Lead Nurturing: Multichannel Relationship Strategies to Take a Contact from Prospect to Sale
Lead NurturingMultichannel relationship strategies to take a contact from prospect to sale April 5, 2011 A special thank you to:
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Today’s Speakers Dan McDade Parin Mody President and CEO Global Director of PointClear Business DevelopmentAuthor of ―The Truth About Leads‖ Mardev/DM2 Moderator Thorin McGee Executive Editor Target Marketing
Lead Nurturing: Multichannelrelationship strategies to take the prospect to sale
Agenda The Problem The Cause The Cost What to Do Agree on a common definition of a lead Agree on market, media and offer Measurement beyond number of leads, their cost and revenue Ten Actions to Take The Truth About Leads
The Problem Best Practice Results MQL = 4.1% of inquiries/ targeted suspects SAL = 62% of MQL SQL = 47.5% of SAL Close = 22.1% of SQL
The Cause 7 Reasons Why Sales and Marketing are Not Aligned Lack of standard lead definitions Failure by sales and marketing to accept accountability for influencing each step in the buying cycle Focus on quantity instead of quality Lack of integration between sales and marketing technologies Lack of serious, formal discussion between sales and marketing Failure to measure what matters Silo approach—failure to pass leads back and forth Source: The Aberdeen Group
The Cost Quota attainment Quota trends since 2006 since 2006
The Solution: Turn Raw Leads IntoReal Opportunities Attributes of a Well-Qualified Lead 1 SIC of NAICS Code 2 Firmographics (revenue, # of employees, # of locations) 3 Decision makers and influencers identified 4 Environment documented 5 Decision maker engaged 6 Business pain(s) uncovered/validated 7 Decision-making process and time frame documented 8 Budget allocated or process for budgeting documented 9 Competitive landscape documented 10 Sense of urgency or compelling event exists
What To Do: Define Market, Media, Offer Establishing a clear and mutually agreed upon definition of market, media and offer can help you multiply results Market Media Offer What companies will Which mix of What compelling calls we target? integrated media will to action will cause our Who are our target be most effective? targets to respond? contacts? How will we navigate How do we articulate How can we to those contacts? what problems we segment our market How can we convey solve and how? and apply differing a building dialogue? What messaging will approaches? differentiate our solution?
What to Do: Market The power of relational segmentation 1,000 Companies Marketing Equally Sized Samples Sample Lead Rate # of Leads size 200 9% 18 32 leads (64%) 200 7% 14 = 40% of spend 5% 200 5% 10 Lead Rate 200 3% 6 42 leads (84%) = 60% of spend 200 1% 2 1,000 5% 50 50 Leads
What to Do: Media Multi-touch, multi-media, multi-cycle processes multiply results Buyer’s Journey
What to Do: Offer Conditions of need Fear of Loss Perceived Risk Opportunity to Improve
What to Do: Offer Ultimate benefits Save Money Save Time Improve Save lives
What to Do: Your Sales Force NeedsFewer Leads Too many raw, unqualified leads can create a clogged marketing and sales process and an unhealthy funnel More leads don’t equal more success
What to Do: Reap the Value of Long-term Leads ROI WITH Best-Practice Handling of Short- and Long-Term Leads Quantity QuantityCategory Total Short Term Long TermNames 1,000Short-term leads 40Long-term leads 40% Closed ST leads 20%% Closed LT leads 20%# of deals 8 8Average deal $250,000 $250,000Revenue $2,000,000 $2,000,000Cost of qualification $59,040 $4,920Gross after marketing expense $1,940,960 $1,995,080 $3,936,040
Ten Actions to Take1. Agree on market definition (the largest identifiable market with the tightest possible market definition).2. Agree on offer (enterprise, point, both, priorities?) .3. Agree on the definition of a lead (―BANT‖ vs. ―AN‖…, 10 point system).
Ten Actions to Take4. Agree on expected metrics (MQL to SAL to SQL to Close).5. Define required reporting and frequency of reports (recognize that what happens during the course of one- quarter is likely to happen the next quarter without driving change).6. Give your sales force fewer leads – that is fewer, more highly qualified leads.7. Effectively nurture longer-term leads. Provide the right content to the right person (from the right person) at the right time.
