Why Marketing Must Nurture Leads for Maximum Sales Success Loren McDonald VP, Industry Relations Silverpop January 13, 2009

Speaker/Agenda Agenda Timing is Now for Lead Nurturing Scoring & Routing Lead Nurturing Q & A Loren McDonald VP, Industry Relations Silverpop

Agenda

Timing is Now for Lead Nurturing

Scoring & Routing

Lead Nurturing

Q & A

Loren McDonald

VP, Industry Relations

Silverpop

Vtrenz, a Silverpop Solution Marketing/Lead Automation SaaS provider Founded in 1999 Part of Silverpop, top provider of permission based marketing solutions 350+ employees with offices in Atlanta, Fargo, Irvine and London Top tier ranking by Jupiter Research and SiriusDecisions Integration with leading CRM solutions Salesforce.com Microsoft Dynamics Batch API

Marketing/Lead Automation SaaS provider

Founded in 1999

Part of Silverpop, top provider of permission based marketing solutions

350+ employees with offices in Atlanta, Fargo, Irvine and London

Top tier ranking by Jupiter Research and SiriusDecisions

Integration with leading CRM solutions

Salesforce.com

Microsoft Dynamics

Batch API

From Too Many “Leads” … to Not Enough?

Recession: The Question is For How Long?

What Does a Recession Mean to B2B Marketers? Marketing Budgets? Typically – frozen or cut ROI/Spend Decisions? Cut marketing activities that don’t lead to near-term sales Revenue? Management focuses on immediate/short-term revenue Resources? Make do with what you have Measurement? Real-time, accurate – hard, not soft- ROI focused Targeting? Increased focus on existing relationships

Marketing Budgets?

Typically – frozen or cut

ROI/Spend Decisions?

Cut marketing activities that don’t lead to near-term sales

Revenue?

Management focuses on immediate/short-term revenue

Resources?

Make do with what you have

Measurement?

Real-time, accurate – hard, not soft- ROI focused

Targeting?

Increased focus on existing relationships

What Does This Mean? – Opportunities for B2B Marketers Automate marketing processes Optimize campaigns Focus on: Nurturing the “A” and “B” lead pool Cross-selling/Up-selling existing customers Focus measurement on outputs: Revenue # Sales-ready leads Cost per win/Cost per sales-ready lead Etc.

Automate marketing processes

Optimize campaigns

Focus on:

Nurturing the “A” and “B” lead pool

Cross-selling/Up-selling existing customers

Focus measurement on outputs:

Revenue

# Sales-ready leads

Cost per win/Cost per sales-ready lead

Etc.

Marketing’s Opportunity & Responsibility 82.5% are ready to buy or will buy 70% are long-term opportunities – Marketing Territory An estimated 70-90% of leads generated by marketing are never followed-up with by sales Source: MarketingSherpa

82.5% are ready to buy or will buy

70% are long-term opportunities – Marketing Territory

Leaky Sales Funnel Increases Customer Acquisition Costs Mature Marketing Processes Close the B2B Lead Management Gap

So…Marketing’s Role Has to Change Need to be “lead developers” not just “lead generators” Generate Capture Qualify/Score Distribute Nurture Report Need to focus on Metrics and Accountability

Need to be “lead developers” not just “lead generators”

Generate

Capture

Qualify/Score

Distribute

Nurture

Report

Need to focus on Metrics and Accountability

Keys to Maximizing the Sales Lead Process Common definition of a “lead” Scoring leads – assigning priorities Timely lead routing and follow up by sales Automating the lead nurturing process Measuring marketing effectiveness

Common definition of a “lead”

Scoring leads – assigning priorities

Timely lead routing and follow up by sales

Automating the lead nurturing process

Measuring marketing effectiveness

What is a Lead? White Paper Download Tradeshow Attendee Webinar Attendee Web Site Inquiry Etc. Has B udget allotted Has A uthority to purchase Has a N eed that we solve Has defined purchase T imeframe Agreed upon Lead Qualification Definition Suspect, Prospect or Lead?

