Silverpop
   From First Click to Lifetime Customer




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Engagement Marketing Solutions                                                                        SURVEY
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Engagement Marketing Solutions                                                                                      SURVEY...
Engagement Marketing Solutions                                                                                SURVEY
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Engagement Marketing Solutions                                                                               SURVEY
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Engagement Marketing Solutions                                                                                 SURVEY
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Engagement Marketing Solutions                                                                        SURVEY
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Benchmark study of B2B lead management practices

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Benchmark study of B2B lead management practices across different industries. The study addresses lead-management trends, Provide insight to marketers about the use of single-message vs. drip campaigns, lead nurturing and marketing automation, Furnishes benchmark data—so B2B marketers can see how they compare to others

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Benchmark study of B2B lead management practices

  1. 1. Silverpop From First Click to Lifetime Customer STUD Y How Do You Score? Silverpop benchmark study of lead-management practices Engagement Marketing Solutions
  2. 2. Engagement Marketing Solutions SURVEY STUDY HOW DO YOU SCORE? Silverpop benchmark study of lead-management practices W hat happens to the leads your marketing department generates from initiatives Engagement Marketing Solutions such as white-paper downloads, referrals and trade-show business-card drops? According to research firm MarketingSherpa, 12.5 percent are genuine leads, ready or willing to buy and get moved into the sales cycle, while 17.5 percent get discarded right away because they clearly didn’t qualify or couldn’t be verified. The other 70 percent remain in limbo; as prospects, they may not qualify immediately for a follow-up sales call, but there’s nothing that would send them to the discard pile, either. They are, however, a great opportunity for the marketing team to deploy an automated lead-nurturing program, which uses timed or triggered messages to engage prospects and help move each one to a sales-ready state. Study Objectives Silverpop researchers sought to: • Uncover lead-management trends from across Silverpop ‘s Engage B2B clients • Provide insight to marketers about the use of single-message vs. drip campaigns, lead nurturing and marketing automation • Furnish benchmark data—so B2B marketers can see how they compare to others To measure the impact lead-nurturing programs have on the sales process, Silverpop analyzed six months of data from 250 B2B clients using its Engage B2B. Industries represented in the study included technology, publishing, financial services and professional services. Key Questions for the Study When planning the study, we identified several questions we hoped to answer or gain further insight into, including: • What is the average database size and lead growth rate? • What are the overall response rates to emails sent as part of a lead-nurturing program? • Is there a significant difference between drip campaigns and single-message campaigns? • How many touches does it take, on average, to score a “win”? • What can we learn from the opt-in/lead-qualifying forms? • What is the average number of fields used in a form? • Does the number of fields, number of required fields or average time to complete the form have an impact on completion rates? www.silverpop.com/b2b 1-866-SILVPOP (745-8767) © 2009 Copyright Silverpop. All rights reserved. 2