Ten Actions to Take8. Design your touch cycle using multi-touch, multi-media, multi-cycle processes to multiply results.9. Construct offers that take into account: A. The three conditions of need B. The ultimate benefits C. The personal reasons why people buy things for companies10. Set realistic actions and timeframes. You cannot solve a sales shortfall when you have a six month sales cycle and you are in Q4.
The Truth About Leads Revealing little-known secrets that focus your lead-generation efforts, align your sales and marketing organizations and drive revenue
Contact Dan McDade Dan.McDade@PointClear.com 678-533-2722 office @dandade @pointclearpd http://www.linkedin.com/in/danmcdadepointclearllc
Demand Generation: Best Practices and Lessons Learned Customer Behavior & Buying Cycle Presented by: Parin Mody Global Director, Business Development Mardev-DM2
What is a multi-faceted campaign? What is a truly integrated, multi-channel campaign? More than postal + email More than print + digital More than delivering the same message through multiple channels (although that’s important) Marketing integration is using the most effective media channels and tactics to begin the conversation with your prospective buyer And then inviting them to take the next steps in their journey with you Continue the conversation Gauge their response Must be measurable Track each channel of communication Leverage them to build each other Document results and adjust as needed
Buyers are more educated than ever The New Buying Process: Self Education Marketing Sales Blogs/Tweets Download demo or White Paper Search online Forums/Communities Podcasts/Webinars Reading emails
Poll # 1 Which dimensions of personalization do you leverage in your current campaigns? Contact profile data Account profile data Behavior based Buying cycle stage based Preference based
Communicate with the whole person Step 1: Meet the individual where he is. Understand that while working, he is still a consumer. While on personal time, he is still a professional and concerned about his business. Step 2: Make sure your message is consistent throughout the various communication tools you use. Step 3: Measure which tools gain the greatest response throughout the buying cycle. Watching TV E-mailingMobile/Txt Online Research Personal Work Commuting Surfing Reading Tweeting
Implementing Demand Generation How do I implement Demand Generation within my company? First step – Understanding the customer buying cycle and mapping it to the journey you, as an organization, offer to the customer Customer Buying Process Interest Learn Evaluate Justify Purchase Marketing Sales Sales Qualified Suspect Inquiry Accepted Qualified $$ Lead Lead (SAL) Lead (SQL) (MQL) Marketing Sales Sales Marketing Sales closes validates validates and validates nurtures to revenue quality of accepts BANT sales ready. opportunity. interest. ownership. criteria Sales & Marketing effectiveness determines volume and velocity
Moving up the Lead Value Chain Lead Definition Lead Generation Process # of leads Lead Characteris tics Sales Opportunity – - Largely sales force task Low Hot ready to buy Pre-qualified lead – - High degree of interaction required with Medium to Warm some information known prospects, integration of online and offline Low about purchasing channels to identify prospective need. May requirements include email, online, telemarketing, direct mail. Prospects – indicated - Search High to Warm definite interest - Permission marketing Medium Profiled Suspects – - Segmentation, modelling of databases High Cold to higher propensity to - richer demographics or information Lukewarm purchase Suspects - Lists with some demographics High Cold