White Paper Download

Tradeshow Attendee

Webinar Attendee

Web Site Inquiry

Etc.

Has B udget allotted

Has A uthority to purchase

Has a N eed that we solve

Has defined purchase T imeframe

Score Leads Based on Sales Readiness Clearly defining “sales ready” results in less lead waste Ensure both sales and marketing agree on definition to align goals Requirement: Lead Scoring based on: Budget Authority Needs Timeframe Size Profile Email/Web Behavior Route to Strategic Sales Nurture Discard 1 2 3 Route to Inside Sales 2 Lead Definition Sales Ready Now High Score Unqualified Low Score

Clearly defining “sales ready” results in less lead waste

Ensure both sales and marketing agree on definition to align goals

Requirement: Lead Scoring based on:

Budget

Authority

Needs

Timeframe

Size

Profile

Email/Web Behavior

Lead Scoring- Explicit Data Defines the right lead based on your target market segment Scoring performed on a unified database to ensure consistency across all leads

Defines the right lead based on your target market segment

Scoring performed on a unified database to ensure consistency across all leads

Lead Scoring- Implicit Data Scores Activity Recency and frequency scores with automated discounts Apply points for important interactions indicative of interest

Scores Activity

Recency and frequency scores with automated discounts

Apply points for important interactions indicative of interest

Using lead scoring, map communications to prospect’s buying cycle with agreed-upon action plans Interaction Create Interest- Whitepaper Edu-sell communications- Case Studies Purchase and Validate- Free Trial, Discount Offers 1 3-X X+ Consider Solutions- Webinars & Demo 2 Lead Scoring - Now What? Search for Solutions Evaluate Solutions Recognize Need Justify Solution Purchase Evaluate Decision

Using lead scoring, map communications to prospect’s buying cycle with agreed-upon action plans

Routing: Ensure Follow-up Within 48 Hours Over 7x improvement in sales if leads are responded to within 48 hours The likelihood of reaching a prospect on a follow-on call goes down by 90% within one week from the initial inquiry Automate lead routing decreases follow-up times *Vtrenz Marketing Research Survey 2005 Communication Effectiveness % Reaction Time In Days 1 2 3 4 5 6 7 20% 40% 60% 80% Slow reaction time, decreases response effectiveness Florida Lead East Sales Rep Nebraska Lead Central Sales Rep California Lead West Sales Rep

Over 7x improvement in sales if leads are responded to within 48 hours

The likelihood of reaching a prospect on a follow-on call goes down by 90% within one week from the initial inquiry

Automate lead routing decreases follow-up times

What is Lead Nurturing Leveraging a series of communications to maintain ongoing contact with prospects identified as not yet ready to make a purchase Keeps your prospects engaged throughout buying process Provides opportunity for more relevant and timely communications Improves ROI of marketing spend by ‘plugging the leaks’ in lead management

Leveraging a series of communications to maintain ongoing contact with prospects identified as not yet ready to make a purchase

Keeps your prospects engaged throughout buying process

Provides opportunity for more relevant and timely communications

Improves ROI of marketing spend by ‘plugging the leaks’ in lead management

Utilize Rules-Based Marketing to Eliminate “One and Done” Marketing Understand your sales cycle and map your communications to your sales cycle Leverage a rules-based marketing engine to set-up and deliver multi-track, multi-touch, multi-channel communications Well-executed multi-channel marketing campaigns generate a sales lift ranging from 7-34%. Source: Internet Advertising Bureau

Understand your sales cycle and map your communications to your sales cycle

Leverage a rules-based marketing engine to set-up and deliver multi-track, multi-touch, multi-channel communications

ControlScan’s Typical Drip Campaign Campaign Objectives: Increase compliance rate for Partner’s merchants and the marketing team’s productivity Bring in campaign members based on defined criteria Email #1 Intro to program Direct Mail #1 Intro to program Email #2 Reminder Direct Mail #2 Reminder Email #3 Reminder Outbound Call Campaign Contact removed from campaign once compliance is achieved 2 weeks 2 weeks 2 weeks 1 week 2 weeks 2 weeks Achieved 14% compliance rate in 2 month pilot – average compliance rate is typically ~1% - in one year! 2-3 touch points within first month

Drip Campaign Contents Email #1 Email #3 Email #2 Call to actions became increasingly more urgent. All action is directed to the Partner’s microsite.

