INTRODUCTION TABLE OF CONTENTS

Determining the success of your programs and analyzing key performance indicators (KPIs) can be challenging if you don’t have access to industry data. Introduction p3

HubSpot partnered with Qualtrics to find out how companies are generating Top Five Trends p4 demand for their brands and how successful they’ve been in their efforts. We surveyed more than 900 marketers, management level and above -- from all Funnel Benchmarks different industries -- in North America and Europe. This report provides data on KPIs like website visitors, leads, opportunities and by: p6 Revenue...... customers, how marketers are allocating their budgets across various tactics p17 Industry...... and channels, email open and click-through rate statistics, and -- ultimately All Responses...... p18 -- revenue generation.

Cost Per Lead Benchmarks Presented below are the results of that survey, along with actionable insights by: Revenue...... p21 for your own future demand generation strategies. Industry...... p21 Company Size...... p22 All Responses...... p22

Email Benchmarks by: Revenue...... p23 Company Size...... p25 Industry...... p27 All Responses...... p29 Created By Top Marketing Investments Author: Co-Author: by: All Responses...... p31 Laurie Aquilante Alexandra Orfao Industry...... p32 @laquilante @AOrfao369 Head of Enterprise Marketing, Inbound Marketing Specialist, Summary of Results p34 HubSpot HubSpot

HUBSPOT • Demand Generation Report • 2015 3 TOP 5 TRENDS In addition, 40% of those not achieving their revenue goals didn’t know their click-through rate. That’s 90% more than those exceeding their revenue goals.

Short on time? Here is an executive summary of the five key trends we found 34% of those not achieving their revenue goals didn’t know their open in this data. rate - 52% more than those exceeding their revenue goals.

1) Companies meeting or exceeding their revenue goals attract significantly more website traffic and generate more leads, 4) Companies exceeding their revenue goals report branding, Marketing Qualified Leads (MQLs), opportunities, and website design and optimization, and social media as their customers than those that aren’t. (Tweet this stat) top 3 marketing investments. (Tweet this stat)

As you’ll see in the Funnel Benchmarks by Revenue section, nearly 80% These are also the top three investments reported by all survey of companies not meeting their revenue goals attract 10,000 monthly respondents. The lowest investments are in telemarketing and traditional website visitors or less. advertising.

For those exceeding their revenue goals, nearly the reverse is true. 70% 5) 24% of telecommunications companies aren’t reaching their report attracting more than 10,000 visitors per month. revenue goals (20% higher than average) and it is one of the few industries still ranking telemarketing and traditional Skip to the Funnel Benchmarks by Revenue section for more data on the advertising among their top investments. (Tweet this stat) relationship between visits, leads, MQLs, opportunities, or customers and revenue achievement. By contrast, the most successful companies rank branding, website design and optimization, and social media as top investments. 2) Companies with the highest annual revenue also report more visitors, leads, MQLs, sales opportunities, and customers than other companies. (Tweet this stat).

82% of companies generating $250,000 or less in annual revenue report generating less than 100 leads per month whereas only 8% of companies generating $1 billion in annual revenue report the same.

3) In general, the less companies knew about their KPIs, the less likely they were to meet their revenue goals. (Tweet this stat)

74% of companies that weren’t exceeding revenue goals did not know their visitor, lead, MQL, or sales opportunities.

HUBSPOT • Demand Generation Report • 2015 4 HUBSPOT • Demand Generation Report • 2015 5 Number of Website Visitors per Month 30%

25%

20%

15% FUNNEL10% BENCHMARKS: 5% Website Visitors per Month by Annual Revenue Percent of Respondents BY 0%REVENUE 70% 0-1K 1K-10K 10K-50K 50K-100K 100K-1M 1M-5M 5M+ 60% Visitors per Month

50% <$250K WebsiteDemand Generation Visitors Benchmark Report, 2015 40% $250K-1M $1M-10M 30% $10M-500M Average Website Visitors per Month by Revenue Percent of Respondents 20% Visitors / Month $500M-1B Achievement 10% Exceeding Revenue Goals 50,000 - 100,000 $1B+ Not Achieving Revenue Achieving Revenue Exceeding Revenue Achieving Revenue Goals 10,000 - 50,000 0% 60% Not Achieving Revenue Goals 1,000 - 10,000 0 - 1K 1K-10K 10K-50K 50K-100K 100K-1M 1M-5M 5M+ 50% Visitors per Month 40% 30% Demand Generation Benchmark Report, 2015 20% 10%

Percent of Total Respondents 0% 0-1K 1K-10K 10K-50K 50K-100K 100K-1M 1M-5M 5M+ As the charts above and below show, the lower the annual revenue for a

Website Visitors company, the lower the number of monthly website visitors.

