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Interview with Justin Sharaf: Running Marketing Technology at a $1B Market Leader

Justin-Sharaf.jpg

I met Justin Sharaf through his Marketing Technology in the Hub group. I’ve long been curious about what it’s like for him running marketing technology as the Director, Marketing Technology & Operations at LogMeIn, including managing a merger with Citrix’s GoTo products. I recently got to sit down with Justin and pick his brain on a variety of topics including his advice for MarTech vendors.

Zak: Can you start by describing your role at LogMeIn?

Justin: My team manages all of our technology platforms, integrations, tools and systems that live within the marketing ecosystem. It spans foundational platforms such as marketing automation, social, display and search, plus individual tools.

The key areas of responsibility are managing vendor relationships and budget, technology roadmap, support and enablement for our users, consulting, development and data integrations.

Zak: How do you organize your team?

Justin: I’ll give you a breakdown of the roles on the team. I have one project manager responsible for our Jira board - all of our big projects, which you’d consider epics in Jira and other large projects requiring management and structure.

I then have product owners covering the four categories we bucket technology into, responsible for support, enablement and road mapping within their area.

Zak: How have you organized those product owners?

Justin: The first category is automation systems. The second category is web technologies, content platforms and workflow management. The third category is third-party data, which includes not only data append, but also the feeding of our customer data into our marketing automation system, for example.

The fourth category is product messaging applications. And that resource is half-time on product ownership, and half-time on development.

We have a total of 1.5 development resources, who are doing a variety of tasks including writing to APIs, custom email & landing page work, managing data within AWS, ETL and more. (Ed note - for a whole new approach to aggregating cloud data, check out Bedrock Data's Fusion)

In addition to that full-time team, we have part-time employees and contractors who cover functions such as third party list uploads for content syndication and events. And then lastly we also have contractors helping out as needed on development work or marketing automation consulting.

I’ll be going deeper into this topic, in fact, as part of my presentation at the MarTech conference in Boston this October.

Zak: Let’s take a step back. I’d love to hear about how you got into the area of MarTech and marketing operations in the first place? Let’s go as far back as you want, I want to hear the whole backstory.

Justin: I majored in economics and psychology in college, and I was also really into sports. I thought I might go into sports psychology or journalism.

I ended up not going down those paths though, and my first job was doing product analysis for a magazine subscription agent owned by Time, Inc. It was a combination of financial planning and analysis in the area of direct mail and insert media, and I ended up driving one of our business units called Magazine for Miles. From there, I worked in email, direct mail and insert media for Vistaprint.

Then I had an opportunity at LogMeIn, and I got hired to build an email marketing and marketing automation function. I was a big believer, and i convinced LogMeIn, that although I didn’t have a ton of email experience, email wasn’t so different from direct mail. Direct mail principles are all about the right message to the right audience, good targeting, and a clear call to action.

As I worked in the role, I loved the data side and the architecture aspects to marketing automation. I was also interested in the data aspects, integrations and analytics.

Then about 2 1/2 years ago, I was at a crossroads as we re-organized. I had to decide whether to go into a traditional marketing demand generation type role, or split off into marketing technology. I decided marketing technology, and I then officially started managing the function - budget, relationship - stakeholders - established a strategy - and grew from there.   

Zak: That’s an awesome story. I feel like everyone has a little bit different story for how they got into marketing or MarTech, and I really like yours.

LogMeIn’s growth has been pretty incredible since you joined. Do you have any metrics you can share around the growth.

Justin:  When I joined we had about 600 global employees, and there were about 300 in Woburn, MA, where the office was located. Now we have over 3,000 employees globally and I think we have close to 1,000 in Boston.

We’ve had multiple acquisitions, we’ve launched offices, we’ve retired offices. We’ve launched products and retired products. And now we’re over $1 billion in revenue, which must be close to 10X from when I started.  

Zak: You also have some astounding marketing volume numbers. Anything you can share?

Justin: Well, we have millions of customers - not only millions of users, millions of customers. Also millions of free users. Our database is more like the size of a large retailer.

In terms of email volume, we send probably around 15 million per month. That sounds like a lot, and it is, but it’s not even close to what we were sending at Visaprint, which was much more of a B2C than B2B model.

Zak: For many people, it’s probably hard picturing what a marketing technology role looks like at a company the scale of LogMeIn?  What’s your typical day or week look like in terms of key responsibilities?

Justin: With so many people to intersect with, it’s a lot of meetings. We have over 200 marketers who are located from Santa Barbara to Sydney, so there are a lot of marketers to support. I spend about six hours per day in meetings. I’d break them into three types of meetings.

There are 1:1 meetings with my team members; there’s standing meetings for active cross-functional projects; and there’s ad hoc meetings to solve a specific problem or business consulting or idea generation.

Then the rest of the day is spent either on working in systems, working on projects, helping team members solve problems, and then of course replying to emails.

Zak: How does your team align to the rest of the organization?

Justin: I think of our team as a group of problem solvers, partners and consultants. We’re working across the marketing team, listening to challenges, and coming up with solutions.

Our marketing organization is organized into teams - web, analytics, corporate marketing, product marketing, brand and international. We also have teams aligned to products or business units.

We have particular partners in those groups that we work closely with and those partners help us prioritize. We’re not engaging 1:1 with all 200 LogMeIn marketers.

Zak: With that many teams and stakeholders, I gotta imagine prioritization is a real challenge. What’s your approach for managing prioritization?

Justin: We have weekly prioritization meetings with those key stakeholders. We use Jira to manage projects. I’m a big believer that if everything is a priority, then nothing is a priority. We’re very transparent, allowing anyone to see what resources we have assigned to projects and how long things will take.

We’ve established ourselves as a good partner, with credibility, so our stakeholders know we’re going to do our best but that we also need to have clear prioritization so things don’t break down.

Being fully open helps. Anyone in the company can see every single project, so they know we have a lot on our plate, and what we’re working on. In the last 14 months since we’ve started a clean Jira instance, my team has completed 2,300 tickets.

Zak: It sounds like you’ve built up credibility and trust with your stakeholders, which is so important in a role like this. For folks just entering a marketing technology leadership role, what kind of advice would you have for how to establish credibility and trust?

Justin: I think the keys are process and visibility.

From a process standpoint, you should bring a process to the table to create structure, and then be open to feedback on how to improve it. And actively seek that feedback.

This is going to help you build relationships within the business, and find those champions who will support you. You want people to believe in your vision and process and structure so they support what you’re doing over time. Those champions will become your best promoters.

Zak: I want to get in to some juicy stuff now. Everyone loves merger talk. For you, the LogMeIn / GoTo merger was significant, because you probably doubled your marketing technology world, and had to come up with a strategy to bring these two separate marketing teams together. How’d you go about it?

Justin: As I started to dig in, the first thing that became clear was the two companies had very different technologies. For primary marketing technologies, there were now two of everything.

There were different marketing automation software. Different web analytics software. Different social media software. There wasn’t as much overlap as I expected.

As we came up with a plan, in some case the consolidation decision was obvious - based on the business needs or expertise. But some of the decisions were very difficult. And some are still being decided on now.

The other big thing for me was around the team. I inherited a group of people from GetGo (the name of the entity spun out of Citrix with GoToWebinar, GoToMeeting, Grasshopper, etc.) who hadn’t been a team before. GetGo didn’t have a marketing technology role. We took people from specific roles and they became part of the team. So it took some time to nurture everyone into a team culture.

Zak: So in terms of technology, sounds like you were Noah’s Ark with “two of everything” to start. What was your criteria for keeping or getting rid of technology?

Justin: One criteria was cost. If the technologies were very similar, where could we get the best deal?

We also had one Salesforce instance remain and one retired, so any technologies that were integrated with that remaining Salesforce had an advantage, so that we didn’t have to rebuild any integrations.

Stakeholder input was also vital. We performed stakeholder interviews and requirements gathering. In some cases, the stakeholders had very strong opinions. Maybe in a given area, one manager had remained and one had left, and that manager had a strong preference for a technology.

And then in some cases, we did a light RFP process to put technologies side by side.

Zak: And now you get to do it all over again with the Jive acquisition, right?  What are you going to do differently this time around?

Justin: What’s different about each acquisition is the timing, and the pressure to consolidate. Sometimes there is pressure to consolidate and integrate quickly. And in some cases we leave the company or business alone and don’t touch it for a while. That direction comes down from an executive level.

In terms of what to do differently, I think setting expectations is most important as we move through the evaluation and consolidation process. No surprises!

Zak: Working with so many different marketing technology vendors, what about a vendor wins you over as a customer or partner?

Justin: Support - 100% support. A speedy and knowledgeable support and customer success team makes all the difference.

Some vendors claim 24/7 support, but when you get on with a support rep or a customer success manager, they know less than we do, and can’t actually help solve our problems.

