optimizing lead generation to get better results

Optimizing the LeadA data-driven optimization process that goes beyond lead capture

Brian Carroll

Executive Director

About meBrian Carroll

Brian Carroll is Chief Evangelist of MECLABS and founder of InTouch, part of the MECLABS. Author of the bestseller, Lead Generation for the Complex Sale, Carroll is a leading expert in lead generation and he's profiled and regularly quoted in numerous publications.

He has been profiled and quoted in numerous publications such as BtoBmagazine, Selling Power, The Wall Street Journal, Entrepreneur, Target Marketing, Inc., Marketing News, DM News, MarketingProfs,MarketingSherpa, Software CEO and CMO Magazine.

@brianjcarroll

MECLABS: A science lab with a consultancy

• More than 10 years of research• 1,300+ major experiments• Over 1 billion emails• 10,000 sales-paths tested• Hundreds of publications and

conferences

We build custom micro research labs within companies around the world

Optimizing the Lead

Identify the right companies and people

Segment, score and prioritize

Initiate a memorable conversation

Nurture regardless of time to buy

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Optimizing the Lead

Identify the right companies and people1

Case Study

Testing quality data and teleprospecting - How a telecom firm reduced prospecting costs by over 60%

Response-to-Sales-Accepted-Lead Conversion Rate 10% Lead-to-Sale

Conversion Rate 20%

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Tele-Prospecting

Funnel

Inside Sales

Funnel

Dial

Connection

Conversation

Buyer Conversation

Qualified Account

Acknowledged Need

Sales-Ready Lead

Sales-Validated Leads

Dial

Connection

Conversation

Buyer Conversation

Valid Lead

Forecast

Verbal Commitment

Deal

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Case Study

Background: A telecom organization engaged MECLABS for lead generation

Objective: To determine if higher-cost/higher-quality data can drive down overall cost-per-lead, so we can focus on the most efficient list source.

Primary research question: Which campaign data source will drive the most efficient value?

Test Design: Four multi-source lists, a user-generated list, and a single-source list were tested under consistent experiment conditions, with 300 accounts and 80 hours of teleprospecting hours.

Experiment ID: Networking equipment company funnel optimization testLocation: MECLABS Primary Research LibraryTest Protocol: CS31556

Research Notes:

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Case Study: Test design

Per segment: 300 accounts, 80 hours of calling*

SegmentsRecord

costValidated

Multi-source 1 $24.00 Phone – role-based

Multi-source 2 $14.50 Phone – title-based

Multi-source 3 $6.00 Phone – validated

Multi-source 4 $3.00 Email – validated

User-generated $1.00 Business cards

Single-source $0.49 No validation

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Case Study: Per record cost

$0

$5

$10

$15

$20

$25

$30

Multi 1 Multi 2 Multi 3 Multi 4 User-gen Single

$24

$1

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Case Study: Results

SegmentsRecord

costNo longer with

companyDials to

disqualifyDials to sales-

ready lead

Multi-source 1 $24.00 1% 90 77

Multi-source 2 $14.50 .06% 53 110

Multi-source 3 $6.00 14% 27 127

Multi-source 4 $3.00 23% 26 135

User-generated $1.00 67% 11 240

Single-source $0.49 13.3% 7 210

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Case Study: Results and ROI

SegmentsRecord

costCall-per-

lead List

count Leads

Cost-per-lead

List cost

Multi-source 1 $24.00 77 1000 312 $373.45 $24,000

Multi-source 2 $14.50 110 1560 312 $496.00 $22,620

Multi-source 3 $6.00 127 2475 312 $536.58 $14,850

Multi-source 4 $3.00 135 2810 312 $546.75 $8,430

User-generated $1.00 240 9350 312 $954.00 $9,350

Single-source $0.49 210 13100 312 $828.95 $6,380

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Case Study: Cost per lead

$0

$200

$400

$600

$800

$1,000

$1,200


$954

$373

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Case Study: Results and ROI

SegmentsRecord

costCall-per-

lead List

count Leads

Cost-per-lead

List cost Call cost

Multi-source 1 $24.00 77 1000 312 $373.45 $24,000 $92,400

Multi-source 2 $14.50 110 1560 312 $496.00 $22,620 $132,132

Multi-source 3 $6.00 127 2475 312 $536.58 $14,850 $152,460

Multi-source 4 $3.00 135 2810 312 $546.75 $8,430 $162,278

User-generated $1.00 240 9350 312 $954.00 $9,350 $287,980

Single-source $0.49 210 13100 312 $828.95 $6,380 $252,175

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Case Study: Cost of calling

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000


$288k

$92k

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Case Study: Results

Segments Record costCost-per-

leadList cost Call cost Total cost

Multi 1 $24 $373 $24,000 $92,400 $116,400

User-gen $1 $954 $9,350 $287,980 $297,330

Difference ($14,650) $195,580 $180,930

60.85% Decrease in campaign costs

The $26/record list requires over 60% more list and teleprospecting investment than the $1/record list

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Case Study: Results

What you need to understand: The ‘best deal’ list results in a campaign that is 2.5 more costly than the most efficient list.*

60.85% Decrease in campaign costs

The $26/record list requires over 60% more list and teleprospecting investment than the $1/record list

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Identify the right companies and peopleKey Takeaways

• “Cheap” data is really expensive.

• The less you spend on data, the more you will spend on teleprospecting.

• We must see list acquisition as strategic, not simply transactional.

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Optimizing the Lead

Segment, score and prioritize2

Sample Marketing and Sales Process

Lead Capture

Segment and Score Leads

Qualify and Nurture

Sales Engagement

Analyze Results

Capture leads

Normalize data

Enrich data

Merge de-dupe

Segment leads by potential

Apply lead score: lead data

lead behavior

ULD

Qualify phone-ready leads

Distribute sales-ready leads

Analyze data

Close the loop

Leads converted

Sales pipeline

Sales closed

Overview deck

Opportunity

Approach deck

Proposal and LOA

Close

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Step 1. Lead Capture

Web inquiries

Sales generated

Subscribers

Social mediaInquiries

Event registrants and attendees

Webinar registrants / inquiries

Enrich data

Unusabledatastore

Merge and de-dupe

Normalizedata

External firmographic

data

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Step 2. Segment & Score Leads

Segment forNext Action

Sales Qualification & Discovery

Human Interpretation (qualitative)

Segmentation based on potential

(quantitative)Lead

Scoring

Phone Qualification & Discovery

Touch points(e.g., what content have they engaged?)

Match Function and DM Role : Champion/influencer or DMkr?

FIT? Meets minimum ICP :> $Xmillion Rev. and industry fit

Candidate-Supplied Data(e.g., Registration Forms)

Opportunity

Scoring

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Case StudyHow an technology reduced cost per lead by 75%

Background: A B2B eDiscovery technology and services provider had 25 list sources available. Data was assigned to sales reps as new list sources were attained without regard for list source performance.

Goal: To drive most efficient pipeline and revenue through teleprospecting

Primary research question: Which list will drive the most efficient lead generation?

Approach: Prioritize calling based on the quality and efficiency of the list sources. Each source was called for 80 to 100 hours.