  3. 3. Engagement Marketing Solutions SURVEY STUDY Survey Findings Database Size and Growth DATABASE SIZE AND GROWTH Q1 Q2 Under 10K- Under 10K- Total 50K+ Total 50K+ 10K 49,999 10K 49,999 Average DB Size 46,810 2,813 20,996 128,807 56,116 3,635 26,283 155,528 Engagement Marketing Solutions Average Growth 10,446 1,007 5,620 27,303 9,201 958 4,736 24,593 Average Growth Rate 38.0% 49.5% 32.2% 29.4% 32.8% 42.2% 30.9% 26.9% Analysis: The typical B2B database is growing at a monthly rate equivalent to about 5 percent to 10 percent. Other statistics: • Average database size: +/- 50,000 range • Median database size: Quarter 1, 2008 = 16,700; Quarter 2, 2008 = 21,000 • Quarterly growth range: 1 - 160 percent • Median overall growth rate: Quarter 1, 2008 = 21 percent; Quarter 2, 2008 = 16 percent Key takeaway for marketers: Use this information to benchmark your company’s database growth rate. While growth rates obviously can vary widely based on size and goals, an average-sized database that isn’t growing at least 5 percent per month is probably underperforming. Email Nurturing EMAIL RESPONSE RATES - DRIP CAMPAIGNS Q1 Q2 Bottom Bottom Total Top 25% Total Top 25% 25% 25% Open Rate 33.3% 48.5% 30.7% 32.4% 51.0% 25.9% EMAIL RESPONSE RATES - SINGLE CAMPAIGNS Q1 Q2 Bottom Bottom Total Top 25% Total Top 25% 25% 25% Open Rate 19.6% 27.7% 14.9% 18.7% 27.2% 14.7% EMAIL RESPONSE RATES - DRIP CAMPAIGNS Q1 Q2 Bottom Bottom Total Top 25% Total Top 25% 25% 25% Click-Through Rate 10.1% 26.7% 0.4% 10.0% 28.0% 0.6% Click-To-Open Rate 27.9% 55.4% 4.4% 25.8% 53.5% 4.2% EMAIL RESPONSE RATES - SINGLE CAMPAIGNS Q1 Q2 Bottom Bottom Total Top 25% Total Top 25% 25% 25% Click-Through Rate 3.1% 8.8% 0.3% 2.9% 8.3% 0.3% Click-To-Open Rate 14.3% 32.2% 2.9% 13.8% 30.2% 2.6% www.silverpop.com/b2b 1-866-SILVPOP (745-8767) © 2009 Copyright Silverpop. All rights reserved. 3
  4. 4. Engagement Marketing Solutions SURVEY STUDY Analysis: Drip campaign response rates consistently outperformed single-message campaigns, often 2-to-1 and even 3-to- 1. Surprisingly, the lowest-performing drip campaigns outperformed almost all of even the best-performing single-message campaigns. Drip campaigns generated open rates that were consistently nearly double those of single-message campaigns. Also, drip campaigns consistently generated click-through rates that were three times those of single-message campaigns. Key takeaway for marketers: These results demonstrate pretty clearly how well drip campaigns—even those that don’t Engagement Marketing Solutions perform in the top 25 percent—will engage prospects and outperform single-message campaigns. This can be a powerful argument when you need to sell your top management on moving away from the single-message approach and the potential need for additional resources. Form Completion FORM COMPLETION RATES - NEW LEADS Q1 Q2 Average Bottom Average Bottom Top 25% Top 25% of Total 25% of Total 25% Average completion rate 33.7% 54.0% 12.9% 34.1% 60.5% 10.3% Average total fields 11.5 10.9 12.7 10.9 10.7 11.1 Average required fields 8.1 8.3 6.8 7.9 7.7 8.2 Average percentage # 72.7% 76.2% 57.2% 77.1% 77.0% 76.6% required fields Time to complete: % of 100% 81.0% 109% 100% 87.9% 112.8% average FORM COMPLETION RATES - UPDATES Q1 Q2 Average Bottom Average Bottom Top 25% Top 25% of Total 25% of Total 25% Average completion rate 63.7% 82.7% 42.1% 62.5% 80.8% 40.4% Average total fields 9.1 5.5 10.8 9.4 7.7 8.2 Average required fields 7.2 4.9 8.4 7.2 6.9 6.9 Average percentage # 80.6% 90.6% 76.3% 81.9% 83.4% 84.8% required fields Time to complete: % of 100% 81.0% 108.8% 100% 94.9% 96.0% average Analysis: Time to fill out a form was a key factor in completion rates for both new leads and those who previously had completed a more basic form and were given a more detailed one to enable the marketer to gather further information. The forms that were able to be completed quickly were most likely to be finished, while those that took longer were more often abandoned midway through. However, the number or percentage of required fields appeared to have little impact on completion rate. The study found that “update” forms were completed at a rate 20 percent to 25 percent higher than new-lead forms. Update forms often require fewer fields be filled because marketers are populating fields with existing data. Prepopulating forms saves people time and, when done effectively, reinforces a positive relationship with the prospect. www.silverpop.com/b2b 1-866-SILVPOP (745-8767) © 2009 Copyright Silverpop. All rights reserved. 4