The other thing I really appreciate is partnership in roadmap and feedback loops around topics like our challenges with the product, and features we’d like to see.

We had a vendor that took us out to lunch recently to ask what they can do to improve their technology. No ulterior motive. Not selling us, Not upselling us. Not renewing us. They just wanted our feedback because we are actively using the product, and our opinion mattered. They just wanted to listen.

Zak: You’re involved in the Marketing Technology in the Hub meetup group. How did that come about?

Justin: It started a couple years ago. I met Sam Melnick because were were looking at Allocadia as a budget management solution. And then I met Erica Seidel at the MarTech Conference and found out Sam knew her as well.

We are all from Boston, so we got lunch one day and we thought - we are all passionate about MarTech - and we’re coming at it from three different angles - we should start a group and get people together. We invited 100 people to our first event and now our invite list is over 300. It’s a nice community of people with common interests who are also looking for personal development.

Zak: There was a session where you shared some tips on negotiation. You had some gold in there. Can you give us the highlights of some of your tips?

Justin: My mentality is that I know what products are worth to me, and that’s what I’m prepared to pay. I don’t care what list prices are. And if you aren’t going to sell to me at my price, then too bad.

We’re a SaaS company, so I know what it’s like to be on the other side, and what the cost models are. If the vendor is willing to walk away from our relationships because of a few $, that’s probably not a long term relationship I want anyways.

And if I’m willing to walk away for a few $, then they probably haven’t established themselves as a partner worth staying with or starting a relationship with.

Let’s just say that if a vendor is doing everything right, the negotiation is less painful.

Zak: Let’s wrap up on a lighter note. What are some of your interests outside of work?

Justin: I have two little sons, 3 and 1. They take up a lot of my time and my wife’s time. I also play competitive golf. I’m a huge Celtics fan and have season tickets. I’m also into skiing and love poker, but I’m doing less and less of those things! My wife and I enjoy going to concerts when we can; one of my favorite bands is The Lone Bellow, a Americana Country rock group.

Postscript: Days after I interviewed Justin, he was named to the Marketo Fearless 50, to marketing leaders who exemplify what it means to be bold, brave & fearless. Congrats Justin!

Catching up with Luque Wang, from startup Bit Stew Systems to GE Digital

Luque Wang is a great example of the customer interview to advocate process I've talked a lot about, including most recently with the Product Marketing Community event. What started with me talking to Luque about his HubSpot-Zoho integration at Bedrock Data, turned into a collegial friendship and partnering to speak at the MarTech conference on aligning marketing operations with sales. Luque's journey has gone from startup at Bit Stew Systems to being acquired by GE Digital, so I was very excited to catch up with him and learn about what it's been like going from startup to public company.

Zak: The last time we did this, you were with Bit Stew Systems and we were talking about closed loop reporting between HubSpot & Zoho. Not long after that, Bit Stew was acquired by GE. Do you remember where you were when you found out the news?

Luque:  The news came out from a Bit Stew townhall meeting. I remember that it was a sunny Thursday afternoon, and everyone felt excited and started to chat about the upcoming new journey.

Zak: And what was the first thought that went through your head?

Luque Wang - Sr. Marketing Manager, Marketing Operations at GE Digital

Luque Wang - Sr. Marketing Manager, Marketing Operations at GE Digital

Luque: Wow, GE! What a great company to be part of! I was proud of what Bit Stew had achieved that was highly valued by GE, especially our products, brand, and mostly, the great team. I felt grateful to be part of such winning team and made my contribution to the acquisition. Although I was a bit anxious about how Bit Stew’s entrepreneurial spirit, start-up culture, agile operations, and individual talents would best integrate with such world-leading multinational innovative conglomerate, I was very excited and optimistic about the new journey. My first task was to lead the marketing operations’ integration, especially CRM, Marketing Automation, Inside sales and brand sunset. I anticipated a lot of learnings and growth opportunities along this adventure. 

Looking back from today, I really enjoy this challenging and rewarding experience. This is all thanks to GE’s great culture, which embraces simplicity and diversity and believes great, world-changing ideas can come from anyone, anywhere in the organization.

Zak: What is your new role now at GE? What are your key responsibilities?

Luque: As a Senior Manager, Marketing Operations at GE, I am leading inbound marketing strategies, identifying business opportunities and gaps, and developing innovative solutions. Thinking about everything from revenue funnel alignment and sales enablement to lead gen and lead nurturing; from tech stack management to data governance; and from how to map customer journey with our marketing campaigns to what the best web forms and UX to use to convert visitors to prospects and bring more customers to our solutions. 

Zak: You were using many SaaS systems at Bit Stew, and at GE you must be using many, many applications to manage customer data flow and online user experience. What is your ideal martech stack looked like, and how would you leverage it to drive marketing excellence? 

Luque: A great martech stack would satisfy business requirements for an organization at all levels. Among many traits, in my opinion, an ideal martech stack must be scalable and flexible, and serves not only marketing and sales but also provides safe and non-intrusive user experiences.

With the rise of martech, there are so much more applications can be chosen to create your stack than ever before. Tools you used yesterday may not be suitable or sufficient for today, you need to make sure it aligns with business strategies and operations, and constantly evaluate and optimize your martech stack. A scalable and flexible martech stack enables you to make such changes with the minimum cost. A good practice is to create a centralized data layer that integrates all the applications rather than having each application directly integrates with each other. Of course, you don’t want to swap your martech applications too frequent for the sake of adding a new “hot” application. Regardless the complexity of businesses or organizational structures, the stability of the martech ecosystem allows you to better see your data flow, discover the flaws, and make necessary changes to your operations.

Zak: You’ve talked a lot about the rise of the marketing operations function. What are the top 3 ways you see marketing operations deliver value to an organization?

Luque: Firs of all, it promotes data-driven decisions and cultivates metrics-driven culture in an organization. Also, it helps identify and close business gaps with technological innovation or with procedure optimization. Finally, marketing operations infuse an organization with the cross-functional knowledge and fresh ideas through its professionals who come from non-traditional marketing fields such as analytics, IT, Sales, Finance, etc.

Zak: What do you anticipating changing around martech and marketing operations over the next few years?

Luque: Martech will continue to grow. More vendors will be available in the market to cover every corner of the funnel, and trace every step of the customers’ journey with actionable insight. I expect that data integration application will be the leading force of the evolutions, followed by powerful analytics and integrated reporting. Businesses at different sizes with different budget will be able to find abundant options to build their martech ecosystems.

Many organizations have already seen the value of marketing operations and have built the dedicate marketing ops teams, yet many have not. Elevate the value of marketing operations will take place within more and more organizations, and I expect to see more such roles to be created over the next few years.

Six takeaways & tidbits from the Hard Corps Marketing Show

That's Casey, not me

That's Casey, not me

Thanks to Casey Cheshire and Jamie Taylor for having me as a guest on Casey’s podcast, the Hard Corps Marketing Show.

I met Casey a couple years back as Bedrock Data expanded into the Pardot ecosystem for integrations, and we bonded at last year’s OpenView Go-to-Market Forum; we moderated different panel discussions and were among a small group going back and forth on social media at the event. And then I discovered Casey and I also have a shared affection for podcasts, with Casey starting his own recently.

Why “Hard Corps”? Not only is Casey a badass demand generation marketer, he is a United States Marine Corps veteran - hence the name of the show.

You can find the podcast on Podbean or YouTube, plus you can search for it on iTunes, the Apple Podcast App, Stitcher or Overcast.

It was an organic discussion and these were some of the things I covered:

Marketing attribution:

Avoid the word “credit” as it’s not about crediting one specific action, and that will  set the wrong tone with sales. Educate that marketing is a multi-touch game and therefore measure multiple influencing factors in customer acquisition and revenue generation.

Approach to Closed loop reporting:

It’s not necessarily about ROI (e.g. saying XYZ investment will generate XYZ return), but rather to rank your marketing programs & activities by revenue influence. This will help you to identify which types of activities you want to invest more in, which are promising but need to be improved/fixed, and which you should likely divest from / drop.

Run Marketing like a Business:

Frame decisions this way when analyzing results, with sales, finance and executive teams. For both internal resources and program $, ask where should we be investing more, where should we be investing less and how do we get better results. Always strive to make the best possible business decision, and communicate why those are the best decisions.

It’s okay to say “We need to improve X”:

As a marketing leader, don’t shy away from pointing to things that need to improve. This can help build confidence from others around you, that you have the awareness to know when things are working, and not working. The first step to improving something is acknowledging “there is a problem”, right?

How to align with sales on funnel numbers:

I talked about when presenting marketing outcome metrics like MQLs, Opportunities created or Pipeline side by side with Sales bookings numbers - to both give perspective on what was created that’s impacting the current sales booking period (e.g. with sales cycle built in) and the current period. This can help give perspective on why, say for example, a growth in marketing performance is not immediately showing up in sales numbers. It’s a win for both sales & marketing to present this clearly.