Demand Generation Benchmark Report, 2015 Annual Revenue Average Visitors / Month <$250K 1 - 1,000 $250K - 1M 1,000 - 10,000 Companies achieving and exceeding their revenue goals report significantly $1M - 10M 10,000 - 50,000 more website traffic than those that aren’t. $10M - 500M 10,000 - 50,000 $500M - 1B 50,000 - 100,000 Average $1B+ 100,000 - 1,000,000 Visitors / Month Exceeding Revenue Goals 50,000 - 100,000 Achieving Revenue Goals 10,000 - 50,000 92% of companies with annual revenues of $250,000 or less generate Not Achieving Revenue Goals 1,000 - 10,000 10,000 or fewer monthly website visitors. For $1 billion companies, the reverse is true. 92% generate more than 10,000 visitors per month. More than 50% of companies that aren’t meeting their revenue goals generate less than 1,000 visitors per month and 80% generate less than 10,000. For For companies generating less than $250,000 in annual revenue, the those exceeding their revenue goals, nearly the reverse is true. 70% attract average number of monthly visitors is between 1 and 1,000, whereas more than 10,000 visitors per month. the average for companies generating more than $1 billion in revenue is 100,000 to 1 million. As you’ll see in the following sections, there is also a correlation between Annual Revenue Average Visitors / Month website visitors and annual revenue. <$250K 1 - 1,000 $250K - 1M 1,000 - 10,000 $1M - 10M 10,000 - 50,000 $10M - 500M 10,000 - 50,000 $500M - 1B 50,000 - 100,000 $1B+ 100,000 - 1,000,000 HUBSPOT • Demand Generation Report • 2015 6 HUBSPOT • Demand Generation Report • 2015 7 Number of Leads per Month 45% 40% 35% 30% 25% 20% 15% 10% Percent of Respondents 5% 0% 1 - 100 100 - 500 500 - 1,000 1,000 - 2,500 - 5,000 - 10,000+ 2,500 5,000 10,000 Leads per Month

Demand Generation Benchmark Report, 2015

Leads Leads per Month by Annual Revenue 90% 80% Leads per Month by Revenue Achievement 70% Average <$250K Not Achieving Revenue Achieving Revenue Exceeding Revenue 60% Leads / Month 50% $250K-1M Exceeding Revenue Goals 1,000 - 2,500 80% 40% $1M-10M 70% 30% Achieving Revenue Goals 500 - 1,000 60% 20% $10M-500M

Percent of Respondents Not Achieving Revenue Goals 101 - 500 50% 10% $500M-1B 40% 0% 30% 1 - 100 100 - 500 500 - 1,000- 2,500 - 5,000 - 10,000 + $1B+ 20% 1,000 2,500 5,000 10,000

Percent of Respondents 10% Number of Leads per Month 0% 1-100 100-500 500-1,000 1,000-2,500 2,500-5,000 5,000 - 10,000 + 10,000 Demand Generation Benchmark Report, 2015 Number of Leads per Month

Demand Generation Benchmark Report, 2015 Annual Revenue Average Leads / Month <$250K 1 - 100 $250K - 1M 100 - 500 While the majority of companies are generating fewer than 500 leads per $1M - 10M 100 - 500 month, the same pattern exists here as with website visitors. $10M - 500M 500 - 1,000 $500M - 1B 1,000 - 2,500 Average Leads / Month $1B+ 2,500 - 5,000 Exceeding Revenue Goals 1,000 - 2,500 Achieving Revenue Goals 500 - 1,000 Not Achieving Revenue Goals 101 - 500 Also as one might expect, the more revenue a company has, the more leads they generate. Over 70% of those not achieving their revenue goals generate less than 100 leads per month and only 5% generate more than 2,500 leads per month. The differences are most drastic at the highest and lowest end of the Companies achieving their revenue goals report slightly higher numbers, spectrum. 82% of companies with $250,000 or less in annual revenue report with only 36% generating 100 leads or less per month. generating less than 100 leads per month whereas only 8% of companies

generating $1 billion in annual revenue report less than 100 leads per month.

By contrast, companiesAnnual that Revenue are exceedingAverage their Leads revenue / Month goals have a higher overall overage and<$250K report much more varied responses.1 - 100 In fact, more than half of those exceeding$250K their - 1M revenue goals report100 1,000 - 500 leads or more per $1M - 10M 100 - 500 month and 41% generate$10M - 500Mmore than 2,500 per month.500 - 1,000 $500M - 1B 1,000 - 2,500 $1B+ 2,500 - 5,000

HUBSPOT • Demand Generation Report • 2015 8 HUBSPOT • Demand Generation Report • 2015 9 Number of MQLs per Month 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% Percent of Respondents 0% 1 - 100 100 - 500 500 - 1,000 1,000 - 2,500 - 5,000 - 10,000 + 2,500 5,000 10,000 Number of MQLs per Month

Demand Generation Benchmark Report, 2015 Marketing Qualified Leads (MQLs) MQLs per Month by Annual Revenue

MQLs per Month by Revenue Achievement 100% 90% Not Achieving Revenue Achieving Revenue Exceeding Revenue 80% 70% 90% <$250K 60% 80% $250K-1M 50% 70% 40% $1M-10M 60% 30% $10M-500M

50% Percentage of Respondents 20% 40% $500M-1B 10% 30% $1B+ 0% Percent of Respondents 20% 1 - 100 100 - 500 500 - 1,000 - 2,500 - 5,000 - 10,000 + 10% 1,000 2,500 5,000 10,000 0% Number of MQLs per Month 1 - 100 100 - 500 500 - 1,000 1,000 - 2,500 2,500 - 5,000 - 10,000 + 5,000 10,000 Demand Generation Benchmark Report, 2015 Number of MQLs per Month

