Why It Takes 7-13+ Touches to Generate a Qualified B2B Sales Lead Today

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Why It Takes 7-13+ Touches to Generate a Qualified B2B Sales Lead Today

  1. 1. Why It Takes 7-13+ Touches to Generate a Qualified B2B Sales Lead Today Laurie Beasley, President Beasley Direct Marketing, Inc. Tom Judge, VP Strategy Direct Marketing Partners, Inc.
  2. 2. Your Presenters  Laurie Beasley – President Beasley Direct Marketing  President DMA Northern California www.dmanc.org  Instructor UC Berkeley Extension www.extension.berkeley.edu  Instructor Online Marketing Institute www.onlinemarketinginstitute.org  Tom Judge – VP Strategy Direct Marketing Partners (DMP)  Vice President DMA Northern California  Contributor Sales Lead Management Association www.salesleadmgmtassoc.org  Program Chair NorCal BMA Sales Lead Roundtable www.norcalbma.org .
  3. 3. Part 1: Why So Many Touches?
  4. 4. Why So Many Touches? Its not easy generating the “sales-ready” leads
  5. 5. The Goal of Demand Generation is Sales! However there are some bumps in the road…  The CSO Insights annual survey uncovered problems  The average number of reps making quota was 63% for 2012  Only 42% of firms met or exceeded their 2012 revenue goals  CSO Insights indicated that 92% of firms are raising their revenue goals this year  Over 40% of firms indicate the increases are 15% or more! .
  6. 6. B2B Marketing Challenges Top 2 = our focus
  7. 7. Challenge: Quality Over Quantity .  Marketing Sherpa’s 2012 B2B Benchmark report explored what marketers are actually doing Problem Uncovered:  73% of the leads distributed to sales ARE NOT Sales-Ready! Solution Case Cited: In the same report; Marketing Sherpa cited a case of a firm that moved to higher quality “sales-ready” scored leads (A B2B HR solutions company)  The lead volume dropped by 52%  While revenues increased 41%
  8. 8. 8 1. Marketing generates a lead with basic interest, not ready to engage a sales rep 2. Sales teams reject unqualified leads, feels disconnected, requests “sales-ready” leads 3. Few actually convert and the numbers are unsustainable Current marketing focus Current sales focusThe B2B lead development gap Issue 1: Marketing hands off Leads too early. Unqualified Leads waste sales’ time. Issue 2: Sales cherry picks leads, letting longer-time-frame leads leak out.Issue 3: Marketing spends More $ to replace lost leads. Reach Interest Desire Convert Enrich Retain Warm leads leak out Gap in The Middle of the Funnel is Costing Time & $ Money Source: Forrester October 2006, Best Practices “Improving B2B Lead Mgmt” Forrester: Low Quality Sales Leads Create Sales Problems Symptoms: Few conversions into customers
  9. 9. The increased reliance on higher sales lead quality from the sales teams has changed the game for demand gen marketers You as a marketer are now on the hook to deliver This is the new norm Tension Between Sales & Marketing
  10. 10. Challenge: How Can We Improve Our Lead-To-Sales Results? Here are some best practices and multi-touch cases that improve lead quality
  11. 11. Example of a 7-13+ Touch Sequence? 1: Initial email campaign 2: Initial direct mail campaign 3: Call, prospect not there, leave a message 4: Send email follow up 5: Call, prospect is not involved in any way, referred to correct contact 6: Start over, transfer the call into person you’re referred to, leave VM 7: Send email follow up: first email 8: Call, prospect not able to talk then, but did schedule another time 9: Send email follow up confirming call appt. day/time 10: Call held, prospect interested, however wants more information before all the qualification questions on script are completed 11: Send personalized email follow up with relevant info. 12: Prospect now ready to talk about needs, access to budget, purchase authority, level of urgency and timeframe= Qualified! 13: Email to confirm appt. scheduled with field sales rep, CC rep.
  12. 12. Value of Nurture Process Contact # 1 Contact # 2 Contact # 3 Contact # 4 Contact # 5 Contact # 6 Contact # 7 Contact # 8 Contact # 9 Contact # 10 Contact # 11 Contact # 12 Prospect Customer 50% of sales people have given up 65% of sales people have given up 89% of sales people have given up Just now you are becoming a factor in your prospect’s mind Nurturing slowly, your prospect gets to know you You are probably the only person to make 8 contacts with this person 79% of sales people have given up You harvest low hanging fruit You are earning top of mind awareness At this point when you prospect is ready to buy, you have a 90% chance of being called *Microsoft study
  13. 13. Reality: Wow, 13+ Touches is A LOT! How do we shorten it?  We'll outline 11 ways to shorten the process and improve results.  Then we'll share 2 use cases and their results.