Lead Generation: TacticalCampaign Objectives ReportingLead definition & qualificationwhitepaper download, appointmentTarget audience leadscompany size, business sector, job title email Channel Selection resource optimisation email, digital, telemarketing Collateral Creation Online nurture case study, whitepapers, webinars Analyse, Optimise and Adapt what’s working – increase what’s not, adapt or switch off tele prospects Deliverables marketing volumes, timescales, CPL reporting
Strategic Campaign Workflow Example Emails &Newsletters Pass to DYNAMIC MICROSITE Gold Leads Field Sales Whitepapers Case studiesSEO/PPC Competitions Blogs Telemarketing Silver Leads Forums Webinars Podcasts Social RFQNetworking Nurture Bronze Leads Online TRACKING & SCORING FURTHER QUALIFICATION NURTURE inventory Monitor level of interest based •Budget PROGRAMME on : •Authority •Email opens •Need •visits to microsite •Timescales •Downloads •Reading/Posting on BlogsAdvertising
Poll # 2 On average, how complex is your communication mix in a campaign? Single touch via single communication channel (i.e. email batch and blast) Multi-touch via single communication channel (i.e. automated email drip campaign) Multi-touch via multiple communication channels (i.e. webinar with email, phone and direct messages
Strategic Nurturing Objectives Lead/Customer Nurture Strategy: Build trust within your customers and prospects Educate them Who are you? What does the company do? How does it benefit them? Establish credibility as experts Be relevant to the issues /pain points of your different segments All of the above will help you differentiate your organization as a partner to the prospect as opposed to a vendor Use the data you collect about each visitor to send them more relevant engagement materials
Anatomy of ScanningPaper.com The images and the text are dynamically populated based on the lead’s industry The welcoming message uses the first name, the job function, the company and the industry fields to make the experience very personal The customer examples, the business need case studies and the solutions in action content that can be downloaded is also dynamically populated based on the lead’s interest This content is based on and especially written for professionals in the lead’s industry Content is based on solution interest
Lead Nurture: Rules of Engagement1. Do not initiate contact without a clear objective2. Start with the customer, not with your product/service3. Pick-up where the interaction left-off4. Don’t ask the prospect for the same thing more than once5. Make the interaction personal and personalized6. Deliver information that reflects what you’ve learned about them7. Learn about the customers/prospects in bits.. .. not all at onceSource : Peppers, D., Rogers, M., One to One Fieldbook, 1999
Defining Your Lead Nurturing Program1. Define your objective2. Define the WHO3. Define collateral needed Touch point Emails Postcard Phone scripts Letter Content Assets White papers Webinars Analyst reports Podcasts Articles Flash demo Research Papers Interactive media Poll / survey Scorecard / rank yourself against your peers4. Map out the customer experience5. Test and launch6. Ongoing evaluation and monitor reporting7. Keep content fresh
Improve ROI with Lead Scoring Lead scoring and nurturing improve ROI Objectives: Improve conversion to qualified leads Improve quality of leads Prioritize follow-up Harvest dormant leads and re-engage Helps measure channel effectiveness Enhance lead insight with marketing database demographics and behaviors
Dynamic Lead Scoring Model Score on profile fit and level of engagement Profile Fit Level of Engagement A = Target fit (BANT qualified) 1 = Showing buyer interest B = Potential fit (nurture) 2 = Showing some interest C = Not high enough now 3 = Not enough information D = Not a fit 4 = Inactive Don’t send unqualified leads to sales… Nurture. Nurturing programs generate on average: 7-10% increase in marketing qualified lead (MQL) generation > 50% acceptance from sales (SAL)
