179: CMO Mathematics with Service Express
Joshua Leatherman has been CMO at Service Express for 9 years now—during that tenure, revenue has grown from 30 million to 130 million, marketing efforts now contribute a whopping 70% of qualified leads in their sales pipeline, and their NPS score is currently at 90. Behind these impressive numbers is a lot of hard work, gaining executive buy-in, inspiring staff with an employee-first organizational purpose, and building a customer experience that drives satisfaction and referrals.
Leatherman is an expert on the metrics that matter, both the impressive ones listed above, and the ones that you look at behind the scenes to get there. It’s not about the number of meetings, it’s about the number of quality meetings; not the number of prospects, but the strategy behind how prospects are brought in and engaged. In this episode, you’ll get an up-close look at CMO math as Leatherman discusses how they calculate ROI and the essential steps to building a revenue-generating marketing engine.
What were some problem areas and how did you address them to drive business forward?
My mandate when I came in was to build a great demand marketing team that drives leads at the top of the funnel. When we started to build that team and send leads through, our field sales team had a difficult time following up on those leads, and I realized I had to build a sales development team that would follow up on those leads quickly. We’d learned that our prospects are 800% more likely to pick up the phone if we call them within five minutes of the lead coming through, so we created our sales development team to field those inbound leads. Because we have such a robust technology stack, we also built a revenue operations team, which is sales ops and marketing ops rolled into one. Increasingly, CMOs are spending more money on technology than anyone else in the organization, but too often the marketing teams are responsible for the deployment, implementation, and integration of those systems when they shouldn’t be. Our dedicated rev ops team objectively looks at the systems and data and have a dotted line of responsibility to me and our Chief Revenue Officer.
What does the rev ops team do exactly? How do you measure this program’s success?
They’re responsible for finding the best solution for both sales and marketing. Technology is only as good as the quality of data you use behind it, so this team really focuses on filling out and qualifying that data so that our sales dev, sales teams, and marketing teams don’t have to. 70% of new logo pipeline comes from marketing, which is a huge number. We went from 0% to 70% and I attribute all of that to the alignment we have with demand marketing, the follow up we get with sales development, and the checks and balances we have with our field and inside sales teams. When you look at the traditional sales and marketing funnel, every single prospect or customer in our CRM has a systematic way that they progress. No one can progress through and get lost in a black hole and that’s so important because, too often, sales and marketing are working in silos. Our revenue operations team ensures that every account, every prospect, has an owner and that there’s always a next step in that sales funnel.