Modular Building Institute

Grow Your Business: Generating Sales Leads Through Internet Marketing

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About Jeff Hoogendam, Principal, 360MobileOffice

• Work experience– 18+ years experience: lead generation, online marketing and customer

acquisition, venture capital, ecommerce

– Roles held: entrepreneur, CEO, venture capital partner, board member/advisor

• Developed lead generation programs for small-medium sized business customers– Acquired over 200,000 consumer and business customers online

– Early user of online marketing techniques• Search engine optimization and bid adjustment

• CPA and ROI tracking

• A/B server testing

– Well versed in current online marketing tools

• Education– BS Engineering from Texas A&M

– MBA from University of Texas

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About 360MobileOffice

• Lead referral service. Deliver qualified leads for:– Modular buildings

– Mobile offices/office trailers

– Storage containers

• Over 400 customers, including 8 of top 10 modular building and mobile office/office trailer vendors

• Differentiate ourselves by calling each lead before sending it out– We routinely throw out 35% of leads received

• In 2007, leads represented over $80mm in revenue• In business since 2005

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Agenda

• Introduction to Online Marketing

• What is a Lead Referral Service

• How to Maximize a Lead Referral Service

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Acquiring New Customers is Always a Challenge

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Source: Yahoo! Small business survey, 2008

Traditional Marketing Methods Have Limitations

• Referrals– Great when you can

get them, but often not enough to grow

• Yellow pages– Viable in the past, but

fewer and fewer people using it

• Print– Less effective and not

easily tracked

• Direct mail– When’s the last time

you responded to one?

• Radio/broadcast– Very expensive and

usually only a fit for mass marketing

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Amount spent on Internet advertising greater than amount spent on yellow pages and radio combined

(Source: PriceWaterhouse Coopers)

Internet Advertising Revenues Growing Significantly

Online Marketing is an Increasingly Important Channel

• Online marketing channel is large– 184 million Internet users in the US, more internationally

• More purchasers are going online to research and purchase– 68.3% of Internet users utilize search during research phase, while– 95% of purchasing agents use the web to research products and services

(B2B Magazine Survey)– 73% of C-Level executives depend on the Internet to learn about new

products or services (Emarketer)

• Interaction is real time– Can make adjustments to campaigns by the hour if necessary

• Easy to track results– Marketers like knowing which marketing methods worked & why

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There Are Four Primary Online Marketing Methods for Modular Buildings

• Search– Pay per click– Natural search (sometimes called “search engine optimization”)

• General media (internet banner ads)

• Email marketing

• Other– Affiliates

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Most Search Web Pages Broken Up Into Two Sections – Pay Per Click and Natural

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Natural search (Unpaid) section. Driven by:• Amount of related content on your site• Number of inbound links to your site• Other factors (length of time site active, etc.)

Pay per click section. Driven by• Bid price• Quality of content

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General Media Example Shows 5 Different Types of Ads on One Page

Thumbnail ads

Classic banner ad

Skyscraper ad

Small box ad

Large box ad

Email Marketing Example

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Email Marketing Steps• Define target segment• Acquire list• Develop email• Deliver - If small, send internally - If large, use ESP (email service provider)• Follow up

Strong call to action

What is Affiliate Marketing?

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Company A Website

Link/Ad to Company BCompany B Website

Traffic

Commission

• Uses third party sites to drive traffic to your site

• Typically pay for performance (leads or transactions)– Fixed commission per event

• Third party managers exist to – Help manage links & payments

• Example– 360MobileOffice has an affiliate program– Pays 25% of revenue from out-of-territory or no product match leads– Way to recoup cost on portion of marketing spend

Each Online Marketing Vehicle Has Its Pros and Cons

Method Pros Cons

Search – Pay per Click

• Fast way to generate traffic• Can track results• Scalable (large or small) to fit your needs

• Costs can get out of control • Need specialized tools• Need staff• Can be an “arms race”

Natural Search • Leverages contacts (for links) and domain knowledge (for content)• Develops more slowly than PPC but has momentum

• Requires ongoing investment• Can take a long time to take effect• Need an easy way to publish content to your site

General Media (banner ads)

• Inexpensive• Quick to put live• Banner sizes are standardized

• May not deliver types or volumes of customers needed• Declining source of customers on the web

Email • Can be very targeted• Inexpensive

• Response rates vary• Can cause regulatory or legal issues

Other (affiliates) • Can sign deals on a “pay for success” basis• Low cost

• May not deliver desired volume or quality of leads • Potential for fraud

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Customers needs are always changing. The key to success is always staying ahead of the competition.