Experiment ID: (Protected)Location: MECLABS Leads Group LibraryTest Protocol Number: TP1226

Research Notes:

Experiment: Background

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Experiment #2: The client request

• Marketing campaign and media source driven lists

• Lists were prioritized chronologically

• Focus on testing a new media source

Other possible reasons:

• A lot of money was spent on list/sponsorship

• Client liked X event

• Gut feel

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Experiment #2: ResultsList Source Leads Calls

DM Contacts

Webcast 1/18/11 Registered 7 58 10

Show-6/16/2011 7 151 25

Webcast 1/18/11 Registered & Attended 3 85 17

2010 Los Angeles 2 67 10

Lead List 7.2 42 1550 163

Document Review 1 43 6

List 4/12/2011 2 87 8

Prospects_Bay Area_CA 4 185 14

2011 New York 8 372 48

Phase 2 list 5 245 28

Event list 5.5.2011 2 112 15

Google campaign 5-4-2011 1 62 3

2010 – Booth 9/23/10 3 267 18

Show - 5/20/2010 1 89 4

Phase 1 list 4 416 24

Notes list 2010-05-24 7 753 62

Expo and Conference 2010 5 570 53

Annual meeting 2010-11-15 8 968 105

Exchange list 2010-05-24 3 404 28

2010: webcast 7 972 94

Webcast - 2/10/11 3 454 44

Sponsorship summer 2010 1 162 10

One Master Append 2010-06-15 11 2259 132

List 5-5-2011 1 278 31

Final List 2010-06-24 1 578 40

Total 139 11187 992

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List Source Leads CallsDM

ContactsContact % Calls/Lead

Contact/ Lead

Webcast 1/18/11 Registered 7 58 10 17% 8 1

Show-6/16/2011 7 151 25 17% 22 4

Webcast 1/18/11 Registered & Attended 3 85 17 20% 28 6

2010 Los Angeles 2 67 10 15% 34 5

Lead List 7.2 42 1550 163 11% 37 4

Document Review 1 43 6 14% 43 6

List 4/12/2011 2 87 8 9% 44 4

Prospects_Bay Area_CA 4 185 14 8% 46 4

2011 New York 8 372 48 13% 47 6

Phase 2 list 5 245 28 11% 49 6

Event list 5.5.2011 2 112 15 13% 56 8

Google campaign 5-4-2011 1 62 3 5% 62 3

2010 – Booth 9/23/10 3 267 18 7% 89 6

Show - 5/20/2010 1 89 4 4% 89 4

Phase 1 list 4 416 24 6% 104 6

Notes list 2010-05-24 7 753 62 8% 108 9

Expo and Conference 2010 5 570 53 9% 114 11

Annual meeting 2010-11-15 8 968 105 11% 121 13

Exchange list 2010-05-24 3 404 28 7% 135 9

2010: webcast 7 972 94 10% 139 13

Webcast - 2/10/11 3 454 44 10% 151 15

Sponsorship summer 2010 1 162 10 6% 162 10

One Master Append 2010-06-15 11 2259 132 6% 205 12

List 5-5-2011 1 278 31 11% 278 31

Final List 2010-06-24 1 578 40 7% 578 40

Total 139 11187 992 9% 80 7

Experiment #2: Results2



Contact/ Lead

HoursCalling

CostCost/Lead

Webcast 1/18/11 Registered 7 58 10 17% 8 1 6 $ 348 $ 50

Show-6/16/2011 7 151 25 17% 22 4 15 $ 906 $ 129

Webcast 1/18/11 Registered & Attended 3 85 17 20% 28 6 9 $ 510 $ 170

2010 Los Angeles 2 67 10 15% 34 5 7 $ 402 $ 201

Lead List 7.2 42 1550 163 11% 37 4 155 $ 9,300 $ 221

Document Review 1 43 6 14% 43 6 4 $ 258 $ 258

List 4/12/2011 2 87 8 9% 44 4 9 $ 522 $ 261

Prospects_Bay Area_CA 4 185 14 8% 46 4 19 $ 1,110 $ 278

