CRM 101: Session 2: The Symbiotic Relationship Between CRM and Marketing Automation Systems

CRM 101

CRM Systems, Marketing Automation Systems &
Best Practices in Lead Management

Chuck Schaeffer
Vantive Media CEO, @cschaeffer,
www.CRMsearch.com

4/24/2012 ©2012 SugarCRM Inc. All rights reserved. 2

The Best Practices of the Best Marketers

 A research study designed to answer the questions:

What are the best performance B2B marketers doing to
acquire, grow and retain more customers?

How are the highest performing B2B marketers using CRM
systems in combination with Lead Management or
Marketing Automation Systems?

Tweet: #SCON12

Methodology

 Segment participants by performance level, as
determined by:

volume of marketing sourced leads acquired versus plan,
quality of leads acquired versus plan
volume of marketing sourced new customer acquisitions
versus plan
volume of marketing sourced revenues versus plan
level of change in marketing sourced revenues from the
prior year, and
Return on Marketing Investment (ROMI)

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Composition of Respondents

 Role: 67% in a marketing role, 28% in a sales role, 5% in a
senior executive role and 3% in ‘other’ role.
 Company equity type: 36% of the companies are publicly
traded and 64% are private.
 Market: All in the Business to Business market.
 Industry: Participants identified themselves in a wide variety of
industries. The single largest industry concentration was the
Technology industry.
 Company size: 35% of respondents identified as being Small
Business (up to $100M), 44% were Middle Market ($100M to
$500M) and 21% were Enterprise companies(over $500M).

Tweet: #SCON12

Marketing Budget
What is your marketing budget as a percentage of total company revenues and gross margin?

Marketing Budget
16%

14%

12%

10%

8%

6%

4%

2%

0%
LEADERS MEDIANS LAGGARDS
As % of revenue 14% 9% 5%
As % of margin 6% 6% 4%

Tweet: #SCON12

Marketing Budget
What is your marketing budget as a percentage of total company revenues and gross margin?

Marketing Budget
16%
High Margin
Products: 8 to
14%
21% of revenues

12%

10% Low Margin
Products: 1 to 5%
8% of revenues

6%

4%

2%

0%
As % of revenue 14% 9% 5%
As % of margin 6% 6% 4%

Tweet: #SCON12

Lead Management Accountability
Which department(s) is/are held accountable for
lead management performance?
Departmental Accountability
LAGGARDS

MEDIANS

LEADERS Which staff are financially compensated (i.e. via
commissions, salary or incentives) for lead
0% 20% 40% 60% 80% 100%
management performance?
Marketing and Sales
Lead Management Compensation
19% 9% 5%
Sales 2% 5% 11%
LAGGARDS
Marketing 61% 79% 89%

MEDIANS

LEADERS

0% 20% 40% 60% 80% 100%

Sales 8% 4% 3%
Other 4% 2% 6%

Tweet: #SCON12

Lead Management Accountability
Which department(s) is/are held accountable for
Leaders show 2X
lead management performance? increase over
Departmental Accountability Medians and ~4X
increase over
Laggards
LAGGARDS

MEDIANS

LEADERS Which staff are financially compensated (i.e. via
commissions, salary or incentives) for lead
0% 20% 40% 60% 80% 100%
management performance?
Marketing and Sales
Lead Management Compensation
19% 9% 5%
Sales 2% 5% 11%
LAGGARDS

MEDIANS

Cautionary Note: LEADERS
Avg 12% hold both S&M
accountable, but Sales
0% 20% 40% 60% 80% 100%
compensated avg of 6%
Leaders 2X LEADERS MEDIANS LAGGARDS
increase over
Medians &
Sales 8% 4% 3%
167% increase
over Laggards Other 4% 2% 6%

Tweet: #SCON12

Lead Sourcing and Marketing’s Contribution

What percentage of leads in the sales pipeline originate from marketing?

Marketing Sourced Leads

LAGGARDS

MEDIANS

LEADERS

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Leads Sourced by Marketing 42% 29% 18%

Tweet: #SCON12

Lead Sourcing and Marketing’s Contribution

What percentage of leads in the sales pipeline originate from marketing?