  14. 14. Start with the end in mind: • Review historic sales data • Segment by customer types • Review profitability data • Know the buying process • Build buyer Personas & relevant messaging for each Assess your TAM: • Review the resources it will take to acquire 1. Plan - Start With the End in Mind Create a “Perfect Prospect Profile”
  15. 15. Digital/Online data points: • Digital profile, Segment • Web content activity • Trigger events • Scoring & its limits Non-Digital/Peer-to-peer data points AND relationship: • Needs, Plans & Business pains • Role in the buying process • Access to funding • Size of opportunity • Time frame and sense of urgency • Willingness to move forward and engage with sale rep? 2. Clearly define the “Sales-Ready Qualified Lead” (which can blossom into your perfect customer)
  16. 16. Advanced Lead Rating & Scoring Criteria 16 Tip: Combine digital and BANT Plus data points into your scoring
  17. 17. Sample of “BANT+ Sales-Ready” Lead Data Detailed background information on the prospect and the selling opportunity helps drive more productive sales results
  18. 18. Multi-Touch Process Dispelling the Marketing Automation “Solves it All” Myth Sirius Decisions has now inserted Tele-qualification into this model to increase the sales qualification information gathered to boost lead quality & conversions
  19. 19. Common Problems We See With Overdependence on Marketing Automation  Marketing automation is dependent on lead forms submissions  Lead form submit rates are declining  Difficult if not IMPOSSIBLE to get BANT+ criteria from lead forms (even when using progressive profiling)  Result: “Sticky funnel conundrum”. Lots of unqualified leads rattling around in the system  99% of your true prospects haven’t filled out a form or come to your website. Many responders do not fit your perfect prospect profile. You must monitor the profiles. Action: You need to proactively outbound target the key account contacts in your sweet spot with your value propositions
  20. 20. 3. Quantify Your “Sales-Ready” Lead Quota Sample Lead Requirements Calculator Scenario Requirements ANNUAL SALES REVENUE GOALS: $13,000,000 Sales Revenue Goals/Quarter $3,250,000 Revenue per sale $115,000 # Closed Sales Required/QTR 28.3 Or 9.3 Closes/mo. Estimated Closed Rate on Pipeline Proposal Opportunities 25% # Qual Leads That Must Convert to Pipeline Proposals/QTR 113 Est. forward conversion rate from sales-ready lead into Pipeline 40% # Qualified Sales -Ready Leads Required per Quarter (Prospects meeting sales-ready criteria) 283 # Qualified Sales-Ready Leads Required per Month (Prospects meeting sales-ready criteria) 94 TomJudge, All Rights Reserved, Copyright Protected
  21. 21. Gain agreements with • Marketing’s lead quality and quantities • Sales team follow up actions on each qualified lead • Gain senior management agreement Tip: Obtain sales or channel rep SLA sign offs that they will engage sales-ready prospects and track in CRM 4. Align sales – marketing – and Management with Your Plan
  22. 22. Sample of a basic agreement between sales and marketing • Marketing agrees to quality of leads delivered • Sales agrees to follow up steps and CRM tracking
  23. 23. 5. Target Prospect Data Tip: Create a process to improve prospect data  Forrester reports that 37% of firms indicate this is a significant marketing problem at their firm  Action item: Fix and standardize the prospect database Hint: This is a never ending task
  24. 24. 6. Segment Your Target Markets  Tip: Segment your target markets into smaller more manageable target sub segments. Don’t boil the ocean  Action item: Compare campaign performance by segment to identify better performing markets to focus resources better
  25. 25. Common Segmentation for B2B Single Product Segmentation Example - Business services with multiple decision makers/influencers Customers Prospects Financial Automotive Non Profit Non Profit Small, Medium, Large VP Marketing VP ProductionCFOCEO 2x 3x 3x 4x = 72 Segments Business Universe Financial Automotive
  26. 26. 7. Story Tell With Your Content  Tip: Sync up relevant content with personalized messaging to tell your compelling story, differentiate and establish your brand as one they want to put on their short list Action item: Review and revise your content and messaging to help you “earn the right” to ask the tough qualification questions you need gathered to qualify prospects
  27. 27. 8. Offers DO Matter  Tip: Use a compelling offer with staying power.  Content can be your best offer  Action item: ALWAYS OFFER something of perceived value
  28. 28. Business to Business Offers & Content Offer Responsivenes s (1-5) Qualified(1-5) Optimum Offers ROI calculators 3 5 15 Whitepapers/ Guides 3 4 12 Case studies 4 3 12 “Relevant” giveaways 4 3 12 Video clips or demo 4 3 12 Webinars 2 5 10 Live events 1 5 5 Free giveaways 5 1 5 Tradeshows 2 2 4
  29. 29. 9. Think B2B Relationships: People Buy From People  Tip: To accelerate b2b prospect lead development, include tele-qualification in the touch process  Action item: We suggest running a three-month A/B test using email + tele-prospecting in the lead nurturing and qualification process and measure the lift and ROI.
