How One Company Slashed Their Cost per Lead by More than Half

Teleprospecting that Drives Sales‐Ready Leads and that Drives Sales‐How One Company Slashed Their Cost per Lead by More than HalfMore than Half Brian Carroll Brandon Stamschror Executive Director Senior Director of Operations MECLABS Applied Research MECLABS Leads Group

About Brian Carroll Brian Carroll is Executive Director of Applied Research at MECLABS. Brian is also co‐founder of InTouch (now part of the MECLABS Leads Group), a B2B marketing f d fI T h( t f th MECLABS L d G ) B2B k ti firm and one of the first companies to provide lead generation services for the complex sale. Author of the popular book, Lead Generation for the Complex Sale (McGraw‐Hill), p p , f p ( ), Carroll is a leading expert in lead generation and hes profiled and regularly quoted in numerous publications. Brian also speaks to 20,000 people a year on improving sales effectiveness and lead generation strategies. He s been profiled and regularly quoted in numerous publications such as BtoB He’s been profiled and regularly quoted in numerous publications such as BtoB Magazine, Selling Power, The Wall Street Journal, Entrepreneur, Target Marketing, Inc. magazine, Marketing News, DM News, MarketingProfs, MarketingSherpa, Software CEO and CMO Magazine. 2#b2blead

About Brandon Stamschror Brandon is Senior Director of Operations, MECLABS Leads Group. He is a co‐founder of InTouch (now the MECLABS Leads Group) and a former partner at iNETech, Inc. From early ( p) p , y operational positions with 3M and functional financial experience at iNETech, Brandon has become the key driver of all operational processes and support teams that execute the Leads Group client engagements. Brandon has more than 12 years of experience managing teleprospecting and lead B d h th 12 f i i t l ti dl d generation teams across dozens of industries and solutions. Brandon collaborated with Brian Carroll on his book, Lead Generation for the Complex Sale (McGraw‐Hill, 2006). Brandon earned his B.S.B. in operations management from the Carlson School at the University of Minnesota. 3#b2blead

MECLABS: A Sales and Marketing R&D Lab • More than 10 years of research • Over 1 billion emails • 1,300 major experiments , j p • 10,000 sales‐paths tested • Hundreds of publications and conferences • 5 million phone calls • 500,000 conversations , 4#b2blead

MECLABS Sciences Group Primary Research Applied Research Conversion Leads Technology Training Strategy Agency Group Group Group Group Group Group We optimize the financial performance p p of the sales and marketing funnel 5#b2blead

What we’ll cover today 1. The human touch of lead nurturing 2. The value of data quality 2 The value of data quality 3. Prospecting rules that produce leads 6#b2blead

Teleprospecting: The Human Touch of Lead Nurturing

Lead generation = building relationships • Identify the right people and companies • Initiate a memorable conversation • Nurture them, regardless of timing to buy 90% of B2B customers want their sales person to be more of a resource. ! 8#b2blead

Lead generation scales sales 100% These reallocated sales resources As much as possible, replace p , p result in result in Less these sales resources with lower‐ increased efficient cost methods of marketing & revenue sales Allocated telemarketing contact capacity/higher resources percent of percent of sales productivity sales productivity sales More resources efficient efficient sales resources 0% Prospecting Nurturing Selling Buying cycle stages Buying cycle stages 9#b2blead

Tele‐qualification‘s human touch is essential Avoid email only for lead nurturing 40% House Email 35% rturing 30% SEO tion to Lead Nur 25% Traditional Content 20% Tele‐ Major Contribut Viral qualification Mktg 15% Emerging Event Content Marketing 10% Social 5% Media 5% 10% 15% 20% 25% 30% 35% 40% Major Contribution to Lead Generation Major Contribution to Lead Generation 10#b2blead