2011 New York 8 372 48 13% 47 6 37 $ 2,232 $ 279

Phase 2 list 5 245 28 11% 49 6 25 $ 1,470 $ 294

Event list 5.5.2011 2 112 15 13% 56 8 11 $ 672 $ 336

Google campaign 5-4-2011 1 62 3 5% 62 3 6 $ 372 $ 372

2010 – Booth 9/23/10 3 267 18 7% 89 6 27 $ 1,602 $ 534

Show - 5/20/2010 1 89 4 4% 89 4 9 $ 534 $ 534

Phase 1 list 4 416 24 6% 104 6 42 $ 2,496 $ 624

Notes list 2010-05-24 7 753 62 8% 108 9 75 $ 4,518 $ 645

Expo and Conference 2010 5 570 53 9% 114 11 57 $ 3,420 $ 684

Annual meeting 2010-11-15 8 968 105 11% 121 13 97 $ 5,808 $ 726

Exchange list 2010-05-24 3 404 28 7% 135 9 40 $ 2,424 $ 808

2010: webcast 7 972 94 10% 139 13 97 $ 5,832 $ 833

Webcast - 2/10/11 3 454 44 10% 151 15 45 $ 2,724 $ 908

Sponsorship summer 2010 1 162 10 6% 162 10 16 $ 972 $ 972

One Master Append 2010-06-15 11 2259 132 6% 205 12 226 $ 13,554 $ 1,232

List 5-5-2011 1 278 31 11% 278 31 28 $ 1,668 $ 1,668

Final List 2010-06-24 1 578 40 7% 578 40 58 $ 3,468 $ 3,468

Total 139 11187 992 9% 80 7 1119 $ 67,122 $ 483

Experiment #2: Results2

Experiment #2: Results (not prioritized)



Contact/ Lead

Hours Calling Cost Cost/Lead

2010 – Booth 9/23/10 3 267 18 7% 89 6 27 $ 1,602 $ 534

Show - 5/20/2010 1 89 4 4% 89 4 9 $ 534 $ 534

Phase 1 list 4 416 24 6% 104 6 42 $ 2,496 $ 624

Notes list 2010-05-24 7 753 62 8% 108 9 75 $ 4,518 $ 645

Expo and Conference 2010 5 570 53 9% 114 11 57 $ 3,420 $ 684

Annual meeting 2010-11-15 8 968 105 11% 121 13 97 $ 5,808 $ 726

Exchange list 2010-05-24 3 404 28 7% 135 9 40 $ 2,424 $ 808

2010: webcast 7 972 94 10% 139 13 97 $ 5,832 $ 833

Webcast - 2/10/11 3 454 44 10% 151 15 45 $ 2,724 $ 908

Sponsorship summer 2010 1 162 10 6% 162 10 16 $ 972 $ 972

One Master Append 2010-06-15 11 2259 132 6% 205 12 226 $ 13,554 $ 1,232

List 5-5-2011 1 278 31 11% 278 31 28 $ 1,668 $ 1,668

Final List 2010-06-24 1 578 40 7% 578 40 58 $ 3,468 $ 3,468

Total 55 8170 645 8% 149 12 817 $ 49,020 $ 891

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Contact/ Lead

HoursCalling

CostCost/Lead

Webcast 1/18/11 Registered 7 58 10 17% 8 1 6 $ 348 $ 50

Show-6/16/2011 7 151 25 17% 22 4 15 $ 906 $ 129

Webcast 1/18/11 Registered & Attended 3 85 17 20% 28 6 9 $ 510 $ 170

2010 Los Angeles 2 67 10 15% 34 5 7 $ 402 $ 201

Lead List 7.2 42 1550 163 11% 37 4 155 $ 9,300 $ 221

Document Review 1 43 6 14% 43 6 4 $ 258 $ 258

List 4/12/2011 2 87 8 9% 44 4 9 $ 522 $ 261

Prospects_Bay Area_CA 4 185 14 8% 46 4 19 $ 1,110 $ 278

2011 New York 8 372 48 13% 47 6 37 $ 2,232 $ 279

Phase 2 list 5 245 28 11% 49 6 25 $ 1,470 $ 294

Event list 5.5.2011 2 112 15 13% 56 8 11 $ 672 $ 336

Google campaign 5-4-2011 1 62 3 5% 62 3 6 $ 372 $ 372

Total 84 3017 347 12% 36 4 301.7 $ 18,102 $ 216

Experiment #2: Results (prioritized)2

Approach Calls/Lead Cost/Lead

Worst Case 149 $891

Average 80 $483

Optimized 36 $216

Difference 113 $675

What you need to understand: The overall calling cost per lead would decrease by 76% if the calling team focused on the client’s most efficient lists.