Marketing Sourced Leads

Leaders generate
LAGGARDS
45% more leads
than Medians &
133% more than
MEDIANS Laggards

LEADERS

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Leads Sourced by Marketing 42% 29% 18%

Tweet: #SCON12

Lead Scoring
Do you qualify leads before forwarding them to the sales team?

83%
LAGGARDS 15%
2%
91%
MEDIANS 8%
1%
97%
LEADERS 2%
1%

0% 20% 40% 60% 80% 100% 120%

Yes No Unsure N=121

Do you qualify leads using a scoring model which attributes
points to criterion and calculates a sum score?
2%
LAGGARDS 81%
17%
2%
MEDIANS 74%
24%
1%
LEADERS 63%
36%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Unsure No Yes N=121
Tweet: #SCON12

Lead Scoring
Relative
Qualify Leads Before Transfer? steady
pattern
83%
LAGGARDS 15%
2%
91%
MEDIANS 8%
1%
97%
LEADERS 2%
1%

0% 20% 40% 60% 80% 100% 120%

Yes No Unsure N=121

Lead Scoring Model?
2%
LAGGARDS 81%
17% 50% increase
2%
from
MEDIANS 74% Medians, 112%
24% increase from
1% Laggards
LEADERS 63%
36%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Unsure No Yes N=121

Tweet: #SCON12

Lead Scoring Continued
Lead Scoring Criterion
70%
60%
50%
40%
30%
20% LEADERS
10% MEDIANS
0% LAGGARDS
N=121

Feedback Cycle Duration
LAGGARDS
MEDIANS
LEADERS

0 2 4 6 8 10 12 14

Feedback Cycles 4 7 12

N=120

Tweet: #SCON12

Lead Scoring Continued Leaders using
behavioral data
Lead Scoring Criterion 123% more
than Medians
70% and 383%
60% more than
50% Laggards
40%
30%
Leaders using 20% LEADERS
more scoring 10% MEDIANS
criterion; avg 0% LAGGARDS
of 11% more
N=121
than Medians
and 22% more
than Laggards

Near 2X
Feedback Cycle Duration increase from
Medians, & 3X
LAGGARDS increase from
MEDIANS Laggards
LEADERS

0 2 4 6 8 10 12 14

Feedback Cycles 4 7 12

N=120

Tweet: #SCON12

Nurture Marketing
Volume of Leads Received which are sales-ready, not yet
sales-ready and will never be sales ready (i.e. disqualified)?

19%
LAGGARDS 51%
30%
25%
MEDIANS 53%
22%
29%
LEADERS 52%
19%

0% 10% 20% 30% 40% 50% 60%

Disqualified Not Yet Sales-Ready Sales-Ready

Do your nurture campaigns distribute content
based on lead persona and buy cycle stage?

83%
LAGGARDS
17%
71%
MEDIANS
27%
62%
LEADERS
38%

0% 20% 40% 60% 80% 100%

No Yes

Tweet: #SCON12

Nurture Marketing
Volume of Leads Received which are sales-ready, not yet
sales-ready and will never be sales ready (i.e. disqualified)?

19% Leaders showed
LAGGARDS 51% both highest
30% disqualification
25% & lowest Sales
MEDIANS 53% Ready rates
22%
29%
LEADERS 52%
19%

0% 10% 20% 30% 40% 50% 60%

Leaders used nurture Disqualified Not Yet Sales-Ready Sales-Ready
campaigns 27% more
than Medians &
138% more than Do your nurture campaigns distribute content
Laggards based on lead persona and buy cycle stage?
Leaders show
83% 41% increase
LAGGARDS
17% over Medians
71% & 124%
MEDIANS increase over
27%
Laggards.
62%
LEADERS
38%

0% 20% 40% 60% 80% 100%

No Yes

Tweet: #SCON12

Nurture Marketing Continued
On average, how many nurture touches are required to advance a non-qualified lead to sales-ready?
Nurture Touches
LAGGARDS 4
MEDIANS 6
LEADERS 7

On average, how many weeks does it take to nurture a non-qualified lead to sales-ready?
Nurture Cycle
LAGGARDS 25
MEDIANS 15
LEADERS 12

0 5 10 15 20 25 30

On average, what percentage of new, non-qualified leads will eventually be nurtured to sales-ready?