Demand Generation Benchmark Report, 2015

Annual Revenue Average MQLs / Month <$250K 1 - 100 Average $250K - 1M 100 - 500 MQLs / Month $1M - 10M 100 - 500 Exceeding Revenue Goals 500 - 1,000 $10M - 500M 500 - 1,000 Achieving Revenue Goals 100 - 500 $500M - 1B 1,000 - 2,500 Not Achieving Revenue Goals 1 - 100 $1B+ 1,000 - 2,500

Most companies are generating less than 100 MQLs per month. However, Companies with higher revenues also generate more MQLs. the correlation with revenue achievement is present in this data set as well. Companies that are exceeding their revenue goals generate more MQLs 95% of companies generating $250,000 or less in annual revenue generate than those that aren’t. 500 MQLs or less per month, whereas over half of $1 billion and above companies generate more than 1,000 MQLs per month. 91% of companies not achieving their revenue goals generate 500 MQLs or less per month, whereas the same is true for only 45% of companies The differences for companies in the middle of this scale aren’t as drastic exceeding their revenue goals. for opportunities as they are for visitors and leads. As you can see in the chart above, companies from $250,000 in annual revenue to $10 million Companies that are exceeding their revenue goals generate on average all average the same number of MQLs, as do the companies above $500 between 500 and 1,000 MQLs per month while those that aren’t achieving million. them only average 1-100. However, the overall correlation between revenue and MQLs does exist.

HUBSPOT • Demand Generation Report • 2015 10 HUBSPOT • Demand Generation Report • 2015 11 Opportunities per Month 45% 40% 35% 30% 25% 20% 15% 10% 5% Percent of Respondents 0% 1-50 50-100 100-300 300-500 500-800 800+ Number of Opportunities

OpportunitiesDemand Generation Benchmark Report, 2015 Opportunities per Month by Annual Revenue Sales Opportunities per Month by Revenue 90% Achievement 80% 70% <$250K Not Achieving Revenue Achieving Revenue Exceeding Revenue 60% $250K-1M 80% 50% $1M-10M 70% 40% 30% 60% $10M-500M 20% 50% $500M-1B

Percentage of Respondents 10% 40% 0% $1B+ 30% 1-50 51 - 100 100-300 300-500 500-800 801 + 20% Annual Revenue Percent of Respondents Percent of 10% 0% Demand Generation Benchmark Report, 2015 1 - 50 50 -100 100 - 300 300 - 500 500 - 800 800+ Number of Opportunities

Demand Generation Benchmark Report, 2015 Annual Revenue Average Opps / Month <$250K 50 - 100 $250K - 1M 50 - 100 $1M - 10M 100 - 200 Average Sales Opportunities / Month $10M - 500M 200 - 300 Exceeding Revenue Goals 300 - 400 $500M - 1B 300 - 400 Achieving Revenue Goals 100 - 200 $1B+ 400 - 500 Not Achieving Revenue Goals 50 - 100

The pattern we’ve been seeing continues here as well. Nearly 80% of As you might imagine, the benchmarks for opportunities follow a similar companies with $250,000 or less in annual revenue report generate 50 pattern to those for visitors, leads, and MQLs. opportunities or less per month, whereas 82% of $1 billion companies generate more than 50 opportunities per month. Companies achieving and exceeding their revenue goals report more opportunities than those that aren’t. For $1 million companies, 35% report 50 opportunities or less per month and nearly 30% report between 50 and 200. 87% of companies that are not achieving their revenue goals generate less than 100 opportunities per month, while the same is true for only 20% of those exceeding their goals.

HUBSPOT • Demand Generation Report • 2015 12 HUBSPOT • Demand Generation Report • 2015 13 Customers per Month 60%

50%

40%

30%

20%

10% Percnet of Respondents 0% 1-50 50-100 100-300 300-500 500-800 800+ Number of Customers per Month

CustomersDemand Generation Benchmark Report, 2015 Customers per Month by Annual Revenue 90% Customers per Month by Revenue Achievement 80% Not Achieving Revenue Achieving Revenue Exceeding Revenue 70%

90% 60% <$250K 80% 50% $250K-1M 70% 40% $1M-10M 60% 30% $10M-500M 50%

Percent of Respondents 20% $500M-1B 40% 10% $1B+ 30% 0% Percent of Respondents 20% 1-50 50-100 100-300 300-500 500-800 801 + 10% Customers per Month 0% 1-50 50-100 100-300 300-500 500-800 800+ Demand Generation Benchmark Report, 2015 Number of Customers Demand Generation Benchmark Report, 2015

Average Annual Revenue Customers / Month Average Customers / Month <$250K 1 - 50 Exceeding Revenue Goals 400 - 500 $250K - 1M 50 - 100 Achieving Revenue Goals 100 - 200 $1M - 10M 100 - 200 $10M - 500M 200 - 300 Not Achieving Revenue Goals 50 - 100 $500M - 1B 300 - 400 $1B+ 300 - 400

As you might expect, there is a strong correlation between the companies that report exceeding their revenue goals and those that report having a 93% of companies reporting $250,000 or less in annual revenue also report higher number of customers. 100 customers or less per month, while $1 billion companies report a wider variety in the number of customers they generate. Nearly one third of those As you’ll see in the charts below, there is also a correlation between having companies report generating more than 800 customers per month. more annual revenue and a higher number of customers. Knowing The Numbers

