can’t we all just get along? bridging the gap between sales and marketing presented to: business...
TRANSCRIPT
Can’t We All Just Get Along?Bridging the Gap between Sales and Marketing
Presented to:
Business Marketing AssociationPittsburgh ChapterOctober 16, 2008
More than 70% of leads generated are never acted upon because
the information does not reach the right person
at the right time
Typical complaints:Marketing is only concerned about
the number of leads, not the quality
None of the leads are prioritized. I can’t tell hot leads from cold
The leads are at least a month old
Typical complaints: Sales only focuses on low-
hanging fruit.
They don’t follow-up or if they do, it’s six weeks too late
They have no interest in new prospects. How do they expect to
grow the business!!
Source: Gartner Research
Marketing Role:Generate Leads
Sales Role:Generate Revenue
GAP
What is Lead Management?
The optimal process for collecting, qualifying, nurturingdistributing and tracking to close the leads generated as a result ofmarketing activity
Marketing Reaps the Benefits
Increased revenue without increased marketing spend
ROI analysis by marketing program/campaign that can be tracked over time
Marketing becomes viewed as a profit center
Getting Started - Collecting
At the core of every lead management effort is the database Current clients Former clients Priority prospects General or database prospects “No-way” contacts
Each of these groups is further segmented by market
Getting Started - Collecting
With each “new” inquiry, we need to collect whenever possible: Contact info Demographic information Reason for inquiring Qualifying criteria
Size of opportunity Timeframe to purchase Current provider etc.
Getting Started - Collecting
We need to capture: Source (e.g. publication name, issue date, URL,
tradeshow, etc.) Campaign identifier
We need to run the inquirer against the current database to determine: Current client Priority target Former client, etc.
Getting Started - Qualifying
Develop qualification criteria by Market segment (e.g. windows) Inquirer type (e.g. builder) Inquirer’s status (e.g. current client)
Identify hot, viable and non-lead criteria Run through “what if” scenarios
What if we only know project timeframe and no other qualifying information?
What if we only have contact info and know the segment?
Getting Started - Distributing
Define the distribution process Identify the method of distribution
E-mail/spreadsheet Web CRM
Identify the frequency All leads go out immediately upon qualification Only hot leads go out immediately, viable leads go
out at the end of each day
Getting Started - Distributing
Defining the process, continued . . . If selling through distribution, identify which
channel partners will be receiving the leads Establish an internal SLA to build credibility with
the sales organization A lead will be qualified and distributed to sales
within X days of receipt
Getting Started - Tracking
Be realistic about how much info you’ll get back Give limited status options
Lead is active Not ready to decide remind me in X weeks
Win Current client agreed to purchase additional product.
Value_______ New client agreed to purchase product. Value _____
Loss Did not get additional business from current client.
Reason? Did not get new business from prospect. Reason?
Lead is not viable Information is incorrect Will not return my calls Not a decision-maker
Getting Started - Tracking
Establish clear escalation procedures if the leads are not responded to. For example: Day X - lead is sent If no response in X days lead will be resent with
copy to sales manager If no response in X days, lead will be resent with
copy to sales manager and sales exec Work toward making lead tracking part of sales
overall compensation measurement
Getting Started - Reporting
Activity by campaign Inquiries Hot leads Viable leads Non-leads
Sales lead status by campaign ROI by campaign
ROI Calculations
To calculate ROI, you need to know: Revenue % of gross margin on revenue Direct expenses by campaign
Advertising Agency fees Placement fees
Tradeshows Booth space Agency fees Travel
ROIGross margin from activity – direct expense direct expense
The goal is to track performance over time and performance across activities
Do NOT get bogged down in looking at a “snap shot”
Reporting
Overcoming the Challenges
Commitment from the top to manage the fear of accountability
Real consequences for lack of sales tracking Long-term focus – be patient
This is a fundamental shift in the way marketing and sales operates in most organizations
Redirect a small % of marketing spend to pay for a lead management program Ultimately you will generate more ROI
Paying for It
A comprehensive lead management program typically runs between 5% - 12% of total marketing spend
A case study – assume a marketing budget of $300,000
Typical leads generated annually 6,000
% of leads responded to 50%
Leads worked 3,000
Leads converted to sales 5%
Average revenue per sale 10,000$
Total revenue generated 1,500,000$
Remember the avg. is 30%
Paying for It
A case study – assume a marketing budget of $300,000, less 8% ($24,000) for a lead management program.
Typical leads generated annually 6,000
% of leads responded to 90%
Leads worked 5,400
Leads converted to sales 5%
Average revenue per sale 10,000$
Total revenue generated 2,700,000$
An increase of $1.2 mil
Thank you for your time.
Susan AllenCEO
DataBanque5500 Brooktree Rd
Suite 200Wexford, PA 15090