All in all, be transparent, accountable, & thoughtful:

To earn the respect of colleagues across departments.

Casey is always pointing out I can be found at many B2B marketing events, so he asked what I have in store the rest of the year. I told him I’ll be speaking at both MarTech West in April and the Data Summit in Boston in May, and I’m sure I can be found at both Hypergrowth and Inbound in the fall.

We also got into some of my earlier career stories including the genesis of the Moneyball moniker based on my work with the NBA, plus what it was like growing the first marketing technology software within Omnicom Group while traveling around the world.

Give it a listen!

Standing out in a sea of MarTech vendors

The MarTech conference this past week at Hynes Convention Center in Boston acted as the live, in-person experience of Scott Brinker’s now famous MarTech infographic. 

After walking the vendor hall and seeing lots and lots of overlapping messages and value propositions, you can only be left thinking “Wow, there’s a lot of noise out there.” To witness:

Which begs the question – what’s a MarTech vendor to do to stand out from the pack?

Don't read on for best practices. Don't read on for secrets to success. Don't read on for guarantees to drive XXX ROI. 

These are just the things that I've found are key to giving yourself the best shot at meaningful market impact and the illusive "predictable growth engine" the 5,000+ MarTech vendors should all be after. 

#1 - Find your movement

Find the rallying cry that has an emotional connection that your target audience can relate and rally around. This is easier said than done. A good way to get to this raison d'etre will be intense customer interviews to get inside the mind of your target audience.

The ultimate example of this is HubSpot creating the Inbound movement (which, interestingly, was how I spent last week in this fall season of marketing technology Boston events). Other recent examples are Drift building a rallying cry around marketing automation vendors having lost their way (and specifically #NoForms), and Terminus with Flip My Funnel.

The criteria for the movement are it needs:

  • An emotional underpinning
  • Something that audience hears about and “gets them nodding” (see Andy Raskin’s approach for 'the Story is the Strategy' and this Never Split the Difference anecdote from former FBI negotiator Chris Voss) 
  • Aligns in some way with your product and problems it solves

Finding this movement creates the connection between your marketing programs and your ability to generate demand. It provides a brand foundation that helps you stand out from the crowd. It aligns your content and marketing programs around a purpose.

#2 - Eat your own g*d d*mn dogfood

The first point above is incredibly hard to discover and get right. Few do. The ones who do, will crush it. 

Number two though is something that every company must do – it’s essential. And there's no excuse for missing it. 

Invest your time and resources in using your own product, and proving out what you do. There’s no more convincing an experience for a prospect than being impacted by a company’s marketing, and then realizing they are practicing what they preach.

On the flipside, the “cobbler’s children have no shoes” argument no longer works – you need to demonstrate the value of your tool yourself.

If you are a targeted account advertising solution, then you better have the #1 targeted account advertising program.

If you are a content marketing resource center, you better have the #1 content marketing resource center.

Many things contributed to HubSpot’s growth (and as I write this today $3.15B market cap), but the tipping point came when Mike Volpe’s marketing team worked with David Cancel’s product team to ensure that HubSpot was using its very own product to the max to drive results.

#3 - Know your customer (talk to them, a lot!)

I have covered this separately here – Arms Tied Behind My Back, If I Could Do Only One Marketing Activity, It Would be This.

These customer interviews are not only going to provide the key insights around identifying your movement, but they are also going to provide the foundational pieces for a content program that can scale.

#4 - Build the right content in the right way

Content is key, we all know that. The differentiator comes in building the right content across the entire buying process, in the right way. Some key points here:

  • Podcasts can be a great way to bring your brand personality to life, and communicate it to a wide audience. The best podcasts are going to tap into the Movement from #1 so that they can 1) Step outside of your product story but at the same time and 2) Connect back, emotionally, to what you do. For more on this check out the great Jay Acunzo’s Unthinkable.

  • Use case driven content can simultaneously fuel SEO and the sales team, while helping your buyer
  • Customer stories (in multiple formats, and increasingly audio & video) can authentically help your buyers while continuously reinforcing the value of what you do, and your product’s credibility for having done it
  • Build late stage content that answers specific buyer questions. The format here can be as simple as blog posts. The ultimate measure for this content: is it helping your sales team to close deals?
  • Apply your content production at scale – transcribed webinars, repurpose to blog posts, package blog posts to longer form content, etc.

#5 - Be as targeted as possible to reach your audience

If there’s one lesson from Account Based Marketing (which I may sometimes poke fun at), it’s to be as targeted as possible to relate to and stand out for your audience.  For some, that will be a vertical strategy. For others, technographics is increasingly an effective technique if you can identify other tech communities that you want to spawn off of.

Work with sales to identify the right accounts and the right approach for reaching those accounts with an integrated approach.  See my Stop debating Inbound vs. ABM and start integrating your marketing (& that means with sales too) for five specific techniques for doing this that I shared at last month's Engagio user group meeting.

#6 - Affiliate yourself with great brands or partners to scale demand more quickly

This could mean co-marketing programs with larger partners whose users are your target audience. Or if that’s not possible, it could mean featuring those companies or people as part of your content - in depth stories on how they became successful, interviews with influential team members.

#7 - Experiment, measure & continuously improve

The aforementioned Drift team, Jay Acunzo and Mike Volpe are all excellent at reminders at a few key points: there is no silver bullet; the techniques that are effective for you are going to be based on your business, not someone else; and there are no true best practices because you want to do things that are unique and stand out and work for you, not what “everyone else is doing”.

Take a moment to hear it from Mike:

So the real takeaway is – you need to experiment and figure out what works for you. Experiment, measure (so you can identify what has potential, and make bigger bets) and continuously improve.

The pic to start this article was a busy hallway shot to kickoff the show, but there’s also gonna be quiet times like this one here at the morning of Day 3. The vendors that stand out from the crowd are going to do so because they are different and not the same.

Everything you want to know about Marketo’s product roadmap 2017 & 2018

I sat in a review of the Marketo product roadmap to the Boston Marketo User Group earlier today, led by Frank Passantino, Senior Product Manager at Marketo.

BMUG-Frank-P-Marketo

Since starting out as a Marketo partner in 2010, this was by far the best product presentation and plan that I’ve seen from Marketo. So props to Frank and team, and clearly we are seeing the influence of structure Steve Lucas is bringing to the business since taking over as CEO last October. (Things have come a long way since the SEO release in 2014.)

I’ll highlight each area Frank walked us through, a total of 11, in the order he reviewed it – and provide my take on the impact to Marketo users.

#1 – Bulk APIs

Frank got us started with a topic near and dear to my heart at Bedrock Data – Bulk APIs. In Frank’s words, up until now, “There’s never been a good way to get activity data out of Marketo.” That changes with Bulk APIs.

There are two Bulk APIs: one for lead records, and one for lead activities, which open up the API to the entire activity log on a lead record – every granular detail Marketo has logged on that lead including web pages viewed, data updates, emails sent/opened/clicked and much more.

My Take: Frank gets off to a great start by addressing a long-time product gap. There are powerful applications here. Look for large enterprise customers with their own development teams to take advantage of these APIs, as well as Marketo partners with integration products like Bedrock Data. 

Kudos here to Marketo for showing an appreciation for the value of helping customers getting data out of their system to best use it, and not restricting analytics of Marketo data to within its walled garden.

#2 – Campaign Throughput

Frank clarified Marketo’s definition of the original Project Orion (Marketo's internal code name) and what was delivered with the release of Marketo's Engagement Platform last March.

Per Frank, the revamp of the Marketo Engagement Platform was centered primarily on the ingestion of activities to Marketo, and solving for customers with 2 million+ individual activities per day. Prior to this work, this level of activity volume could not get into Marketo – now it can.

So now going forward, the campaign throughput development in the works is about extending that same level of scale and performance to campaign execution via Marketo.

My Take: This was interesting, as a reminder of Marketo’s flawed product communications of the past. The past developments in this area will go down as a case study of how not to communicate a new product offering – as the stories from Marketo personnel to customers on it would be were all over the map. I don’t want to re-hash it here, but just check out the CMS Wire story arc to see how this went from major over-hype in 2016 (May 17 & May 22) to major confusion in early 2017 (Feb 28) to major attempts to smooth over in March (March 1 & March 17).

It’s best to just move on, but the key takeaway here is that Marketo is still very much in progress on major product scalability to support larger and larger B2B enterprises.

#3 – Marketing Performance Insights

Frank shared new set of Marketo reports dubbed Performance Insights which is now in Beta.

The reports give a customer a view into performance using the two most important closed loop metrics – Pipeline and Revenue. There are breakdowns by programs and marketing channel.  Pipeline and revenue data will be based on opportunity sync from CRMs using Marketo’s Salesforce or Dynamics connectors, or third party connectors like Bedrock Data for any Marketo-CRM connection.