Results

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75% Decrease in calling cost per lead

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Segment, score and prioritize: takeaways

• You don't always need to start with a new list. You can optimize the ROI from your current lists by testing and prioritizing.

• Testing lists gives you the ability to guide your present and future marketing initiatives.

• Over time, testing will reveal patterns customer behavior.

• However, in your testing, don’t neglect qualitative analysis (e.g., conversations, questions, objections)

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List Quality Guidelines

Bad: A disqualified lead for every 25 calls

Average: A disqualified lead for every 50 calls

Better: A disqualified lead for every 100 calls

Bad: A sales lead for every 100 calls

Average: A sales lead for every 50 calls

Better: A sales lead for every 25 calls

Dials to Sale: LOWER is better

Dials to Disqualifications: HIGHER is better

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Optimizing the Lead

Initiate a memorable conversation3

Timing+Relevance

Memorable

3

Timing+Relevance

Memorable

TIME YOUR TOUCHES

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Lead Generation Model

INQUIRY CUSTOMER

Identify Need

Make Decision

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INQUIRY CUSTOMERLEAD

Research Solutions

Identify Need

Make Decision

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INQUIRY CUSTOMERLEAD SALES-READY LEAD

Research Solutions

Develop Short List

Identify Need

Make Decision

3


INQUIRY CUSTOMERQUALIFIED PROSPECT

LEAD SALES-READY LEAD

Research Solutions

Develop Short List

Identify Need

Review Proposals

Make Decision

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Research Solutions

Develop Short List

Identify Need

Review Proposals

Make Decision

BrandingAdvertising

PR

SEOWebsite

Direct Mail

Events Tradeshows

Webinars

Outbound calls

Inbound 800#

Lead NurtureOpt-in Email

Conference Calls

Face to Face

Follow-up

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Research Solutions

Develop Short List

Identify Need

Review Proposals

Make Decision

BrandingAdvertising

PR

SEOWebsite

Direct Mail

Outbound calls

Inbound 800#

Lead NurtureOpt-in Email

Conference Calls

Face to Face

Follow-up

Broadly TargetedLess InteractiveLess Measurable

Narrowly TargetedHighly Interactive

Highly Measurable

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Events Tradeshows

Webinars

Multi-modal Lead Generation3




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Optimizing the Lead

Nurture regardless of time to buy4

Case Study

Background: An IT management firm engaged MECLABS for lead generation

$80 million annual revenue100 channel partners27 sales people, 10 marketers

Objective: To determine if basic lead management can improve pipeline

Test Design: Creation of a ULD, lead qualification, lead nurturing, clear lead handoff and feedback process.

Experiment ID: IT desktop management firmLocation: MECLABS Leads Group Research LibraryTest Protocol: LG4028

Research Notes:

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Case Study: Challenges

• < 2% lead-to-sale pipeline conversion

• Marketing felt leads were going into a “black hole”

• No closed-loop feedback process

• Unable to measure ROI

More activity but the same results*

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Case Study: The approach

Closed Loop

Feedback

Marketing Pipeline

Sales Pipeline

Customers

Returned Prospects

Events, Events, Summits, Guides, Subscribers, Website, Teleprospecting

Sales Ready Leads

Not a Fit

Sales Generated

Leads

Existing Clients

CRM

Measure ROI

HANDOFF

Level 3,4,5 Leads

Inquiries (Level 1)

Nurturing (Level 2)

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Case Study: Results

375% Increase in sales-ready leads

200% Improved lead-to-sales opportunity

$4.9 M Additional sales pipeline in 8 months

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Case Study: Results

375% Increase in sales-ready leads

200% Improved lead-to-sales opportunity

$4.9M Additional sales pipeline in 8 months

What you need to understand: By actively nurturing and closing the loop, improved lead to sales opportunity and pipeline increases are achieved*

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Understand Audience

Organize Content

Track Results and

Engagement

Execute Tracks

Messaging Strategy

A relevant, consistent conversation with viable potential customers, regardless of their timing to buy.