Lead Scoring Model: Example Category Level Values Count Score Location in Eloqua Demographics - 10 Points Pri ma ry Title - 5 Points Hea d of Conta ct Fi el d: "Job Ti tl e" Di rector Chi ef Technol ogy Offi cer Executi ve 2.5 Offi cer CIO Chi ef Opera ti ng Offi cer Seconda ry Ma na ger Cons ul ta nt Vi ce Pres i dent 1.5 Archi tect Ana l ys t engi neer Terti a ry Admi ni s tra tor Support Techni ci a n 1 As s i s ta nt Speci a l i s t devel oper Pri ma ry Industry - 2 Points LOCAL & CENTRAL GOVERNMENT 24 Conta ct Fi el d: "Indus try" EDUCATION & TRAINING 20 MANUFACTURING & ENGINEERING 16 HEALTH/SOCIAL & PUBLIC SERVICE 14 Bui l di ng & Cons tructi on 13 1 BUSINESS SERVICES 13 Loca l Governement 12 It Cons ul ta ncy 11 Ba nki ng, Fi na nce, Ins ura nce 10 Educa ti on Sector 10 Seconda ry OTHER RETAIL/WHOLESALE DISTRIB 8 SOFTWARE DEVELOPMENT/ISV 8 Engi neeri ng 7 Ma nufa cturi ng Indus tri es 7 Government 5 Other Servi ce Acti vi ti es 5 0.75 Supporti ng And Auxi l i a ry Tra ns port Acti vi ti es ; Acti vi ti es Of Tra vel Agenci es 5 CATERING, HOTELS, LEISURE,ENT. 3 SERVICE PROVIDER/ASP/ISP/MSP/ 3 Whol es a l e & Di s tri buti on 3 Terti a ry Acti vi ti es Of Bus i nes s And Empl oyers Orga ni s a ti ons 2 Acti vi ti es Of Bus i nes s Empl oyers And Profes s i ona l Orga ni s a ti ons 2 Acti vi ti es Of Profes s i ona l Orga ni s a ti ons 2 Bus i nes s And Ma na gement Cons ul ta ncy Acti vi ti 2 es 0.25 Ma nufa cture Of Computers And Other Informa ti on Proces s i ng Equi pment 2 NETWORK/TELECOMMS RESELLER/INT 2 NHS 2 Other Fi na nci a l Intermedi a ti on Not El s ewhere Cl a s s i fi ed 2 Securi ty Broki ng And Fund Ma na gement 2
Lead Scoring Model: Example Primary Contact Field: Employee Size - 1 Points Employees 0100 to 0499 1626 0.75 "Employee Size" Employees 1000 to 4999 713 Secondary Employees 0500 to 0999 Employees 5000 plus 527 518 0.25 Results and total lead score Tertiary Employees 0001 to 0099 213 0 Contact Field: "IT IT Expendiutre - 1 Points Primary £51k - £250k 15 0.75 Expenditure" Previous Activity - 5 Points £1m - £4.99m 11 Attend Primary 2 48 2.5 Secondary up to £50k 9 £5m - £49.99m 8 0.25 Register Secondary 1 84 1.5 £500m+ 7 Clicks Tertiary More Than 3 66 0.75 Tertiary £251k - £999k 6 0 More Than 1 Les s Than 3 300 0.25 £50m - £499m 5 Contact Field: "Annual Primary Annual Revenue - 1 Points £250m+ Les s than £1/2m 177 163 0.75 Revenue" Total Lead Score: 100 £200m - £500m 79 Secondary £10m - £25m £100m - £249.9m 66 54 A 100-45 £50m - £99.9m £100m - £200m 52 51 0.25 B 44-25 £10m - £24.9m 49 £50m - £100m 48 C 24-5 Up to £4.9m 47 £25m - £50m £5m - £9.9m 41 41 F <5 Tertiary £1m - £5m 33 £5m - £10m 31 0 £25m - £49.9m 26 £1bn+ 14 Current Activity - 45 Points Click through Whitepaper 25 Contact Field: Click through Register 0 Contact Field: Click through More Info 10 Contact Field: Click through to Homepage 10 Contact Field: Click to View Online 0 Contact Field: Click on Thank You Form 0 Contact Field: "TYForm" Form Submit/Registrant 0 Contact Group: "Reg" Event Attendee 0 Contact Group: "Attend" Telemarketing - 40 Points Contact Field: Implemented DV? "Tele_s 1q2" Contact Field: DV a Priority? "Tele_s 1q2a" Implementation Timeframe Contact Field: DV? Primary 0-3 Months "Tele_s 1q2b" Secondary 3-9 Months Tertiary 9 or More Months Contact Field: Team in Place DV? "Tele_s 1q2c" Contact Field: Interested in PC? 9 "Tele_s 2q0" Contact Field: Currently Implement PC? "Tele_s 2q1" Contact Field: Considering PC? 9 "Tele_s 2q1a" Implementation Timeframe Contact Field: PC? Primary 0-6 Months 9 "Tele_s 2q1b" Secondary 6-12 Months 2 Tertiary 12 or More Months 1 Contact Field: Team in Place PC? 4 "Tele_s 2q1c" Contact Field: 4 IT Challenges Primary Information Security 30 1 "Tele_s 3q1" Secondary Bus ines s Continunity 9 1 Tertiary Data Growth and Maintenance 6 0 Compliance 4 0 Contact Field: Advise Areas Primary *Cloud* 4 "Tele_s 3q3"