Chief requirements for lead qualification Lead has responded to a marketing campaign by providing basic contact 0.8 information Lead has indicated a valid business need 0.42 Lead has identified themselves as a decision maker 0.26 Lead has reached a certain lead score through expressing interest in a number 0.25 of categories p Lead has indicated an acceptable time frame to purchase 0.23 0 23 Lead has indicated an acceptable purchasing budget 0.23 http://www.marketingsherpa.com/1n ews/chartofweek‐03‐22‐11‐lp.htm Lead has potential for large deal size 0.16 ! What you need to understand: Teleprospecting is essential qualify sales‐ready leads 11#b2blead

The Value of Data Quality

How data quality impacts the human touch • An often undervalued cost of doing business • Value disconnect between demand generation and lead qualification activities vs. value of quality data • Misinformation about data sources and the reality that “you get what you pay for” • What do the numbers tell us about the true cost of calling on h d h b ll b h f lli low cost data? • H d How does an upfront investment in data quality effect the f ti t ti d t lit ff t th total cost of lead? 13#b2blead

Experiment: Background Experiment ID: Telecom organization data test Location: MECLABS Leads Group Research Library Test Protocol: LG1001 Test Protocol: LG1001 Background: A telecom organization engaged MECLABS for lead generation Objective: To determine if higher cost/higher quality data can drive down overall cost per lead Primary research question: Which campaign data source will drive the most Primary research question: Which campaign data source will drive the most value? Test Design: Four MDM data segments, a community‐based segment, and a traditional list‐source segment. Eliminate variables: Same reps, time frame, time allocation per data segment, qualification criteria and messaging. Set up new data sets. 14#b2blead

Experiment: Test design Record Segments Validated Cost MDM Tier 1 $24.00 Phone – role‐based Per segment: MDM Tier 2 $14.50 Phone – title‐based 300 accounts MDM Tier 3 $6.00 Phone – validated 80 hours of calling MDM Tier 4 $3.00 Email ‐ validated Community Based $1.00 Business cards Traditional $0.49 No validation 15#b2blead

Experiment: Results Record No longer with Dials to Dials to sales‐ Segments Cost co pa y company d squa y disqualify ready lead eady ead MDM Tier 1 $24.00 1% 90 77 MDM Tier 2 $14.50 .06% 53 110 MDM Tier 3 $6.00 14% 27 127 MDM Tier 4 $3.00 23% 26 135 Community Based $1.00 67% 11 240 Traditional $0.49 13.3% 7 210 16#b2blead

Experiment: Results and ROI Record Call Per Cost Per Segments List Count Leads List Cost Cost Lead ead Lead ead MDM Tier 1 $24.00 77 1000 312 $373.45 $24,000 MDM Tier 2 $14.50 110 1560 312 $496.00 $22,620 MDM Tier 3 $6.00 127 2475 312 $536.58 $14,850 MDM Tier 4 $3.00 135 2810 312 $546.75 $8,430 Community Based $1.00 240 9350 312 $954.00 $9,350 Traditional $0.49 210 13100 312 $828.95 $6,380 ! What you need to understand: “Cheap” data is expensive! 17#b2blead

Experiment: Results and ROI Record Call Per Cost Per Segments List Count Leads List Cost Call Cost Cost Lead ead Lead ead MDM Tier 1 $24.00 77 1000 312 $373.45 $24,000 $92,400 MDM Tier 2 $14.50 110 1560 312 $496.00 $22,620 $132,132 MDM Tier 3 $6.00 127 2475 312 $536.58 $14,850 $152,460 MDM Tier 4 $3.00 135 2810 312 $546.75 $8,430 $162,278 Community Based $1.00 240 9350 312 $954.00 $9,350 $287,980 Traditional $0.49 210 13100 312 $828.95 $6,380 $252,175 ! What you need to understand: Executing teleprospecting campaigns with “cheap” data is REALLY expensive! 18#b2blead

Prospecting Rules that Produce Leads

Prospecting rules that produce leads 1. Sustain the calling 2. 2 Make every call count Make every call count 3. Throw away the scripts 4. Always be relevant Always be relevant 5. Gain opt‐in email addresses 6. Always follow‐up (with nurturing) 20#b2blead