Of companies that weren’t exceeding revenue goals did not know their visitor, lead, MQL, or sales opportunities. 74%

HUBSPOT • Demand Generation Report • 2015 14 HUBSPOT • Demand Generation Report • 2015 15 Key Takeaways FUNNEL BENCHMARKS:

Companies exceeding their revenue goals and those that report more annual BY INDUSTRY revenue also report a higher number of monthly website visitors, leads,

MQLs, sales opportunities, and customers. Average Monthly Industry Visitors Leads MQLs Sales Ops Customers Of the companies not achieving their revenue goals, nearly 80% generate Education 10,000 - 50,000 100 - 500 100 - 500 100 - 200 100 - 200 10,000 monthly website visitors or less. 70% of those exceeding their Healthcare & 10,000 - 50,000 100 - 500 100 - 500 100 - 200 100 - 200 revenue goals attract more than 10,000 visitors per month. Medical Marketing 10,000 - 50,000 100 - 500 100 - 500 100 - 200 100 - 200 While achieving a high number of website visitors shouldn’t be the your Agencies goal, attracting traffic to your site is a key part of bringing potential leads Consulting 10,000 - 50,000 100 - 500 100 - 500 100 - 200 100 - 200 Industrial & into your funnel. It’s estimated that around 78% of Internet users do product 10,000 - 50,000 100 - 500 100 - 500 100 - 200 50 - 100 Manufacturing research online before making a purchase. Attracting the right type of traffic Media & 10,000 - 50,000 100 - 500 100 - 500 100 - 200 50 - 100 is also key to the Inbound Methodology. Publishing

Travel & Tourism 10,000 - 50,000 500 - 1,000 500 - 1,000 100 - 200 300 - 400 is also important, whether it’s converting a portion of Software 10,000 - 50,000 500 - 1,000 500 - 1,000 100 - 200 50 - 100 website visitors or generating leads from other sources. Again, companies Information 10,000 - 50,000 500 - 1,000 500 - 1,000 200 - 300 200 - 300 generating more leads also report achieving or exceeding their revenue goals Tech & Services more often and report higher annual revenues. The average number of leads Consumer 10,000 - 50,000 500 - 1,000 500 - 1,000 300 - 400 200 - 300 for companies exceeding their revenue goals is 1,000 – 2,500 per month, Products Financial 50,000 - 100,000 500 - 1,000 500 - 1,000 200 - 300 200 - 300 while companies not achieving their revenue goals only average 100-500. Services Demand Generation Benchmark Report, 2015 As we move down the funnel, the correlation holds. Companies exceeding their revenue goals generate about 300-900 more MQLs per month than There weren’t many differences across industries in terms of website visitors, companies not achieving their goals. Those with $250,000 in annual revenue leads, MQLs, or sales opportunities generated. Here are the noteworthy report, on average, 100 MQLs or less per month, 50-100 opportunities, and ones: 1-50 customers. By contrast, $1 billion companies report on average, 1,000 – 2,500 MQLs, 400-500 opportunities, and 300-400 customers per month. • In all industries except Financial Services, the average number of monthly website visitors is 10,000 - 50,000. A solid lead nurturing strategy and effective are key • Financial Services companies report the highest number of visitors but to moving leads down the funnel. According to Marketing Sherpa, 79% of all around the same number of leads, MQLs, opportunities, and customers, marketing leads never convert into sales and a lack of lead nurturing is the possibly indicating lower conversion rates. common cause. (See this and more stats here). Here are some tips on lead • Travel & Tourism, Software, Information Technology & Services, and nurturing and choosing the right marketing automation vendor. Consumer Products companies report the highest numbers of leads and MQLs, but the same number of website visits as other industries. • Travel and Tourism companies report the highest number of customers, while reporting similar numbers in other areas, possibly suggesting higher conversion rates.

HUBSPOT • Demand Generation Report • 2015 16 HUBSPOT • Demand Generation Report • 2015 17 FUNNEL BENCHMARKS: Leads ALL RESPONSES Number of Leads per Month 45% 40% Website Visitors 35% 30% 25% 20% Number of Website Visitors per Month 15% 10% 30% Percent of Respondents 5% 0% 25% 1 - 100 100 - 500 500 - 1,000 1,000 - 2,500 - 5,000 - 10,000+ 20% 2,500 5,000 10,000 Leads per Month 15%

10% Demand Generation Benchmark Report, 2015 5% Percent of Respondents 0% 0-1K 1K-10K 10K-50K 50K-100K 100K-1M 1M-5M 5M+ 58% of companies generate 500 leads per month or less and 71% generate Visitors per Month 1,000 or less. However, as we saw previously, the companies having the Leads per Month by Revenue Achievement Demand Generation Benchmark Report, 2015 most success are also the ones generating the most leads. Not Achieving Revenue Achieving Revenue Exceeding Revenue

80% 70% The majority of companies report between 1,000 and 10,000 visitors per Website Visitors per Month by Revenue Marketing60% Qualified Leads (MQLs) month. Nearly 50% report 10,000 monthly visitors or less. 50% Achievement 40% 30% Number of MQLs per Month Not Achieving Revenue Achieving Revenue Exceeding Revenue 20%