Lead Scoring and Nurturing: Best Practices Best Practices: KISS – Do not score on too many criteria as it will be unclear what values are defining the score Sales and marketing SLA with protocol around MQL to SQL, follow-up, etc. Focus on scoring criteria that has standardized values, this will facilitate program execution and ease refinement, as needed Continuously re-evaluate and tweak the scoring system Conduct a closed-deal analysis to uncover insights into conversions
Marketing Effectiveness Marketing Automation Platforms (MAPs) enable a marketing team to measure it’s ability to directly impact and drive revenues ―Marketing dashboards help address one key tenet of marketing accountability – the transparent communication of results.‖ – Forrester Research
Benchmarkable Performance Benchmarks Track improvement over time against KPIs Prioritize & Launch enhancements based on business objectives Monitor demand generation process and measure its impact to revenues Marketing Marketing Investment to Investment to Sourced Influenced Pipeline Revenue Pipeline Pipeline (average cost of (average revenues (% of sales pipeline (% of sales the demand generated from $1 uniquely created by pipeline touched creation of the invested in demand marketing) by marketing) sales pipeline) creation) 10-50% 30-82% 1-4% $5-$20+Source: SiriusDecisions, Cross-Industry averages for B-to-B Companies
Contact Mardev-DM2 Parin Mody, Global Director, Business Development email@example.com www.mardevdm2.com U.S., Chicago Office firstname.lastname@example.org +1.800.323.4958 UK, Headquarters email@example.com +44 (0) 208 652 4525
Campaign Management: Planning Interest Learn Evaluate Justify Purchase Solutions Evaluated Short List Search Begins Solutions Identified Against Needs Selection Made AssembledQuestions: 1. Who are the suppliers 1. What do they offer? 1. Do they meet my 1. Leading, solid 1. How can I easily for my need? 2. Are their customers expectations? product/company? purchase? 2. What’s the scope achieving success? 2. What do analysts say, 2. Recommended by 2. Can I purchase via of potential 3. Do they fit my need? are they a leader? customers and Web site? achievement? 4. How can I easily 3. Is Company viable? analysts? 3. Who can I call? 3. Where do I stand? evaluate/demo? 4. How do they compare? 3. Meets or exceeds my 4. Do they have a 4. How can I easily find 5. Why should I choose? need? partner in my area? out more? 6. What’s the cost? 4. Can afford to buy & 5. Why buy now? implement?Experience: 1. eMail & Web 1. eMail & Web 1. eMail & Web 1. eMail & Web 1. eMail & Web 2. Seminars 2. Podcasts/Seminars 2. TM Calls 2. Customer, analyst 2. TM & Sales Calls 3. Podcasts 3. TM Calls 3. Sales Calls references 3. Partners 4. Seminars 3. Sales callsContent: 1. Industry white 1. Company white paper 1. Features/Benefits 1. product customer 1. 1800# provided papers 2. Seminar Pres 2. Gartner Quadrant reference site 2. Company.com 2. Company product 3. product spec sheets 3. Fin. Press Releases 2. product Awards product white papers 4. Customer stories 4. Competitive & Cost 3. Customer stories 3. E-Shop product 3. Customer stories 5. Flash Demo Comparisons 4. Press releases 4. Partner locator? 4. Assessment tests 6. Ind/analyst reports 5. product Awards 5. Seminar Pres 5. Promotions or 5. Press releases 7. Educational Tips 6. Seminar Pres deals?
Measure What Matters Measure what matter for your business Funnel Value On track to meet revenue targets? How much revenue from each source? What is the quality of the pipeline? Channel Performance Top campaigns by lead acceptance Top campaigns by number of high scoring leads, etc. Investment effectiveness Which campaigns yield the best returns?
Question & Answer Session If you haven’t done so already, please takethis time to submit questions to our speakers using the ―Ask a Question‖ box on your console. Dan McDade Parin Mody President and CEO Global Director of PointClear Business Development Author of ―The Truth About Leads‖ Mardev/DM2 Thorin McGee Moderated by: Executive Editor Target Marketing
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