Marketo Revenue Cycle Model and Lead Lifecycle How To
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Join Marketo experts Josh Hill and Jeff Coveney to learn how to design and implement a Marketo Revenue Cycle Model and gain visibility into your sales funnel metrics. See the video here: http://summit.marketo.com/2015/sessions/the-tale-of-two-lifecycles-simplify-your-funnel-analysis/
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Marketo Revenue Cycle Model and Lead Lifecycle How To
- 1. Tale of Two Lifecycles Simplify Your Funnel Analysis April 15, 2015 Jeff Coveney President, RevEngine Marketing RevEngine Insider Blog @RevEngineMarket Josh Hill Sr. Manager, Marketing Operations Kaspersky Lab MarketingRockstarGuides.com @jdavidhill
- 2. Page 2 Wayne and Garth Assembly Line Benefits • Predictability • Business insights • Repeatability It’s all about the process.
- 3. Page 3 Today’s Agenda – We All Have a Funnel • How to turn your lead lifecycle funnel into an assembly line? • Measurable • Repeatable
- 4. Page 4 The Tale of Two Lifecycle Approaches Two Blueprints • The “Meat-n-Potatoes” Model • Easy to get going in 30 days (or less) • Great insights without maximum effort • Some limitations • The RCA Model • Deeper analysis • More advanced • More time to setup
- 5. Page 5 Best Buds - Sales and Marketing Marketing Sales
- 6. Page 6 Marketing and Sales Aligned Checklist 1. Strong definitions of stages • What’s an MQL? • What’s an SQL? 2. Agreement on SLAs 3. A relationship with Sales NOT like
- 7. Page 7 The Meat-n-Potatoes Model Blueprint • Great structure in 30 days or less • 6-steps including several techniques • It’s a Girl • The Stamper • Reading Railroad • Play-Doh Meat-n-Potatoes Definition: Unpretentious, simple, down-to-earth
- 8. Page 8 Use Cases • Splash – Event platform for branded experiences • Dyn – Internet performance infrastructure • Common characteristics • Both have leveraged freemium but have a B2B focus • Inside sales development team • Sole purpose to qualify leads • Closed loop analysis is very important
- 9. Page 9 The Answer Before the Question • Everything discussed leads up to insight and analysis. • How do leads move through your funnel?
- 10. Page 10 Step 1 – Give this Stuff a Home • Utilize a Lifecycle Program • Sub campaigns manage the lifecycle
- 11. Page 11 Step 2 – It’s a Girl • Tag all new leads as Sales Generated or Marketing Generated leads • Why? Easily split your model into two for future analysis
- 12. Page 12 Step 3 – The Stamper
- 13. Page 13 Step 3 – The Stamper • Time Stamp Everything • Campaigns are mostly setting dates upon Status changes • Prereq: Create fields in SF on Lead and Contact level…and map • Only filled out once – don’t overwrite
- 14. Page 14 Step 4 – The Reading Railroad • What happens when a lead skips a stage?
- 15. Page 15 Step 4 – The Reading Railroad Technique • Required in every lifecycle campaign • The Concept: If a previous stage’s date is BLANK, stamp it in with today’s date
- 16. Page 16 Step 5 – The Play-Doh Technique • Play-Doh invented in 1930s as wallpaper cleaner • Makers struck it rich with a completely different use • Program Status developed to track program membership • Our Play-Doh method leverages that feature to ALSO measure Lifecycle Success
- 17. Page 17 Step 5 – Define Lifecycle Progressions 1. Add as many stages as you want to track • Suggest high level MQL, SQL, WON 2. Add listening campaigns to your programs • Are some caveats to this approach
- 18. Page 18 Step 6 – The Seat Counter How to track lifecycle inventory? • Count the full seats How? • Create Status Smartlists • Key: Value is not blank
- 19. Page 19 Congratulations - Great Reporting Flexibility • Now the good stuff
- 20. Page 20 Analyze the Funnel MetricsStandard Lead Reports (with Excel MQL-to-Won calculation) Smartlist Custom Columns Sample data
- 21. Page 21 Program Insights Program Specific Analysis Program Summary Program Funnel Analysis Standard Program Report (with custom excel column) Sample data
- 22. Page 22 Summary of the Meat-n-Potatoes Model • Powerful results WITHOUT a complicated model • A stepping stone to RCA in the future • Limitations/Notes • Acquisition model focused • No Success Path analyzer • Not a data warehouse - Lacks some in-depth analysis obtain via RCA • Backfilling historic data takes time (same with any model)
- 23. Achieving the vision Using RCM and RCA together
- 24. Page 24 Why use RCM? To get to RCA! • You do not need to use RCM to get data, but you do need RCM to make the most of Revenue Cycle Explorer’s Model Flow Analysis reports. This is what you bought Marketo to achieve, so let’s do it.