Nurture Yield
LAGGARDS 12%

MEDIANS 21%

LEADERS 31%

0% 5% 10% 15% 20% 25% 30% 35%

Tweet: #SCON12

Nurture Marketing Continued
On average, how many nurture touches are required to advance a non-qualified lead to sales-ready?
Nurture Touches Leaders show
41% increase
LAGGARDS 4
over Medians &
MEDIANS 6 124% increase
LEADERS 7 over Laggards.

On average, how many weeks does it take to nurture a non-qualified lead to sales-ready?
Nurture Cycle
Leaders show
20% lower LAGGARDS 25
nurture cycle
than Medians MEDIANS 15
& 52% lower LEADERS 12
than Laggards
0 5 10 15 20 25 30

On average, what percentage of new, non-qualified leads will eventually be nurtured to sales-ready?

Nurture Yield
Leaders show
48% higher LAGGARDS 12%
yield than MEDIANS 21%
Medians 158%
higher yield LEADERS 31%
than Laggards
0% 5% 10% 15% 20% 25% 30% 35%

Tweet: #SCON12

Lead Transfer
When are leads sourced by marketing forwarded to sales staff?

When Received
LAGGARDS 19% 62% 15% 4%
When qualified as determined by an
MEDIANS 13% 60% 23% 4% inside sales discussion
When qualified as determined by a point
LEADERS 8% 54% 36% 2% or lead score
Other
0% 20% 40% 60% 80% 100% 120%

How do marketers verify that leads transferred to sales are followed through timely and properly?

55%
We manually review lead status periodically 44%
27%
16%
We review dashboards or reports 30%
36%
4%
Our system sends alerts (i.e. neglected leads) 13%
26%
15%
We don't 9%
6%
5%
Other 5%
3%

0% 10% 20% 30% 40% 50% 60%

LAGGARDS MEDIANS LEADERS

Tweet: #SCON12

Lead Transfer
When are leads sourced by marketing forwarded to sales staff?

When Received
Leaders use LAGGARDS 19% 62% 15% 4%
Lead Scoring When qualified as determined by an
model 57% MEDIANS 13% 60% 23% 4% inside sales discussion
more than When qualified as determined by a
Medians & >2X LEADERS 8% 54% 36% 2% point or lead score
more than Other
Laggards 0% 20% 40% 60% 80% 100% 120%

How do marketers verify that leads transferred to sales are followed through timely and properly?

55%
We manually review lead status periodically 44%
27%
Leaders show
16%
We review dashboards or reports 30% 26% utilization vs
36%
13% for Medians
4% & 4% for
Our system sends alerts (i.e. neglected leads) 13%
26% Laggards
15%
We don't 9%
6%
5%
Other 5% 40% increase
3%
over Medians &
0% 10% 20% 30% 40% 50% 60% 60% increase
over Laggards
LAGGARDS MEDIANS LEADERS

Tweet: #SCON12

Lead Transfer Continued …

Are leads acquired outside of marketing consistently Do you have specific criteria which dictate when a
forwarded to marketing for marketing programs? lead transferred from marketing to sales should be
returned to marketing?

LAGGARDS
LAGGARDS

MEDIANS
MEDIANS

LEADERS LEADERS

0% 10% 20% 30% 40% 50% 60% 70% 80% 0% 20% 40% 60% 80% 100%

LEADERS MEDIANS LAGGARDS LEADERS MEDIANS LAGGARDS
Yes 35% 27% 20% Yes 17% 11% 4%
No 62% 70% 76% No 81% 86% 92%
Unsure 3% 3% 4% Unsure 2% 3% 4%

Tweet: #SCON12

Lead Transfer Continued …

Are leads acquired outside of marketing consistently Do you have specific criteria which dictate when a
forwarded to marketing for marketing programs? lead transferred from marketing to sales should be
returned to marketing?