As we covered in the sections above, those that are exceeding their revenue Percent of Respondents 50%10% 60% goals and those with higher annual revenues report significantly more 45%0% 50% 40% 1-100 100-500 500-1,000 1,000-2,500 2,500-5,000 5,000 - 10,000 + 35% 10,000 website40% traffic than their peers. The average for those achieving their revenue 30% Number of Leads per Month 30% 25% goals is 10,000 - 50,000 and for those exceeding their goals it jumps to 20% 20% 15% 50,000 - 100,000. Companies with over $1 million in annual revenue all Demand10% Generation Benchmark Report, 2015 10% 5% Percent of Respondents averagePercent of Total Respondents more0% than 10,000 visitors per month. 0% 0-1K 1K-10K 10K-50K 50K-100K 100K-1M 1M-5M 5M+ 1 - 100 100 - 500 500 - 1,000 1,000 - 2,500 - 5,000 - 10,000 + 2,500 5,000 10,000

Website Visitors Number of MQLs per Month

Demand Generation Benchmark Report, 2015 Demand Generation Benchmark Report, 2015

Most companies generate 100 or fewer MQLs per month and more than half generate 500 orMQLs less. However, per Month as weby sawRevenue above, Achievementcompanies achieving their revenue goals generateNot Achieving on Revenue average, Achieving100 - 500 Revenue per monthExceeding and Revenue the average for

all companies90% with more than $250,000 in annual revenue is over 100 leads per month.80% 70% 60% 50% HUBSPOT • Demand Generation Report • 2015 18 HUBSPOT • Demand Generation40% Report • 2015 19 30%

Percent of Respondents 20% 10% 0% 1 - 100 100 - 500 500 - 1,000 1,000 - 2,500 2,500 - 5,000 - 10,000 + 5,000 10,000 Number of MQLs per Month

Demand Generation Benchmark Report, 2015 Cost Per Lead 25.00%

20.00%

15.00%

10.00%

5.00% Percent of Respondents

0.00% Opportunities $1 - $10 $11 - $25 $26 - $50 $51 - $100 $101 - $251 - $501 - $1,001+ COST PER LEAD BENCHMARKS:$250 $500 $1,000 BY REVENUE Cost Per Lead Opportunities per Month Demand Generation Benchmark Report, 2015 45% 40% 35% 30% 25% Cost Per Lead 20% By Annual Revenue 15% 10% $1,001+ 5% Percent of Respondents $501 - $1,000 0% <$250K $251 - $500 1-50 50-100 100-300 300-500 500-800 800+ $250K-1M Number of Opportunities $101 - $250 $51 - $100 $1M-10M

$26 - $50 Demand Generation Benchmark Report, 2015 Cost per Lead $10M-500M $11 - $25 $1 - $10 $500M-1B 0% 20% 40% 60% 80% 100% $1B+ 57% of companies report generating 100 sales opportunities per month or Percent of Respondents Sales Opportunities per Month by Revenue less. (Although this jumps to nearlyAchievement 90% for those not achieving revenue Demand Generation Benchmark Report, 2015 goals). Only 9% of total respondents report generating more than 800 Not Achieving Revenue Achieving Revenue Exceeding Revenue opportunities per month. 80% Companies with higher annual revenues tend to pay a higher cost per lead. 70% However, companies with between $250,000 and $10 million in revenue 60% Customers all average a cost per lead of $26-$50. 50% 40% 30% Customers per Month 20% COST PER LEAD BENCHMARKS: Percent of Respondents Percent of 60% 10% 50%0% BY INDUSTRY 1 - 50 50 -100 100 - 300 300 - 500 500 - 800 800+ 40% Number of Opportunities The cost per lead varies by 30% Industry Cost Per Lead Demand20% Generation Benchmark Report, 2015 Media & Publishing $11 - $25 industry, with Media and

10% Publishing reporting the

Percnet of Respondents Education $26 - $50 lowest cost per lead at $11-$25. 0% Healthcare & Medical $26 - $50 1-50 50-100 100-300 300-500 500-800 800+ Software, Information Tech & Number of Customers per Month Consulting $26 - $50 Services, Marketing Agencies, Industrial & Manufacturing $26 - $50 Demand Generation Benchmark Report, 2015 and Financial Services Travel & Tourism $26 - $50 companies all reporting the Just over 50% of the respondents are generating 1-50 customers per month, Consumer Products $26 - $50 highest average cost per lead at while the restCustomers are fairly perevenly Month spread by fromRevenue 50 to Achievement over 800 customers per Software $51 - $100 $51 - $100. month. Not Achieving Revenue Achieving Revenue Exceeding Revenue Information Tech & Services $51 - $100

90% Marketing Agencies $51 - $100 80% Financial Services $51 - $100 70% 60% 50% 40% HUBSPOT • Demand Generation Report • 2015 20 HUBSPOT • Demand Generation Report • 2015 21 30%

Percent of Respondents 20% 10% 0% 1-50 50-100 100-300 300-500 500-800 800+ Number of Customers Demand Generation Benchmark Report, 2015

