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![79% of leads never convert to sales
partly due to a lack of nurturing,
and of the leads that get passed to
sales, 73% are never contacted. –
HubSpot
– HubSpot: Sales-Marketing Alignment Increases Revenue by 208% [Infographic]](https://image.slidesharecdn.com/saasmql-cacanalysis-07-11-2019-190801164859/75/Creating-a-Demand-Generation-Budget-From-Scratch-31-2048.jpg)
![Sales-marketing alignment
increases revenue by 208%! –
HubSpot
– HubSpot: Sales-Marketing Alignment Increases Revenue by 208% [Infographic]](https://image.slidesharecdn.com/saasmql-cacanalysis-07-11-2019-190801164859/75/Creating-a-Demand-Generation-Budget-From-Scratch-32-2048.jpg)
![Match keywords to bottom-of-funnel mentality
– How To Map Content To The Buyer's Journey & The
Marketer's Funnel [Inbound 2014]
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Uploaded bySaasMQL
Creating a Demand Generation Budget From Scratch
The document outlines a meetup focused on creating a demand generation budget, featuring multiple speakers discussing topics such as customer acquisition costs, measuring ad spend ROI, and leveraging funnel metrics for planning. Key insights include the importance of understanding conversion rates, aligning marketing with sales objectives, and the need for a structured demand generation strategy based on audience segments. The document emphasizes that demand generation must be tied directly to revenue goals and outlines strategies for effectively allocating budget to meet those goals.
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Creating a Demand Generation Budget From Scratch
- 1. Creating a DemandGeneration Budget From Scratch Demand Generation Marketers Meetup (SF) July 11th, 2019
- 2.
- 3. Agenda 6:30-6:45 - Whyyou are not spending enough on customer acquisition (Franco Caporale - Founder - SaasMQL). 6:45-7:00 - Accurately measuring ad spend ROI against actual revenue generation (Sahil Jain - CEO & Co-Founder - AdStage). 7:00-7:15 - Leveraging your funnel metrics to build an effective demand gen plan (Steve Arentzoff- VP of Demand Generation - Medallia). 7:15 - 7:30 - Building a demand generation budget from scratch (Jack Foster - Sr. Director, Demand Generation - SurveyMonkey). 7:30 - 8:00 - Panel & Q&A 8:00 - 8:30 - Closing & Networking
- 4.
- 5. Why you arenot spending enough on customer acquisition
- 6. About Me Franco Caporale Founder LedEnterprise Marketing at:
- 7. SaasMQL - ABMConsulting CLIENTS INCLUDE:● We help you identify your Ideal Customer Profile and Target Accounts ● We run targeted ABM programs to generate qualified pipeline. ● We track pipeline, ROI and revenue from ABM campaigns.
- 8. The Cost ofCustomer Acquisition There is no such thing as a “free customer”.
- 9. CAC Ratio &Payback Period CAC = Total cost of Sales & Marketing / No of Deals closed Average Payback Period in SaaS: 12 months Source: ForEntrepreneurs.com
- 10. Why companies underspendin DG 1. Low confidence in ROI and marketing attribution. 2. Lack of visibility 3. Short-term goals 4. No scalable systems or process in place 5. Committed budget to hire sales resources 6. Still trying to “hack” some free customers 7. Nobody owns the demand gen budget
- 11. ROI Framework byChannel Source: Bizible
- 12. New Customer Opportunity Value Meeting Value MQA Value $50,000 $10,000$2,500 $250 Qualified Meeting Value ($) 20% 25% 10% Values are in ARR (Annual Recurring Revenue)
- 13. Revenue Goal Average DealSize: $50,000 $2M Customers Win rate: 20% #40 Opportunities Conversion rate: 25% #200 Meetings Cost Per Meeting: $1,500 #800 Budget Marketing Programs $1.2M Revenue Goal/Budget
- 14. Know Your FunnelMetrics What are the conversion rates for each stage, divided by segment?
- 15.
- 16. Distributing budget acrossprograms ● How much should be allocated in branding/pr initiatives? ● How much in content creation? Source: 2017 Hubspot Demand Generation Benchmark Report
- 17. ABM Budget :Account Tiers ● How is your current revenue distributed across account tiers? TIER 1 ACCOUNTS TIER 2 ACCOUNTS TIER 3 ACCOUNTS 50% 35% 15%
- 18. Marketing Budget vs.Sales Budget MARKETING SALES DESCRIPTIONGTM STRATEGY ● Lorem ipsum dolor sit ● amet nec at adipiscing ● risus at dolor porta 2 ● Lorem ipsum dolor sit ● amet nec at adipiscing ● risus at dolor porta 3 INSIDE SALES (SDRs/AEs) ENTERPRISE (Field reps) ● Lorem ipsum dolor sit ● amet nec at adipiscing ● risus at dolor porta 1 HIGH VELOCITY (Self-serve) 95% 5% 30%70% 30% 70% The budget and quota changes depending on your Go-to-Market strategy “Why should I invest $1M more in demand gen vs. hiring 4 more reps?”