Step 1: Sustain the calling • Be in it for the long haul • Works best if long‐term and consistent • Develop relationships It can take 8 ‐19 calls to reach a prospect. Many ! people give up on the third attempt Source: http://www.telenetmarketing.com/news_release/pdf/16/How_Do_You_Compare__TeleNet_Marketing_Survey_Results.pdf 21#b2blead

Step 2: Make every call count • Use a top‐down approach • Confirm contacts and get internal referrals Confirm contacts and get internal referrals • Voicemail? “Zero out” • Be in the moment when making calls Be “in the moment” when making calls • Develop a fall‐back strategy 22#b2blead

Step 2: Make every call count Who do you target? Influencer Champions for h f Decision maker your solution End user Economic Technical Buyer buyer Info gatherer th Champion Gate Influencers for keeper your solution! In a complex sale, 70% of brand perception is from direct contact with a sales person. 23#b2blead

Step 3: Throw away the scripts • Create call guides • Strong outlines designed to Strong outlines designed to create conversations • Suggested areas of discussions/questions • Flexible and assume multiple outcomes 24#b2blead

Step 3: Throw away the scripts Build your calling guide: questions to ask: • What is the goal of your call? What is the goal of your call? • What is your value proposition? • What business needs/issues do solve? / • What are three reasons your company stands out? • What are the important questions you want answered? 25#b2blead

Step 4: Always be relevant “I wanted to catch “I’m calling to “Are you ready to up… up ” touch base… touch base ” buy yet…? buy yet ? This isn’t being relevant 26#b2blead

Step 4: Always be relevant • How do they work? • What is their functional role? What is their functional role? • What are their anticipated needs? • What are their priorities and challenges? What are their priorities and challenges? ! “92% of B2B buyers are open to cold calls if the sales person is relevant.” 27#b2blead

Step 4: Always be relevant Message Map Based on Role Long sales cycles External pressures l Commoditization Fewer sales opportunities Improve account penetration VP sales Increase revenue Increase sales team selling time Shorten average sales cycle Build a predictable sales pipeline Improve sales effectiveness Improve sales Help sales team get to executives effectiveness Ramp up new sales people Ramp up new sales people Retain and motivate sales force 28#b2blead

Step 5: Gain opt‐in First Step Second Step 29 29#b2blead

Step 6: Always follow up (with nurturing) Nurture them, regardless of timing to buy Lead Nurturing is a relevant and consistent dialog with viable potential customers, regardless of their timing to buy. potential customers, regardless of their timing to buy. 30#b2blead

Step 6: Always Follow Up (with Nurturing) Building Your Lead Nurturing Library Gather and filter relevant content based on message map • Third party articles, relevant topics, research reports • Vendor agnostic podcasts, webinars, blogs and case studies to position sales team as a “trusted advisor” • Company specific white papers, success stories, webcasts Lesson Learned Lesson Learned • Reuse available content before creating new content • Filter third party content for a nurturing “library” using free sources Google.com/alerts / Resource: Thought leadership for Lead Nurturing http://b2bleadblog.com/2005/06/using_thought_l.html 31#b2blead

Step 6: Always Follow Up (with Nurturing) Building Your Lead Nurturing Library Resource: Content Ideas for Lead Nurturing http://b2bleadblog.com/2007/08/content‐ideas‐1.html 32#b2blead

Step 6: Always follow up (with nurturing) Building your lead‐nurturing library To: Recipient From: F Sender S d Subject: Article on virtualization for executives Bill, I thought you might find this recent article on virtualization relevant. It provides a strategic overview that is written more for executives. “FAQ: Detangling virtualization” http://news.com.com/FAQ+Detangling+virtualization/2100‐7339_3‐6177447.html // / / Weve been helping a number of companies decide when exactly to use virtualization and how to avoid the "all my eggs in one basket" concern that this article brings up. Best Regards, ! Use voice‐mail and e‐mail combo to follow‐up 33#b2blead

