Steve Armenti

AMA: DigitalOcean VP Revenue Marketing, Steve Armenti on Demand Generation Strategy

April 24 @ 10:00AM PST
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DigitalOcean VP Revenue Marketing, Steve Armenti on Demand Generation Strategy
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Steve Armenti
Steve Armenti
DigitalOcean VP Revenue MarketingApril 24
Nand generation is going out into the market and generating interest in your product. Growth marketing is a process in which you develop a hypothesis, test that hypothesis through AB testing, measure the results, continuously iterate.
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1 request
Steve Armenti
Steve Armenti
DigitalOcean VP Revenue MarketingApril 24
It's pretty unique to company and your industry. But a good rule of thumb would be 60% brand and 40% demand
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355 Views
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Steve Armenti
Steve Armenti
DigitalOcean VP Revenue MarketingApril 24
One of the biggest variables is do you have product market fit. It's really hard to sell a crappy product to people that don't want it. So before any company should invest in demand generation, they need to take a look in the mirror at their product. Second, they really need to understand the customer and their pain points. Just
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1 request
Steve Armenti
Steve Armenti
DigitalOcean VP Revenue MarketingApril 24
Start with the customer. Who are they, what do they care about, what are their problems, they trying to solve for, Jobs are they trying to get done. Then look at product differentiation, messaging. Bring that together and analyze how the sales team has historically reached out. What are they saying, what kind of messaging are they using, what's working and what's not. Consider the skills and seniority of the sales team that is reaching out to leads.
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Steve Armenti
Steve Armenti
DigitalOcean VP Revenue MarketingApril 24
The biggest success I had was using AI I to map existing lead job titles to a specific taxonomy that I created. By organizing leads into that taxonomy, I was able to Target more precisely which type of leads I was paying for. This worked well because it reduced the number of junk leads and improved the cost efficiency of that campaign
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How do you balance demand gen targets against sales quotas and company-wide revenue goals?
Related to demand gen / sales alignment, specifically thinking about aligning quarterly targets and demonstrating Demnad Gen's contribution to revenue
Steve Armenti
Steve Armenti
DigitalOcean VP Revenue MarketingApril 24
I look at historical conversion rates or make an educated assumption on conversion rates, and then I look at my demand generation budget and back into the expected performance from that budget. I then compare that to the total sales or business Target for the year. I socialize that percentage as the marketing generated revenue number. If the company wants me to contribute a higher percentage to the total revenue then I need more budget. And that's really clear based on the model
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1 request
Steve Armenti
Steve Armenti
DigitalOcean VP Revenue MarketingApril 24
Basic email platform engagement. But most importantly, Are emails qualifying leads for outreach. Do emails speed up the qualification process. Do leads that engage with emails perform better in the sales cycle
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288 Views
1 request
Steve Armenti
Steve Armenti
DigitalOcean VP Revenue MarketingApril 24
Regional sales teams Sales ops Finance PMM Marketing ops Demand gen
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320 Views
1 request
Steve Armenti
Steve Armenti
DigitalOcean VP Revenue MarketingApril 24
The most common I would say are company size, company industry, Geo, recent funding, hiring, acquisitions, tech install. Then on lead title, job function, seniority.
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317 Views
2 requests
Steve Armenti
Steve Armenti
DigitalOcean VP Revenue MarketingApril 24
Look at marketing performance based on the revenue it's generated. Then break that down by Geo, campaign, and tactic. From there you will know what's working and what's not. Make recommendations for what you will continue to do and optimize, also what you are going to kill because of low performance.
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307 Views
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Steve Armenti
Steve Armenti
DigitalOcean VP Revenue MarketingApril 24
Always base it on revenue performance. When evaluating any channel think about the customer acquisition cost in that channel compared to the total lifetime value of any customers required from that channel. If those economics are not positive, you shouldn't be in that channel. There is too much pressure these days to be in every single channel. It's not necessary. What I've found is 20% of the channels you're in drive 80% of the revenue results. So keep testing until you find that 20%
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286 Views
1 request
Steve Armenti
Steve Armenti
DigitalOcean VP Revenue MarketingApril 24
This is tricky because lead generation providers want you to measure based on CPL or mqls. That's wrong. The truth is that none of these leads will be qualified or sales ready at the start. It's your job to identify your ICP and work with these vendors to receive leads that match your ICP. So I analyze vendor performance and match rate of my ICP. I also evaluate them based on lead quality, rejection rate, and data quality
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320 Views
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Steve Armenti
Steve Armenti
DigitalOcean VP Revenue MarketingApril 24
Step zero. Those things are really critical in order for demand to really work. I like to build a pitch deck and go around socializing my strategy and my forecast internally. I talked to sales, finance, product marketing, and even product. Just find the supporters in your company that are excited about what you're doing
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281 Views
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Steve Armenti
Steve Armenti
DigitalOcean VP Revenue MarketingApril 24
Paid search Paid social Content syndication Sponsored events Partner co-marketing SEO
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300 Views
1 request
Steve Armenti
Steve Armenti
DigitalOcean VP Revenue MarketingApril 24
It depends on the duration of your customer life cycle. Since I've been in mostly B2B where the sales cycle is 6 plus months, I would focus on one and then the other.
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308 Views
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