Sponsored by:

Lead Lifecycle Analytics

Essential Metrics for Perpetual Revenue Growth

Ian Michiels
Gleanster
@InsightFanatic

About the Research Findings

Top Performers: Respondents that achieved
Top Quartile performance in key KPIs
TODAYS STATS

Everyone Else: Everyone Else

Total survey responses: 432

Qualified survey responses: 321

Lead
Prioritization
Gleansight
(Nov 2011)

Marketing
Automation
Gleansight
(Dec 2011)

Growth in:

#AOWEB

REVENUE
AVG CLICK-THROUGH
LEAD-TO-SALES CONVERSION

Agenda for Today

Managing by Revenue by the numbers:
Buying Cycle
Sales Cycle
Lead Lifecycle

Define how to actually measure the sales

pipeline?
Lead Lifecycle Dashboard
3 Tactics You Cant Succeed Without
#AOWEB

In a world
The Board wants to
raise our sales targets
this year
I think we need to beef
up our Marketing!

We need more leads.

Mary, what will it take
to increase sales by 2x
year-over-year?

Mr. CEO

How about we
raise the marketing
budget by 1%.
Can we do it?
#AOWEB

One woman fights for success

Mary
VP of Marketing

What are my
options?

#AOWEB

Option 1: Tell Him Yes, and Hope We Can

Mary
VP of Marketing

Marketing Spend + Sales Effort = ?

Im not sure exactly
how effective my
marketing spend was
last year?

?
?

?
#

But, we reached
our targets.

I just dont know

#AOWEB

Option 2: Go Check the Numbers

Mary
VP of Marketing

Ill check my Lead Lifecycle Analytics Dashboard!

It tells me:
Exactly how many leads I need to reach 2x sales growth.
Exactly what it will cost me to generate those leads.
Exactly how I can set realistic expectations with sales
about meeting our targets If we both deliver on our
plan.

And I can make a tangible

case for why I need a 10%
increase in budget and not
2%.
#AOWEB

First the Groundwork

A basic understanding of key concepts
What do Top Performers measure?
What should you measure?

What are the best practices for measuring the lead

lifecycle?

#AOWEB

Hope Is Not a Strategy

Gleanster Research :
9 out of 10 B2B marketers use
revenue growth as the
primary metric for measuring
marketing success.

62% of Top Performers measure

MQL to SAL conversion

#AOWEB

Whats MQL and SAL?

Lets dive into some key concepts

#AOWEB

10

Demand Generation Concepts

Buying Cycle

Whats with
all the cycles
and circles?

Sales Cycle
Lead Lifecycle

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11

The Birds Eye View of Lead Generation

Psst thats the Customer
Lifecycle

Leads
An inquiry into a
product, a
potential
prospect.

Expressed interest
in solving a
problem.

Prospects
A qualified
decision making
individual with
budget and
authority to
influence a sale.

#AOWEB

Customers
A person or
organization that
has purchased
goods or services.

12

The Birds Eye View of Lead Generation

Leads

Prospects

Customers

Customer Lifecycle
Buying Cycle

Sales Cycle

#AOWEB

Service

13

1) Buying Cycle
Email
Website
Search

Social Media
Video
Mobile

Banner Ads
Webinars
Events

PR
Advertisements
Direct Mail

Re-Targeting
Microsites
Affiliations

MARKETING
Attention
Known
Problem?

Interest
Recognized
need

Desire
Seek solution
to need

Action

Goal #1: Become a trusted advisor DONT SELL!

Goal #2: Relevant communications
#AOWEB

14

2) Sales Cycle Engagement

Traditional funnels are less useful in the
context of sales these days
Prospects are educated beforehand
Sales performance can be predictable

71% of Top Performers implement Lead

Scoring to increase sales productivity
Sales enablement is the name of the game:
Meaningful value added dialogs
Marketing shares responsibility
Minimize sales qualification

The input and output matter most, not

what happens in-between.

