Revenue Stage Analytics: The Marketo Model
In the past couple of posts, I have explained the methodology behind revenue cycle analytics, including the best practices and the importance of defining your revenue stages. In this post, I give a sample revenue stage model and dive into a more detail about the Marketo methodology.
Marketo’s revenue stage model first defines the “success path,” i.e. the traditional funnel that leads linearly from new lead to closed, won business.
|SUCCESS PATH STAGE NAME||DEFINITION|
|Anonymous||Inventory for potential leads that have not registered|
|Review New Names||Review if new names are qualified|
|Prospect||Qualified prospects who are not yet sales ready|
|Lead||Marketing qualified leads with an SLA for follow-up|
|Sales Lead||Sales qualified leads, ready for sales to engage|
|Opportunity||Sales accepted leads, actively working|
|Customer||Closed Won deals|
This sample model has few opportunity stages; many companies may want to add additional Sales stages, and even model additional stages after Closed Won, to model the customer lifecycle.
Next, recognizing that not all leads follow a linear “success path,” the model also defines “detour stages” to capture leads that are not qualified, or that require a few rounds of nurturing before becoming ready. For example:
|DETOUR STAGE NAME||DEFINITION|
|Disqualified||Names marked as not-in profile|
|Inactive||Prospects that have gone non-responsive|
|Recycled||Qualified but needs more nurturing (linked to Prospect)|
|Lost||Lost opportunities (ongoing nurturing)|
The final step in defining the revenue stage model is specifying the business rules (“transitions”) that determine when a prospect moves from one stage to the next (including how leads move from Detour Stages back to the Success Path). For example:
- A person may move from “Engaged” to “Prospect” if their company has revenue above $10 million a year and is in one of the target industries
- A “Prospect” may move to “Lead” when the lead score goes above 100 points
- A “Prospect” may move to “Inactive” if they have not responded to any campaigns or visited the website in more than six months
- Leads in “Inactive” may move back to “Prospect” if they respond to a new program