Drip Campaign Contents Direct Mail Content

Drip Campaign Contents Campaign Microsite Call to action is to enroll in mandatory program.

Lead Nurturing Tip #1 Communicate Keep your company top-of-mind as prospects move through the buying cycle Contact everybody at least once Do not let prospects go an entire sales cycle without having received a touch Offer prospects the opportunity to identify themselves as “ready to buy”

Communicate

Keep your company top-of-mind as prospects move through the buying cycle

Contact everybody at least once

Do not let prospects go an entire sales cycle without having received a touch

Offer prospects the opportunity to identify themselves as “ready to buy”

Message Creation Know Your Audience and Ask Yourself How can we build credibility with our prospects How can we show that our products/services will help them achieve their goals How can we differentiate ourselves from our competitors Become a trusted advisor/expert to your prospects

Know Your Audience and Ask Yourself

How can we build credibility with our prospects

How can we show that our products/services will help them achieve their goals

How can we differentiate ourselves from our competitors

Become a trusted advisor/expert to your prospects

Lead Nurturing Tip #2 Engage in Meaningful Two Way Conversations Cut through the “noise” and be relevant Send communications that include questions with several possible answers Base subsequent communications on these answers for increased message relevancy

Engage in Meaningful Two Way Conversations

Cut through the “noise” and be relevant

Send communications that include questions with several possible answers

Base subsequent communications on these answers for increased message relevancy

Lead Nurturing Tip # 3 Target High-Potential Leads Hone your targeting Offer value Whitepaper relevant to an indicated area of interest Webinar invite to a topic of interest Know your own criteria Have clearly defined criteria to know exactly when you want to push a lead to sales

Target High-Potential Leads

Hone your targeting

Offer value

Whitepaper relevant to an indicated area of interest

Webinar invite to a topic of interest

Know your own criteria

Have clearly defined criteria to know exactly when you want to push a lead to sales

Usher the Lead Through the Sales Cycle Lead Nurturing supports all stages of the lead management process Marketing Qualified Inquiries Sales Qualified Sales Accepted Impressions Marketing Sales New Business

Stay Involved Avoid lead waste Have processes in place ready to fold a lead back into the nurturing cycle if necessary

Avoid lead waste

Have processes in place ready to fold a lead back into the nurturing cycle if necessary

Summary Effective lead nurturing Communicate! Know your audience Have two way conversations to add relevance Further hone your targeting Craft communications that add value, not more noise Identify the criteria you want to use to bubble nurtured leads to sales once they become Hot Have a plan Identify a process to fold leads back into the nurturing process if necessary And focus on converting the 70 percent long-term leads, to near-term opportunities!

Effective lead nurturing

Communicate!

Know your audience

Have two way conversations to add relevance

Further hone your targeting

Craft communications that add value, not more noise

Identify the criteria you want to use to bubble nurtured leads to sales once they become Hot

Have a plan

Identify a process to fold leads back into the nurturing process if necessary

Q & A Follow Me Twitter – LorenMcDonald Columnist Media Post - Email Insider MarketingProfs GetToThePoint Many others… Blogs Silverpop – “Tales” Newsletters Digital Marketer Contact: Loren McDonald [email_address] www.silverpop.com www.vtrenz.com

Follow Me

Twitter – LorenMcDonald

Columnist

Media Post - Email Insider

MarketingProfs GetToThePoint

Many others…

Blogs

Silverpop – “Tales”

Newsletters

Digital Marketer

Contact:

Loren McDonald

[email_address]