- 25. Page 25 Align with sales and leadership • Should be mapped out first • Fun to setup. • Hard part is doing the Standard Method because that’s what you really need to do to make this work well.
- 26. Page 26 Revenue Stage Triggers Only • You will rely on the Program campaign flows to manage Revenue stage and all the other data. You already did this if you followed Jeff’s Standard Method. • The RCM will listen for these transitions – Only Revenue Stage Changes. Do not ask RCM to do more. • RCM will pass this data to • Success Path Analyzer • Revenue Stage Report • RCE Reports • Model Performance Analysis • Program Revenue Stage Analysis • SFDC Reports
- 27. Page 27 Wait, why do I have to do both? You should do both methods because without RCM, the funnel stages are not tracked completely by Marketo. It cannot do this without using Revenue Stage.
- 28. Page 28 Leads by Revenue Stage • This is just a Lead Performance Report by Revenue Stage • Use any Group By field here. • Shows current stage – not history like the Success Path Analyzer or RCE. Will only show current inventory. MQLs and SQLs should be low – no one should be in this Stage very long.
- 29. Page 29 Success Path Analyzer • Visual time line of your funnel – this is the big chart people want. • Uses whole days only • Takes time to have usable data. • Does not show detours. • Remember to mark changes to programs on the chart
- 30. Page 30 The vision you bought • RCE will collect the data from RCM Revenue Stage and place it in the Model reports. • Other tools like Full Circle CRM, Tableaux, and SFDC can let you calculate similar data based on custom fields. MQL and SQL inventory should be steady – Leads should quickly go to Recycle or advance to next Stage. Increasing Opps without increase in Won is cause for concern Prospects and Nurtured Leads should increase over time, but if conversion to MQLs decline, audience quality may be declining.
- 31. Page 31 Revenue Cycle Explorer Lead Model Conversion report Your ultimate goal is to be able to report on the complete model. Here’s an example. **Only possible with RCM data.
- 32. Page 32 Another view – putting the data on the map 10000 3000 2800 200 100 400 50 30 120 774 30% 100% 6.67% 3.5% 30% 10% 40% 60% 90% Churn Rate
- 33. Page 33 Which decisions should you make based on Lifecycle Funnel Data? • Monitor your funnel monthly. • Mark days where you had changes to Scoring, Workflow, Thresholds, Lifecycle, and Programs. • Did a Program (or two) appear to have an impact? • Are MQLs down the past few weeks? • Is sales asking for more leads? • Is velocity increasing or decreasing? • What can you do to change one thing at a time?
- 34. Page 34 A completed system looks like RCM Stages “Standard” Lead Lifecycle Program Flows Funnel Reports Success Path Transition Flows
- 35. Page 35 The complete funnel setup checklist 1. Align with sales, management on definitions, report look. 2. Design the lead lifecycle on paper/whiteboard/whatever. 3. Design RCM Draft so you have a visual that matches your LLC 4. Setup Program and Campaigns along with the other points to collect data and move leads. 5. RCM Transitions are Triggered Revenue Stages 6. Turn on RCM 7. Push leads into Stages [required] 8. Turn on Program triggers 9. Monitor success path and lead performance 10. RCE reports
- 36. Page 36 Tips for managing your funnel 1. No lead left behind – all leads are in the model. 2. Keep a clean database – scrub, dedupe, append. 3. Keep aligned with sales – they should know the funnel stages too.
- 37. Page 37 Thank you – Questions? Simplify your sales funnel reporting Jeff Coveney President, RevEngine Marketing RevEngine Insider Blog @RevEngineMarket jcoveney@revenginemarketing.com Josh Hill Sr. Manager, Global Marketing Operations Kaspersky Lab MarketingRockstarGuides.com @jdavidhill josh@marketingrockstarguides.com Coming Soon Email Jeff to request copy or visit site
- 38. Thank You!
Editor's Notes
- Update with new cover from visual brand deck.