#AOWEB

15

3) Service
Marketing tactics used to acquire new
prospects should be applied to existing
customers

You probably have LOADS of info on your

customers, use it for micro-targeting
Earn their loyalty with relevant
communications

#AOWEB

16

Lead Lifecycle Management

Metrics and Measurements

Cost per Lead

# of qualified leads generated
Close rate on marketing-sourced leads
Conversion rate

Marketing-sourced deals as share of pipeline

Response rates
Marketing cost per revenue dollar
Cost per lead
Cross-Selling and

Incremental revenue from marketing

efforts
Up-Selling
Marketing-sourced revenue
Click-Through Rate
Open Rate

MAXIMIZE REVENUE

BUYING CYCLE

Revenue Growth

Nurture
Opportunities
Not Ready to Buy

SALES CYCLE

CUSTOMER
SERVICE

Bounced Emails

#AOWEB

17

What are the levers that impact revenue?

Hint: Theres more than one.

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18

Its Not a Handoff Its a Team Effort

Leads

Prospects

Customers

Customer Lifecycle
Buying Cycle

Marketing
Sales

Sales Cycle

Marketing
Sales

#AOWEB

Service

Marketing
Sales

19

Follow the Revenue

Leads

Prospects

Customers

Customer Lifecycle
Buying Cycle

Service

Sales Cycle

Revenue
PROSPECTS

Revenue
DROP OUT OF PIPELINE

CUSTOMERS

Revenue
UP-SELLING / CROSS SELLING

#AOWEB

20

There is no Golden Metric

Revenue is a byproduct of marketing
Lead Lifecycle Analytics measure the levers that impact revenue
Leads

Prospects

Customers

Customer Lifecycle
SalesMeasurement
Cycle

Buying Cycle

Measurement

Measurement

Revenue

PROSPECTS

Revenue
DROP OUT OF PIPELINE

Service

CUSTOMERS

Revenue
UP-SELLING / CROSS SELLING

#AOWEB

21

What should you measure?

Leads

Prospects

Customers

Customer Lifecycle
Buying Cycle

Sales Cycle

Inquiry.
(Unknown buying intent)

Sales Accepted Lead (SAL)

= Prospect

Marketing Qualified Leads

(MQL).

Sales Qualified Lead (SQL)

= Valid Opportunity

#AOWEB

Service

When the prospect

purchases they become a
customer , requiring ongoing
service and support.
Customers can also be
nurtured to encourage upselling and cross-selling.

22

Back to Mary
Mary
VP of Marketing

Exactly how many leads I need to reach 2x sales

growth.
Exactly what it will cost me to generate those
leads.
Exactly how I can set realistic expectations with
sales about meeting our targets If we both
deliver on our plan.
How do I justify more budget?

#AOWEB

23

Lead Lifecycle Metrics

15 Critical Metrics
But, dont be overwhelmed

#AOWEB

24

Lead Lifecycle Analytics Dashboard

Period of Measurement: _____________________

Total # of Inquiries
Track with: web analytics,
marketing automation, search
analytics, etc.

Total # of Marketing
Qualified Leads (MQLs)

Ratio of Inquiry to MQL

Use as basis for optimization

Total # of Sales Accepted

Leads (SALs)
Track in CRM

Ratio of MQL to SAL

SQL to Closed Sales Ratio

SALES SUCCESS METRICS

Automate with technology

Cost per Marketing

Qualified Lead

Cost per SAL

Add Sales overhead to
marketing spend

Total # of Sales Qualified

Leads (SQLs)
Track in CRM

#AOWEB

Use as basis for optimization

Average Deal Size

Sales Cycle-Time
Average sales cycle length

Use as basis for optimization

LIFECYCLE REVENUE
METRICS

# Inquiries / Channel

MARKETING & SALES ALIGNMENT METRICS

MARKETING SUCCESS METRICS

Spend / Channel

# SQL Not Ready to

Purchase
Sent back to marketing

Cross-Selling & Up-Selling

Revenue Growth/Decline
25

Lead Lifecycle Analytics Dashboard

Period of Measurement: _____________________

Total # of Inquiries
Track with: web analytics,
marketing automation, search
analytics, etc.

