Marketing Today with Alan Hart

Episode 447: Measuring Your Marketing Impact with Andrew Bennett, CMO of Conga
Release Date: November 27, 2024

Introduction

In Episode 447 of Marketing Today with Alan Hart, host Alan Hart engages in an insightful conversation with Andrew Bennett, the Chief Marketing Officer (CMO) of Conga. With a rich background in both technology and entrepreneurial ventures, Andrew brings a wealth of experience in digital marketing, demand generation, and sales alignment. This episode delves into his strategies for measuring marketing impact, optimizing Martech stacks, and fostering collaborative relationships between marketing and sales teams.

Andrew Bennett’s Journey to Conga

Background and Early Career
Andrew Bennett began his career at Onyx Software Corporation, a mid-market CRM company, where he spent nine years in various roles, eventually leading the professional services and implementation team for America. Seeking a change, Andrew pursued his passion for the outdoors by running remote fly fishing lodges for nine years, where he honed his entrepreneurial and operational skills.

Transition Back to Technology
Recognizing the significant impact of his marketing efforts in the fly fishing business, Andrew returned to the tech sector, joining Smartsheet as a consultant before transitioning to a full-time role. Over a decade at Smartsheet, he built foundational digital marketing strategies, led commercial sales teams, and ultimately served as the CMO, overseeing comprehensive marketing functions. Six months prior to the interview, Andrew took on his current role at Conga, aiming to scale his expertise in a larger organizational setting.

Notable Quote:
"If you want to get really good at attribution, spend your own money." (05:17)

Understanding Conga’s Business and Offerings

Conga’s Scope and Solutions
Conga is positioned as a leader in revenue lifecycle management, handling approximately $500 million in business revenue lifecycle activities. The company offers three main product pillars:

1. Configure Price Quote (CPQ): Tools for configuring products, pricing them, and managing quotes.
2. Contract Lifecycle Management (CLM): Solutions for managing contracts from creation to execution.
3. Document Automation: Includes products like Conga Composer for generating documents and a signature solution.

Unified Platform Launch
A significant highlight is Conga’s upcoming launch of a unified platform that integrates all product pillars, supports any CRM or ERP system, and offers extensive APIs. This consolidation aims to eliminate silos, enhance operational efficiency, and leverage AI capabilities, positioning Conga for substantial growth.

Notable Quote:
"When companies run those three components on separate systems in silos, it doesn't work very well." (10:17)

Aligning Marketing and Sales

Principles for Alignment
Andrew emphasizes two core principles for effective marketing and sales alignment:

1. Understanding the Entire Go-to-Market Process:
   Marketing's role extends beyond lead generation; it involves tracking the lead's journey through the sales funnel and understanding the ultimate business outcomes, such as revenue and net dollar retention.

   Notable Quote:
   "We need to understand what's actually happening to the lead once it gets into the hands of sales." (11:32)

2. Fostering Mutual Understanding:
   Andrew advocates for marketers and sales teams to deeply understand each other’s roles and challenges. This includes formal presentations where sales teams share their daily routines, compensation structures, and the impact of marketing programs on their efforts.

   Notable Quote:
   "The better understanding we can drive together, the better." (15:49)

Practical Applications
At Conga, Andrew has implemented sessions where Business Development Representatives (BDRs) present to marketing teams, detailing their workflows and providing real-time insights like call recordings. This practice has led to improved collaboration and more effective marketing strategies tailored to sales needs.

Optimizing and Rationalizing Martech Stacks

Navigating an Expanding Martech Landscape
2024 has seen a significant expansion and consolidation in Martech stacks. Andrew advises marketers to prioritize tools that directly impact customer experience and business outcomes over those that are internally focused.

Key Strategies:

1. Measure Business Impact Over Leading Indicators:
   While tools that provide intent signals or new advertising platforms may seem enticing, their true value lies in how they translate to tangible business results like bookings and net dollar retention.

   Notable Quote:
   "Measure as far down the funnel as possible." (21:08)

2. Ruthlessly Evaluate Tool Effectiveness:
   Regularly assess whether existing tools are delivering expected returns. If a tool's impact is minimal, consider discontinuing its use to reduce administrative burdens and integration complexities.

   Notable Quote:
   "If you have a system that you can't really be convinced is adding a ton of value, stop." (19:43)

3. Focus on Customer Experience Enhancements:
   Prioritize Martech investments that enhance the customer journey, ensuring that engagements are seamless and impactful.