Frank was clear that this would be a powerful overview tool, but would not get as deep into drill-downs or attribution as do tools like Bright Funnel, Bizible and Full Circle Insights.

My Take: This will valuable for a lot of Marketo customers. Marketo has lacked a clean overview dashboard on performance, and this will fill that gap. It looks like they took a fresh approach to building it, outside of the RCE Reporting Engine – which is a good thing to keep it simple.

I also like Marketo’s approach here – they built something that is going to be applicable to all their customers to get value from quickly. And for the customers who want to go deeper into attribution reporting, they can turn to third party providers for much deeper functionality. This is a win for both Marketo customers and the greater Marketo partner ecosystem.

#4 – Web Performance Insights

Website reports, aggregated in Marketo.

My Take: I didn’t see much incremental value here and Marketo appeared to be leaving the big opportunity on the here.

What these reports should do (but don’t) is connect web site analytics to the same performance metrics in the performance reports – pipeline and revenue.

Marketo could answer a question for customers like: which of my blog posts have the greatest influence on creating pipeline, or deals? That would be a game changer for Marketo's web site analytics.

#5  – Account Snapshot Chrome Plug In for Sales Reps

Frank then spoke about how Marketo’s “account-based” focus up until now has been on account-based marketing, and now going forward they will be incorporating account-based tools for sales. The first example is a Chrome plug-in which aggregates key account info (including scoring).

My Take: Getting sales user adoption from a tool is a whole 'nother animal. I’d prefer to see a comprehensive strategy to do that, then a one-off plugin like this. I would have put engineering resources elsewhere (like my Web Performance to Pipeline/Revenue idea from #4, or enhancements addressing customer feedback) ahead of this.

#6 – More ABM Features

Frank bucketed Marketo’s upcoming ABM developments into three categories:

  • Account hierarchy: supporting the build-out of a company hierarchy to support regional or business line structures for organizations.

  • Multi-dimensional scoring: Greater customization around building your own account scoring rules.
  • Extensibility: Here, Frank gave the example of using APIs to push out target account lists or enrich target account data.

My Take: A solid set of tools to deepen Marketo’s functionality here. Just like the attribution example, Marketo is trying to build an ABM suite to meet the needs of many or most customers, so that only the “power ABM marketers” need to turn to additional third party ABM orchestration tools.

#7 – Marketo's Next Generation UX

This got a lot of excitement and attention at the Marketo Summit in May.

This is all about making Marketo’s interface faster, more usable and more consistent.

Frank broke to project down into three areas:

  • Universal design language: making the interface consistent with re-usable components (he gave the example of a date selection widget)
  • High velocity and enhanced usability: making Marketo’s interface perform better, especially areas such as Marketo’s tree when navigating hierarchies such as programs)
  • Value-add features

For value-add features, there are many in the works. Highlights include:

  • An incredible amount of detail around details like calendar reminders, which shows the importance to Marketo users of managing programs through Marketo and I’ve written about. Features include supporting text tokens within a calendar token so that an event name can be dynamically added into a calendar reminder. Another one was the ability to set the reminder prompt time for ICS files.
  • Supporting URLs as a token type – so that they are tracked properly in emails (I remember encountering this issue years ago!)
  • Saved rules for a smart campaign which allow for easier re-use of rules from program to program
  • A stream view of an engagement program, incorporating performance data
  • More flexibility in managing the cadence of engagement streams

Frank talked about a parallel roll-out for this next generation UX – that users will be able to toggle between the new and old interface for a period of time, which will be important since not everything will be available in the new UX right away.

My Take: The incredible detail involved in some of these features shows that Marketo has listened to its users on key usability areas. That said, the creation of this new UX has been a painful one for Marketo users to live through, as there’s been a very long time gap here with minimal improvements on the existing interface in lieu of building this new one.  Let’s hope the interface pains of the past few years will be worth it as Marketo's Next Generation UX hits the user base.

#8 – Ad Bridge !!!!!!!!!!!

For me, this was the “sit on the edge of my seat” moment of the session. It astounded me just how much ad bridge functionality is already available, of which I know many, many customers are not yet taking advantage. 

The features – most of which are already in place – offer powerful integration between a customer’s customer and prospect database and online advertising.

For a guy who’s been doing both marketing automation and online advertising for way-too-long, this was awesome stuff.

Frank broke it down into three categories, covering what Marketo supports or will soon support across Google (Ad Words, YouTube & Gmail), Facebook & LinkedIn.

Matched Audiences: You can build a list in Marketo, and feed it as an audience for a specific campaign in Facebook or LinkedIn (today), and adding Google by end of the year. These audiences can be targeted (imaging a customer cross-sell offer, or targeting those same companies in a targeted outbound program with relevant ads) and also used as the basis for lookalike targeting (finding like companies, through those platforms).

Offline Conversion: You can use your closed loop tracking via Marketo to feed data into Google or Facebook for closed loop revenue reporting directly in those platforms. Very powerful for anyone managing ad spend via Google or Facebook, so that you can optimize for the right metrics.   

Lead Ingestion: Facebook and LinkedIn ad units that capture leads directly in them (one click response) can be fed directly into Marketo. This is especially powerful for mobile campaigns where users can easily click on an ad to opt in – large conversion rate improvements vs. anything involving a click through and landing page form-fill.

My Take: I had two huge takeaways here. Every Marketo customer whose spending money on online advertising or PPC should be using this. And that Marketo needs to step up its customer success and customer education efforts, as they should be working directly with every single customer to help them take advantage of these exciting capabilities.

#9 – “Adaptive”

Frank got futuristic here –talking about potential future AI-based innovations. Marketo already has some adaptive capabilities built into the platform with Marketo Predictive Content, and sounds like they are thinking about more to come.  

My Take: This is definitely futuristic. There are going to be many keys to success here, and having ad bridge in place is going to be one of them (to reach new audiences and more potential media locations). So step 1 should just be getting as many customers as possible using ad bridge.

This is several years away – but probably smart for Marketo to at least be alluding to it as part of it’s road map so customers know where they want to go – and don’t get sucked into AI plays from other vendors.

#10 – “Customer Love”

Frank spoke about how Marketo will address the top ranked request from the customer community every year. This year, it’s the option to send emails in person’s time zone. Marketo is going to leverage Country/City/State/Zip data to populate this, or their own inferred location data if those fields are empty, while also giving customers the ability to overwrite that if they choose.

My Take: Any features addressing mass Marketo user feedback from the Community are a good thing. Would like to see some more investment in these requests in the near term (listen to Gregoire Michel, he knows what he’s talking about!).

#11 – Sales Enablement

I was excited to wrap up on this topic, as I got to see where some of the areas I had speculated about from the ToutApp acquisition in May were headed.

Frank spoke about Marketo’s now hodge-podge of sales offerings – from ToutApp to the new aforementioned Chrome plugin, to their Gmail and Outlook plugins, and the views within Salesforce. Frank said these all would be packaged under a common packaging, and with integration between ToutApp and Marketo (for example, removal from a marketing campaign, if in a ToutApp sales campaign).  

My Take: It's not yet clear if the ToutApp brand will remain or be rolled under the Marketo brand like Insightera and CrowdFactory have been in the past. Either way, we will see a set of packaged products emerge, let's call them "Marketo’s sales products." This is going to get more and more investment but it’s going to take time.

Wrap-Up

Frank just dove right in to the roadmap (which was probably appropriate for this group of hungry power users), so I’m going to take a moment here to net out the key themes that probably served as inputs to what we saw.

#1 – Continue to scale the product, moving up enterprise – bulk APIs, campaign throughput

#2 – Massive UI improvements – although going to be a transition period for about a year

#3 – Lots of listening to customers – although only so many resources that can be put into (still a long backlog to go via the Community)

And my 3 overarching takeaways from seeing the road map:

#1 – Marketo’s going to add functionality, but still lots of room for surrounding ecosystem partners. The addition of activities to the API is actually going to add more potential to leverage Marketo data outside of Marketo. Within Marketo’s roadmap, there’s still ample opportunity for LaunchPoint partners to thrive, whether you’re talking about Bright Funnel or Bizible or Full Circle for attribution, or Bedrock Data for Marketo-CRM integrations.

#2 – Ad Bridge is a huge asset to Marketo customers, and Marketo’s customer success teams needs to be focused on enabling customers to take advantage of it now.

#3 – Marketo is here to stay. The roadmap was rock solid, and confidence instilling. Marketo’s had some bumps along the way here but the path seems a solid one to support their customers and help them take a big step forward in cross-channel digital marketing.

Did you find this useful? I also wrote an expert guide on Marketo Integrations. Check it out here (it does require short registration): The Marketer's Mega Guide to Marketo Integrations

Marketo buys ToutApp: What we know, don’t know & the biggest looming question

It’s a fun time of year for MarTech.

