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

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

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Brian Carroll, Executive Director of Applied Research for MECLABS and author of the bestseller, Lead Generation for the Complex Sale, and Brandon Stamschror, Senior Director of Operations, MECLABS ...

Brian Carroll, Executive Director of Applied Research for MECLABS and author of the bestseller, Lead Generation for the Complex Sale, and Brandon Stamschror, Senior Director of Operations, MECLABS Leads Group, will discuss how to leverage teleprospecting to drive the highest return on marketing investment and decrease investment in sales resources – all while significantly increasing sales productivity.

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

    • 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