  5. 5. Engagement Marketing Solutions SURVEY STUDY Additionally, higher completion rates of update forms most likely occurred because prospects recognized the relationships they had already established with the company and the time they’d already spend providing information. Key takeaway for marketers: For new lead-capture forms, there doesn’t appear to be a magic number of optimum form fields. But we believe there is an optimum number or range for each company. Obviously, fewer required fields generally will produce a higher completion rate, but you need to balance that against gathering information you need to begin qualifying or nurturing leads. Engagement Marketing Solutions The study results do appear to suggest that the time to complete a form may be more important than the number of fields. Therefore, make sure your form pages are simple, clear and brief. The form fields should be designed and written so they can be completed without any hesitation. For update forms, consider incorporating prepopulated fields to speed completion. The following best practices can help you sharpen your qualification program, weeding out marginal prospects while engaging hot leads and moving them quickly to your sales team: • Standardize your lead-capture questions, including only those that can help you quickly identify hot prospects to be moved on to sales or those in need of nurturing. Avoid open-ended questions; give users drop-down menus that define choices and allow you to evaluate leads more uniformly. • Use forms that both populate automatically with the information your prospects have already given you and provide new fields for your next round of information-collecting. This reduces the time a returning prospect has to spend entering infor- mation and allows you to use fewer fields in your update forms. • Allow hand-raisers who indicate on the form that they’re ready for a demo or a sales call to bypass the rest of your lead- nurturing process and move directly over to sales. Customers who receive a sales call within hours of indicating they’re ready to talk will be much more impressed with your program than if they sit for days without a contact. • To provide a good customer experience, progressively gather more information over time, rather than forcing everyone to fill out a long list of questions early on in the relationship. Touches/Contacts Before a Customer Win AVERAGE TOUCHES - WINS Q1 Q2 Bottom Bottom Total Top 25% Total Top 25% 25% 25% Average Touches Per Month 1.8 3.0 1.0 2.7 4.3 1.1 Analysis: High performers (as measured by click-through rates) “touch” leads more frequently—at least three to four times each month—compared to an average one touch monthly in lower-performing programs. We also found high performers send more frequently to fewer people in small batches of relevant email triggered by behavior and time-based events. Key takeaway for marketers: This further demonstrates the value of relevant messaging as found in drip versus single- message campaigns. The combination of more frequent messaging and emails sent in smaller, targeted batches culminates more often in customer wins. While frequency and cadence play a key role by staying top-of-mind with prospects, using a drip approach to touch leads with the right message at the right time is the key driver of success. Bounces and Unsubscribes Analysis: Average hard-bounce rates (messages that are undeliverable because of invalid addresses) are about the same for single-message and drip campaigns. This seems logical, as the driver of these rates is likely mostly about the opt-in form ap- proach and nature of offers, which should be fairly consistent across single- and drip-message approaches. The unsubscribe rate, however, is slightly higher in drip campaigns, possibly because of higher frequency and a more aggressive or transparent sales approach. www.silverpop.com/b2b 1-866-SILVPOP (745-8767) © 2009 Copyright Silverpop. All rights reserved. 5
  6. 6. Engagement Marketing Solutions SURVEY STUDY Key takeaway for marketers: The bounce and unsubscribe results did not reveal any compelling insight. However, if your rates are well outside of the averages cited, you likely have problems with your opt-in forms, permission practices, or frequency or content. Impact of Frequency EMAIL RESPONSE RATES - DRIP CAMPAIGNS Q1 Engagement Marketing Solutions Q2 Bottom Bottom Total Top 25% Total Top 25% 25% 25% Hard Bounce Rate 4.8% 4.4% 3.9% 4.4% 4.7% 4.0% Unsubscribe Rate 0.5% 0.4% 0.4% 0.5% 0.3% 0.9% EMAIL RESPONSE RATES - SINGLE CAMPAIGNS Q1 Q2 Bottom Bottom Total Top 25% Total Top 25% 25% 25% Hard Bounce Rate 4.3% 5.0% 4.2% 5.2% 5.0% 5.7% Unsubscribe Rate 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% Analysis: The top performers had two to four times as many email sends as weaker performers. The number of different creative approaches used, however, did not vary greatly, ranging from about two to three different email versions. Top-performing drip campaigns generally targeted less than a quarter of the number of recipients that other B2B marketers in the study emailed. In fact, companies in the top-performing quartile sent to