Website                       Email                          Phonewww.salesbenchmarkindex.com   info@salesbenchmarkindex.c...
Approach     • The goal of this document is to       understand the roles and structure of a       Lead Management team, i...
LDR Team Approach     •   Hybrid Approaches          – Single Lead Development Rep (LDR) role performs both demand        ...
LDR Role Purpose     • Lead Development Representative (LDR)        – Responsible for executing the Lead Development      ...
LDR Comp Structure – Example     • Lead Development Reps – focus here is       quality and conversion results.       – Bas...
LDR Role ComparisonIn-house                                               Outsource•   Pros                               ...
Assumptions of LDR Role     • Time       – 60% lead nurturing       – 20% managing sales ready leads with the         sale...
Assumptions of LDR Role     • Time est. of individual activities        – Engaged – 5 minutes per lead, one-time review – ...
DGR Role Purpose     • Demand Generation Representative (DGR)        – Responsible for generating inquiries into the top o...
DGR Role Comparisons     In-house                                               Outsource     •   Pros                    ...
DGR Role – Recovering Sales Force Prospecting Time     • Recover Legacy Prospecting Time from Sales       Force       – Fo...
DGR Role – Additional Notes     • Concept of In-house ‘early validation’ Capability        – While it’s recommended that t...
Management options     • Option 1 – LDR Supervisor (Player/Coach)        – Hybrid role           • Performs function of LD...
Option 1 – LDR Supervisor     LDR Supervisor                          Pros/Cons     • Time breakout                       ...
Option 2 – LDR Manager     LDR Manager                                  Pros/Cons     • Time breakout                     ...
LDR Manager Comp Structure – Example     • Lead Development Manager – focus here is       quality and sharing in sales res...
Option 3 – No Supervisor/Manager     No Manager/Supervisor   Pros/Cons     • Time breakout         • Pros        – N/A    ...
SBI Supervisor/Manager Ramp     •   Hiring and accountability          – Provide job description, scorecard, and screening...
Learn More     Contact us to hear the rest of the story...      Email - info@salesbenchmarkindex.com      Phone - 1-888-55...
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Lead management: Approach & Roles Guidance

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This Lead Generation slide deck by Sales Benchmark Index gives information on setting up Lead Management – approaches, roles, compensation, pros & cons...

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Lead management: Approach & Roles Guidance

