Overcoming Demand Gen Resource Constraints: Headcount, Execution, and Budget

Overcoming Demand Gen Resource Constraints:

Headcount, Execution, and Budget

Source: 2012 B2B Marketing Benchmark Report, Marketing Sherpa

2 of 3 marketers lack resources!

62% Lack of resources in staffing, budgeting or time

Marketing-tech boom underway

• 

• 

By 2017 the CMO will Spend More on IT Than the CIO!

B2B’s “Killer App” Marketing Automation, now a $1.2B industry growing 50% CAGR!

$100 $225

$325

$500

$750

$1,200

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2009 2010 2011 2012 2013 2014

Reve

nue

Gro

wth

($M

)

Source: Raab Associates 2014 VEST

What is Marketing Automation? •  Automate online campaigns •  Dynamic database segmentation •  Email Marketing •  Lead nurturing •  Lead Scoring •  Integrate website with CRM •  Website analytics

97%

85%

84%

75%

73%

62%

52%

40%

Creating enough Content at Reasonable Cost Data quality & Integration Poor Marketing Processes

Rethinking Legacy Processes Lack of Skilled Sta!

Lack of Funding Selecting Metrics

Senior Manageemnt Mindset

MOST CHALLENGING ASPECTS OF MARKETING AUTOMATION

Source: Gleanster Benchmark Report: Marketing Automation Q3 2013

.

But… Marketers underestimate challenges that come with Marketing Automation !

Headcount, Execution, and Budget

BUDGET Constraint #1

So how much does all this cost?

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nnualized $976,344

+

*Real example $15M Software company

But… how much do I need?

!"#$%&'()*%+"',-.%",)/%'%#"&0') 1"') 2%3) !"#) !"#456) )789::)) )789::)) )789::)) #$$%&''##40;<"=)!%,<") )>89::)) )>89::)) )>89::)) #"(%&''##??@) )AB8:::)) )AB8:::)) )AB8:::)) #&)%'''##C%3D<E%)F#%%="';%#) )G)))) )A8:::)) )A8:::)) #$%'''##H0D&'() )IJ9)) )IJ9)) )IJ9)) #(*&##*0+"<')K%',0#) )LJ)) )LJ)) )LJ)) #"$+##*"E"3"D%)K%',0#) )A8J::)) )A8J::)) )A8J::)) #,%+''##!M=&G+%,<")@0'E#";E0#) )>89::)) )>89::)) )>89::)) #"(%&''##2#%%="';%),%D<('%#) )9::)) )9::)) )9::)) #"%&''##K<,%0-N'E%#";&O%)*%O%=0P+%'E) )A98:::)) )G)))) )G))))#"&%'''##C%3D<E%)*%D<(')Q)*%O%=0P+%'E) )A:8:::)) )A:8:::)) )J:8:::)) #)'%'''##@0PRS#<E%#)F#%%="';%#) )G)))) )J::)) )J::)) #)''##!"#$%&'()TME0+"&0')40US"#%) )98J::)) )98J::)) )98J::)) #"&%+''##4E0;$)PV0E0D) )J:)) )J:)) )J:)) #+'##!"#$%&'()H"#,S"#%) )J8W::)) )G)))) )G)))) #$%(''##!"#$%&'()TME0+"&0')",,E=)+0,M=%) )G)))) )J8L::)) )G)))) #$%)''##?X)2#%%="';%#) )J89::)) )J89::)) )J89::)) #*%&''##C<#%)D%#O<;%)F%%D) )I::)) )I::)) )I::)) #(''##-./01# #*+%)2*## #+$%"2*## #+(%*2*###$'2%)+"##

= Annualized $976,344

+ ? =

Isn’t it just all about ROI?

CAC = Cost to Acquire a Customer

CAC = Total $ marketing & sales expense(n)

Total # new customers acquired(n)

CAC = $119,613

13

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

+

Jan Acquisition Costs •  Marketing = $88,362 •  5 Sales FTE = $31,250 •  Total = $119,612 CAC = $9,201 per customer

CLV = Customer Lifetime Value

CLV = ARPA(n) (Aver recurring $/Client) * GM%

Churn rate(n)

CLV = $18,342 * 78%

23%

CLV = $62,203 $0

$15,000

$30,000

$45,000

$60,000

Cumulative Revenue

Marketing & Sales E"cacy… CAC Ratio

CAC Ratio = CLV

CAC

$62,203

$9,201 = 6.76:1 =

CAC and CLV

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Ax

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Cumulative Expense/Revenue

Expense Revenue

Months to Recover CAC

-$10,000

$0

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Months to recover CAC = CAC

Average Recurring Revenue per Customer & GM%

9 months to recover customer acquisition costs

Simple Model

X%O%'M%)/0"=) YJ98:::8:::))5Z<D&'(-X%'%S"=)#%O%'M%) YJ:8:::8:::))!"#$%&%"'()*"%+*,()%,*$%-./$%0* 1234443444**TO%#"(%)S<')D<[%) Y798:::))\)0F)S<'D)'%%,%,) )>>]>7))^)4_.)`)C<') J9^)\)4_.aD)'%%,%,) )J>>]>7))^)4T.)`)4_.) W:^)\)4T.aD)'%%,%,) )JW>]I:))^)!_.)`)4T.) 9^)\)!_.aD)'%%,%,) )98WJ9]WI))