  30. 30. Tip: Warm Prospects First by Sending an Email or Direct Mail Before Calling  You CAN do cold calling alone without sending a campaign in advance. Lots of people do it. However, their productivity may not be optimal.  We have found sending out an email and/or direct mail before a campaign can make it 30-40% more productive, and save in tele-prospecting expenses.  Why? Several reasons:  You can triangulate from an email or direct mail to draw the prospect into the conversation.  If they’ve read the email or direct mail before you call, they’re much more informed and can more clearly define their needs  You appear to have a more comprehensive offering  You allow more channels for prospects to communicate through
  31. 31. 10. Track All Touch Metrics Tip: Analyze KPI metrics in light of the original touch plan & make refinements during campaigns Action item: Analyze results metrics from end to end. Adjust tactics to improve each metric along the way to a better outcome.
  32. 32. 11. Put in Place Comprehensive Lead Management Resources  Tip: Implement a lead mgmt. system & team that gives you end-to-end visibility into all of your campaigns Action item: Have the right talent and executive dashboard reporting tools to manage your lead funnels and make revisions. Mgmt. wants this! .
  33. 33. Part 2: Multi-Touch Case Studies
  34. 34. Putting it into Practice  To summarize:  Marketing is being required to generate more sales ready leads.  This isn’t easy to do. Marketing automation can’t make it happen alone.  You’re going to have to plan for multiple touches and multiple channels.  To shorten the process: have a comprehensive plan, targeted lists, segmented messaging, good offers, great creative (email, direct mail, etc), plan for personal touches (teleprospecting) and track the metrics.  Now let’s see some real-world scenarios.
  35. 35. Case 1: Glove Corp.  VP of Sales read the DMP/Beasley Direct case study in first chapter of this book, and voila! he called me.
  36. 36. Superior Glove • Leading industrial glove manufacturer • Average value of new glove customer account: $50,000/yr • Target: safety/operations/purchasing decision makers in metal manufacturing industries • Goal: $2.5 million in incremental sales for this product line • Tried everything: PPC, email, tradeshows • Couldn’t get enough “qualified” sales opportunities coming in to hit their numbers • What to do next?
  37. 37. Sales Funnel Needs  $2.5 million in sales/$50,000 per sale = 50 closed sales (@ 20% close rate)  You’d need 250 qualified sales opportunities at proposal stage (25% convert to proposal)  You’d need 1,000 “Qualified A” leads in the sales team pipeline (10% convert into “qualified A leads” and go to sales)  You’d need 10,000 marketing level leads in the demand generation process
  38. 38. Could Email Alone Get Him There? Let’s give him a hand… • Let’s assume available list universe of safety/operations people = 7,500. If he emailed all 7,500 and got 1% inbound response = 75 and 50% of those fill out form = 35 marketing level leads. • He’d have to mail this list at least 285 times to get the 10,000 marketing level leads in the pipeline. (Probably more because he wouldn’t get 1% inbound response each time.) • No, email alone will not achieve sales goals
  39. 39. Solution: Multi-Touch & Multi-Channel  Email + tele-prospecting sequences  Lead nurturing until qualified & put a voice and personality with the relationship  People buy from people they like and this differentiates them  This also yields a better conversion rate  Test two offers: Book vs.. free glove  Test two lists: House vs.. rental list
  40. 40. Tested Free Glove Offer vs.. Book Offer
  41. 41. Glove Campaign Touch Count Per Qualified Lead SuperiorGloveLeadsTouches ProgramthroughDecember7th ALeads List TotalLeads DialsPer Lead Emails Per Lead TTL Touches per Lead AverageTouchesPer Lead House List Glove Offer 8 3,5,2,2,1,1,5,1 1,1,1,1,1,1,1,2 29 3.63 House List Book Offer 9 4,5,1,2,3,4,1,4,1 1,1,1,1,1,1,1,1,1 34 3.78 Metal Stamping Glove Offer 1 5 1 6 6.00 Metal Stamping Book Offer 8 1,1,6,1,3,1,2,2 1,1,1,1,1,1,1,2 26 3.25 Communications Unknown 28 2,3,3,1,1,1,1,1,1,4,4,5 2,2,2,2,2,2,1,1,1,2,2 131 4.68 Communication Tier 1 15 7,3,1,3,2,2,2,4,3,2,1,2,3,3,8 1,1,1,1,1,1,1,1,1,1,12,2,2,2, 66 4.40 ISHN 2 8 0 8 4.00 ISHN_11_7_12 16 3,1,1,9,1,1,2,1,5,4,2,1,5,4,2,1,5,1,1,2,1 1,1,1,1,2,2,1,1,1,2,1,1,1,2,2,1, 72 4.50 87 187 91 372 4.28
  42. 42. Four to Five Touch Points Required  4 to 5 touches, to be exact  This involves:  1. Initial email campaign  2. Initial call (Left voice message or directed to proper contact)  3. Call to engage new contact in the value prop and offers  4. Email to contact  5. Call to complete qualification script, and if qualified then close on Superior Glove sales rep appointment