We’re on the eve of both Marketo’s Marketing Nation and Oracle’s Modern Marketing Experience, and three weeks out from Scott Brinker’s MarTech Conference.

And, who doesn’t love a little MarTech M&A, like we saw last week with Marketo’s acquisition of ToutApp?

The acquisition was greeted with a lot of press release repackaging – and that’s it – so here we’ll provide the first real analysis of this big industry news.

There are things we know, and things we don’t know. Some questions we’ll get some insight at Marketing Nation this week, but most of the answers that matter will take longer to develop.

Here’s what we know and don’t know, and the biggest looming question, about Marketo buying ToutApp:

#1 – Marketo is ALL IN on Engagement

Since the arrival of Steve Lucas as CEO last October and the promotion of Chandar Pattabhiram to CMO two months prior, Marketo has put its bet on positioning itself as the “Engagement Platform.”

As part of its seemingly continuous push to move upmarket to the enterprise, the pitch goes something like this:

In today’s dynamic and diverse media landscape, marketers must effectively engage their buyers, across all marketing channels and all stages of the buying process. Great storytelling is the key to effective engagement. Marketo is the platform to deliver those stories – and engage – across the buying process. 

 We heard a lot of this earlier last week, before the acquisition news hit, in AdAge’s profile of Pattabhiram’s self-described “brand transformation” of Marketo.

Which gets us to the ToutApp news.

The ToutApp news was literally all about engagement.

Of the 304 words in the press release, more than 3% were that word ‘engagement’ – 10 in the body copy, plus one in the headline and two in the boilerplate.  ‘Engagement’ trailed only the word ‘Marketo’ which had just 2 more mentions.

Marketo, the Engagement Platform, acquired ToutApp, the Sales Engagement Platform.

Got it?

#2 – A prominent voice from Marketo’s past isn’t buying in

Jon Miller matters to Marketo.

Miller co-founded Marketo, contributed hugely to inventing the product and their go-to-market, and was the top non-executive officer shareholder with 527,871 shares of stock when Marketo went public in May, 2013. Miller is now founder and CEO of Engagio.

So it caught my eye last Monday, two days before the ToutApp news, when Miller came out with a blog post on Engagio’s blog titled “What’s the Difference Between “Engagement” and Account Based Everything?”

I asked myself, “Why is Jon coming directly at Marketo’s messaging, so strongly?”

Even the touch of putting the word Engagement in quotes in the title, it was clear this was a Marketo takedown point of view.

Miller went on to point out that first of all, engagement is in the lineage of Engagio’s name -- something I’m sure Lucas and Pattabhiram considered, and, ultimately fueled them to double down on Marketo owning that term.

A couple of the key points from Miller are:

“A sequence of automated interactions is not engagement.”

and

“Sales spam is NOT engagement.”

The first comment above is a shot at how most Marketo customers use Marketo – as a drip email tool.  Miller knows this all too well.

The second comment was a lean-in against ToutApp – if ToutApp is used for low quality sales touches, that’s not engagement, that’s just spam.

Of course the truth lies somewhere in between.

What’s most interesting to me about this exchange is there has been a lot of “frenemy” language used by Marketo and Engagio over the past couple years, but with this latest run directly against Marketo’s positioning, the “fr” in that phrase should be dropped.

#3 – Marketo will put more $ around the strategic bet / opportunity cost / integration than the acquisition cost

ToutApp touts (I had to do it) 400 customers, but it’s in a competitive space with SalesLoft, Outreach and others. ToutApp trails both in its G2 Crowd ranking.

There apparently was some dancing between Marketo and ToutApp a couple years back, - when the offer didn’t make sense, but the timing is right for ToutApp now.

My spider sense says this acquisition is an eight-figure deal; where in that range, I’m not certain.

What I do know is that this being Lucas’ first deal since joining Marketo, and it representing a big step forward for Marketo into sales products – the real cost here to Marketo is not the acquisition $, it’s the need to make this a success.

The marketing automation space is getting more and more crowded with HubSpot, Pardot, Eloqua (now Oracle Marketing Cloud) and Act-on all going strong, plus new entrants such as Mautic and SharpSpring. Most significant to Marketo is their focal point for so many years has been Salesforce customers, where Pardot continues to go aggressively after that base leading with extremely aggressive bundled pricing.

The point is – at a time of crossroads for Marketo, this is a key bet Lucas is making to drive Marketo forward, and he needs to make it a success. There’s going to be a lot of wood behind this arrow. The cost of the acquisition is just the beginning.

#4 – Marketo doesn’t have a good track record for integrating acquisitions… but there’s a new management team in place

There’s no existing internal blueprint for acquisition success at Marketo. The blueprint will come from Lucas’s SAP experience in dealing with multi-product enterprise software portfolios.

There are two acquisitions on Marketo’s books – social media marketing company Crowd Factory in 2012 and website personalization engine Insightera in 2013. 

The positives of those acquisitions were incoming talent, including Crowd Factory CEO Sanjay Dholakia who was Marketo’s CMO prior to Pattabhiram. There were many challenges, however. The challenges highlight areas that need to be better addressed by the Lucas regime this time around, including product packaging, product integration, impact on the sales organization, and ability to upsell existing customers.

#5 – The ToutApp acquisition closed a gap between Marketo & HubSpot… but there’s still a ways to go when it come to Marketo’s breadth

I bring this up because it’s noteworthy that for the first time Marketo is dipping its toe into sales solutions. Marketo’s Sales Insight is used by sales but has always been sold as an extension of the marketing automation product.

HubSpot is well ahead of Marketo in the sales department as they have built and market their own CRM product as well as sales suite. On the other side of breadth – digital – HubSpot also has its own website content management platform which Marketo does not have a parallel tool.

Marketo still has a ways to go in terms of getting to the full breadth of HubSpot. And given the enterprise / upmarket focus, this may not even be a goal of theirs if they see their current functionality set as the sweet spot they want to focus on and build around.

#6 – There are many questions around what comes next…

I posed the question on LinkedIn to Marketo users on their sentiments around the acquisition. I heard from several Marketo power users including Pierce Ujjainwalla, Dan RaduGregoire Michel, and Tim Cerato – and the consensus was positive, with questions on how this would impact the Marketo Sales Insight product, the interface Marketo provides today to salespeople who use Salesforce or Microsoft Dynamics.

These are the questions that will need to be answered in the coming days and months:

  • Will ToutApp continue as a separate brand or fold into the Marketo brand?
  • Since it’s the first acquisition under the Lucas regime, it will set a precedent… Does Marketo plan to operate as a “branded house” or a “house of brands” ?
  • How much further integrated will they make the two products? (There is already an integration in place today)
  • Will this and other factors such as Pardot’s Salesforce focus cause Marketo to target growth across a wider range of CRM systems?
  • Will Marketo phase out the existing Marketo Sales Insight product?
  • Will both the marketing and sales products be sold by the same sales team?

#7 – … Plus this, the biggest question

There’s one more question, the biggest question resulting from all of this, in my eyes.

What’s next for Lucas?

There are two possible paths.

Path #1 is: We’re still going through a major management transition following the Vista buy-out. We’re playing catch up to ensure the Marketo platform has the right technical foundation and Project Orion is implemented and proven at scale amongst our customers. And now we have the ToutApp acquisition. We don’t have a proven track record of acquisitions at this company, so we’re going to spend the time to do this right, and make it successful. That’s the focus for the next 12 months.

Path #2 is: This is just the beginning. We bought ToutApp because we saw it as an underperforming asset and a complimentary product. We’re going to opportunistically add MarTech products under the Marketo house of brands. The LaunchPoint ecosystems gives us a bevy of companies to consider. We see Marketo as a holding company of sorts to acquire, develop and co-market a range of MarTech products.

Lucas gave us a clue into the strategy earlier in the year. In this Silicon Angle interview, he stated “massive consolidation is coming to MarTech.”

Re-reading that article now, Lucas told us this was coming! He said we’d see “significant growth in M&A.” Three months later we get Marketo’s first acquisition. I think we’ll find there’s more to come.

 

What do you think? Have I captured the key considerations around the acquisition? Which of these seven points do you find most interesting? How do you rate the move? And what do you see coming next? Please share your thoughts below. 

What’s so intriguing about the Mautic $5M Series A announcement

Mautic announced this week a $5 million Series A round and the CEO appointment of Matt Johnston, who will now be wrapping up his Chief Strategy Officer duties at Applause through the end of the year.

I find this particularly intriguing because Mautic is an open source marketing automation platform, backed by some of the same investors as, and to be co-located with, Acquia. Mautic aims to make a mark in the marketing automation space similar to what Acquia, with its Drupal community, has done in the web content management space.

Here’s why I think Mautic has a real shot to make noise in a sector that hasn’t had any serious new entrants since the parallel rise of Eloqua-Marketo-HubSpot-Pardot from 2008-2012 (I don’t put Act-on in the same class as those big four).