Add Nurture & Re-Marketing

Go on to buy 80%

Never buy 20%

% of Leads DQ’d by Sales*

* Source: Sirius Decisions

Add Nurture & Re-Marketing X%O%'M%)/0"=) YJ98:::8:::))5Z<D&'(-X%'%S"=)#%O%'M%) YJ:8:::8:::))!"#$%&%"'()*"%+*,()%,*$%-./$%0* 1234443444**TO%#"(%)S<')D<[%) Y798:::))\)0F)S<'D)'%%,%,) )>>]>7))^)4_.)`)C<') J9^)\)4_.aD)'%%,%,) )J>>]>7))^)4T.)`)4_.) W:^)\)4T.aD)'%%,%,) )JW>]I:))^)!_.)`)4T.) 9^)\)!_.aD)'%%,%,) )98WJ9]WI))bM#EM#%)N+P";E)

\)4T.D) )JW>]I:))\)4_.D) )J>>]>7))\)4T.D)*_a,) )JW]>I))^)*_a,)EV"E)3MR) B:^)\)4T.D)("<'%,) )JI]7:))4"=%D)/"<') YL::8:::)

Factor Conversion Velocity

c?N) GI!) GJ!) GA!) !A) !J) !I) !L) !9) !>) !7) !B) !W)!A:)!AA)!AJ)

\)S<'D)'%%,%,) )>>]7)) 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 ^)4_.)`)C<') J9^)

\)*"RD)4_.`C<') )L9))\)4_.D)'%%,%,) )J>7)) 22 22 22 22 22 22 22 22 22 22 22 22 ^)4T.)`)4_.) W:^)\)*"RD)4T.`4_.) )A:))\)4T.D)'%%,%,) )JW>) 74 74 74 74 74 74 74 74 74 74 74 74 ^)!_.)`)4T.) B^)

\)*"RD)!_.`4T.) )I:))\)!_.D)'%%,%,) 98WJ9) 494 494 494 494 494 494 494 494 494 494 494 494

Marrying Budget & MQL’s

2M''%=)!%E#<;) \) Y-\)

\)0F)S<'D)'%%,%,) )>>]>7)) YW8J:A)

\)4_.aD)'%%,%,) )J>>]>7)) YJ8I::)

\)4T.aD)'%%,%,) )JW>]I:)) YJ8:7:)

\)!_.aD)'%%,%,) )98WJ9]WI)) YA:L)

CAC = $9,201 per customer

Monthly budget & MQL Quota

c?N) GI!) GJ!) GA!) !A) !J) !I) !L) !9) !>) !7) !B) !W)!A:)!AA)!AJ)

\)S<'D)'%%,%,) )>>]7)) 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 5.6 \)4_.D)'%%,%,) )J>7)) 22 22 22 22 22 22 22 22 22 22 22 22 \)4T.D)'%%,%,) )JW>) 74 74 74 74 74 74 74 74 74 74 74 74 \)!_.D)'%%,%,) 98WJ9) 494 494 494 494 494 494 494 494 494 494 494 494

(5,925 MQL’s) * ($104/MQL) / (12 months) = $51,376/mo

What to do?

•  Start with knowing your CAC, CLV, and CAC Ratio to before developing a budget

•  Underpin your sales goal with # of MQL’s needed •  Calculate your cost per lead •  Fight for your defensible budget that underpins

revenue (not programs)

EXECUTION Constraint #2

97%

85%

84%

75%

73%

62%

52%

40%

Creating enough Content at Reasonable Cost Data quality & Integration Poor Marketing Processes

Rethinking Legacy Processes Lack of Skilled Sta!

Lack of Funding Selecting Metrics

Senior Manageemnt Mindset

MOST CHALLENGING ASPECTS OF MARKETING AUTOMATION

Source: Gleanster Benchmark Report: Marketing Automation Q3 2013

.

But… Marketers underestimate challenges that come with Marketing Automation !

Why is the Marketing Automation space talking content?

It’s not software, it’s… the content that converts

Marketo’s Videos Eloqua’s Whitepapers Sales Engine’s webinars

So why is content ‘development’ such a problem?

3 buying stages x 3 buying personas

= 9 Pieces of content



= 9 Pieces of content x 4 formats/mediums

= 36 Pieces of content




= 36 Pieces of content + 96 eNews pieces

= 132 pieces of content




= 36 Pieces of content + 96 eNews pieces

= 132 pieces of content

+ 52 weekly

blog posts

+ 12 monthly webinars + SEO landing

pages…

1/keyword

Content Map & Editorial Calendar

What to do?

