Lead Management and Marketing Automation

Nurturing, Prioritizing, and Recycling Leads to Convert More Leads into

Revenue

Why Lead Management?

The B2B Buyer has changed: need to pro-actively engage around educational topicsLeads need to be nurtured until they are sales-readySales & Marketing need to be aligned more closely, creating a seamless buying processThere is an opportunity to turn marketing into a revenue driver rather than a cost centerLead management provides a dramatic ROI: many benefits, low risk, modest investment

“Nurtured leads produce, on average, a 20 percent increase in sales opportunities versus leads that are not nurtured.”

The Changing B2B Buyer

Highlights from Enquiro’s BuyerSphere Project:Almost 50% of B2B buyers starts their buying process with online researchTalking to vendors of often only the 4th step

Order of Things – High Consideration

50%

37.5%

25%

12.5%

0%

1st 2nd 3rd 4th 5th

Online Research Talk to Users Talk to Vendors

The Changing B2B Buyer

Buyers are seeking and finding more information on their own—they’re in control

Search engines and vendor Web sites are top information sources in the buying process

To drive revenue, marketers must become more adept at identifying sales-ready leads and nurturing the remainder

Vendors need to interact with prospects before the sales conversation, by providing relevant information that is relevant in the earlier stages of the buying process

Convert More Leads Into Customers

• Lead Nurturing, Lead Scoring, Lead Routing and Lead Monitoring close the gap in the middle of the funnel

• Improve the dynamics of your revenue cycle to convert more potential customers into customers

Current marketing focus Current sales focusThe B2B leadDevelopment gap

Issue 1: Marketing hands offLeads too early. Unqualified

Leads waste sales’ time.

Issue 2: Sales cherry picks leads, lettinglonger-time-frame leads leak out.Issue 3: Marketing spends

More to recapture lost leads.

Reach Interest Desire Convert Enrich Retain

Warm leads leak out

Lead Management Closes the Gap in The Middle of the Funnel

Source: October 2006, Best Practices “Improving B2B Lead Management”

Increase Productivity With Automation

Run more campaigns without expanding the marketing team

Create more consistent email follow-up

Example: automate Webinar campaigns, including invitations, reminders, follow-up and reporting

More Qualified Leads with Lead Nurturing

• Companies are able to use existing staff for nurturing campaigns, increasing the number of sales-ready leads by 50% with little to no incremental investment ¹

• Nurtured leads delivered 47% higher average order values than non-nurtured leads²

Goal: Increase the number of sales opportunities & deal size and reduce cost per qualified lead

“Companies that excel at lead nurturing are able to generate 50% more sales-ready leads at 33% lower cost per lead.”

Increase Sales Effectiveness

• Prioritize leads based on quality and urgency

• Let sales send leads back to marketing for further nurturing, preventing leads that just "sit" somewhere

• Provide comprehensive lead activity history for sales

Priority #2:

Increase Sales Effectiveness

Improved Lead Quality = Increased Sales Productivity

Turn Marketing Into a Revenue Driver

• Optimize ROI

• Improve marketing's accountability by proving marketing’s impact on revenue

• Improve Revenue Performance: Conversion rates Time in a particular stage (velocity)

Show that marketing is a revenue driver, not a cost center.

“Only 20% of companies believe they excel at measuring the performance of marketing initiatives.”

Marketing Automation + Lead Management

Marketing Automation technology combined with Lead management processes provide the framework to:

• Convert more leads into revenue• Run more campaigns• Nurture leads automatically• Make sales more productive• Measure progress and results

Realize the benefits of lead management with new technology and improved processes

The Value of Lead Nurturing

Lead Nurturing helps turn more inquiries into qualified leads and decreases cost per qualified lead

Conversion: Inquiry to Qualified Lead

Cost perInquiry

Cost per Qualified Lead

Without Nurturing 27% $50 $185

WithNurturing 40% $50 $125

Source: actual data from software vendor50% increase

The Value of Lead Scoring

With good info on lead prioritization, more reps meet quota and revenue goals are more likely to be achieved

% Revenue Plan Achieved % Reps Meeting/Beating Quota0%

25%

50%

75%

100%97%

72%79%

50%EasyHard

How Easy Is it To Get Access to Information About Prioritizing Sales Efforts?

The Value of Lead ManagementSiriusDecision' Waterfall Model gives benchmark numbers for conversion rates between the

different stages in the funnel. With improved lead management, conversion rates will be higher.

Example: Moving from Benchmark to Best Practice• For each 1,000 leads, best-in-class companies create 46 more MQLs than

benchmark companies (97 instead of 51). They create almost 10 additional deals (14.3 instead of 4.6 deals, a 300% increase).

SiriusDecisions Inquiries MQLs SALs SQLs SQL-to-close

Benchmark N/A 5.1% 61% 56% 26.5%

Best Practice N/A 9.7% 82% 62% 29%

MQL = Marketing Qualified Lead SAL = Sales Accepted Lead SQL = Sales Qualified Lead (i.e. sales opportunity identified)

Improving Lead NurturingIn Place: • Monthly Email Newsletter• Generic content (whitepapers, webinars,

blog posts)

To Implement:• Drip email campaigns• Content based on buyer profile and buying

stage• Automation of marketing campaigns

(including Trigger-based nurturing)• Integration of lead nurturing with CRM data

and CRM activity• A/B Testing

Steps to Take to Improve Lead Nurturing

Improving Sales Productivity

In Place: • Automatically assign new leads to sales

people

To Implement:• Lead Scoring based on profile and

activity• Prioritized lead list for sales• Lead Activity Monitoring with real-time

alerts• Lead activity history in CRM system

(email clicks, web visits, registrations)

Steps to Take to Improve Sales Productivity

Improving Sales & Marketing Analytics

In Place: • Reporting on lead volume

To Implement:• Lead conversion rates• Pipeline velocity (how fast leads

flow through the funnel)• Percentage of the pipeline that is

Marketing-sourced• Percentage of the pipeline that is

Marketing-influenced

Steps to Take to Improve Insight into Sales and

Marketing Effectiveness

Getting Started / Next Steps

Advanced Assessment and Continued Development• Identify “hits” and “misses”• Develop additional content

resources for lead generation• Test and optimize emails and

landing pages for various segments

• Create advanced, automated, trigger-based campaigns for more segments

Marketing Automation Strategy Development• Select and implement

marketing automation solution

• Develop preliminary lead scoring strategy

• Define high-value segments in database

• Create standard set of automated, trigger-based campaigns for key segments

Lead Nurturing/Scoring Initial Assessment• Identify current successes

and areas for improvement• Begin evaluating marketing

automation software• Begin developing list of

feature requirements

STAGE 1 STAGE 2 STAGE 3

Summary

Solution• Institute proven Lead

management processes• Adopt Marketing automation

technology

ROI • Large potential benefits• Little incremental investment

in resources

BenefitsIncrease ConversionIncrease Marketing ProductivityImprove Lead NurturingIncrease Sales effectivenessTurn Marketing into a revenue driver

Thank You & Stay Connected!

@demandumrdalton@demandum.com

(888) 743-7712

Russell Dalton