  • The marketing automation space has been largely headed towards a state of functional parity (or, more bluntly, commoditization) whereby everyone has the same core marketing automation features enabling lead lifecycle stage management, lead management, lead nurturing and lead scoring. The differentiation of late has been primarily around interoperability – HubSpot is differentiated through its COS serving as a company website, and its CRM features aligning sales; while Pardot is looking to differentiate on its Salesforce integration.
     
  • The true differentiation of these companies, and their brands, is their communities of users and partners. Hence the investment of HubSpot’s Inbound conference and community (projected to have 18,000 attendees at a live conference in Boston Nov 8-11) and Marketo’s branding of Marketing Nation to represent its communities. It’s why both HubSpot and Marketo have made such massive marketing investments to build and develop these user and partner communities.
     
  • Open source is distinguished by this precisely - the ability to develop a unique, passionate community. Mautic has the potential to do this in the marketing automation space.  Plus the hire of Johnston whose work at Applause was highlighted by the development of a significant online testing community is a key step towards this.

Keep an eye on Mautic.

Marketo vs. HubSpot – Comparing Purple vs. Orange at their Essence on 10 Key Points

It’s funny – although I’ve been following or using both HubSpot and Marketo since 2009, I  recently started sharpening my perspective on how the two marketing automation firms, now HUBS and MKTO on your CNBC stock ticker, directly compare.

Before I get to these 10 comparison points on Marketo vs. HubSpot, two ‘preamble points’ I want to make clear first:

  • Both are strong products, and both have come a long way since those early days in 2009 (thanks goodness!), and are going to continue to quickly evolve as both companies continue to invest significant resources into R&D. So the points below may look very different a year or two from now.
  • The below is very much a DRAFT – I would love to get feedback on these and other points – in fact the main reason that I am publishing this now is so that I can share my observations to date and get additional expert opinions on this topic.

So with that, here we go:

#1 - Marketo is a kick-ass marketing workflow tool

Marketo Flow Steps are a work of beauty for any marketing ops manager. Marketo gives its users tons of control for both recurring and trigger based data-driven actions, and the sequences of marketing or data activities that follow. It’s truly a powerful engine that supports lead nurture flows, lead routing processes and coordination between marketing and SDR/Teleprospecting activities.

 #2- HubSpot is a powerful lead attraction & conversion platform

If Marketo’s bread is buttered through marketing workflow, then HubSpot’s sweet spot in the process is the activities preceding and leading up to that initial web conversion (form fill). HubSpot gives digital marketers powerful insight into what pre-conversion activities (e.g. specific web pages, blog content or social media activities) have the most impact on both “conversions” as well as any follow on impact (e.g. MQLs, Opportunities, Pipeline, Wins, etc.). 

#3 - Marketo struggles big time (today) with pre-conversion analytics

I see Marketo already on the path to change this, and it’s just a question of when – and how well they communicate it. The core of this issue is that at its heart, originally, Marketo tracking leverages programs which sync to SalesForce campaigns; and these programs are wonderful at tracking ‘known traffic’ – once you are converted/cookied – a web visitor can be added to a Marketo Program with ease and powerful campaign influence reporting can be achieved from there.

Marketo struggles with granular program level tracking of anonymous traffic. For example, if you want to ask the question: “Which of my Blog Posts (or Web Pages, for that matter) have the greatest influence on the follow-on generation of MQIs – or MQLs, Opps, etc.?”, you’d struggle to answer this question in Marketo – whereas HubSpot is geared to naturally helps its users answer and optimize around that question.

You could (and should) create a Marketo program that adds any Blog Visitor to a program to be able to answer this question for the Blog as a whole – but doing it at an individual Blog post level seems impractical.

Marketo, as I’ll reinforce below, is a technology ecosystem player (which by the way I believe is the right approach), so the way they are attacking this problem is through Google Analytics integration which was released in April 2015.

And while I think this is the right strategy and will get to the desired result for Marketo users when fully implemented -- to date I don’t think it’s been well communicated or trained across the Marketo customer base.

And the missing link, which presumably is coming, is feeding Marketo lead outcome data (e.g. MQL, Opportunity, Pipeline) back into Google Analytics in a way that can help answer those original questions I posed around which specific blog posts, web pages or digital interactions are having the greatest impact on conversions and the follow-on business results. Once that is in place and well understood by the Marketo base, it will close a significant gap vs. HubSpot today.

#4 - HubSpot’s Blog Analytics crush anything Marketo can do

The reason I used ‘essence’ in this article title is many of these points come down to the original vision for why these two products were created and the problems they were focused on solving. In the case of HubSpot, blog optimization was at its core as a means to drive web traffic and 'leads'.

So therefore keyword rank tracking, real-time SEO guidance for blogging and what my colleague Matthew Wainwright calls “absurdly transparent blog metrics” are significant competitive advantages. Marketo tried to play catch up here in 2014 with its SEO module which let’s just say I wasn’t a huge fan of in its initial release

#5 - HubSpot leans towards “all in one”, Marketo is all about technology ecosystem

Whether it’s their Free CRM announced at INBOUND 2014, or their fully integrated Content Management System, HubSpot’s strategy has been “all in one”. That can be incredibly powerful for a business  to connect its website, digital marketing, lead nurturing through to CRM.

Marketo’s strategy has been one of enabling hundreds of technology integrations through its impressive LaunchPoint ecosystem. Some of the integrations my team has done already include Marketo to On24, SnapApp, LinkedIn Lead Accelerator (the former Bizo platform for retargeting) and Integrate.

The result of this is what you’d expect:

HubSpot can go very wide, and for those organizations who have minimal existing infrastructure and minimal infrastructure requirements – this can be hugely powerful. This is why HubSpot has leaned more towards the SMB user base who fit this criteria.

Marketo’s integration approach means customers can go for “best of breed” and leverage a range of other technologies. I tend to prefer this integrated approach for achieving business value, although costs will also be higher in this approach across multiple vendors (vs. "all in one").

#6 - Marketo has a really strong SalesForce integration

Going back to essence, this has always been true of Marketo – including the automated data integration through to the SalesInsight plugin for sales visibility into prospect program and web activities. That said, HubSpot has closed the gap here over the years and recently announced a five-year extension to its partnership with SalesForce.

In addition to the standard Marketo-SalesForce integration, I’ve enjoyed the ability for Marketo to push tasks into SalesForce for custom integrations – creating SalesForce triggers based on specific task types has been useful for aligning more complex business processes between the two systems.

#7 - Marketo tokens provide great program scalability and maintenance capabilities

Marketo tokens continue to get more and more powerful. Tokens are Marketo’s method for data-driven content that carries intelligence over different programs. With properly implemented tokens, there is significant time savings, reduction in errors and additional marketing capabilities across programs.

For a simple example, think of a program token as a Webinar Name, Title, Speaker & Time --- updating that is one central place on the program and then propagating across all email invitations, follow up emails, registration pages, thank you pages etc. --- at the click of a button..

 #8 - Marketo scales better across multiple business lines and geographies

Because of the aforementioned tokens and workflow capabilities, along with other features including lead partitions – Marketo scales well as a single instance is applied across multiple business lines and geographies – more so than HubSpot.

 #9 - Don’t Sleep on Marketo’s RTP

Marketo is more than Marketo. What I mean by that is that when you think about Marketo you also need to factor in their Real Time Personalization Product which originated from Marketo’s acquisition of Insightera in December 2013. In fact, in that same article where I panned Marketo’s SEO module, I lauded RTP as the bright future for Marketo.

RTP answers many – not all, but many – of the pre-conversions concerns on the original Marketo product. RTP enables customers with the ability to target both anonymous & known traffic with more precise on-site targeting and off-site campaigns (including retargeting) – and -- again with Marketo’s ecosystem approach -- the approach here is largely to create web content modules that can then be embedded into any web site regardless of CMS..

 #10 - HubSpot partners are passionate digital marketers, Marketo partners are marketing ops geeks

I realize this is a generalization, but it’s true! (And I’m allowed to say it because I was one of the first Marketo partners before they even had a partner program in 2010.)

I see more digital marketing talent in the HubSpot partner community, whereas I see outstanding marketing operations expertise amongst the Marketo partner base.  

 

OK so that’s what I got. What did I miss? What did I get wrong?

Would love to hear additional points about how the experts out there are comparing Purple vs. Organize now and in the future. Fire Away!

Seven insights from SiriusDecisions Forum on Channel Sales and Marketing Operations

This morning I attended the SiriusDecisions Forum titled “Bridging the Direct/Indirect Visibility Gap” with Steven Silver & Laz Gonzalez. The topic was particularly appealing as I look at ways to improve effectiveness in the lead-to-win process in supporting channel partners.