- Let’s start out the day with a little Wayne’s World. In the movie Wayne’s World, these two dimwits worked on an assembly line. So you might be thinking to yourself, why is this slide up here? Let’s take the Wayne and Garth out of the picture for a second. Think about the benefits of an assembly line? What are they? Assembly lines are predictable. You know what goes in and what comes out. They also provide great insights as management knows the exact production levels. Assembly lines bring a repeatable process which makes a company much more efficient
- Most of you already have some version of funnel. GRABBER: How many of you have a lifecycle model that you are working through Marketo? Today, Josh and are going to discuss how you can take steps to transform your lifecycle funnel into an assembly line. How to give your business better insights into how leads move through the funnel? There are probably 7 or 8 actionable takeaways from our session. Our goal…..Hopefully you’ll take away one or two of those today that can cause a real impact on your business.
- We are going to give into two different models today that can compliment one another. You might even be using a few of these techniques today. First, I’m going to discuss what I call the Standard Meat and Potatoes model…. This is a model that you can get up and running pretty quickly as it simplifies so advanced concepts. It’s no fancy French cuisine but it works well. If you already have lifecycle approach, you maybe be able to tweak it with a few of the techniques I’ll walk through using a few case studies. As with any Meat and Potatoes, there are limitations around deep down analysis. That leads us to the RCA model. Josh will then jump in and share some of his experiences on how to get deep down analysis on your funnel.
- Now there are a few prereqs to developing the assembly line and funnel. I’ll continue the movie theme. Like Beavis and Butthead or some of these other characters, we assume you are already buddy buddy with your Sales team. We aren’t going to get into Sales and Marketing Alignment today--- just know that you need that alignment for success. One of our uses cases features splash. This last photo features the Sales and Marketing counter parts. If You can take a photo like this with your Sales , that’s sign you are on your way to success. Can’t stress that enough. If your Sales team isn’t onboard, these processes just won’t work. You can’t automate bad process. Jonah Hill and Channing Tatum 21 jump Street Sandra Bullock, Melissa McCarthy
- How do you know you are aligned? #1. Your Sales reps better know the definition of an MQL. #2. Do you have followup time frames established. For example, call an MQL in a day. #3 And if you watched the Grammys this past February, You know that Kanye West doesn’t exactly have to best of relationships with ANYONE from the Grammies…especially Beck. If your relationship with Sales is like this, you have some work to do.
- OK, without further ado, let’s dive into how you can use the Meat-n-Potato model to start seeing real impact in 30 days or less. I’ll lay out a 6 –step process for how to architect your funnel. Yes, I like to use some funky names because well…… people tend to remember them.
- We are going to see a couple of real world examples of a few of our clients who have leveraged some of these techniques. Dyn and Splash, two of our clients that Splash is an Event management platform and Dyn is a leader in internet performance software. Both use a B2B revenue model leveraging an inside Sales team that is dedicated to lead qualification. They both measure how leads flow through the funnel for closed loop analysis.
- You’ll see several different techniques as part of the blueprint of the Meat-n-Potatoes model. A few may look a little weird. All I have to say is trust the process, we’ll get to the good stuff in the end that ties all the techniques together. That end result----a measurable funnel. Keep this slide in the back of your mind because we’ll show you the blueprint for how to get here..
- First things first, give this stuff a home by creating a program where all of you lifecycle campaigns live. To help out, Marketo has a sample of this program that you can import from the program gallery. Step 1 is pretty easy.
- Let’s get into the “It’s a girl” technique. I originally called it “It’s a Boy” technique but my wife argued with me. Both Dyn and Splash use versions of these. When you are born, your are either male or female. In the lead gen world, when the lead is born, it’s either Sales or Marketing generated. In this step, we want to set that flag.. Why do you want to do this? A Sales generated lead tends to go through the system faster and you’ll probably want to analyze this data separately. Creating this flag up front allows you to easily break out your model into two. How? Create a specific campaign within the lifecycle Program that tags the lead upon creation. Feel free to customize those rules. This is a very simple ruleset but you may want to bring some lead sources into the mix.
- Let’s go to the 3rd technique. On your last trip overseas, any of you run into a customs agent like this? Kind of mean? OK, they aren’t really mean. His job is to check you passport and stamp it---you aren’t getting through without his stamp.-- That’s his job. He’s really called a Customs Official but I call him……… THE STAMPER.
