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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.

Why you need to unify sales & marketing operations (via MassTLC Marketing Leadership panel)

Yesterday’s MassTLC Next Wave of Marketing Leadership event turned into a great discussion on a range of issues growth marketers are facing – spurred by so many audience questions that we ended up going over time.

MassTLC-marketing-leadership-panel

A particularly interesting topic was organization and team design around marketing operations – for which I advocated for businesses moving to a unified sales & marketing operations function.

We are doing this at Bedrock Data with great success – Ryan Plunkett serves this role and with this owns the view into our end-to-end funnel metrics, performance and forecasting.

There are different ways to get there based on size of business; these were some different possibilities discussed yesterday:

#1 - For startups / growth companies, start out with a single, unified operations role that serves the whole business. 

This has been our approach at Bedrock Data. In fact Ryan’s role extends across the whole customer lifecycle including customer success. For me as the chief marketer with many different areas to drive, it’s a great relief to have the operations piece supported with an integrated resource.

#2 - For larger companies, a centralized business operations role can serve both sales and marketing operations.

In my recent Marketo power user series, Jame Ervin of Optimizely spoke about operations centralization at Optimizely.  There are tremendous alignment and efficiencies advantages to this. I’ve found when the teams are separate, most of the time is spent going back and forth debating issues, whereas an aligned team should be much more nimble and effective.

#3 - For company sizes in between without a formal business operations function, this role can roll up to Finance

Several folks yesterday spoke about these roles being centralized in Finance. I loved what Jonathan Burg has to say about it – he said the role does in fact sit outside of marketing but it suits him just fine. Jonathan said they have a running joke that in his marketing all hands meetings, there are more people outside of marketing that attend than those on the marketing team.

Given the integrated nature of marketing across an organization, that is the way it should be. Kudos to Jonathan and Reward Gateway.

Great topic at a lively MassTLC event, and looking forward to more in 2017.

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?