B2B Marketing with Dave Gerhardt

Episode #212: Lessons for First-Time Marketing Leaders with Michael Cole, SVP of Everflow

Release Date: January 20, 2025

Introduction

In Episode #212 of B2B Marketing with Dave Gerhardt, host Dave Gerhardt welcomes Michael Cole, the Senior Vice President of Marketing at Everflow. Michael shares his journey from being the inaugural marketing hire at a 15-person startup to leading a robust 16-member marketing team at a flourishing $24 million ARR company. The conversation delves into building a marketing function from scratch, leveraging referrals and events for growth, optimizing paid advertising, structuring marketing teams, and cultivating a productive relationship with the CEO.

Guest Background

Michael Cole joined Everflow six years ago when the company was a budding 15-person startup. Everflow, a partner marketing platform specializing in affiliate and referral programs, had swiftly scaled to 1100 customers and achieved $24 million in annual revenue—all while remaining bootstrapped. Michael's role has been pivotal in transforming Everflow's marketing strategy and team structure, driving consistent growth through strategic initiatives.

Joining Everflow: The Early Days

Michael's entry into Everflow was unconventional yet strategic. As a satisfied customer and a power user of Everflow's platform, he transitioned from being client number 23 to the company's first full-time marketer. This unique position allowed him to understand the product intimately and leverage his experience in the mobile ad network space to foster Everflow's growth.

Michael Cole [07:02]: "I'd been a customer for two years, I knew the product inside and out. It was a really awesome situation to grow it."

Building the Marketing Function

Upon joining, Michael's initial focus was on stabilizing and organizing the existing marketing efforts. He addressed immediate needs such as revamping the company website, enhancing customer success resources, and organizing participation in industry conferences.

• Referrals and Customer Success: Michael identified referrals as Everflow's most potent growth channel. By empowering the customer success team to nurture happy customers and encourage referrals, Michael established a robust referral program that significantly boosted customer acquisition.

  Michael Cole [14:58]: "Marketing is one of those things where, like, if you ask, you just gotta ask for referrals."

• Events and Networking: Recognizing the value of face-to-face interactions, Everflow began hosting parties at major affiliate marketing conferences. These events not only strengthened existing customer relationships but also fostered new connections, enhancing brand visibility and generating word-of-mouth referrals.

  Michael Cole [17:29]: "We just want to have a happy place where you invite your customers, you have some prospects invited. Everyone's just happy."

Growth Tactics: Referrals, Events, and Paid Advertising

Michael outlines three primary growth strategies that Everflow employed:

1. Referral Programs: By formalizing referral processes and incentivizing happy customers, Everflow achieved a 2.4 times higher conversion rate from referrals compared to other channels. This approach leveraged genuine customer satisfaction to drive sustainable growth.

2. Hosting Events: Strategic participation and hosting of events at key industry conferences helped Everflow build a strong brand presence. These gatherings became synonymous with Everflow's community, fostering loyalty and attracting new leads through organic conversations.

3. Paid Advertising: While referrals and events formed the backbone of Everflow's growth, paid advertising—specifically Google Ads—played a supplementary role. Initially challenging due to lead quality issues, Michael and his team optimized their ad strategies to focus on high-intent keywords, ensuring a positive ROI despite the inherent noise of paid channels.

Michael Cole [26:19]: "It's ROI positive, but just barely. It's one of those things where it's so much noise."

Building a Scalable Marketing Team

As Everflow grew, Michael emphasized the importance of team structure and accountability. Inspired by frameworks discussed on Dave's podcast, he maintained a policy where no team member managed more than five direct reports, fostering clear ownership and efficient communication within the team.

Dave Gerhardt [19:26]: "Let's think about what are the jobs to be done for your marketing team."

• Current Team Structure: Today, Everflow's 16-person marketing team includes roles such as product marketers, demand generation specialists, content creators, and a dedicated partnership team handling referrals and agency relationships. This diversified structure allows for specialized focus areas while maintaining cohesive strategy execution.

  Michael Cole [46:08]: "We have the product marketer, the demand gen person, three content people, and our partnership team."

Leveraging AI in Marketing

Michael integrates AI tools to enhance Everflow's marketing efficiency. By utilizing AI-generated transcripts from fireside chats and customer interactions, the team can quickly produce content, identify customer sentiments, and inform product marketing strategies. Tools like Fathom assist in tracking feature adoption and gathering actionable insights from customer feedback.

Michael Cole [38:39]: "We use AI to pull out themes and patterns, which helps us understand customer needs better."

Relationship with the CEO and Setting Goals

Maintaining a transparent and revenue-focused relationship with the CEO has been crucial for Michael. Regular updates and leadership meetings ensure alignment on company goals, primarily centered around revenue and customer acquisition. This alignment allows the marketing team to prioritize initiatives that directly impact the company's bottom line.

Michael Cole [42:36]: "We're looking at what drove customers and working backwards."

• Goal Setting: Goals are derived from comprehensive data analysis, focusing on high-impact areas like agency partnerships and referral programs. Michael ensures that team efforts are aligned with overarching business objectives, fostering a results-driven culture.

Lessons Learned and Advice for First-Time Marketing Leaders

Reflecting on his six-year journey, Michael highlights several key lessons:

1. Prioritize a Great Product and Customer Success: A strong product coupled with exceptional customer service lays the foundation for sustainable growth and sets the stage for effective referral programs.

   Michael Cole [47:28]: "There better be a good product that people actually like and there better be customer success."

2. Implement Robust Referral Programs Early: Leveraging satisfied customers to generate referrals can significantly enhance conversion rates and reduce acquisition costs.

3. Adapt and Evolve with Data: Continuously analyze performance data to refine strategies, ensuring that marketing efforts remain aligned with company growth stages and market dynamics.

4. Foster Team Accountability: Clear ownership and limiting direct reports enhance team efficiency and ensure that each member can contribute effectively without being overburdened.

5. Embrace Simplicity in Marketing Tactics: Often, the most straightforward strategies—like asking for referrals and hosting community-building events—yield the most substantial results without overcomplicating the marketing approach.

Conclusion

Michael Cole's insights offer a blueprint for first-time marketing leaders aiming to build and scale a marketing function within a growing B2B company. His emphasis on customer-centric strategies, strategic event participation, optimized paid advertising, and a well-structured team underscores the multifaceted approach required for sustainable growth. Aspiring marketing leaders can draw valuable lessons from Michael's journey, particularly the importance of adaptability, data-driven decision-making, and fostering a strong team culture.

For more detailed discussions and strategies, listen to the full episode here.

Notable Quotes

• Michael Cole [14:58]: "Marketing is one of those things where, like, if you ask, you just gotta ask for referrals."

• Michael Cole [17:29]: "We just want to have a happy place where you invite your customers, you have some prospects invited. Everyone's just happy."

• Michael Cole [26:19]: "It's ROI positive, but just barely. It's one of those things where it's so much noise."

• Michael Cole [38:39]: "We use AI to pull out themes and patterns, which helps us understand customer needs better."

• Michael Cole [47:28]: "There better be a good product that people actually like and there better be customer success."

This comprehensive summary encapsulates the core discussions and insights shared by Michael Cole on how to lead and grow a marketing function in a fast-paced B2B environment. Whether you're a budding marketing leader or looking to refine your strategies, Michael's experiences offer actionable takeaways to drive your marketing initiatives forward.