Metrics That Matter: The Latest Research Questions: 1) What is the source of [Enter any extra notes here; leave the item ID line at the bottom] Avitage! Item ID: {{34EB5AEA-6F90-4FA7-9F60-0FF9B98AA9A7}} Stefan Tornquist, Director of Research MarketingSherpa Scott Santucci, CEO BluePrint Marketing Tuesday, November 14, 2006 © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Be Careful, Metrics Can Be Dangerous “I know I can cut 50% of the marketing budget, I just don’t know which 50%...Yet. © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

How Dangerous, Really? © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

What They Don’t Know Can Hurt You © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

- Boston Summit Attendee “Our organization has gained a lot of credibility over the year. This credibility has come with our ability to track leads to pipeline and demonstrate marketing value and accountability.” - Boston Summit Attendee © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Cost Per Lead Example Cost per Lead! Reduced costs in list acquisition  lower quality of contacts Cut content budget  lower quality events Cut promotion budget Lower attendance Set up for failure Cost per Lead! Well paid but fired marketer Unhappy sales © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

What we Should Try to Quantify Why is demand generation needed? What exactly is a lead? What are the expectations of the lead? What visibility to the lead does marketing have afterwards? What factors prevent success? Why is demand generation needed? Soften a beachhead? Build pipeline for next year? Drive revenue by 4th quarter revenue? Drive revenue this quarter? What exactly is a lead? Someone who wants to know about our product? Someone who wants to transact business this instant? A specific stakeholder in a targeted account who has a problem and would like to speak with someone about it? What are the expectations of the lead? The prospect has all of the information they need and the sales person just has to go in and differentiate their product against competitors? The prospect was to talk to someone about buying right now? The prospect has interest in a topic and would like to have a conversation about business issues? What visibility to the lead does marketing have afterwards? “I was working that deal for a while, the lead didn’t make any difference” Sales people never followed up on the lead The lead was strong and helped with the sale, but we don’t have a way to prove it © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

What exactly is a lead? © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

What are the expectations of the lead? © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

What visibility does marketing have after it passes a lead to sales? © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Measurement Program Phases Measure Strategy Objectives Planning Tactics Execution Results Phases Measure Baseline Quantifiable Objectives Operating Plan Responsibility Performance Program Summary © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Communicate the Success Measurement Program Finance Sales Leadership Marketing Team Finance Sales Teams Marketing Teams Finance Marketing Team Delivery Team Delivery Team Finance Marketing Team Finance Sales Leadership Sales Team Marketing Team Communicate Objectives Define the Problem Publish Assumptions Gain Buy In Pick the Mechanics Get it Done Communicate the Success Strategy Objectives Planning Tactics Execution Results Phases Measure Baseline Quantifiable Objectives Operating Plan Responsibilities? Performance Program Summary © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Communicate the Success Measurement Program Finance Sales Leadership Marketing Team Finance Sales Teams Marketing Teams Finance Marketing Team Delivery Team Delivery Team Finance Marketing Team Finance Sales Leadership Sales Team Marketing Team Communicate Objectives Define the Problem Publish Assumptions Gain Buy In Pick the Mechanics Get it Done Communicate the Success Strategy Objectives Planning Tactics Execution Results Phases Measure Baseline Quantifiable Objectives Operating Plan Responsibilities? Performance Program Summary © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Strategy: Build the Baseline Stakeholder Proficiency Analysis Conducted an extensive analysis which included: Review of marketing budget and programs Financial review of sales costs and company performance Audit of pipeline Interviews with product development, executives, sales, marketing, prospects, and customers Findings Identified average deal size was $32,000 (low for a company with a direct sales force) Average length of sales cycle was 4 months and growing The maximum number of sales opportunities each rep could handle at a given time was 20 Marketing’s credibility was very poor New sales reps required 6 months until they were effective Each product had 4 or 5 key benefits and the sales force was trained on every one – creating information overload Sales were stalled later in the sales process, lead generation was not a critical problem (however, new leads were mostly the result of good prospecting by sales, 70% of the leads produced by marketing were considered worthless) Pipeline Mechanics Content Audit © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Goals: Quantifiable Objectives Improve sales transaction size 50% (from $36,183 to $54,275) Decrease sales cycle 33% from (3 months to 2 months* est.) Improve our close rate 33% (from 17%) © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Implications: Gaining Buy In Cause (Objective) Effect (Impact on Revenue) Improve sales transaction size 50% 50% increase in revenue ($28.9 M) Decrease sales cycle 33% from 28% increase in revenue ($16.2 M) Improve our close rate 33% 10% increase in revenue ($5.9 M) Do all three at the same time 150% increase in revenue ($85.9 M)     © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

One Route to Buy In © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Integrated Demand Generation Program Sales process Exposure Qualification Proof of Concept Commitment Implementation Sales Manager Sales Manager Sales Manager Sales Manager Sales Sales Training Follow-Up Kits Follow-Up Kits Tele- Conference TC’s TC’s Power Summit Conference TC’s TC’s Immersion Workshop Events Content Development & Delivery SME SME SME SME Program Management Program Management Program Management Commitment of client Content Simplicity of content © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Communicating Results 1 2 3 4 © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Gaining Credibility © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Quantifiable Objective Scorecard Quantifiable Objective Result Improve sales transaction size 50% 41% increase Decrease sales cycle 33% from 25% decrease Improve our close rate 33% 6.5% close rate B+ B+ D © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Performance Measures Analysis per event Close rates / event Revenue / sale Teleconference 1.78% $57,813 Power Summits 3.36% $51,350 Conferences 3.01% $20,125 Multiple attend 8.70% $55,554 Total continuum 6.54% $51,114 Distribution of attendees 26% pure prospects 24% clients 50% client prospect Cost per new client $7,400 © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Thank you Stefan Tornquist, MarketingSherpa stefant@marketingsherpa.com (877) 895-1717 Scott Santucci BluePrint Marketing scott.santucci@blueprintmarketing.com (866) 240-4872 © 2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.