COST PER LEAD BENCHMARKS: EMAIL BENCHMARKS: BY COMPANY SIZE BY REVENUE

Companies exceeding or achieving their revenue goals report both higher The 2014 State of Inbound Report also asked about cost per lead and found click-through and higher open rates. that mid-sized companies had a higher cost per lead than both companies under 25 employees and those over 1,000. It also found that the cost per lead for companies using an inbound strategy was far lower than those using an Above Average Open Rates outbound strategy. (% of respondents)

60%

Above Average48% Open Rates (% of respondents) 35%

60%

48%

35% Exceeding Revenue Achieving Revenue Not Achieving Revenue

Demand Generation Benchmark Report, 2015

60% of those exceeding their revenue goals had an above-average open Exceeding Revenue Achieving Revenue Not Achieving Revenue rate, while the same was trueAbove for only Average 48% of CTR those achieving their revenue Demand Generation Benchmark Report, 2015 goals and 35% of those not(% achieving of respondents) their goals. COST PER LEAD BENCHMARKS: ALL RESPONSES 64% Above Average42% CTR (% of respondents) 28% Cost Per Lead 64% 25.00%

20.00% 42% Exceeding Revenue Achieving Revenue Not Achieving Revenue 15.00% 28% 10.00% Demand Generation Benchmark Report, 2015 5.00% Percent of Respondents

0.00% Exceeding Revenue Achieving Revenue Not Achieving Revenue $1 - $10 $11 - $25 $26 - $50 $51 - $100 $101 - $251 - $501 - $1,001+ $250 $500 $1,000 Cost Per Lead Demand Generation Benchmark Report, 2015

Demand Generation Benchmark Report, 2015 64% of those exceeding their revenue goals have an above-average click- The cost per lead ranged from an average of $11-$25 per lead up to an through rate, while only 28% of those not achieving their goals had an average of $251 - $500 per lead. above average open rate. Cost Per Lead By Annual Revenue

HUBSPOT • Demand Generation$1,001+ Report • 2015 22 HUBSPOT • Demand Generation Report • 2015 23 $501 - $1,000 <$250K $251 - $500 $250K-1M $101 - $250 $51 - $100 $1M-10M $26 - $50

Cost per Lead $10M-500M $11 - $25 $1 - $10 $500M-1B 0% 20% 40% 60% 80% 100% $1B+ Percent of Respondents

Demand Generation Benchmark Report, 2015 In terms of annual revenue, the biggest difference is at the lowest end of Knowing The Numbers the spectrum. The majority of companies generating $250,000 or less in annual revenue report open rates under 5% and CTRs under 1%. Companies Of those companies not achieving their revenue goals: generating more than that report much more varied responses in terms of both open rate and CTR. 40% 34% didn’t know their didn’t know their open CTR email rate Email Open Rates by Annual Revenue 35%

30%

25% <$250K In the case of those who didn’t know their CTR, that’s 90% more than

20% $250K-1M those exceeding their revenue goals. Of those that didn’t know their

$1M-10M 15% open rates, that’s 52% more than those exceeding their revenue $10M-500M goals.

Percent of Respondents 10% $500M-1B

5% $1B+

0% < 5% 5-10% 10-15% 15-20% 20-30% 30-40% 40%+ EMAIL BENCHMARKS: Open Rates BY COMPANY SIZE Demand Generation Benchmark Report, 2015

Email CTR by Annual Revenue Email Open Rates by Company Size 45% 0.35 40% 0.3 35%

30% <$250K 0.25 1-200 25% $250K-1M 0.2 201-500 $1M-10M 20% 0.15 501-1000 15% $10M-500M

Percent of Respondents 0.1 1001-5000 10% $500M-1B Percent of Respondents 0.05 5001+ 5% $1B+

0% 0 0 - 1% 1 - 2% 2 - 3% 3 - 4% 4 - 5% 5 - 10% 10 - 15% 15%+ <5% 5-10% 10-15% 15-20% 20-30% 30-40% 40%+ CTR Email Open Rates

Demand Generation Benchmark Report, 2015 Demand Generation Benchmark Report, 2015

Email CTR by Company Size

40%

35%

30%

25% 1-200

20% 201-500 HUBSPOT • Demand Generation Report • 2015 24 HUBSPOT • Demand Generation Report • 2015 25 15% 501-1000 1001-5000

Precentage of Respondents 10% 5001+ 5%

0% 0 - 1% 1 - 2% 2 - 3% 3 - 4% 4 - 5% 5 - 10% 10 - 15% 15%+ CTR

Demand Generation Benchmark Report, 2015

Email Open Rates by Company Size 0.35

0.3

0.25 1-200 0.2 201-500 0.15 501-1000

0.1 1001-5000 Percent of Respondents 0.05 5001+

0 <5% 5-10% 10-15% 15-20% 20-30% 30-40% 40%+

Email Open Rates Demand Generation Benchmark Report, 2015 EMAIL BENCHMARKS: Email CTR by Company Size