Total # of Marketing
Qualified Leads (MQLs)

Ratio of Inquiry to MQL

Use as basis for optimization

Total # of Sales Accepted

Leads (SALs)
Track in CRM

Ratio of MQL to SAL

SQL to Closed Sales Ratio

SALES SUCCESS METRICS

Automate with technology

Cost per Marketing

Qualified Lead

Cost per SAL

Add Sales overhead to
marketing spend

Total # of Sales Qualified

Leads (SQLs)
Track in CRM

#AOWEB

Use as basis for optimization

Average Deal Size

Sales Cycle-Time
Average sales cycle length

Use as basis for optimization

LIFECYCLE REVENUE
METRICS

# Inquiries / Channel

MARKETING & SALES ALIGNMENT METRICS

MARKETING SUCCESS METRICS

Spend / Channel

# SQL Not Ready to

Purchase
Sent back to marketing

Cross-Selling & Up-Selling

Revenue Growth/Decline
26

Lead Lifecycle Analytics Dashboard

Period of Measurement: _____________________

Total # of Inquiries
Track with: web analytics,
marketing automation, search
analytics, etc.

Total # of Marketing
Qualified Leads (MQLs)

Ratio of Inquiry to MQL

Use as basis for optimization

Total # of Sales Accepted

Leads (SALs)
Track in CRM

Ratio of MQL to SAL

SQL to Closed Sales Ratio

SALES SUCCESS METRICS

Automate with technology

Cost per Marketing

Qualified Lead

Cost per SAL

Add Sales overhead to
marketing spend

Total # of Sales Qualified

Leads (SQLs)
Track in CRM

#AOWEB

Use as basis for optimization

Average Deal Size

Sales Cycle-Time
Average sales cycle length

Use as basis for optimization

LIFECYCLE REVENUE
METRICS

# Inquiries / Channel

MARKETING & SALES ALIGNMENT METRICS

MARKETING SUCCESS METRICS

Spend / Channel

# SQL Not Ready to

Purchase
Sent back to marketing

Cross-Selling & Up-Selling

Revenue Growth/Decline
27

Lead Lifecycle Analytics Dashboard

Period of Measurement: _____________________

Total # of Inquiries
Track with: web analytics,
marketing automation, search
analytics, etc.

Total # of Marketing
Qualified Leads (MQLs)

Ratio of Inquiry to MQL

Use as basis for optimization

Total # of Sales Accepted

Leads (SALs)
Track in CRM

Ratio of MQL to SAL

SQL to Closed Sales Ratio

SALES SUCCESS METRICS

Automate with technology

Cost per Marketing

Qualified Lead

Cost per SAL

Add Sales overhead to
marketing spend

Total # of Sales Qualified

Leads (SQLs)
Track in CRM

#AOWEB

Use as basis for optimization

Average Deal Size

Sales Cycle-Time
Average sales cycle length

Use as basis for optimization

LIFECYCLE REVENUE
METRICS

# Inquiries / Channel

MARKETING & SALES ALIGNMENT METRICS

MARKETING SUCCESS METRICS

Spend / Channel

# SQL Not Ready to

Purchase
Sent back to marketing

Cross-Selling & Up-Selling

Revenue Growth/Decline
28

Lead Lifecycle Analytics in Action

Exactly how many leads do I need to reach 2x sales
growth?
Assumptions:
Using predictable marketing channels: web, search, email
Average Deal size is known
Average SQL to Close Ratio is known
Period: Quarterly

Period: Quarterly
Formula

Inquiries
Ratio to MQL
MQL
Ratio to SAL
SAL
Ratio to SQL
SQL
Ratio to Close
Closed Sales
Average Deal Size
Expected Sales

1000
40%
400
80%
320
89%
285
12%
34
$23,000
$786,048

1000*.40
320*.80
285*.89
34*.12

Formula
Inquiries
Ratio to MQL
MQL
Ratio to SAL
SAL
Ratio to SQL
SQL
Ratio to Close
Closed Sales
Average Deal Size
Expected Sales

