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Marketo sees corporate level buy-in for marketing software

July 29, 2015, 4:05 PM UTC
Online Marketing
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One of the more intriguing threads to emerge during Marketo’s Q2 financial commentary last week was this revelation: more customers are turning department-centric contracts into deeper corporate ones.

Naturally, the marketing automation software company is eager to capitalize.

It is nurturing a list of 100 strategic accounts like GE Healthcare that are looking to put a portfolio-level face on campaigns. “These accounts have two things in common: a vision of scale and a leadership team that is able to marshal resources,” said Marketo co-founder, chairman and CEO Phil Fernandez.

He isn’t naming names, but Marketo has almost 4,130 customers including the likes of Intel, McKesson, Panasonic, and Sony.

“The kinds of things you can do when you start to coordinate across an entire organization are amazing,” Fernandez said, pointing to the blurring of once-distinct lines between business-to-business and business-to-consumer marketing programs.

One company that embraces this worldview is healthcare provider Kaiser Permanente, which today runs campaigns based on regional priorities. Because of the Affordable Care Act, the company markets more to consumers shopping for plans than ever before, said Steve Krizman, senior director of integrated communications and brand for the Colorado region, home to 600,000 members.

Without better coordination across regions in the future, Kaiser Permanente runs the rise of over-communicating and “interrupting” prospects—not an effective strategy for any brand. So, it’s in the process of evaluating regional processes to create a national platform for messaging. “The question of whether or not this is the right approach is a settled point,” Krizman said.

Marketo’s second-quarter revenue grew 41% year-over-year to $50.7 million. It’s still losing money, although it was able to generate $10 million in positive cash flow. For the year, Marketo projects revenue of $209 million to $211 million.

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