•  Start one over-arching content piece for each buying phase (not persona, or topic based)

•  Develop with an editorial calendar with all of your programs and channels

•  Re-purpose, re-purpose, re-purpose, •  Video>podcast>transcript>article(s)>informs infographic •  Contextualize the content by persona

•  Develop the discipline to create content for the calendar

HEADCOUNT Constraint #3

Fractional ‘skills’ to run B2B Lead-gen

The one who “keeps it all on track”

10% 25% 50% 75% 90%

San Jose, CA $60,150 $71,670 $86,652 $104,471 $123,488 Austin, TX $47,076 $55,568 $66,633 $79,767 $93,719 West Monroe, LA $38,757 $46,134 $55,813 $67,402 $79,832

$25,000

$50,000

$75,000

$100,000

$125,000

$150,000

$175,000

$200,000

Compensation Bands

!"#$%&'()?#0(#"+)!"'"(%#)5d?5XN5b@5e))9)R%"#D)Nb*f4gXhe))b0E)4P%;<i%,)6X/TbNjTgN6b)e))?#<O"E%)4%;E0#)@0+P"'R))

3456375#83936:;#<++%++,#

The Marketing “techie”

10% 25% 50% 75% 90%


$25,000

$50,000

$75,000

$100,000

$125,000

$150,000

$175,000

$200,000

Compensation Bands

!"#$%&'()TME0+"&0')!"'"(%#)5d?5XN5b@5e))I)R%"#D)Nb*f4gXhe))b0E)4P%;<i%,)6X/TbNjTgN6b)e))?#<O"E%)4%;E0#)@0+P"'R))

3456375#83936:;#<*'%"$2#

The “web geek/artist”

10% 25% 50% 75% 90%


$25,000

$50,000

$75,000

$100,000

$125,000

$150,000

$175,000

$200,000

Compensation Bands

C%3)*%D<('%#)5d?5XN5b@5e))9)R%"#D)Nb*f4gXhe))b0E)4P%;<i%,)6X/TbNjTgN6b)e))?#<O"E%)4%;E0#)@0+P"'R))

3456375#83936:;#<)$%&)(#

The one who “makes you look good”

10% 25% 50% 75% 90%


$25,000

$50,000

$75,000

$100,000

$125,000

$150,000

$175,000

$200,000

Compensation Bands

T#E)*<#%;E0#)5d?5XN5b@5e))9)R%"#D)Nb*f4gXhe))b0E)4P%;<i%,)6X/TbNjTgN6b)e))?#<O"E%)4%;E0#)@0+P"'R))

3456375#83936:;#<&'%2&+#

“The Voice” of your brand - Campaigns

10% 25% 50% 75% 90%


$0

$25,000

$50,000

$75,000

$100,000

Ax

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itle

Chart Title

@0PRS#<E%#)h5TX4)62)5d?5XN5b@5e))9)Nb*f4gXhe))b0E)4P%;<i%,)6X/TbNjTgN6b)gh?5e))?#<O"E%)4%;E0#)@0+P"'R)

)3456375#83936:;#<)&%"&'#

Fractional Skills to run B2B Lead-gen

Role

Marketing Program Manager

Marketing Automation Manager

Web Designer Art Director Copywriter TOTAL

Salary $66,663 $70,128 $42,549 $50,856 $45,150 $396,321 % FTE Needed 50% 25% 25% 15% 20% Fractional Cost $33,332 $17,532 $10,637 $7,628 $9,030 $78,159

Fractional Skills to run B2B Lead-gen

So, who manages all this?

But no ONE Person has ALL these skills




$66,663 $70,128 $42,549 $50,856 $45,150 $396,321

50% 25% 25% 15% 20%

$33,332 $17,532 $10,637 $7,628 $9,030 $78,159

“The owner” of strategy and oversight

10% 25% 50% 75% 90%


$25,000

$50,000

$75,000

$100,000

$125,000

$150,000

$175,000

$200,000

Compensation Bands

*%+"',)/%'%#"&0')*<#%;E0#)5d?5XN5b@5e))A:)R%"#D)Nb*f4gXhe))b0E)4P%;<i%,)6X/TbNjTgN6b)e))?#<O"E%)4%;E0#)@0+P"'R))

3456375#83936:;#<"$'%(*&#

Staffing Constraints

*<#%;E0#)0F)*%+"',G/%'%#"&0'))YAJ:8W79)




$66,663 $70,128 $42,549 $50,856 $45,150 $396,321

50% 25% 25% 15% 20%

$33,332 $17,532 $10,637 $7,628 $9,030 $78,159

$78,159 + $120,975 = $199,134

What to do?

•  Identify the skills required to execute the editorial calendar and content development

•  Honest assessment of current team •  Look for skill combinations •  Sta! the function as a mission-critial business

process, not a side project

Conclusion •  Budget

•  First understand your CAC, CLV, and CAC Ratio •  Build a budget based on lead requirements

•  Execution •  Build an editorial calendar •  Build a content development plan that supports the

calendar that heavily re-purposes assets

•  Sta"ng •  Identify the skills required to execute the calendar •  Look for skill combinations

Sales Engine’s MaaS Offering

Q&A

Date post:	29-Nov-2014
Category:	Marketing
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