Lead Management in the Face of the New B2B Buyer - Jay Hidalgo


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Lead Management in the Face of the New B2B Buyer

B2B buyers have more information than ever before, and as a result are controlling the B2B buying process. Marketers must adapt when it comes to how they manage buyer dialogue, primarily in the area of Lead Management. This session will take you through the shift the B2B buyer has undergone and a step-by-step process for better lead management of this new dynamic.

Jay Hidalgo, CEO, The Annuitas Group

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  • We’re process guys
  • Before we get into the ways to change, I want to show some recent numbers that also indicate the need for we as marketers to change the way we interact with our customers and prospects. One of the biggest thing these numbers say to me is that we need to change from this mindset of lead generation to lead management. This idea is not just managing the lead internally to make sure sales receives it, but also includes managing the lead from a dialog and conversation aspect. As we continue in our discussion today we will look at the realities of changing to a buyer dialog model really looks like and how it will impact us as marketers.
  • The definition of lead management is needed here: starts with “you have a lead”, and goes through to sale, and post sale nurturing. Not customer service, accounting, etc.
  • The traditional lead waterfall or funnel takes into account leads moving through the marketing and sales process in a very linear fashion. This is a faulty approach in that it only accounts for a piece of the marketing and sales funnel and is built with the idea that initial inquiries/web visits, qualified responses and accepted leads will leak out of the funnel and nothing will be done to keep them engaged. Not only is this a poor practice, but also devalues the potential ROI derived from a campaign. Companies need to begin to develop a multi-tiered funnel approach to their marketing revenue projections. By utilizing lead nurturing as part of the marketing mix, the leaks that are seen in a linear model are closed and all responses and leads are managed and the increase in ROI is substantial. This affects all areas of marketing and sales including lead forecasting, forecasting for quota attainment, ROI analysis and marketing budget allocation.
  • Lead Management in the Face of the New B2B Buyer - Jay Hidalgo