Measuring Marketing Impact and Attribution

Approach to Measurement
Andrew underscores the importance of establishing clear, measurable outcomes for every marketing initiative. This involves setting expectations, diligently tracking performance against these benchmarks, and embracing a culture of accountability and continuous learning.

Steps to Effective Measurement:

1. Define Expected Outcomes:
   Before launching a campaign, clearly articulate what success looks like, whether it's increased website visits, higher attendance at events, or direct revenue generation.

2. Implement Comprehensive Tracking:
   Use data and analytics to monitor the performance of marketing programs, ensuring that each initiative is contributing to business objectives.

3. Cultural Acceptance of Failure:
   Encourage a mindset where unsuccessful campaigns are seen as learning opportunities rather than setbacks.

   Notable Quote:
   "Be totally fine when a program falls short. That's not the important part. The important part is that we know the impact we understand and we've learned." (21:08)

4. Advanced Metrics:
   For SaaS businesses, metrics like net dollar retention rate offer deeper insights into customer value over time, informing more strategic investment decisions.

   Notable Quote:
   "When you flow out those rates over years, there actually is a huge difference between a 90% net dollar retention rate and even 110% net dollar retention rate." (25:35)

Innovative Brand Sponsorship: The McLaren Racing Example

Leveraging Sponsorship for Greater Impact
At Smartsheet, Andrew spearheaded a unique approach to maximizing brand sponsorship benefits through a partnership with the McLaren Formula One team. Instead of traditional sponsorship benefits like logo placement, Smartsheet redirected the sponsorship to support nonprofits, using the platform to tell compelling stories about impactful organizations.

Execution and Results:

1. Sponsor X Program:
   Smartsheet removed its logo from select McLaren F1 cars and instead partnered with nonprofits like Deadly Science, allowing these organizations to gain visibility on the cars.

2. Storytelling and PR:
   By spotlighting nonprofits, Smartsheet generated significant PR buzz, social engagement, and meaningful support for the featured organizations, enhancing brand perception and reach.

   Notable Quote:
   "We used the platform to tell the world about Deadly Science. They got more funding, they got a deal with the Australian Postal service, and the campaign's reach looked fabulous relative to other brand spend." (30:12)

Impact:
This innovative strategy not only amplified brand awareness but also fostered internal morale and demonstrated a commitment to social responsibility, effectively "growth hacking" the sponsorship for maximum benefit.

Personal Insights and Lessons Learned

Defining Experiences:
Running a small fly fishing lodge taught Andrew the importance of operational excellence, resource management, and the multifaceted nature of business roles. This experience instilled a deep appreciation for the challenges of small businesses and the value of versatile skill sets.

Advice to Younger Self:
Andrew recalls the "social bank account" analogy introduced by a mentor, highlighting the importance of fostering positive relationships through consistent "deposits" (supportive actions) to maintain strong professional connections.

Notable Quote:
"Imagine that there's a bank account for every relationship, and every interaction is either a deposit or a withdrawal. Never let any balance go below zero." (33:17)

Continuous Learning and Adaptation

Commitment to Understanding Sales:
Andrew emphasizes the necessity for marketers to continuously learn about sales dynamics, including compensation structures, sales methodologies, and organizational structures. This ongoing education fosters better alignment and more effective marketing strategies.

Key Takeaway:
“If you try to learn constantly about what's happening in sales, you become more effective and build better relationships.” (37:08)

Conclusion: Opportunities and Threats in Modern Marketing

Largest Opportunity:
Positioning marketing as a key partner in the go-to-market strategy. By fostering collaborative relationships and viewing marketing and sales as unified teams, businesses can enhance credibility with stakeholders and drive better business outcomes.

Largest Threat:
Maintaining Martech efficiency amidst rapid expansion and avoiding investments in tools that do not deliver measurable business impact.

Final Thought:
Andrew encourages marketers to "know you're a key part but act like it," emphasizing proactive partnership and accountability within organizational structures.

Notable Quote:
"Know you're a key part but act like it." (40:56)

Final Remarks

Alan Hart thanks Andrew Bennett for his valuable insights, highlighting the enlightening nature of the conversation. Listeners are encouraged to implement Andrew’s strategies for measuring marketing impact, optimizing Martech stacks, and fostering strong marketing-sales collaborations to drive their businesses forward.

This summary captures the essence of Episode 447, providing actionable insights and comprehensive understanding for marketers aiming to enhance their impact and align their strategies with business goals.