#AOWEB

2544
40%
1018
80%
814
89%
725
12%
87

2544*.40

1018*.80
814*.89
87*.12

$23,000
$2,000,000
29

Lead Lifecycle Analytics in Action

How do I justify more budget?
If Marketing and Sales performance
Period: Quarterly
remain consistent
then:

Period: Quarterly

Formula
Inquiries
1000
Cost perRatio
MQL
= $345
to MQL
40%
MQL
400 1000*.40
Ratio to SAL
80%
To reachSAL$2M in Sales, I need
320 320*.80
Ratio to SQL
89%
$345 x 1018=
SQL
285 285*.89
Ratio to Close
12%
ClosedaSales
$351,210
9% increase in34my34*.12

budget!
Average Deal Size
Expected Sales

$23,000
$786,048

Formula
Inquiries
Ratio to MQL
MQL
Ratio to SAL
SAL
Ratio to SQL
SQL
Ratio to Close
Closed Sales
Average Deal Size
Expected Sales

#AOWEB

2544
40%
1018
80%
814
89%
725
12%
87

2544*.40
1018*.80
814*.89
87*.12

$23,000
$2,000,000

30

Awesome, but does anyone do this?

Yes almost
Check out the stats on Top Performers
# Marketing Sourced Leads (Inquiry)

79%

# Marketing Qualified Leads

71%

Conversion Rate from Inquiry to MQL

62%

Marketing Sourced to Pipeline Ratio

Response rates
Marketing Cost per Revenue Dollar
0%
25%
Top Performers

54%

49%
42%
50%

75%

100%

Source: Q411 Marketing Automation, n= 378

#AOWEB

31

How do Top Performers Calculate Metrics

Currently Using Tool
96%

100%
85%

82%

75%
59%
50%

43%
24%

25%

23%
16%

0%
Web Analytics

Stand-Alone Email
Marketing Tool
Top Performers

Marketing
Automation Tool

Microsites

Everyone Else

Source: Q411 Marketing Automation, n= 378

#AOWEB

32

Top 3 Critical to Success Factors for

Top Performers
(Tactics you cant succeed without)

#AOWEB

33

1) CRM Integration is Key

*38%

*29%

WEB
ANALYTICS

*Percentage of Top
Performers that integrate
technology with CRM

LANDING
PAGES

*58%

*46%

EMAIL
MARKETING

MARKETING
AUTOMATION

CRM

DATA
WAREHOUSE

Other Channels (Less frequently integrated)

DIRECT MAIL

DIGITAL SIGNAGE

FULFILLMENT

MOBILE MARKETING
DIGITAL SIGNAGE

WEB CONTENT
MANAGEMENT

BUSINESS
INTELLIGENCE
SOLUTION

DIGITAL ASSET
MANAGEMENT

#AOWEB

34

2) Standardize Definitions for Measurement

83% of Top Performers document the definitions for:
Marketing Qualified Leads
Sales Accepted Leads
Sales Qualified Leads

Lead Scoring with Marketing Automation tools is a form

of standardizing definitions
Be consistent about measurement and calculations
You cant benchmark on a moving target

#AOWEB

35

3) Let Technology do the Heavy Lifting

Turn to technology for multi-channel measurement
More channels = more measurement
Email, Website, SEM, Webinar Integration, Social Media Integration

Keep as much of the measurement in a system as

possible
2 out of 3 Top Performers adopt standardized out of the box
metrics from Marketing Automation

#AOWEB

36

Thanks!
Q&A
Ian Michiels
Gleanster
@InsightFanatic

37

Guide to Lead Lifecycle Analytics

Deep Dive: Lead Lifecycle Analytics

All registered
attendees will be
getting a
complimentary copy
via Act-On!

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38

Thank You!

Within 24 hours:
You will receive an email with
webinar recording, slides and Act-On Information.

Learn more about Act-On:

Join our weekly 30-minute live demo
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