Seven insights from the morning

#1 - “Process precedes technology”

Laz gave us the first Tweetable moment of the session:

Of course this doesn’t apply specifically to channel marketing, but it does apply especially to channel marketing.  Creating and applying common definitions to how leads are qualified and processed is vital to improving and optimizing the lead-to-win process through channel partners.

#2 - Consider adding more qualification before leads are passed to partners

SiriusDecisions benchmarked conversion rates across different levels of lead qualification. There are various definitions and scenarios here, but the crux of this for me centered on comparing these two scenarios:

Qualifying MQLs based on an action (e.g. filling out a free trial form) and profile (e.g. not  meeting specific disqualification criteria) saw a total conversion rate of 7 wins per 1000 inquiries which was achieved through 16% inquiry to MQL, 55% MQL to SAL, 40% SAL to SQL and 20% SQL to Win.

Adding in the qualification of non-verified propensity to buy (which in SiriusDecisions terms moves a prospect from Lead Level 3 to 4) moved the total conversion rate to 9 wins per 1000 inquiries which was achieved through a 7% inquiry to MQL, 72% MQL to SAL, 65% SAL to SQL and 27% SQL to Win.

So in this benchmark by SiriusDecisions, adding more qualification to the leads passed to partners increases the total lead-to-win performance by 29% - significant business impact. This was the most significant tipping point in performance improvement for varied levels of lead qualification.

How could this be done? This needs to be done with care (and A/B testing!) as this will have an impact of reducing the number of leads to partners – so this needs to be well communicated and well managed with partners. Possible ways to accomplish this include adding an additional qualification question (e.g. “what business problem are you trying to solve?”)to a free trial form or a product activation form.

#3 - (My idea) score leads after they are sent to partners

This is my idea building on #2 above. Since the process we are trying to optimize is the lead-to-win, and the fundamental issue is visibility, this could be a great opportunity to apply lead scoring. Score the prospects post MQL qualification behavior (e.g. product activation, engagement in post qualification emails, website page views) so that these scores can be used with partners to evaluate lead quality.

This can then be used in a number of ways:

  • As part of lead reviews with partners, to demonstrate lead quality (demonstrate to the partners “there’s life there” when they may have otherwise given up and moved on to the next lead)
  • Can be used as a ‘carrot’ to drive partner adoption of CRM systems – “get visibility into lead behavior”
  • Analysis around partner lead conversion rates – does the lead score prove to be an indicator for lead-to-win? If so this can be a powerful tool for managing partners deal conversions and business predictability in an area that has often been a black hole in the past.

#4 - What’s next in marketing automation? Channel marketing automation

You thought the marketing automation market was fully mature? Guess again.

Apparently there is a new class of technologies emerging (and much needed) in channel marketing automation, and one specifically called out by Laz was Zift Solutions.

Just guessing that some of the features available including the creation of centralized templates that can be ‘pushed’ into partner co-branded assets (emails, landing pages), the management of partitioned leads for each partner and CRM connectors for opportunity management.

Some questions that come to mind:

  • Are these replacement to or integrated with a company’s marketing automation platform? “Integrated to” – powerful. “Replacement to” – still interesting but now creates potential silo’s between demand generation and channel marketing.
  • Are there proven tools to support partner outbound lead generation (e.g. social media)? – that would be very attractive.

#5 - “Treat partners like leads”

This was another soundbite from Laz. What  he meant here was that the partner relationships need to be worked to ensure adoption of marketing programs and adoption of lead management SLAs. This takes hard work. Totally agree.  

#6 - Waterfall Metrics Direct vs. Channel highlights where funnels are leaking in channel process

Another powerful data benchmark:

SiriusDecisions looked specifically at Lead Level 2 qualification (qualified based on lead profile data) and looked at lead-to-win rates for a direct sales team vs. channel sales teams.

For Direct Sales, the lead-to-win was 7 wins per 1,000 inquiries which broke down as 16% inquiry to MQL, 55% MQL to SAL, 40% SAL to SQL, and 20% SQL to Win.

For Channel Sales, the lead-to-win was 1.4 wins per 1,000 inquiries which broke down as 2.3% inquiry to MQL, 53% MQL to SAL, 51% SAL to SQL and 22.5% SQL to Win.

So here’s where this gets interesting:

If you look at the above, the channel actually performed better from MQL to Win (6.1% vs. 4.4%) – channel sales was better at working the right deals and closing the ones they worked, that’s where they specialize. However there was a massive gap for channel teams in managing inquiries to MQLs -- the direct process converted at 7X the rate at channel.

That’s telling me that the heart of the issue with most channel programs is that lack of process applied to the top and middle of the funnel. Issues here could include legacy processes where all top of funnel leads are sent to partners, no lead nurturing process applied to partner leads and/or the lack of nurturing systems by partners.

Therefore applying process and systems to top of funnel partner lead generation and qualification is a major opportunity for most.

#7 - Work towards SLAs for partner lead distribution & management

Tying it back to point #1 on process, the best practice (which, by the way, based on show of hands, very few of the companies in the room have implemented) is developing and applying a service level agreement to partner lead management. Some of the areas to agree as part of this include:

  • At which stage are leads routed to partners?
  • How will partners accept, interact and update the lead?
  • What are the response times required from issuance to close?
  • What should be done to ensure commitment to SLAs; what should be done if response times are not met?

Demand generation is about lead generation and oh-so-much-more

In recruiting for a Demand Generation Manager role I’m finding there’s a lack of universal definition of the term demand generation – it’s not broadly understood – ironic considering every business by definition needs to scale and accelerate their demand generation (at least, if it wants to grow).

I’m finding a set of people who think of demand generation way too narrowly, for example:

  • Some equate demand generation to an outbound calling function (in a previous post on defining Moneyball Marketing I got into the difference between demand generation and lead generation)
  • Others equate demand generation with marketing automation (I thought Scott Vaughan from Integrate did a good job of describing the differences in a recent post)

A successful demand generation marketer massively broadens from these specific functions to truly take ownership of the multiple facets of demand growth for a business. It cuts both wide and deep, but I’ll boil it down to these 10 components:

#1 – Leads (with Definitions)

I’d be remiss if I didn’t list leads first – but it’s also vital to note that gone are the days where leads are the “be all, end all.” Also gone are the days where all leads are treated equal. A crucial first step in any demand generation program is ensuring lead definitions are established, applied and measured so that you can measure both top of funnel engagement (MQIs – marketing qualified inquiries) and throughput of creating qualified leads for sales (MQLs – marketing qualified leads).

#2 – What Happens After the Lead is Generated

Although lead counts are one of the critical KPI for demand generation success, measurement needs to extend beyond leads to sales pipeline and business impact – so opportunities and wins (and the conversions rates to these) are vital. For demand generation marketers, meeting lead goals is table stakes; tracking and improving how those leads convert to meet opportunity and pipeline objectives is where you move from good to great.

#3 – Enabling Teleprospecting and Sales

One of the influencing factors to conversion rates is how you as the demand generation marketer align your programs and equip sales to follow up the leads and the resulting conversations. Part of a successful marketing program include enabling sales in what content to use as part of the follow up and how to use it.

#4 – Aligning All Forms of Media to Drive Demand

Demand creation is not a single role on a marketing team – demand creation is the culmination of the alignment of the efforts of the entire marketing team.  All forms of marketing awareness and engagement contribute to demand generation programs. Demand generation needs to partner with all marketing resources to ensure cross-channel alignment and leverage including:

  • PR
  • Social Media
  • Events
  • Paid Search
  • Publisher programs (which are requiring an increased level of creativity and digital thinking to drive effectiveness)
  • Email
  • Webinars

#5 – SEO & Website Optimization as the Center of Demand

Inbound marketing is vital to any demand generation strategy and becomes especially vital for any business looking to scale to support high volume and low cost per lead. Thus core ongoing activities to improve website performance include:

  • Ensuring the right technical setup for website & blogs
  • Aligning web content to keyword strategy
  • Driving high volume of relevant, engaging content creation via blog(s)
  • Driving quality, relevant inbound link placement in partnership with PR programs
  • Ensuring web resource center serves to engage and educate prospects and effectively capture leads
  • Analyzing website usage patterns and improving website engagement and conversion
  • A/B testing and optimizing various calls to action throughout the website

#6 – A Content Repurposing Machine  

Depending on a company’s structure, a demand generation marketer may or may not be the originator of core content e.g. white papers (I think more often than not, they would not be). However demand generation marketers need to be expert content repurposers, taking core content assets and getting maximum impact from those assets. Some examples include:

#7 - Influencer Strategy

It’s one thing for a business to tell its prospects how great it is – it’s another thing entirely for an influencer to do that. Identifying the influencers and building programs to leverage them is a great way to stand out from the crowd. Influencers should be infused in your demand generation programs and content, and influencers can be the path to the another key to demand gen success – which is identifying which communities your prospects are participating in so that you can contribute to those conversations.