- 19. Fast Growth vsCAC Efficiency Revenue target and number of logos are priority. Investing mostly in proven, low-cost channels (e.g. outbound emails) Payback period can be > 12 months Budget is capped, unless ROI is proven Usually high LTV Limited investment in testing new programs Testing many channels, doubling down on those that deliver ROI Payback period is low but growth is limited FAST GROWTH CAC EFFICIENCY
- 20. Conclusions 1. There areno “free leads” or “free customers” 2. Get a clear view of your funnel metrics 3. Decide how much are you willing to invest per each acquired customer (aggressive growth or low CAC?) 4. Track ROI and distribute budget accordingly 5. Your go-to-market strategy determines the sales vs. marketing contribution
- 21.
- 22. Accurately measuring ad spendROI against actual revenue generation
- 23.
- 24. Here’s what you’llget from this session ● ● ● ● ●
- 26. Data is changingthe CMO role
- 27. Marketers are nowresponsible for revenue — Accenture, C-level disruptive growth
- 28. Digital-native marketers outscored corporatemarketers by 73% Today, the greatest marketing advantage is technical marketing talent — the martecheter. – IBM 2019 Marketing Trends Report
- 30. Marketers are awareof the need to align with sales – SnapApp Sales and Marketing Alignment: 45 Experts Explain How To Connect The Dots
- 31. 79% of leadsnever convert to sales partly due to a lack of nurturing, and of the leads that get passed to sales, 73% are never contacted. – HubSpot – HubSpot: Sales-Marketing Alignment Increases Revenue by 208% [Infographic]
- 32. Sales-marketing alignment increases revenueby 208%! – HubSpot – HubSpot: Sales-Marketing Alignment Increases Revenue by 208% [Infographic]
- 34. Melding sales +marketing to create “smarketing” – Roofer’s Coffee Shop
- 35. Define and agreeon expectations – Business 2 Community: How to Build an Event SLA For Marketing and Sales
- 36. A pretty goodbuyer persona...
- 37. Sales can helpwith Psychographic
- 38. Quid Pro Quo- Collaborate on Collateral ● ● ● ●
- 39. Talk, communicate, meet,connect, get together ● ● ● ●
- 40. All this pavesthe way to CRM access
- 42. First, populate theCRM with the data you need
- 43. Your leads willcarry this source data with them
- 44. Then run CRMreports down to your UTMs
- 45. Show the valueof campaigns in the context of business goals
- 47. Affect ROI witha sales mindset
- 48. But make sureyou optimize correctly Channel Spend MQL CPL AdWords $15,000 30 $250 Bing $5,000 25 $200 Facebook $5,000 50 $100 LinkedIn $10,000 20 $500 Total $35,000 125 $280 Focus here Cut here
- 49. Results change asyou go down funnel Channel Spend MQL CPL Customers Revenue ROAS ACV AdWords $15,000 30 $250 4 $32,000 213% $8,000 Bing $5,000 25 $200 3 $15,000 300% $5,000 Facebook $5,000 50 $100 1 $4,000 120% $4,000 LinkedIn $10,000 20 $500 4 $32,000 320% $8,000 Total $35,000 125 $280 12 $83,000 243% $6,917 Focus here Cut here
- 50. Now you havethe data to ask for more budget Channel Spend Lead (MQL) CPL Customer s Revenue LinkedIn $15,000 30 $500 6 $48,000 Channel Spend Lead (MQL) CPL Customers Revenue Facebook $10,000 20 $500 4 $32,000
- 51. Match keywords tobottom-of-funnel mentality – How To Map Content To The Buyer's Journey & The Marketer's Funnel [Inbound 2014] ● ● ● ● ●
- 52. Create campaigns basedon sales milestones – Facebook Improve Customer Acquisition with the Power of Lead Ads and Offline Conversion
- 54. MarTech + AdTechfinally together = the Holy Grail of Marketing Enterprise brands use on average more than 90 marketing tools – IBM 2019 Marketing Trends Report
- 55. Use the powerof Salesforce to improve paid ads – Salesforce Digital Advertising 2020 report
- 56. Google AdWords ConversionImport – About Google Ads Conversion Import for Salesforce®
- 57. HubSpot’s closed-loop marketingintegration – Hubspot + Salesforce integration product
- 58. So, what didwe just learn? ● ● ● ○ ○ ○ ○
- 59.
