The Episode in 60 Seconds

One of the contributing factors to CMOs having the shortest tenure in the C-Suite is a lack of understanding of their role at the revenue table. A CMO must take up the mantle of responsibility to track activity and results, grow the company despite the changing attitudes of the buyer, and make meaning for the CEO and CRO.

On this edition, Mark Donnigan, B2B marketing leader turned consultant, unpacks six key performance indicators that every CMO should track and report on in the revenue conversation. He is joined by Golden Spiral's SEO and analytics expert, A. Chris Turner.

The KPIs are:

1. Net New Revenue from Marketing-Generated Sources
2. Percentage of Contribution from Marketing to Overall Revenue
3. Qualified Pipeline Generated Leads (MQLs)
4. Length of the Sales Cycle vs. Win Rate
5. Sales-Qualified Leads
6. Customer Acquisition Cost (CAC)

Our Guests

Mark Donnigan is a marketing leader, business builder, value creator, and market maker. Formerly the VP of Marketing at Beamr, Mark focuses on high-impact programs that drive revenue, activate the market, and deliver real business results.

He has 20 years of experience contributing to the success of startup, emerging, and growth-stage product and technology companies that have been backed by some of the largest VC firms in the valley. His secret weapon is his strong sales acumen, making him a powerful ally and collaborator to the head of sales.

Mark also co-hosts a podcast called The Video Insiders, speaking on topics like video compression, codecs, encoding, transcoding, workflows, technology trends and business models.

Mark Donnigan has prepared a free presentation for those who are curious about his viewpoint on category creation and building a marketing system. Click to download.

 

Chris Turner is Golden Spiral’s Senior Director of Digital Strategy and Performance Analytics and an expert in all things digital. Chris manages and monitors the online strategies for our clients related to paid media, content, social media marketing, and digital optimization.

Chris helps our teams build synergistic digital strategies that touch on everything from relationship building with partners to content creation and syndication — all to help clients make an impact through their business. He leverages his experience of 10+ years of marketing leadership to direct marketing teams to success based on addressable KPIs and data-driven tactics.

Chris has a bachelor’s degree in information technology and a master’s in information systems. He is well educated, heavily experienced, and always seeking more knowledge.

Show Notes

 Today's CMO must be intentional. - John Farkas

A successful CMO:

• proactively seeks alignment with the CEO
• has a command of the ecosystem
• intimately knows the customer, the market, and the competition
• has a world-class understanding of marketing strategy, tactics, and tools

Executive Level Marketing KPIs 1. Net New Revenue from Marketing-Generated Sources (12:27) The total dollar figure for a period of time (e.g., monthly) of new gross sales from marketing channels only.   2. Percentage of Contribution from Marketing to Overall Revenue (13:53) All marketing income (new and renewal) represented as a percentage against all revenue from all sources.   3. Qualified Pipeline-Generated Leads (MQLs) (15:06) A MQL is not just a lead. It must meet the criteria of a future customer.

• Do you have deep information on the role of the lead? Is this lead at the decision or purchase table?
• Is the lead's company in your niche?
• Does the lead's company fit the profile of your target customer?
• Is the lead's company the right financial size for a good deal?
• (Some companies have other criteria for leads.)

4. Length of the Sales Cycle vs. Win Rate (20:43)

How long does a lead spend in your funnel? Count the days from first touch to signed contract for completed deals.

What percentage of Qualified Pipeline-Generated Leads convert.

By looking at both numbers at the same time—and in light of the other KPIs—you'll be able to see the impact of a lengthening sales cycle or a high win rate versus decreasing income.

5. Sales-Qualified Leads (26:46)

An MQL shows promise. An SQL is certified by your sales team that it meets all of your criteria and has a probability of converting. Some companies divide SQLs into qualified and accepted leads.

For more information on titles and definitions, check out this excellent article from Golden Spiral's President and COO, Peter Smith.

6. Customer Acquisition Cost (CAC) (31:17)

Mark Donnigan goes into detail about how to calculate CAC for SaaS companies that have long sales cycles. Listen to this section for a greater understanding of the number of marketing expenses you must pack into the acquisition cost.