40% BY INDUSTRY

35% Industries With Highest Average Open Rates

30% 25% 25% 1-200 Industries With Highest Average Open Rates 20% 20% 201-500 25% 15% 501-1000 15% 20% 1001-5000 Financial Services Precentage of Respondents 10% 10% 5001+ 15% 5% Travel & Tourism 5% Percent of Respondents Financial Services 0% 10% Industrial & 0 - 1% 1 - 2% 2 - 3% 3 - 4% 4 - 5% 5 - 10% 10 - 15% 15%+ 0% ManufacturingTravel & Tourism CTR 5% Percent of Respondents Industrial & Demand Generation Benchmark Report, 2015 0% Manufacturing Open Rates

Companies with fewer than 200 employees tend to see lower overall open Demand Generation Benchmark Report, 2015 Open Rates rates and CTRs. Nearly 40% of companies with 200 or fewer employees

have open rates of 1% or less and 20% of them have open rates of 5% or less. Demand Generation Benchmark Report, 2015 For companies with over 200 employees, however, there isn’t that big of a difference in email metrics and as you get larger than 500, the differences Open Rates For All Other Industries become even less significant. 30% Consumer Products 25% Open Rates For All Other Industries Education 20%30% Consumer Products 15%25% Healthcare & Medical Education 10%20% Consulting Healthcare & Medical 5%15% Software 0%10% Consulting Percent of Respondents IT & Services 5% Software Media & Publishing 0% Percent of Respondents IT & Services Open Rates Marketing Agencies Media & Publishing Demand Generation Benchmark Report, 2015 Open Rates Marketing Agencies

TheDemand Financial Generation Benchmark Services, Report, 2015 Travel and Tourism, and Industrial and Manufacturing industries report a 15-20% open rate on average, while all other industries report a 10-15% open rate on average.

HUBSPOT • Demand Generation Report • 2015 26 HUBSPOT • Demand Generation Report • 2015 27 Industries With Highest Average CTR EMAIL BENCHMARKS: Industries With Highest Average CTR 30% ALL RESPONSES 30% 25% 25% 20% Consumer Products 20% Consumer Products Email Open Rates 15% Financial Services 15% Financial Services 25% 10% Healthcare & Medical 10% Healthcare & Medical 20% 5% Industrial & Manufacturing Percent of Respondents 5% Industrial & Manufacturing 15% Percent of Respondents 0% Travel & Tourism Travel & Tourism Email Open Rates 0% 0 - 1% 1 - 2% 2 - 3% 3 - 4% 4 - 5% 5 - 10 - 15%+ 10% 0 - 1% 1 - 2% 2 - 3% 3 - 4% 4 - 5% 10%5 - 1015% - 15%+ 25% 10% 15% CTR Percent of Respondents 5% 20% CTR 0% 15% < 5% 5-10% 10-15% 15-20% 20-30% 30-40% 40%+ Open Rates 10% CTR For All Other Industries Demand Generation Benchmark Report, 2015 CTR For All Other Industries Percent of Respondents 5% 45% 45%40% 0% < 5% 5-10% 10-15% 15-20% 20-30% 30-40% 40%+ 40%35% Companies reported a variety of openOpen rates, Rates from under 5% to over 40%. 35%30% Education Email Click Through Rates (CTR) Education 30%25% The majority25% reported a 5-10% open rate. Information Tech & Services Demand Generation Benchmark Report, 2015 25%20% Information Tech & Services 20% Media & Publishing 20%15% Media & Publishing 15% 15%10% Marketing Agencies Marketing Agencies Percent of Respondents 10%5% Software 10% Email Click Through Rates (CTR) Percent of Respondents 5% Software 0% 25%5%

Consulting Percent of Respondents 0% 0 - 1% 1 - 2% 2 - 3% 3 - 4% 4 - 5% 5 - 10 - 15%+ Consulting 0 - 1% 1 - 2% 2 - 3% 3 - 4% 4 - 5% 10%5 - 1015% - 15%+ 20%0% 0 - 1% 1 - 2% 2 - 3% 3 - 4% 4 - 5% 5 - 10% 10 - 15% 15%+ CTR 10% 15% 15% CTR CTR

10% Demand Generation Benchmark Report, 2015 5% Consumer Products, Financial Services, Healthcare & Medical, Industrial & Percent of Respondents 0% Manufacturing, and Travel & Tourism industries all report on average about 0 - 1% 1 - 2% 2 - 3% 3 - 4% 4 - 5% 5 - 10% 10 - 15% 15%+ 1 – 2% higher CTR than other industries. CTR

Demand Generation Benchmark Report, 2015

Demand Generation Benchmark Report, 2015 The average CTR is around 2-3%, although some companies report CTRs as high as 15%+.

Demand Generation Benchmark Report, 2015

HUBSPOT • Demand Generation Report • 2015 28 HUBSPOT • Demand Generation Report • 2015 29 Key Takeaways TOP MARKETING INVESTMENTS:

The data showed a correlation between achieving revenue goals and higher ALL RESPONSES open rates and click-through rates (CTRs).

