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Marketo’s Mission Is to Deliver $2.5 Trillion in Customer Value By 2015

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Marketo Study Reveals Typical Customer’s Growth Accelerates by 40 Percent with Revenue Performance Management Solution

San Mateo, CA. – May 24, 2011 – Marketo, the fastest growing provider of Revenue Performance Management (RPM) solutions, today unveiled the first study to comprehensively quantify the global economic impact of Revenue Performance Management. The Marketo Revenue Quotient, a detailed study of customer results, examined the key factors that contribute to revenue growth and predicts a $2.5 trillion impact across its global customer base by 2015.

Marketo defined and leads RPM, a new category of business applications that optimize interactions across the revenue cycle, to accelerate predictable revenue growth. The Marketo Revenue Quotient was calculated by identifying the key drivers to revenue generation and the quantitative impact of RPM over time, then correlating results with the size and growth trajectory of Marketo’s customer base.

Marketo’s global study of its customers revealed that RPM increases revenues by an average of 40 percent. This is driven by increased lead quantity, improved lead-to-opportunity conversion, improved opportunity-to-win ratio, increased average contract value and reduced cost per customer. Marketo enables businesses to achieve these improvements through its suite of cloud-based applications, spanning marketing automation, sales effectiveness and analytics.

On average, Marketo customers surveyed report:

  • 46 percent improvement in the number of sales opportunities;
  • 11 percent improvement in average contract value;
  • 17 percent improvement in sales win rates; and
  • 15 percent reduction in customer acquisition costs.

“There’s nothing more important or thrilling to a CEO, marketing executive or sales leader than the ability to directly impact the revenue trajectory of their business,” said Phil Fernandez, president and CEO of Marketo. “Revenue Performance Management gives businesses the ideal roadmap to help leaders capitalize on the changes taking place in today’s social, mobile and web-driven marketplace. By optimizing interactions across every touch point, and aligning sales and marketing to operate at high velocity, our customers have achieved impressive results. And, as the findings of the Revenue Quotient reveal, the long-term global economic impact of RPM can be profound.”

“When marketing, sales and the CEO agree on a revenue management model, it becomes a powerful vehicle for focusing the marketing team on what’s really important and demonstrating marketing’s contribution to repeatable and predictable revenue,” writes Andre Pino, principal analyst at Forrester Research, Inc. in the December 2010 report, Lead-To-Revenue Management Transforms Tech Marketing. “Marketing has to expand its thinking and take a broader perspective on its role in the organization. If marketing focuses on revenue, but continues to act as if its responsibility ends with lead generation, it will fail. Marketing’s mission has to encompass the entire revenue management life cycle.”

The report concluded, “… the leading vendors are now providing the capability of creating a [lead-to-revenue management model], tracking the metrics all the way through to sales close and reporting on the model’s critical success factors.”

The revenue growth has already translated into impact on the employment front. Marketo analyzed publicly available data to compare the hiring rates of its customers versus their peer groups. Marketo customers, on average, grew their employee bases by 39 percent over the last 12 months. In comparison, the customers’ peers grew at 16 percent – less than half the pace.

To identify the impact of RPM, Marketo first determined an RPM score for each of its 1,000+ customers, based on four key areas: marketing campaign effectiveness, sales effectiveness, revenue scale and overall RPM efficiency. Marketo then examined the cumulative revenue of its customers through 2015 and multiplied this by their RPM scores. The net result is that, in aggregate, Marketo customers have the potential to realize a staggering $2.5 trillion in revenue by 2015. Full details on the methodology behind the Marketo Revenue Quotient are available at http://www.marketo.com/revenue-quotient.

Revenue Performance Management (RPM) Defined

Revenue Performance Management (RPM) extends beyond traditional marketing automation and lead nurturing technologies to optimize interactions with buyers across the revenue cycle and accelerate predictable revenue growth. It includes the full range of online and offline customer interaction channels, including web, mobile, social and events. Marketo’s vision is to provide the tools, thought leadership, and best practices to change how marketing and sales work — and work together — to help companies of all sizes exceed their revenue goals.

About Marketo

Marketo is the global leader in Revenue Performance Management. Marketo’s powerful yet easy-to-use marketing automation solutions transform how marketing and sales teams of all sizes work — and work together — to drive dramatically increased revenue performance and fuel business growth. The company’s proven technology, comprehensive services, and expert guidance – in areas ranging from demand generation to lead nurturing – are helping corporations around the world to turn marketing from a cost center to a business-building revenue driver.

Marketo was awarded the 2010 CODiE award for “Best Marketing Solution,” the “Best Sales and Marketing 2.0 Solution” from SellingPower and the “Best Marketing Automation Application” by Salesforce customers on the AppExchange. For more information, visit www.marketo.com, or subscribe to Marketo’s award-winning blogs at blog.marketo.com.

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PR Contact:

Sara Schulte

LaunchSquad

415-625-8555

marketo@launchsquad.com