high marketing

and sales returns need to be

examined against campaign, product

and regional factors to find the

winning mix.

How long will it take me to see a positive

return on my marketing and sales

expenditures?


Revenue Benchmark Index

Sparkline: your performance by stage type over time period

against static benchmark

Benchmarks: your performance against

industry best, average and laggards, by stage.


ASP $25,000

# of deals 400

velocity (months 5

velocity (qut) 2

month/period 3

conversion 0.30%

FY1 Bookings $10,000,000 FY2 $15,000,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Prospects 3,200 9,600 1,920 4,800 4,800 7,680 - -

MQL 1,600 4,800 960 2,400 2,400 3,840 - -

SQL 400 1,200 240 600 600 960 - -

SQO - 200 600 120 300 300 480 -

Closed - - 100 300 60 150 150 240

% of annual booking 0% 0% 25% 75% 10% 25% 25% 40%

Qtr. booking target $- $- $2,500,000 $7,500,000 $1,500,000 $3,750,000 $3,750,000 $6,000,000

running bookings $- $- $2,500,000 $7,500,000 $1,500,000 $5,250,000 $9,000,000 $15,000,000

Conversion Base Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

P>MQL 5% 50% 50% 50% 50% 50% 50% 50% 50%

MQL>SQL 60% 25% 25% 25% 25% 25% 25% 25% 25%

SQL>SQO 50% 50% 50% 50% 50% 50% 50% 50% 50%

SQL>Closed 20% 50% 50% 50% 50% 50% 50% 50% 50%

P>Closed 0.300% 3.125% 3.125% 3.125% 3.125% 3.125% 3.125% 3.125% 3.125%

Stage Velocity

P>MQL 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0

MQL>SQL 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0

SQL>SQO 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0

SQL>Closed 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0

Running Velocity

P>MQL 1 1 1 1 1 1 1 1 1

MQL>SQL 2 2 2 2 2 2 2 2 2

SQL>SQO 3 3 3 3 3 3 3 3 3

SQL>Closed 5 5 5 5 5 5 5 5 5

-

10,000

20,000

$-

$5,000,000

$10,000,000

Q1 Q2 Q3 Q4

(5,000)

5,000

15,000

$-

$5,000,000

$10,000,000

Q1 Q2 Q3 Q4


Rpm and funnel management tpma-2013-05

Education

agiven time

return demowhat

revenue cycle

0sqlgt

leads andopportunities

rights reserved

reach demowhat

revenue structuremarketingresponsesclicksvisitsvolumecostssourceexecutivesrevenueprofitabilitycash