It also showed that there is some correlation between having fewer than 200 Marketing Tactics by Budget Allocation employees or less than $250,000 in annual revenue and lower than average (% of Total Respondents) open rates and CTRs. However, most of the companies above $250K or 200 50% Branding/Public Relations 45% Website Design & Optimization employees showed little difference in open rates and CTRs. 40% 35% Content Creation (Whitepapers, etc.) 30% / Media Placement 25% Trade Shows / Events It also showed the highest open and CTRs for three industries: Travel and 20% 15% Marketing Automation / Tourism, Financial Services, and Industrial and Manufacturing. However, 10% Search Engine Optimization 5% Traditional Ads (raido, TV, direct) the averages didn’t vary greatly. 0% Telemarketing

Perhaps the most telling statistic was the number of companies that didn’t Respondents were asked to rank the three marketing tactics that receive know their open and CTRs. 40% of respondents who weren’t meeting their the most budget allocation. The biggest investments are in branding, then revenue goals said that they didn’t know their CTR, and 34% didn’t know website design and optimization, followed by social media. Those same their email open rate. The takeaway here is that the more you know about tactics, in that order, were also ranked as the highest investments by survey how your potential customers are responding to your demand generation respondents who are exceeding their revenue goals. tactics, the better equipped you’ll be to convert them into sales. Benchmark and understand your own open and CTRs, and work to improve them. The tactics with the lowest investments were traditional advertising and telemarketing. This is not surprising as these tactics are far less effective than more modern tactics like website optimization, content, and social media. As HubSpot and other organizations have reported in the past, 200 million Americans have registered their phone numbers on the FTC do not call list (HubSpot), 86% of people skip television ads (Voltier Digital), and cold calling doesn’t work 90.0% of the time (HBR).

SEO was also ranked low in terms of marketing investment. This may be because the budget required for a good SEO strategy is simply lower than other tactics, such as branding and PR or website design. Additionally, the lines between where SEO ends and other strategies, such as , begin, are blurring all the time. Content creation was ranked as the fourth highest investment. As getting found online is critical to success, marketers are undoubtedly still optimizing their webpages (and landing pages) for search engine discoverability.

HUBSPOT • Demand Generation Report • 2015 30 HUBSPOT • Demand Generation Report • 2015 31 TOP MARKETING INVESTMENTS: The graph below shows the overall bottom five marketing investments, BY INDUSTRY broken down by industry. Bottom 6 Investments by Industry

100% The tactics employed do vary by industry. The graph below shows the overall 90% Telemarketing 80% top five marketing investments, broken down by industry. 70% Traditional Ads 60% Top 5 Investments by Industry 50% SEO 40% 100% 30% Marketing Automation/ 90% Lead Management Online Advertising/ 20% Percentage of Respondents 80% Media Placement 10% Email Marketing 70% 0% Content Creation 60% Trade Shows/Events 50% Social Media 40% 30% Website Design & 20% Optimization Percentage of Respondents 10% Industry 0% Branding/PR

Demand Generation Benchmark Report, 2015

Here are the statistics that stand out from this data set:

Industry

Demand Generation Benchmark Report, 2015 • Financial Services companies list Marketing Automation as a top investment, which is 73% higher than other industries. Here are a few key takeaways: • The Travel and Tourism industry lists online advertising as a top • Both software companies and manufacturers list trade shows as one investment, which is 75% more than other industries. of their top marketing tactics, ranking them significantly higher than companies in other industries. • Social media, while ranked an important investment overall, holds even more weight for marketing agencies, with over half of them considering • The Telecommunications industry is one of the only fields still ranking it their top investment. telemarketing and traditional advertising among their most important tactics. It should also be noted, though, that 24% of telecommunications • Content creation is a top investment for 43% of Information Technology companies aren’t reaching their revenue goals, which is 20% higher than companies, which is 54% more than other industries. the average.

HUBSPOT • Demand Generation Report • 2015 32 HUBSPOT • Demand Generation Report • 2015 33 SUMMARY OF RESULTS LOOKING TO GENERATE MORE DEMAND? From all of this data, what can you hope to take away that will be useful in shaping your own marketing strategy for the future? First, content creation, Learn More About HubSpot’s social media, and website design and optimization have continually proven to be the most effective for demand generation. Traditional outbound All-in-One Marketing Platform methods, which have been marketing staples for decades, are losing popularity as they become less successful. HubSpot provides you with all the tools and resources you need to attract, convert, close, and delight customers, all in one easy-to-use platform. Companies exceeding their revenue goals generate significantly more HubSpot can help you exceed your goals and benchmarks. Learn more website visits, leads, MQLs, sales opportunities, and customers than those about inbound marketing, explore the tools we have to offer, or talk to a that don’t. Attracting the right type of traffic to your website and generating specialist today. the right type of leads is important, as is nurturing those leads to become MQLs, opportunities, and eventually customers. Companies that meet or exceed their revenue goals also show somewhat higher email open and click- through rates.

These benchmarks don’t vary greatly by industry or company size. True, there’s some variation. Certain industries do better in certain areas, such as the financial industry’s success at website traffic. And in terms of company size, the very smallest companies have smaller numbers, and the very largest ones have the biggest numbers, but for the vast majority in the middle, the numbers are mostly the same.

Perhaps the most important takeaway, though, is that monitoring and Lead Marketing Salesforce Landing Pages Forms Email Analytics Social Inbox Blogging understanding these factors is a major contributing factor to overall success. Management Automation Sync In general, the less companies knew about their KPIs, the less likely they were to meet their revenue goals. Schedule a demo

HUBSPOT • Demand Generation Report • 2015 34 HUBSPOT • Demand Generation Report • 2015 35