    1. 1. Online Marketing Summit<br />Cleveland, OH | June 7, 2010<br />The Process Approach to the Changing B2B Buyer<br />Jay Hidalgo<br />CEO<br />The Annuitas Group<br />1<br />
    2. 2. Agenda<br />Who is The Annuitas Group?<br />The Changing B2B Buyer<br />Today’s B2B Marketer<br />The Impact of This Change on the B2B Marketer<br />The Process Approach to Manage the Change<br />The Lead Management Framework Defined<br />How to Begin Implementing<br />Q & A<br />
    3. 3. <ul><li>The Annuitas Group's mission is to help our clients deliver a measurable return on their sales and marketing practices.
    4. 4. Do this through process consulting and technology (marketing and sales automation)
    5. 5. Practice Areas…
    6. 6. Lead Audit
    7. 7. Lead Management
    8. 8. Marketing Automation
    9. 9. Campaign Management Services</li></li></ul><li>Our Clients<br />
    10. 10. The Changing B2B Market<br />
    11. 11. Today’s B2B Buyer<br /><ul><li>The way buyers buy has changed
    12. 12. Buyers are more educated and look to sales much further down the buying cycle
    13. 13. Buyers are turning to online and social media as sources for decision making
    14. 14. More than one buyer – buying units
    15. 15. Looking to each other as sources of information</li></li></ul><li>Change in How Buyers Buy<br />“Transforming the BtoB Buying Process,” DemandGen Report Study – February 2010<br />
    16. 16. The Buyer is Boss<br />
    17. 17. Buyer 2.0<br />“[T]he hunter has become the hunted. Buyers are more informed and seek information independent of sales. ... How sales people want to sell has little impact on how buyers are choosing to buy.”<br />Source: SiriusDecisions, “Marketing Needed for Sales 2.1”<br />
    18. 18. Buyers - Plural<br />“Relationship marketing is the key here and different levels of the organization participate in the buying/selling process especially if the sale is a big ticket sale."<br />Source: Lowell D’Souza, “Understanding B2B Buyer Behavior” <br />
    19. 19. Customer is The Focal Point<br />“No longer is the corporation the fulcrum around which customer groups and suppliers revolve. ... [T]he customer is now the pivot point.”<br />Source: Paul Greenberg, CRM at the Speed of Light (3e)<br />
    20. 20. Today’s B2B Marketing<br />Issues with Measurement & Acquisition<br />70-80% of leads never get follow-up<br />45% of the leads companies receive will buy from someone<br />More than 50% of marketing teams cannot track ROI on program spend<br />Shrinking budgets<br />More pressure to justify spend<br />Shift from traditional marketing to automated, online, inbound & social<br />Increased pervasive use of technology <br />Marketing asked to assist in pipeline acceleration & sales enablement<br />Source: Sirius Decisions; Forrester<br />
    21. 21. The Response . . . . Adapt!<br />Marketers must manage and engage that relationship<br />Buyers want a 1-1 relationship<br />It’s Lead Management not Lead Generation<br />It will affect every area of your role as a marketer<br />Sales interaction<br />Buyer interaction & communication<br />Content Management & Marketing<br />Inbound Marketing Management<br />Social Media Strategy<br />Internal marketing & sales process<br />How you utilize your technology<br />How you work & think as a marketer<br />
    22. 22. How To?<br /><ul><li>So how does an organization make the change and bridge the gap from the old to the new?
    23. 23. What needs to be done to ensure a buyer centric approach?
    24. 24. What processes need to be developed?</li></li></ul><li>A Process Based Lead Management Approach <br />“Nothing is more important than process when it comes to building a best-in-class lead management engine. Process separates the Best-in-Class from the Laggards”<br />- Ian Michiels – “Crossing the Chasm with Automated Lead Management” January 2010<br /> <br />
    25. 25. Lead Management – What it isn’t<br />Not just scoring and lead nurturing<br />It is not a practice of individual silo’s, everything feeds into the next and has to be looked at holistically<br />Not technology, but supported by it.<br />Source: Sirius Decisions; Forrester<br />
    26. 26. Lead Management – What it is<br />The operational response to the buyers power<br />It's a process not a program that includes<br />Data<br />Lead Planning <br />Lead Qualification<br />Lead Nurturing<br />Lead Routing<br />Metrics<br />Not technology; a process supported by technology<br />
    27. 27. The Common Lead Management Approach:<br />Increased Effort & Decreased Efficiency <br />
    28. 28. The Process Based Lead Management Approach<br />
    29. 29. Lead Management Framework<br />
    30. 30. Building the Process – Where to Start?<br /><ul><li>Define the lead management framework
    31. 31. Conduct an Audit – Know What You Don’t Know
    32. 32. This is not a marketing only exercise It is cross-functional
    33. 33. Marketing
    34. 34. Sales
    35. 35. Operations
    36. 36. Finance
    37. 37. IT</li></ul> <br />
    38. 38. The Database<br /><ul><li>Determine the validity of your database – How old are the records?
    39. 39. Determine your approach to data hygiene and what team will own it
    40. 40. Where will you store the customer & prospect data?
    41. 41. Define and control who will have access to that data
    42. 42. Segment the data to optimal success based on ideal target and customer profiles</li></ul> <br />
    43. 43. The Annuitas Group Lead Planning Funnel<br />3,000 <br />Responses <br />2,400<br />Valid<br />Responses <br />80% Conversion <br />Lead Nurture Campaigns<br />Mktg Nurture Campaign<br />240<br />Mktg Qualified <br />(MQL)<br />10% Conversion<br />(MQL)<br />Mktg Nurture Campaign<br />120<br />Sales Accepted Leads<br />50% Conversion<br />(SAL)<br />Sales Nurture Campaign<br />72<br />Sales Qualified Leads(SQL)<br />Post-Sales Nurture Campaign<br />60% Conversion<br />SQL<br />Sales Close Rate<br />33%<br />24 closed deals<br />Additional Monthly Revenue @ $100k ASP<br />$2.4M per month<br />
    44. 44. Lead Qualification <br /><ul><li>What do you do with leads?
    45. 45. Determine between sales and marketing the definition of a lead
    46. 46. Define the qualification criteria
    47. 47. What happens to non-qualified leads?
    48. 48. Set-up a lead scoring model that allows for quality leads to flow to sales
    49. 49. Focus on quality not quantity</li></ul> <br />
    50. 50. Lead Nurturing<br /><ul><li>Building a relationship with your prospect – not all responses are ready to buy immediately
    51. 51. Nurturing allows for pipeline acceleration
    52. 52. Sales that were nurtured provide a 47% higher order value than non-nurtured sales.</li></ul> <br />Source: Aberdeen<br />
    53. 53. Lead Routing<br /><ul><li>Determine how marketing will pass qualified leads to sales
    54. 54. Avoid the black hole, know how the leads will be tracked
    55. 55. Provide sales the ability to pass back for further nurturing
    56. 56. Develop SLA’s and Business Rules to ensure proper follow-up and no fall out rate</li></ul> <br />
    57. 57. Metrics<br /><ul><li>Know why you are running a campaign or marketing program
    58. 58. Develop benchmarks and KPI’s for your organization and measure against them quarterly
    59. 59. Use the metrics to shape the future
    60. 60. Pull both marketing and sales metrics for a complete 360o view of your organization</li></ul> <br />
    61. 61. Automate the Process<br /><ul><li>Manual run processes will fail
    62. 62. Process based automation will allow you to improve the bottom line and improve value
    63. 63. Automation is the only way to streamline 1-1 buyer dialogue
    64. 64. Automation is well beyond feature & function, it enables the relationship process with the dialogue</li></ul> <br />
    65. 65. Potential Roadblocks<br /><ul><li>Executive Resistance
    66. 66. Fear and Turf Guarding
    67. 67. Sales Resistance
    68. 68. Boiling the Ocean</li></li></ul><li>One more thing…<br /><ul><li>Dream big, start small, scale appropriately
    69. 69. Process equals behavior change – be ready
    70. 70. Include Sales in the process – This bears repeating</li></li></ul><li>Contact Information<br />Jay Hidalgo<br />The Annuitas Group<br />jhidalgo@annuitasgroup.com<br />Phone: 616-364-1345<br />Twitter: @jayhidalgo<br /> <br />
    71. 71. 32<br />Thank You<br />Visit<br />www.onlinemarketingsummit.com<br />for more information<br /> Follow us @OMSummit<br />