- 60. Sahil Jain CEO &Co-Founder
- 61. Building Effective Growth MarketingPlans Aligning Business Objectives with Funnel Metrics
- 62. Presenter STEVE ARENTZOFF Steve Arentzoff VPof Demand Generation
- 63. About Me ● 20+year career in marketing ● Current role: VP demand generation: Medallia ● Previous roles ○ Senior Vice President Global Digital Marketing: Cision ○ Senior Director Demand Generation: Dealertrack/Cox Automotive ○ Various VP Marketing positions ● Consistent ability to support company annual growth in excess of 35%
- 64. Growth Marketing/Demand GenerationDefinition ● Demand Gen is responsible for delivering a percentage of sales closed revenue from marketing sources ○ Typically 35% - 50% ● Delivering leads is not our objective, ○ Your success will not be measured on lead delivery ○ Don’t believe this if you are told this ● Success requires growth team to possess: ○ Marketing strategy, customer insights into messaging and pain points, media expertise, MarTech expertise for both paid and owned channels, customer engagement strategy, data and analytics
- 65. How to DeliverRevenue Growth of +35% ● Assume you have a Margin budget, not a $ budget ● Your finance team will not refuse budget requests for demand programs that guarantee a given revenue and profit result ● Planning process is driven solely by required delivery of sales results
- 66. Building a DemandPlan (Example) The Reverse Waterfall Required Sales $100,000 Marketing Responsibility (35%) $35,000 Required Pipe (3.5x) $ 122,500 # of Opps ($pipe/opp) 1,225 # of Leads (lead-Opp Conv Rate) 2,450
- 67. Demand Funnel Strategy MiddleFunnel Management Bottom Funnel Delivery Upper Funnel Objective: Increase quality and quantity of lead generationPaid channels • ABM targeted display (Terminus) • Prospect email delivered by Marketo • Zoominfo • Industry advertising • Targeted Paid social • Tradeshow Event participation • Brand campaigns Owned channels • Marketo email • Website • Website ABM personalization • Lead nurturing Objective: Increase Pipeline Creation Paid channels • Expand and enhance Paid Search Owned channels • Marketo – Prospect emails • Marketo – cross-sell/upsell emails • Medallia.com • Webinars Objective: Upgrade Inquires to SQL leads Paid channels • ABM targeted display () • Industry advertising • Paid social • Website product page remarketing • City Tour events • Target key audiences through integrated campaigns leveraging targeted paid and owned media • Improve efforts to convert upper funnel leads to MQL using targeted paid and owned media • Upgrade Marketo to support cross-sell/up-sell leads in SFDC Owned channels • Website • Marketo email • Lead nurturing • Webinars • Implement ABM nurturing of companies with SQL leads and open opportunities to increase Pipeline creation and closed won success • Implement ABM nurturing of companies with MQL leads to increase SQL success by SDR team • Accelerate content development program required by campaigns • Focused Medallia.com upgrades
- 68. Building a DemandPlan - Keys: ● Must understand key waterfall metrics ● Must have predictable conversion rates ● Campaign design must align core themes, aligned to each audience you target, to create a campaign strategy and tactical plan that creates the required quantity and quality of leads to deliver required revenue Demand Planning by Channel Leads from Owned Channels Waterfall Leads from Paid Channels Waterfall Always On Channels Website Lead to opp/pipe/revenue SEM Lead to opp/pipe/revenue Variable Channels Email Lead to opp/pipe/revenue Paid Display Lead to opp/pipe/revenue Social Lead to opp/pipe/revenue Sponsored Webinars Lead to opp/pipe/revenue Webinars Lead to opp/pipe/revenue Paid Email Lead to opp/pipe/revenue Total Spend $ $ Forecasted Revenue $ $
- 69. Conclusions ● Budget andactivity planning starts with required end result ● The campaign planning process aligns the demand generation results with a strategy that combines channels, audiences, and campaigns ● Growth Marketing owns the delivery of required revenue a. Assume contingency plans will be required to meet goals
- 70.
- 71. How to builda Demand Gen budget from scratch
- 72.
- 73. Tip 1: Knowyour stage Are you…. Building a foundation Finding market fit Building awareness Or…. Repeatable business Scaling programs Moving upstream
- 74. Tip 2: Alignto sales What % of bookings is coming from Marketing vs. Sales? Do you support SMB the same way you support Enterprise?
- 75. Tip 3: Definea strategy Ideal Customer Profile (ICP) Approach: High-touch and personalized experience Core Tactic examples: 1:1 ABM plays, Field Marketing Large Enterprise 20% Mid-Market 60% Approach: One-to-many Marketing Core Tactic examples: Programmatic ABM, flywheel programs (Email, SEM, Website, Webinars, Paid Social, Organic, Trade shows) SMB 20% Approach: Mass Marketing Core Tactic examples: Website conversion rate optimization, SEO
- 76. Tip 4: Knowyour inputs - Know or establish conversion rates at each stage of the funnel (by program type and segment) - MQL to SQL - SQL to opp - Opp to closed won - Understand your Average Order Value by segment, by product - CPLs by channel - Build your model from the bottoms up - Start building scenarios (top down)
- 77. Tip 5: Measuringsuccess ROI Attribution window LTV
- 78. Tip 6: Socialize Sales YourTeam XF Partners
- 79. Remember... ● There isno silver bullet, channels don’t scale indefinitely ● Look at seasonality ● Leave room for testing and failing
- 80. Example of howthis could look Data in screenshot is not real
- 81.
- 82. Panel SAHIL JAIN CEO &Co-Founder LOGAN NEVEAU Director of Growth JACK FOSTER Sr. Director, Demand Gen STEVE ARENTZOFF VP of Demand Generation