Successful Firms Using Online Marketing Do the Following

• Build a website with a strong call to action– Constantly updating content– Periodic usability testing and refining

• Have a team with specialized training dedicated to online marketing

• Typically need a larger marketing budget

• Need to keep up with latest tools and technology, which may include– Bid management– Web analytics– Content management

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It takes significant investment in resources and time to be successful with online marketing.

Agenda

• Introduction to Online Marketing

• What is a Lead Referral Service

• How to Maximize a Lead Referral Service

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Lead Referral Services Offer Another Way to Market Online

• Third party providers deliver leads based on unique product and geographic profile

• Typically pay by the lead

• Usually sell leads to multiple parties

• Firms have deep online marketing expertise– Highly specialized teams of people – Managing multiple campaigns and multiple sources– Staying current in constantly changing online marketing

• Third party takes all marketing risk – Traditional marketing approach – put money up front for an ad with

uncertain results– Lead service – sure you will be getting a lead

• Allows vendors to focus on closing sales

• Returns can be significant– 360MobileOffice vendors typically see revenue of $12-20 for every $1

spent on leads (Note: not all lead source may yield similar results))

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Qualified Lead Arrives within 15-30 Minutes Later

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Lead Referral Service Has Some Advantages and Disadvantages Over Other Online Marketing Methods

Advantages• You only pay for lead you receive• No up front marketing risk• Fast, measurable return on

investment• Ability to micro target

– Church buildings in North Carolina– Offices in California

• Can supplement or replace other online marketing efforts

• Little to no marketing staff required

Disadvantages• Leads are rarely exclusive

– You will usually be competing with others for business

• High variance in the quality of lead referral services

– Some screen lead by calling– Some send out all leads blind and let

your sales staff do all the screening

• Leads don’t guarantee sales

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Any Size Business Can Use a Lead Referral Service

• Small companies use service as primary lead source– No website needed– No online marketing expertise needed– Don’t have to constantly keep up with latest online marketing trends– No up front marketing dollars at risk

• Medium or larger sized companies use service as primary or supplementary source of leads

– Used as primary lead source in many cases– Used as incremental lead source to fill in gaps where more leads are needed

• In specific product niches• In specific geographies

• Examples– Small modular firm

• Uses service as exclusive marketing lead source in 1 state

– Large modular building firm• Uses 360MobileOffice for modular leads in 15 regions, and• Receives mobile office/office trailer leads in 4 states

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Agenda

• Introduction to Online Marketing

• What is a Lead Referral Service

• How to Maximize a Lead Referral Service

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What to Look for in a Lead Referral Service

Find a service that:

• Allows you to select your own product types– Set up profile to “cherry pick” leads that are a strong match for your business– Why pay for leads for products you don’t sell?

• Allows you to select leads in your specific geographies– Down to a county level– Why pay for leads that aren’t in your territory?

• Can send leads to multiple sales reps in your company– Get leads directly to your field sales reps based on their expertise and territory

• Qualifies leads using people– Don’t want to waste money on unqualified leads– Don’t want to waste valuable salespeople’s time

• Will never sell your lead more than four times– More than 4 times results in significant drop in close rate*

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* The 360Partners founders, from 2003-2004, ran blind tests on a competitive leads service and found that leads sold 6 times close approximately 1/3 as often as leads sold only 4 times.

How to Successfully Use a Lead Referral Service

• Get your profile right– What are you best at?– Don’t take leads that don’t match your profile

• Wastes money

• Wastes salesperson’s time

• Distribute leads directly to a qualified field sales representative– Results in 4 times higher close rate*

• 2.5% close rate when sent to a marketing manager for distribution

• 10% or higher close rate when sent directly to field reps

• Contact leads right away– First person to frame the buying decision for the customer– Call within 15 minutes

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Following these steps typically results in a 10% or higher close rate*

* Source: 360MobileOffice proprietary study; may not be attainable with leads from other sources.

Questions?

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Working with 360MobileOffice

• Several market opportunities still available– Modular building, mobile office, and storage container leads available in select

areas

• Free assessment of how many qualified leads you would receive based on your unique profile

• Two weeks of free leads offered to MBI members

• See Michael Covey for more details– Michael@360Partners.com– 512-342-8800 x335

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