Putting the rules into action 04/30/2010 ‐ Called ‐ Rory Smith ‐ Talked to DM 04/20/2010 ‐ Called ‐ Rory Smith ‐ Got voice mail 04/17/2010 ‐ Email Link Clicked ‐ Rory Smith ‐ Campaign 2010‐04‐17 04/17/2010 Email Sent Rory Smith Message: How to optimize your outsourced teleprosp 04/17/2010 ‐ Email Sent ‐ Rory Smith ‐ Message: How to optimize your outsourced teleprosp 04/17/2010 ‐ Email Sent ‐ Sylvie Jones ‐ Message: How to optimize your outsourced teleprosp 04/17/2010 ‐ Email Sent ‐ Joel Koppelman ‐ Message: How to optimize your outsourced teleprosp 04/08/2010 ‐ Called ‐ Rory Smith ‐ Talked to DM 03/26/2010 ‐ Called ‐ Rory Smith ‐ Talked to DM 03/20/2010 ‐ Called ‐ Rory Smith ‐ Talked to DM 03/20/2010 ‐ Called ‐ Rory Smith ‐ Got voice mail 03/19/2010 ‐ Touchpoint ‐ Rory Smith ‐ Inquiry ‐ Web 03/13/2010 ‐ Email Link Clicked ‐ Sylvie Jones ‐ Campaign 2010‐03‐13 03/13/2010 ‐ Email Sent ‐ Sylvie Jones ‐ Message: Why cost‐per‐lead budgets fail 03/13/2010 Email Sent Sylvie Jones Message: Why cost per lead budgets fail 03/13/2010 ‐ Email Sent ‐ Joel Koppelman ‐ Message: Why cost‐per‐lead budgets fail 02/14/2010 ‐ Email Sent ‐ Sylvie Jones ‐ Message: Using the phone in your lead generation s 02/14/2010 ‐ Email Sent ‐ Joel Koppelman ‐ Message: Using the phone in your lead generation s 02/07/2010 ‐ Called ‐ Mitchell Codkind ‐ Got voice mail 02/04/2010 ‐ Called ‐ Kelly Henry ‐ Got voice mail 01/31/2010 ‐ Called ‐ Sylvie Jones ‐ Got voice mail 01/29/2010 ‐ Called ‐ Sylvie Jones ‐ Got voice mail 01/24/2010 ‐ Touchpoint ‐ Sylvie Jones ‐ Blog Subscription ‐ B2B Lead Generation 34#b2blead

Before you pick up the phone • Who and why are you calling? • What do you know about this company? What do you know about this company? • Do they fit your ideal customer profile? • Do you have a fall‐back strategy? • How will success be measured? • Do you know what you are going to say? • Do you have a follow‐up email prepared? Do you have a follow up email prepared? • Is your educational content ready? 35#b2blead

Takeaways The human touch of lead nurturing • The phone is essential to qualify sales ready leads. The value of data quality • Review your current investment in data quality (you often get what you pay for) and cheap data isnt very cheap. f ) d h d t i t h Prospecting rules that produce leads 1. Sustain the calling g 2. Make every call count 3. Throw away the scripts 4. Always be relevant Always be relevant 5. Gain opt‐in email addresses 6. Always follow‐up (with nurturing) 36#b2blead

Thank you Brian Carroll Executive Director, Applied Research MECLABS 651‐255‐7640 brian.carroll@meclabs.com Brandon Stamschror Sr. Director of Operations, Leads Group MECLABS 651‐255‐7613 brandon.stamschror@meclabs.com 37#b2blead

Next Steps and Resources 1. Please fill out the post‐webinar survey 2. View past and sign up for future webinars • B2BLeadBlog.com/webinars 3. Join the B2B Lead Roundtable LinkedIn group • B2BLeadBlog.com/Linkedin 4. Connect and share • B2BLeadBlog.com g • Twitter @B2BLeadBlog 38#b2blead

How One Company Slashed Their Cost per Lead by More than Half

by B2B Lead Roundtable on May 19, 2011

Accessibility

Categories

Tags

Upload Details

Usage Rights

1 Embed 1

Statistics

How One Company Slashed Their Cost per Lead by More than Half — Presentation Transcript