How many problems can you imagine here? Unclear process Unclear ownership Few metrics Little linkage between standards and what is measured Poor tracking No ratios to suggest where the process is broken
I like the comment I occasionally hear on NPR from a little music bit called Composers Datebook – Reminding you that all music was once new! Weren’t all orders originally inquiries? How many problems can we see here? Low yield Low process capability Probably unclear ownership Few metrics No tracking and trending
This whole area of qualification against a list of standards is a very obvious fit for Decision Matrix tools. Using the brainstorming process, a team can isolate the critical attributes of an inquiry that are important to it being considered a lead. Once the attributes are determined, then another discussion ensues about the weight each variable should have. This is critical to the functioning of this tool as an objective test of an inquiry’s potential value. Once attributes and their weight are determined, then a scale for voting needs to be determined. The voting techniques we have used involve a 9, 6, 3, 1, 0 scale or 9, 5, 1, 0 which I prefer. Discussing and finally agreeing on what a 9 means is also vital to the outcome of the tool If everyone understands that a ‘6’ vote means at least 80% fit, then the voting will likely be valid in assessing the value of an inquiry. If everyone’s assessment of a ‘3’ is different than the voting of course won’t be as helpful. Budget of course lends itself to dollar ranges, authority to a 9 = sole decsion-maker, 6 = decision-maker after other approve, 3= others approve, and 1 = unknown, 0=no authority. Need definitions have to be agreed upon; size could be sales revenue, # plants or applications for your product, etc. Industry – you could define which target industries are best potential for products, and then define downward from there. It’s a process that will take time, but it will only have to be done once.
Can’t add much to John’s discussion of metrics. Pretty good stuff. Just make sure we get the right metrics
Lead Process + Six Sigma= Increase in Marketing Productivity John M. Coe Sales & Marketing Institute A. Charles Clark + Impact, LLC
A measure to know so that different media within the same tactic (e.g. advertising) can be compared.
CPM is not a number to be reduced – just know it
The percentage of inquiries received and is mostly driven by the “offer” – there are 3 basic types of offers
Cost per inquiry
The cost per response of each media
Number of leads per 100 inquiries (a typical ratio) Tele- marketing Trade Show Mail or email PR Adv. Offer accepted Outbound media 5-10 3-5 2-3 1-2 For More Information 10-25 10-20 5-10 3-5 Soft offer “ free” 25-40 15-25 10-15 5-10 Information of value offer 50-70 30-50 20-30 10-20 Hard or closing offer
No lead process in place – inquiry distribution is not a lead process
Lead qualification is not rigorous enough to separate lower level or warm leads from “hot leads” or real sales opportunities – only sales opportunities should be sent to sales. They will not act or discard the rest.
Even if a lead is “qualified” on the score card, but lacks the “timing” criteria, sales will not likely follow up with dedication and convert it.
As a planning assumption, all sales people have been involved in “lead” systems where they have gotten unqualified leads – they are already highly skeptical and need proof to change their perception and behavior!
Any lead system must align with the sales compensation system.
On average sales people will use 10% of their time on leads – unforced and without any incentive
At 3 calls per day this works out to 60 lead calls per year or 5 per month or about 1 per week!
30-50% of all B2B inquiries bought the product or service they inquired about within an 18-24 month period from time of inquiry.
A continual process that “works” the lead until it reaches the pre-set qualification criteria for a sales lead
The best I’ve seen is about 10% of inquiries separate the inquiries by categories
Lead qualification is not rigorous enough
lead system must align with the sales compensation system
common and accepted definition exists between marketing and sales on what is a “sales opportunity
marketing is to stay with the lead until it is a sales opportunity
Lead Development 6
Some Sigma truths that apply:
Process mind-set is vital to achieving “break-through” results from problem-solving efforts
Process discipline (rigor) is paramount to process outcomes meeting expectations. CHANGE MGT. plans can not be ignored or shorted.
Processes are not usually independent of the impact of other processes – look for interfaces and linkages – complete the total picture! Usually a process input is someone else’s process output– beware of losses in the “white space” between processes or procedural steps.
Who is the owner of the process? Who cares most about the output?