- In this technique, Marketo acts as the Customs Official, AKA “the Stamper” for all leads moving through your funnel. The Concept: Time stamp everything related to funnel movement. When a status changes or other lifecycle action happens, timestamp the date…thus the stamper This stamping is essential for measuring where and when leads are getting stuck in the funnel. Most of the lifecycle campaigns are just listening for certain activities to stamp the dates. Only filled out once – don’t overwrite. This model only supports going through customs once. Thus, no return trips to Aruba. One prereq Make sure to create fields in SF on Lead and Contact level…and map How? Let’s look at Dyn’s example Create a trigger campaign that listens to a lead status change to MQL When that happens, the flow changes that date to today’s date if there was not previous date.
- A few weeks ago, my daughter was kicking my butt in Monopoly. If you have ever played Monopoly, Reading Railroad is one of the properties on the board. In fact, there is a Chance card that that sends you directly to Reading Railroad if you get it. My daughter LOVE getting the card. You know why? She likes mononey. She could care less about the railroad but she loves passing go and collecting her $200 bucks.. Let’s apply the Reading Railroad example to your funnel. Maybe it’s a real hot demo lead that became Sales qualified after one call. What happens when a lead fast tracks and skips stages? PAUSE The Reading Railroad technique ensures all the stages in between get credit. Just like passing go and getting $200.
- Translating this to Marketo, this technique is required in every lifecycle campaign if you are going to use this method. How? Let’s look at Dyn’s model. Splash also looks at a version of this. Whenever a lead gets date stamped, the campaign will look at the dates of previous stages. If a previous stage’s date is BLANK, stamp it in with today’s date. In effect, each stage is like “go” so the lead gets credit for passing through as it skips.
- Everyone loves playdoh, right? Do you know it was invented in the 1930s as a wallpaper cleaner. Now that is one tidbit I bet you didn’y plan to learn at the Summit. However the company struck it rich in a completely different application. Lets apply the Playdough model to Marketo. Marketo developed Programs a few years back and came up with the concept of a Program Status so we all can see the status of where someone sits within a program. For example, has someone registered or attended a webinar. This Playdoh technique leverages that feature to ALSO measure something completely different---Marketo built the statuses to measure one thing and we will measure something else----- Lifecycle Success. Using this technique, you can easily see how leads are progressing through your funnel on an individual program level. For example, if you ever get the question “How many MQLs came out of our last trade show?”, that answer isn’t always easy to track down. The Playdoh technique simplifies this process. Extra Leverage Program statuses to measure lifecycle success. Pro: EASY to get program level view of the success of the program Con: Lose some visibility into historical membership. Can add to lists Is this a Workaround? Yes, ideally this would be it’s own progression SEPARATE from the status
- How to setup, #1. First decide what high level high level successes you want to track at the program level. Splash decided on MQL, SQL and Won. Add these as Progression stages in your Admin area. Next, add listening campaigns to your programs just like you would normal program progressions. If someone hits one of those stages, adjust their progression to show the funnel success. Lastly, review your results. The great pro of this technique is you get a program level view of the success of the program. One caveat to this approach is you lose some visibility into historical membership like attended and registered. I won’t get into those details here but know there are some work arounds. For example, Splash has created some child SF campaigns to track specific membership.
- OK, the last setup step. I call this the seat counter. If you ever go to a game, there is a simple way to inventory how many people are sitting in your section. Count how many people are sitting in your seats? Using this method, you tally up the lifecycle stages in much the same way. We inventory the number of people in a stage by counting the # of stage dates that are NOT empty. How? #1. We need to create some smartlists that show us the entire funnel. We’ll use these in reports later Go to your lifecycle program, create a folder and create a Smartlist for every lifecycle success . #2 Use the the simple rule…..Lifecycle status date is not empty. This tells us that the the lead is sitting in that seat or has sat in that seat in the past. You might be asking yourself why we need these Lists. There are certainly other ways to get the inventory #s. The reasons is we will use these smart lists for future reports that I’ll get into next. ============================== In my younger days, I used to work at a concession stand at fenway park. Anyone know how they counted the beer that got sold? Sure, there are the register receipts. But as a backup, they use to Talley up sold beer by the cup inventory. Emtpy unused cups helped check the register receipts of units sold.
- Congrats, you have done all the heavy lifting. Now it’s time to start reaping the benefits of all your hard work. I’ll show you a sample of the insights that can help drive your business.
- Let’s bring up that report from the beginning of the presentation that shows us all the great funnel insights. In this example, we see great improvement of MQL conversions from Q1 to Q4….basically that rate has doubled. If everything else is the same, you just doubled your Sales with small funnel enhancements. What’s great……You get this insight with the out-of-the-box Lead reports. How did get here? Remember those lifecycle status Smartlist we created in the Seat Counter method? When we use those Smartlists as custom columns across the top of the lead reports, we get a great matrix report that provides funnel insights for anything lead related. Showing another example leveraging the It’s a girl technique, we can see that Sales is closing it’s own leads twice as well as Marketing sourced leads. These are just two examples. You can add any criteria across the left hand column to get funnel metrics based on Industry, Lead Owner, Geo or any other lead level field.
