This week, Focus.com released the Book of Funnels, officially titled Focus Experts’ Guide: Sales and Marketing Pipeline and Funnel Models. The book includes interpretations of pipelines from sales and marketing thought leaders, providing insight into how frameworks can vary. To gain some insight into the processes they used to get their visions on paper, The Funnelholic caught up with some of the contributors. They provided some well-considered feedback, and a deeper understanding of their one-page funnel models.
To kick off my interview series, I had the chance to interview Jon Miller, VP of Marketing at Marketo, the revenue performance management company that’s transforming how marketing and sales teams of all sizes work — and work together — to accelerate predictable revenue.
Jon leads strategy and execution for all aspects of marketing at Marketo and is a key architect of Marketo’s hyper-efficient revenue engine (powered by Marketo’s solutions, of course). He explores everything from demand generation and lead nurturing to marketing ROI and revenue cycle management in his popular blog, Modern B2B Marketing, and was named a Top 10 CMO for companies under $250 million in revenue by The CMO Institute. While Marketo’s funnel might look traditional, don’t be fooled; its processes are original, especially its innovative new system, Revenue Cycle Analytics.
The Funnelholic: Explain your approach to the funnel.
Jon: My approach to the funnel starts with what I like to call Seed Nurturing. This is the process of building relationships with qualified prospects before you have their contact information. Essentially, our funnel starts with education and providing thought leadership so prospects can make an informed decision about our product later down the funnel.
The Jon Miller Funnel
The Marketo funnel is comprised of six stages: Awareness, Inquiry, Prospect, Lead, Opportunity and, ultimately, Customer. Let’s run through the stages:
- Awareness: Defines everyone who knows about Marketo. We know what a visitor is doing, but not who they are. Equate this to peeking out the window of an auto showroom and seeing a new customer on the lot.
- Inquiry: Anonymous ‘awareness’ transforms into the ‘known,’ via a name and email address.
- Prospect: A potential buyer or ‘qualified inquiry.’ This individual may have downloaded a webinar or whitepaper, but has yet to show any greater interest. But they are definitely on our radar.
Notice that we are now past the first three stages of the funnel and have yet to identify a ‘lead.’ As noted, a common mistake made by many marketers is to pass ‘leads’ along to sales far too aggressively.
- Lead: At the lead stage, the prospect has shown sufficient interest to receive a score high enough to pass it along to sales. We’ll get into lead scoring soon.
- Opportunity: A certain number of leads will transform into sales opportunities. Again, we’ve found this to be about one-fourth of the amount of leads we generate.
- Customer: A bell rings as a sale is made.
Essentially a prospect goes through many stages where, at first, they are only a name. Only until they interact with us, whether it be downloading a piece of content or clicking through an email, can we call them “engaged.” It is actions like these that are extremely important to demand generation. It helps us learn what type of content to promote and which type of emails increase click-through rates, etc. Someone who is engaged moves to prospect based on his or her increased level of significant behavior and interesting moments. A prospect becomes a lead when they reach a specific score. There are three outcomes of a lead: disqualified, converted to an opportunity or recycled.
What’s interesting to note is that when someone becomes a lead, they begin interacting with the sales rep. At this point there is an agreement from sales (SLAs) that they will follow up with these leads in a prescribed amount of time. If these SLAs are not met, sales and marketing management is notified via automated processes. Following these SLAs is not only critical for proper interaction and relationship building, but also so that marketing can report properly on program success.
We also have a webinar that provides some further details about our funnel: The Secret Sauce to Demand Generation.
The Funnelholic: Besides your own, were there any other funnels that resonated with you?
Jon: The other funnels that resonated well included Cloud9′s, Matt Heinz’s and Carlos Hidalgo’s. The reason I like these funnels in particular is because the funnels go beyond the closed/won deal. Also, Carlos Hidalgo’s funnel really emphasizes the need for nurturing throughout the entire funnel. The emphasis that is placed on customer lifecycle management is something that is really important. Nurturing doesn’t stop after the deal is closed.
The Funnelholic: What did you learn from the exercise?
Jon: It’s very important for marketing to have a funnel in order to do proper reporting and create forecasts. The funnel is the key to the organization’s success. Before this book, Marketo already had an established funnel that we shared with our customers in order to help them build out their own pipeline. Here are some other lessons we’ve learned:
- Don’t let leads sit in any one place in the funnel.
- Learning is a two-way process. Use lead nurturing to educate prospects and learn their preferences as they interact with your content.
- Automate the process by using lead scoring to move leads to the next stage.
- Lead recycling is powerful – it allows sales to spend time with their best leads.
The Funnelholic: If everyone needs to create a funnel to model their business, what are best practices for creating it?
Jon: Building out a funnel can be hard stuff. Work with your sales team to build out processes and methodology that works across both organizations. You also need a way to capture your data. Marketo has helped their customers by creating a tool that enables this process and helps build out a funnel and a path to success. The Revenue Cycle Modeler is a tool built to help automate the process of mapping out your funnel, including Inventory and SLA stages. It enables you to send alerts and trigger campaigns instantly and easily. Below you will see the image of our model. Unlike the funnel, this model allows us to trigger different processes depending on the stage of the revenue cycle. It will even track the SLAs mentioned earlier.
Path to Revenue
As you think about your process, it is important to note that there is no perfect revenue path. Each funnel and path may be different; the important part is to have some form of funnel in order to do reporting, an essential aspect in today’s marketing world.