LAGGARDS
LAGGARDS

MEDIANS
MEDIANS

LEADERS LEADERS

0% 10% 20% 30% 40% 50% 60% 70% 80% 0% 20% 40% 60% 80% 100%

Yes 35% 27% 20% Yes 17% 11% 4%
No 62% 70% 76% No 81% 86% 92%
Unsure 3% 3% 4% Unsure 2% 3% 4%

Bulk of stalled
2/3 of all leads
Contributors to leads not
not consistently
Lead Leakage? returned for
managed
recycling

Tweet: #SCON12

Lead Leakage

Do you incur lead leakage?

LAGGARDS

MEDIANS

LEADERS

0% 20% 40% 60% 80% 100% 120%

Yes 97% 97% 100%
No 2% 1% 0%
Unsure 1% 2% 0%

Tweet: #SCON12

Lead Leakage

Do you incur lead leakage?
Only 100%
response in
survey
LAGGARDS

MEDIANS

Tightest response
LEADERS
range in entire
survey
0% 20% 40% 60% 80% 100% 120%

Yes 97% 97% 100%
No 2% 1% 0%
Unsure 1% 2% 0%

Tweet: #SCON12

Lead Leakage Continued …

Do you report the number of leads lost? Do you calculate the value of leads lost?

LAGGARDS LAGGARDS

MEDIANS MEDIANS

LEADERS LEADERS

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

Yes 19% 9% 4% Yes 8% 6% 3%
No 80% 89% 92% No 91% 93% 94%
Unsure 1% 2% 4% Unsure 1% 1% 3%

Tweet: #SCON12

Lead Leakage Continued …

Do you report the number of leads lost? Do you calculate the value of leads lost?

LAGGARDS LAGGARDS

MEDIANS MEDIANS

LEADERS LEADERS

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

Yes 19% 9% 4% Yes 8% 6% 3%
No 80% 89% 92% No 91% 93% 94%
Unsure 1% 2% 4% Unsure 1% 1% 3%

Average of 98% report leakage;
Only average of 10% & 6%
measure volume & value

Tweet: #SCON12

Analytics

In the eyes of the executive team, does the head of Does marketing tie every lead, customer and revenue
marketing hold the same clout as the head of sales? dollar back to the marketing program that created them?

Marketing Clout? Track All Revenue To Source?
LAGGARDS 18% 77% 5% LAGGARDS 19% 77% 4%
MEDIANS 39% 57% 4% MEDIANS 34% 64% 2%
LEADERS 59% 39% 2% LEADERS 49% 50% 1%

0% 20% 40% 60% 80% 100% 120% 0% 20% 40% 60% 80% 100% 120%

Yes 59% 39% 18% Yes 49% 34% 19%
No 39% 57% 77% No 50% 64% 77%
Unsure 2% 4% 5% Unsure 1% 2% 4%

Tweet: #SCON12

Analytics

In the eyes of the executive team, does the head of Does marketing tie every lead, customer and revenue
marketing hold the same clout as the head of sales? dollar back to the marketing program that created them?

Marketing Clout? Track All Revenue To Source?
MEDIANS 39% 57% 4% MEDIANS 34% 64% 2%
LEADERS 59% 39% 2% LEADERS 49% 50% 1%

0% 20% 40% 60% 80% 100% 120% 0% 20% 40% 60% 80% 100% 120%

Yes 59% 39% 18% Yes 49% 34% 19%
No 39% 57% 77% No 50% 64% 77%
Unsure 2% 4% 5% Unsure 1% 2% 4%

Laggards 3X Leaders tie to
Approximately source 44%
more likely to Approximately
2/3 say No! more than
suffer 2/3 do not
credibility gap Medians and
158% more
than Laggards

Tweet: #SCON12

Analytics Continued …

Does marketing calculate and report ROMI Does marketing forecast future marketing performance
(Return on Marketing Investment)? as measured in revenue contribution to the company?