just seven people on average versus 150 to 170 for the low performers. These results suggest that the high-performing companies had more clearly defined targets or segmented their email databases by behavior as the entry criteria of their campaigns. EMAIL RESPONSE RATES - DRIP CAMPAIGNS Q1 Q2 Bottom Bottom Total Top 25% Total Top 25% 25% 25% # Email Sends 80 109 26 69 69 35 # Creative Messages 2.4 3.1 2.1 2.5 2.6 2.8 # Contacts 2,855 757 4,367 3,070 602 5,461 Click-Through Rate 10.1% 26.7% 0.4% 10.0% 28.0% 0.6% Key takeaway for marketers: The major lesson is, “think small, small, small.” In other words, the more tightly batched and narrow your emails are, the better. This means sending each drip message in real time, triggered by an event or change in user behavior rather than batching the emails manually once per week, for example. Small groups of messages that are highly relevant deliver “the right message at the right time” and are the core driver of higher response rates. Summing Up: Using This Information to Improve Your Own Lead-Management Program There are several ways you can use the information and findings in this report to engage prospects and advance your lead nurturing. • First, study the benchmark findings to see how you stand relative to others. However, don’t stop there. • Next, benchmark against your goals: www.silverpop.com/b2b 1-866-SILVPOP (745-8767) © 2009 Copyright Silverpop. All rights reserved. 6
  7. 7. Engagement Marketing Solutions SURVEY STUDY o Where could your program be if you changed your structure from single-message campaigns to drip campaigns using messages by time and recipient behavior? o What will it take to get you there? • Assess what return you could expect in terms of lead quality, volume, customer wins and revenue. • Determine how to reallocate your resources and adapt your content to work in a drip or lifecycle approach. • Create a lead-scoring process that attaches a value to every action prospects take until they score high enough to be moved over to the sales force for action. • Utilize automation to achieve more with the same resources. This will require more upfront time to create messages and a Engagement Marketing Solutions scoring system as well as create time and behavior triggers for message sequencing. But after that, the program will run largely on autopilot. Resources Definitions of Key Terms Single-message campaign: These are campaigns, usually including periodic newsletters or solo promotions, in which every subscriber receives the same message each time, regardless of his or her place in the sales cycle, preferences, interests or behavior. Drip campaign: A campaign (email and/or direct mail and telesales) using a series of messages distributed based on prospect data, timing and/or user actions. Messages typically include calls to action that when acted on may increase a person’s lead score and potentially move that person into a new message track or lead status. Multitrack/multistep campaign: A campaign that mixes automatically launched messages in a timed sequence, but which assigns participants to one of several tracks based on their data or behavior at the launch. The lead will likely move to a new track based on time/completing a track, taking certain actions or having a change in demographics or firmagraphics. Key differences among campaign types: Single-message campaigns typically do not build on previous responses, are launched manually and reflect company goals more than recipient interest or action. Drip-campaign messages typically launch automatically based on an action such as a download or information request and center on the prospect. Multitrack/step campaigns also use a series of timed messages designed to move the prospect further into the sales funnel but which differ according to the track and reflect the prospect’s own data and actions. Top and bottom quartiles: For each metric we analyzed the overall average as well as the top 25 percent and bottom 25 percent quartiles. For each metric analyzed, we sorted the data by that, or another, metric deemed to be the best indicator of performance. We then reported the top 25 and bottom 25 percent. For example, we used click-through rates to sort the quartiles for most of the email response rates. To find out more about Silverpop’s Engage B2B solution and how it can benefit your company, please contact toll free at 1-877-484-7704 Visit us at www.silverpop.com/b2b www.silverpop.com/b2b 1-866-SILVPOP (745-8767) © 2009 Copyright Silverpop. All rights reserved. 7

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