#8 – Marketing Technology Strategy

I’m finding one of the value aspects of a marketing automation system is having a single platform which can then integrate across all of the growing set of marketing technologies in building a demand generation machine. Your marketing technology strategy should result in an integrated approach, with the marketing automation platform as the integration point and including:

  • CRM & closed loop reporting
  • Incoming data enhancement technologies
  • Data append / cleaning technologies
  • Paid search
  • Retargeting
  • Webinar platforms
  • Predictive lead scoring

#9  – Leveraging all Routes to Market Including Partners

For organizations who go to market via partners, supporting partner demand generation is critical for maximizing demand. This includes ensuring an active program to leverage marketing programs and content through the channel, with technologies, process and people in place to help partners maximize their demand and measure the impact of the efforts.

#10 – Customer Marketing (it can no longer be an afterthought)

Customer marketing can no longer be an afterthought and needs to be a core cog in your demand generation strategy. Elements of this include:

  • Programs for nurturing customers – Marketo has recently put out some good content around this focused on customer activation
  • Ongoing customer education e.g. a customer webinar series
  • Customer advocacy – Influitive puts out great content on this subject, which should include a customer referral program

These are some additional articles I found helpful in framing and defining Demand Generation:

This is all to say, demand generation isn’t easy and requires a completely holistic and integrated view (integrated by medium, integrated within marketing, integrated with sales), a digital approach and a tenacity to get results. These are all reasons why great demand generation marketers are hard to find.

I’m going to introduce you to the best Demand Generation marketers I’ve found in an upcoming series Demand Generation All Stars – The Best of the Best.

Finding common ground on closed loop reporting via Boston Marketo User Group

Today’s Boston Marketo User Group (BMUG) featured three presentations and Q&A on closed loop reporting from Paul Green of Extreme Networks, Lauren Brubaker of NetProspex and yours truly and well chronicled on Twitter by many of the Marketing Automation-erati including Jarin Chu, Jeff Coveney, Ed Masson and OpFocus.

The presentations and conversation spanned a wide range of topics and perspectives, but these were my top overarching takeaways:

#1 - EVERYONE is trying to improve their closed loop marketing effectiveness

Companies may be at different stages in their journey towards closed loop reporting, but every business spending money on sales & marketing is trying to better understand the payoff on their investments and how to leverage those investments to scale their business performance.  Many companies are in the early stages and trying to head in the right direction, while the ones who have been working on it for several years continue to strive for more.

#2 – The skills of marketing technologists as in demand as ever

With a room full of some-70 marketing technologists, the conversation was clear that everyone is looking for more talent in this area. It’s a great time to be a revenue marketer and specialized in technologies such as Marketo.

#3 - Closed loop, revenue marketing takes partnership between marketing, sales and IT

This was one of Paul’s summary points but it applied to all of us --- all three of these departments need to contribute to the closed loop engine. IT teams can be a great ally for marketers looking to connect data and systems and ensure they have the real time dashboards and reporting required to enable close loop reporting. In Paul’s case, he also noted that his sales and marketing teams are now seen as a single organization reporting into a Chief Revenue Officer.

#4 - Tracking revenue stages is now broadly adopted

Whereas everyone has different approaches to where data resides, what is tracked and how reporting is performed, and one common denominator between everyone in the room was the underlying fundamental of using revenue stages to track lead progression through their buying process e.g. MQI to MQL to SAL to SQL.

For those who attended (or even if you didn’t), these are some related resources to the topic:

And as there were multiple requests for the slides here is a download of my PPT deck on closed loop reporting:  Closed Loop Reporting Slides

 

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Marketo’s Latest & Greatest - a Tale of Two Products a.k.a. Some lead and some follow

At the August 12, 2014 Boston Marketo User Group (BMUG) meeting, Marketo representatives shared two areas of their latest product development – Real-Time Personalization (RTP) and Marketo SEO. 

Leaving the session, I was struck by the stark contrast between the two:

  • How they fit into Marketo’s DNA
  • Their origin & motivation (my guess)
  • Their positioning of Marketo as a leader or follower within the category

Product Functionality #1 - Real Time Personalization (in the “Lead” Category)

Marketo’s Real-Time Personalization came across as THE natural extension to everything we have seen from Marketo so far. Take Marketo’s ability to capture user specific data and deliver relevant content, and evolve that from email nurturing streams to contextual messaging during a website visit.

I also envision this evolving even more in the future to incorporate personalized ad retargeting and social marketing, either via further Marketo product development or partnering or purchasing someone like Demandbase, ReachForce or Bizo (although not Bizo themselves because they were just purchased by LinkedIn).

These are just two of the use cases that seem possible (disclaimer: I am concluding this from a 45-minute large projector demo standing in the back of a poorly ventilated second floor of Papa Razzi, not from actually using the product).

Greatly improved targeting of anonymous traffic – The strongest broad use case for anonymous traffic initially is industry-based targeting. Marketo identifies the anonymous visitor’s company based on IP lookup and categorizes them by vertical, so page content can be tailored by vertical.  Banner messaging, case studies, content and calls to action can be tailored by vertical, without asking for anything from the site visitor. This relevant content should lead to increased engagement (lower bounce rates), deeper site visits (assuming the content to support it) and higher conversion rates.

Tailoring of content for identified users – For any identified traffic (you can become identified based on filling out a form or -- don’t forget, Marketo users -- clicking an email from Marketo), whereby a cookie ties that visitor to a lead record.  Making this connection means marketers can now tailor web content based on any information they have captured around the visitor. Some ideas that come to mind here which can be made possible based on ‘tagging’ users based on their content consumption from previous program interactions:

  • Tagging users based on Key Topics /Issues, so banner messaging can be tailored to solutions to those issues
  • Tagging users based on Buying Stage, so content offers can be tailored by stage (offer an Educational asset to Early Stage; a Solution based asset to Middle Stage; and a Trial Download offer to Late Stage)
  • Categorizing role data and tailoring content by role

We could be gone from the days of rotating five banner messages to see which ones is relevant – as now we already know the primary topic of interest of the site visitor.  And gone are the days of guessing which call to action is right, as it can be tied to their stage based on past behavior.

The excitement in the room was palatable as the Marketo team walked us through these features. The story they told as they presented flowed naturally, and for me it seemed that this product development strategy HAD to be driven straight from Marketo founders Phil Fernandez and Jon Miller. Not only is it a natural extension of everything Marketo has done to date, it matches concepts that Epiphany (Phil and Jon’s previous company) brought to market in the late 1990s when Web Personalization was first introduced.

The difference between what Marketo has now, and the Epiphany pre-Millennial engine is that this Marketo web personalization product can be run by the masses of marketers.  Once tracking code and content deployment code are installed on the website, then the personalization rules can be managed via a user friendly rules based interface that Marketo administrators are used to.

I really like how Marketo is NOT trying to place in the CMS market here, and rather presenting their content targeting more like embed code that marketers use in appropriate sections of the website for messaging, content offers and calls to action.

This has leadership written all over it and I see this extending into retargeting, social marketing and more.

Product Functionality #2 – Marketo SEO (in the “Follow” Category)

Whereas the RTE discussion was vibrant and natural, as the presentation shifted into the SEO topic, the “story” became forced. Should the Marketo folks be educating around SEO vs. SEM? How should they be advising customers to deal with issues like backlinks that are oh-so-important but oh-so-critical to handle correctly? Is this SEO tool to replace other SEO tools or is this an SMB starter kit? A good proof point of the Marketo approach towards this is one of the reps commented “This may be not be for you if you’re using tools like CloudEdge.”  Um, ya mean BrightEdge?  Let's just show it didn't show much understanding of the market they are playing in.

While the RTE presentation told an integrated story, this SEO walkthrough felt disjointed, a periphery tool to Marketo’s core capabilities. Do keywords have a place on Marketo landing pages? I suppose, but very low in priority since we know that the SEO value of sub-domains that Marketo landing pages usually reside on is very limited vs. core website content.

So why did the Marketo build this?  Here’s my guess:

Whereas RTE is driven from the founders and company DNA, Marketo SEO is driven by request from the sales organization.  “We need that checkbox in the features comparison”. They don’t want to show up with a blank in a column where HubSpot has a solid checkmark not to mention owning the concept of Inbound Marketing, and as the two lone marketing automation soloists continue on a Purple vs. Orange collision course, Marketo management wants all i’s dotted and t’s crossed.

So I do get it, it’s just that the contrast struck me hard. One Marketing Automation Platform, 2 Hours of Demos, 2 Product Feature Sets – 1 a strategic platform development, and the other a “me-too” tool.

And whereas I get why Marketo built the SEO tools, especially with INBOUND 2014 around the corner, I just wonder how much investment went into it and could that have been better spent on leadership and not a “me-too” product checkbox.