Calculate ROMI? Marketing Forecast Revenues?
MEDIANS 38% 61% 1% MEDIANS 11% 88% 1%
LEADERS 49% 51% 0% LEADERS 19% 81% 0%

0% 20% 40% 60% 80% 100% 120% 0% 20% 40% 60% 80% 100%

Yes 49% 38% 24% Yes 19% 11% 6%
No 51% 61% 73% No 81% 88% 91%
Unsure 0% 1% 3% Unsure 0% 1% 3%

Tweet: #SCON12

Analytics Continued …

Does marketing calculate and report ROMI Does marketing forecast future marketing performance
(Return on Marketing Investment)? as measured in revenue contribution to the company?

Calculate ROMI? Marketing Forecast Revenues?
MEDIANS 38% 61% 1% MEDIANS 11% 88% 1%
LEADERS 49% 51% 0% LEADERS 19% 81% 0%

0% 20% 40% 60% 80% 100% 120% 0% 20% 40% 60% 80% 100%

Yes 49% 38% 24% Yes 19% 11% 6%
No 51% 61% 73% No 81% 88% 91%
Unsure 0% 1% 3% Unsure 0% 1% 3%

Only 49% Leaders!
29% over Average of 11%.
Medians, 104% over Leaders 73% more than
Laggards Medians & 217% more
than Laggards

Tweet: #SCON12

Technology
Use Lead Management System?
LAGGARDS
MEDIANS
LEADERS

0% 20% 40% 60% 80% 100% 120%

Yes 45% 29% 16%
No 55% 71% 84%

Top Reasons For LMS Purchase
Empower marketing to control more of the process
Improve marketing productivity
Improve alignment between marketing and sales
Add rigor and discipline to lead management processes
Automate lead management processes
Improve volume of leads acquired
Improve quality of leads acquired
Improve conversion rates
Improve lead flow
Improve lead cycle velocity
Improve top line revenues
Improve lead management reporting & analysis
Improve marketing ROI
Other

0% 5% 10% 15% 20% 25% 30%

Tweet: #SCON12

Technology
Use Lead Management System? Leaders 55% more than Medians;
181% more than Laggards
LAGGARDS
MEDIANS
LEADERS

0% 20% 40% 60% 80% 100% 120%

Yes 45% 29% 16%
No 55% 71% 84%

Top Reasons For LMS Purchase
Add rigor and discipline to lead management processes
Improve conversion rates
Improve lead flow
Improve lead cycle velocity
Improve lead management reporting & analysis
Top 3 Factors Improve marketing ROI
Other

0% 5% 10% 15% 20% 25% 30%

Tweet: #SCON12

Technology Continued …

What are your top 3 frustrations with your LMS?

Top LMS Frustrations
Implementation took longer and cost more than expected

Required more technical skills and resources than …

Required more resourcing to operate than anticipated

Under-utilization of the technology

Unexpected add-on fees for related products and services

High Total Cost of Ownership (TCO)

Missing software functionality

Unable to use most of the software functionality

Difficult system integration

Difficult software customization

Changing processes to accommodate the software

Developing volume of nurture content necessary

0% 5% 10% 15% 20% 25% 30% 35%

Tweet: #SCON12

Technology Continued …
What are the top 3 benefits you've realized with your LMS?
Top LMS Benefits
60% increase

Largest positive
Add rigor and discipline to lead management processes deviation, by 80%
50% increase


Improve conversion rates 27% decrease
Improve lead flow
Largest negative
Improve lead cycle velocity deviation, by 33%

Improve lead management reporting & analysis 3 biggest purchase
Improve marketing ROI factors in line with
realization
Other

0% 5% 10% 15% 20% 25% 30% 35%

Tweet: #SCON12

What To Do Next

 On Monday morning—download the report, at
www.crmsearch.com.

 Over the next week—evaluate whether your most strategic
objectives would likely be impacted by replicating Leader
performance practices in your own company.

 Over the next month—research, review and design the
implementation for select top practices in your organization.

 Over the next 1 to 2 quarters—implement, measure & refine.

 In February 2013—participate in the CRMsearch.com survey to
compare your practices among your peers.

Tweet: #SCON12

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