- Let’s look at Program funnel analysis. When your CEO asks how many deals did a program influence, your have that # in 20 seconds. Why? because we used setup the Lifecycle progressions using the Playdoh technique…..We now get great at-a glance stats on programs. Taking it a step further, you can compare programs, to see which is the most cost effective for driving leads to revenue. If we did in, we see that CES out performs all events when it comes to name capture at 1184. However, when you break out the cost per deal, that # is 3X higher than the others. Maybe it’s time to reinvest in another event. Again, funnel reports help make your business more predictable. And just a reminder, these are not true
- Before we get off to RCA, let’s juts recap. The standard model offers powerful results WITHOUT a complicated model It’s a stepping stone to RCA in the future. Or, use a few of the techniques with your RCA model. Like any model, there are a few limitation. This is real advanced but the model doesn’t let you look at multi-path analysis….it’s more linear. For example, MQL to TAL to Disqualified) Marketo has some nice No Success Path analyzer reports. This standard model doesn’t support that. Not a data warehouse - Lacks some in-depth analysis obtain via RCA Working with historic data isn’t easy. But honestly, you run into that issue with any model anyway. To close it out, the Standard Model is a great way to gain insights on your business to make it more predictable and reportable. But if you want to get super insight, you want to consider leveraging the RCA model. At this point, I’ll hand things over to Josh.
- Now you want to achieve the total vision. The vision of revenue cycle and funnel reporting that is automated, clear, and reliable. This is the vision Marketo sold you and you bought into….but where is it? How do I get there? Where is the button for that? All good questions I asked too.
- I usually recommend doing this part first, before you setup the Program, but it isn’t necessary. It’s a good visual to keep you on track. Take the whiteboard map and process chart you created earlier. Draw it here. Then put into RCM draft mode using the editor. Nothing is more fun than drawing in your browser – the best part is this is totally consequence free right now.
- While you can have RCM do a bunch of things, it is highly discouraged because many very smart people have discovered it just doesn’t work right. You will rely on the Program campaign flows to manage Revenue stage and all the other data. You already did this if you followed Jeff’s Standard Method. The RCM will listen for these transitions – Only Revenue Stage Changes. Do not ask RCM to do more. RCM will pass this data to Success Path Analyzer Revenue Stage Report RCE Reports Model Performance Analysis Program Revenue Stage Analysis SFDC Reports
- It may not be clear why the standard method and RCM method are actually part of one continuum. If you do Standard, you get the data moving, but limited ability to report on it. If you do just RCM, the system doesn’t collect enough data and may not always trigger as intended. So you use the Standard Model to drive the RCM model. While I can’t walk you through every aspect of this, your Revenue Stage changes will really appear in the Standard Model flows. RCM will just sit around and wait to be told what to do. This is counter intuitive to what the documentation says, but trust me it works. Everyone at the Summit who has setup a full lead lifecycle does it this way.
- Now lets take a look at how Marketo lets you view the data. Basics are in Lead Performance or the built in Leads by Revenue Stage. These are just inventory counts. This tells you very little.
- https://community.marketo.com/MarketoArticle?id=kA050000000LJCXCA4 Ah, now we are getting closer to the vision. This is the chart Marketo uses to sell Marketo to people like us. This is what we salivate over…if only we could get there. Yet, this only covers the main path to success. No detours, no side trips, no recycling. That’s ok, you care the most about this success data.
- As you look at this marvelous vision, you start to see that you might be only near the vision. But you can still start to make decisions from this report. A few key thoughts are: -growing your audience -keeping MQLs and SQLs moving forward -watching conversion rates over time. – what changed? Why? What can you do about it?
- https://community.marketo.com/MarketoArticle?id=kA050000000KyvZCAS With the Standard Model and RCM running in the background, RCE will collate the data. Then we get these wonderful history conversion charts. This is the tasty vision…which leads you to a real funnel report.
- Not real numbers! Percentages for one month may not align with the current inventory. Why not setup a funnel visual with the triangle or the RCM itself to display your monthly results to the board. (I’d make it prettier than this though).
- Day in the life of a lead through your lifecycle.
- Update with new cover from visual brand deck.