  43. 43. Case 2: WAN Software Company • WAN (wide area network) optimization • Entrenched competitor: Riverbed • Very complex sale to over- busy IT • “Pain” is felt when applications run too slowly on IT network. But isolating the speed issue difficult, and often trumped by other priorities
  44. 44. WAN Software Company  Have been doing email, webinars, PPC, trade shows.  Top of funnel demand gen focused  Large buckets of unqualified leads in Salesforce account.  Lead management issues  No formal process in place for tele-qualifying inbound leads or generating qualified sales opportunities  Mid funnel problem similar to Forrester example
  45. 45. Solution Pilot Program  Clearly defined sales ready criteria  Multi-touch approach implemented + nurturing to develop prospects until they qualify  Test two offers: Gartner Magic Quadrant report vs.. on-demand webinar featuring Gartner analyst  Test three lists: House lead file vs.. Rental file of Riverbed sites vs.. webinar/seminar attendee file  As program rolled out, webinar registrants/attendees & inbound responders were also nurtured until qualified
  46. 46. Which Offer Worked?  Both  It was nearly a 50/50 split
  47. 47. Which Lists Worked?  All of them!!!  But some worked better than others. How do we know? Metrics… We tracked the number of contact attempts required to reach IT titles from each list.
  48. 48. Campaign Touch Count Per Qualified Lead
  49. 49. Observation: Range of 2 to 9 Touches • Program wide, it required an average of 7.51 touches (via telephone and email) per contact to convert to a sales- ready defined quality lead. • Webinar and live seminar lists representing the low end of the spectrum at 2.50 touches (Best) • House file and Riverbed rental file at the higher end at 9.46 touches per lead. • It is also worth noting that this average does not account for the pre campaign calls required to identify and validate the correct contact, or the webinar touches. • For example, it might require a phone call or two to gain a referral identifying the appropriate contact. This is critical as many lists have outdated or bad data problems.
  50. 50. Patience, patience, patience • Did this program show immediate results? Not exactly. • 1 qualified lead was generated during the first 75 hours of the program • During the initial 50 hour development and roll out phase, several challenges were identified, including low initial response rates to the message when contacting non- responders, difficulties in gaining contact referrals and minimal receptivity to initial messaging • Refinements to messaging and follow up calls to engage prospects were needed because the IT targets were busy and had a different way of perceiving the messaging and value props. These prospects were only concerned about their own schedules, so setting call back times and sending a relevant email proved critical to engaging, establishing a trusted relationship and discussing their needs. Then BINGO!
  51. 51. How we fixed it… Listening and Revising! • More product training for callers was scheduled and completed to improve call dialogue and overcome objections that stonewalled conversations. • Competitive comparisons with Riverbed were re- positioned. Client was presented as a solution to system issues encountered by Riverbed users, rather than as a competitor of Riverbed. • Emails were sent by members of the Calling Team that included White Papers, and Case Studies as well as On-Demand Webinars designed to refine sequential touch points, improving the quantity and quality of program dialogues. This helped establish a nurture sequence designed to educate prospects on the viability of client offerings.
  52. 52. Q&A Laurie Beasley lbeasley@beasleydirect.com Direct: 408-782-0046 x21 www.beasleydirect.com @BeasleyDirect Blog: www.BeasleyDirect-blog.com Tom Judge tjudge@dirmkt.com Direct: 510-368-7527 www.directmarketingpartners.com Blog: http://www.directmarketingpartners.com/blog.html
  53. 53. About Beasley Direct Marketing  Beasley Direct Marketing, Inc. provides copywriting, design, programming, and consulting services for the following direct marketing channels:  Search (PPC and SEO)  Email Creative, Design, Deliverability Audits, and Broadcast  Direct mail (with and without PURLs)  Landing Page Design (with and without PURLs)  Mobile  Video  Social  Website Design  Catalog/eCommerce  Brochure, White Paper, and Guide copy and design  List Building and CRM Database Management  Telemarketing  Translation for all of the above  Executive Dashboard Tracking, Reporting, and Lead Assignment
  54. 54. About Direct Marketing Partners (DMP) DMP is a lead management and lead funnel qualification services provider for B2B selling firms DMP provides customized lead-to-sales service bundles. DMP teams are an extension of our clients’ demand gen teams. Clients receive dedicated trained teams to execute multi-touch email, direct mail and peer to peer tele-prospecting campaigns with marketing automation and funnel metrics to optimize lead to sale conversions.

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