  1. 1. Website Email Phonewww.salesbenchmarkindex.com info@salesbenchmarkindex.com 1-888-556-7338 Lead Management: Approach & Roles Guidance Are you ready to be world Class?
  2. 2. Approach • The goal of this document is to understand the roles and structure of a Lead Management team, including demand generation and lead development functions • SBI recommends a phased approach • The staffing solution for launching phase I should be determined based on the projected end state2
  3. 3. LDR Team Approach • Hybrid Approaches – Single Lead Development Rep (LDR) role performs both demand generation outbound activities and lead development nurturing • Unintentional Blending: Outbound efforts begin to help load balance demand generation shortcomings and seasonality issues • Planned Blending: Budget to stand up an LDR team often comes from outdated call center appointment setting (in-house or outsourced) and sales has expectations of some level of outbound. Also influenced by the need to drive field event attendance. – Single Inside Sales Rep (ISR) role performs demand gen, lead development and the sales role • Common with ISR teams that have evolved with changes to buying process • Single role underperforms vs. specialized distinct roles • Dedicated Approach – The Ideal Approach – The roles of the Lead Development Rep and Demand Generation Rep are unique3
  4. 4. LDR Role Purpose • Lead Development Representative (LDR) – Responsible for executing the Lead Development process to transform prospects through to opportunity (Sales Ready Leads - SRLs) – The main role is to educate and introduce new concepts --- not to sell – In the purist sense, this role is dedicated 100% to nurturing prospects and does not perform outboard cold-calling4
  5. 5. LDR Comp Structure – Example • Lead Development Reps – focus here is quality and conversion results. – Base salary: Varies significantly, 70-80% base – Variable target: $20k per LDR • $X/Sales Ready Leads; paid monthly as we do today • $Y/SRL’s that become Opportunities; paid quarterly, providing LDR is maintaining X% conversion rate from Prospect to SRL – Quarterly accelerator: Additional $X per SRL once LDR is 100% of goal for the quarter5
  6. 6. LDR Role ComparisonIn-house Outsource• Pros • Pros – Advantageous for building – Speed to market rapport due to enhanced – Lower cost to start-up knowledge of company LDRs – Lower risk – Expanded HR issues associated with employment vs. – Most cost effective long-term outsource – Speed to Tune --- Quickly fine • Cons tune and adjust – Lead Development is a strategic capability that should not be process, techniques, nurture outsourced (no different than outsourcing sales) campaigns, etc. – LDR team should be intertwined with marketing continuous improvement of content & nurturing• Cons – Very difficult to build strong institutional knowledge – Short-term higher cost – The training of the outsource firm requires a significant investment – Expanded management and – Nurturing activities are often 1-inch deep and feel scripted oversight required by – Lose valuable insights marketing leadership – Sales has confidence they can send a lead back for development and receive it when it’s ready6
  7. 7. Assumptions of LDR Role • Time – 60% lead nurturing – 20% managing sales ready leads with the sales force – 10% admin time (reports, entering time, expense reports) – 10% participate in coaching, team meetings7
  8. 8. Assumptions of LDR Role • Time est. of individual activities – Engaged – 5 minutes per lead, one-time review – Includes review of lead, assign nurture path, updates – Prospect – 30 minutes per lead, touched once a week – Includes review, enter missing information from research, 1:1 nurturing, SFDC updates – Sales Ready Lead – 2 hours total to complete notes into the record, tie additional contacts together, communicate with sales and follow-up questions from sales8
  9. 9. DGR Role Purpose • Demand Generation Representative (DGR) – Responsible for generating inquiries into the top of the funnel through the use of 1:1 outbound efforts • Efforts include outbound calls, email, LinkedIn mail, social media contacts, etc. – The main role is to generate new inquiries into the top of the funnel through attendance to a webinar, agree to accept an offer (white paper), or set appointments9
  10. 10. DGR Role Comparisons In-house Outsource • Pros • Pros – Most cost effective long-term if there is a – Flexible to throttle up/down regular cadence – Speed to market • Cons – Lower cost to start-up – Short-term higher cost, and often long- – Lower risk – Expanded HR issues term as well associated with employment vs. outsource – Difficult to load balance throughout the year • Cons – The training of the outsource firm requires – Expanded management and oversight a significant investment required by marketing leadership – Outbound activities are often 1-inch deep and feel scripted10
  11. 11. DGR Role – Recovering Sales Force Prospecting Time • Recover Legacy Prospecting Time from Sales Force – For net new logo acquisition, the expensive sales force prospecting time should be recovered to fund the DGR capability --- the goal should be to drive sales prospecting for new logos down to zero --- with the exception of account development, opportunistic prospecting and seeking referrals – The recovered sales time can be quantified through a detailed time study survey performed pre & post11
  12. 12. DGR Role – Additional Notes • Concept of In-house ‘early validation’ Capability – While it’s recommended that the peak DGR effort be outsourced, a company should first leverage a small in- house DGR team to provide an ‘early validation’ capability. The concept is that a outbound calling DGR can be used to test messaging and provide real time feedback to marketing on audience reaction. • Outsourcing DGR Capability – The caution in outsourcing is that whatever metric is selected for success ($ payment) will receive a high degree of focus by the firm --- the metric selected needs to be thought through closely. – SBI can help with best practices to guide outsourcing this function12
  13. 13. Management options • Option 1 – LDR Supervisor (Player/Coach) – Hybrid role • Performs function of LDR (Player) • Provides leadership (Coach) – Ideal for starting an LDR team with minimum overhead • Option 2 – LDR Manager – Dedicated role to manage and support the LDRs – As the team grows, supported by supervisors • Option 3 – No manager – Short-term approach where the LDR’s report directly to a marketing leader13
  14. 14. Option 1 – LDR Supervisor LDR Supervisor Pros/Cons • Time breakout • Pros – 30% LDR role as an individual – Low cost of entry contributor – Proving ground for future – 40% 1-to-1 LDR coaching manager – 20% LDR observation (Listen – Role provides a career path for in, review emails, ‘ride along’) LDR’s – 10% reporting • Cons – Administrative and reporting burdens shift to marketing leadership – Thought leadership and strategy must be driven by marketing leadership14
  15. 15. Option 2 – LDR Manager LDR Manager Pros/Cons • Time breakout • Pros – 50% 1-to-1 LDR coaching – Proactive thought leadership, administrative and reporting – 20% LDR observation (Listen in, review emails, ‘ride along’) – Experienced proactive leadership reduces risk – 10% consume thought leadership (webinars, conf, blogs) • Cons – 10% administrative (HR, hiring, – Higher start-up cost reviews, internal meetings, planning) – Within marketing, the career – 10% reporting path is not obvious15
  16. 16. LDR Manager Comp Structure – Example • Lead Development Manager – focus here is quality and sharing in sales results. – Base salary: $80k base • Proxy used are inside sales/outbound call center managers, lowest median $73k and highest $82k – Variable target: $40k – 40% SRLs, 40% revenue conversion, 20% team effectiveness • SRLs: X quantity target for SRLs; $5k/quarter; % attainment reaching • Revenue conversion: $X Bonus amount for X quantity of closed deals from Sales Ready Leads • Team effectiveness: $X Bonus paid on reaching 70% of ramped LDR’s hitting quarterly quota16
  17. 17. Option 3 – No Supervisor/Manager No Manager/Supervisor Pros/Cons • Time breakout • Pros – N/A – Low cost of start-up – Marketing leadership are very close to execution – Ability to leverage SBI coaching (in scope) to bridge gap • Cons – Absorbs marketing leader time and attention – Not duplicatable17
  18. 18. SBI Supervisor/Manager Ramp • Hiring and accountability – Provide job description, scorecard, and screening support – Interviewing final candidates – Guidelines on variable compensation • Training – LDR training (in scope) – Observation & coaching • Accountability – Scorecard utilization – Disciplinary action • Leadership principles and thought leadership • Ongoing mentor/coaching18
  19. 19. Learn More Contact us to hear the rest of the story... Email - info@salesbenchmarkindex.com Phone - 1-888-556-7338 Web: http://www.salesbenchmarkindex.com/ Subscribe to our Blog Here Follow us at @MakingTheNumber19

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