•Touch

•Track

•Follow-Up

1•Touch

•Track

•Follow-Up

2•Touch

•Track

•Follow-Up

3•Touch

•Track

•Follow-Up

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Progressive Lead Movement Across Buying Stages

What is lead nurturing?4

Align messaging to roles and needs

Connect with your personas:

• Project Leader

• CIO

• Contact Center

• Field Service Center

• Executive Sponsor

• Stakeholders

CIO Q1

Month 1 Free executive report via direct mail with follow-up call

Month 2 Invitation to executive roundtable via email with follow-up call

Month 3 Link to relevant Podcast via email with follow-up voicemail

IT Director Q1

Month 1 3rd party article via email and voicemail

Month 2 3rd party article via email with follow-up

Month 3 Link to relevant webinar via email with follow-up call

IT Manager Q1

Month 1 Relevant white paper via email with voicemail

Month 2 Direct mail piece

Month 3 Invitation to webcast via email with follow-up call

Multi-track lead nurturing timeline

Client Plan for Q1 Audience: 3 Contacts Deep

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Align messaging to roles and needs

Connect with your personas:

• Project Leader

• CIO

• Contact Center

• Field Service Center

• Executive Sponsor

• Stakeholders

CIO Q1

Month 1 Free executive report via direct mail with follow-up call

Month 2 Invitation to executive roundtable via e-mail with follow-up call

Month 3 Link to relevant Podcast via e-mail with follow-up voicemail

IT Director Q1

Month 1 3rd party article via e-mail and voice mail

Month 2 3rd party article via e-mail with follow-up

Month 3 Link to relevant webinar via e-mail with follow-up call

IT Manager Q1

Month 1 Relevant white paper via e-mail with voice mail

Month 2 Direct mail piece

Month 3 Invitation to webcast via e-mail with follow-up call

Multi-track lead nurturing timeline

Client Plan for Q1 Audience: 3 Contacts Deep

BUILD YOURTRACKS

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Repurpose quality content

Research chart

4

Repurpose quality content

Tactical tool download

Blog post

Video clipWebinar

Email

Research chart

4

Measure and refine

Tactical tool download

Blog post

Video clipWebinar

Email

Research chart

RegistrantsAttendees

Replays

ViewsLikes/DislikesSocial Shares

Page viewsComments

Social Shares

OpensClickthroughs

Shares

DownloadsSocial SharesLead Capture

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Optimizing the Lead





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Takeaways: Identify

Collaborate with your sales team to determine and do list testing

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Takeaways: Prioritize

Set up a process that allows your team to increase pipeline velocity

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Takeaways: Initiate

Match your conversation timing andrelevance with your customer’s stage

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Research Solutions

Develop Short List

Identify Need

Review Proposals

Make Decision

Takeaways: Nurture

Nurture leads, regardless of time to buy4

Submit your Research Application:MECLABS.com/partners

Presentation Brought To You By

Nexsales helps leading technology companies like IBM and Thomson Reuters achieve breakthrough sales outcomes.

Our next generation sales acceleration platform delivers 8+ relevant conversations per hour.

With RightLeadsTM, we provide Intelligent, Researched B2B Prospect Data guaranteed to be 100% relevant for inside sales.

Optimizing the LeadA data-driven optimization process that goes beyond lead capture

Brian Carroll

Executive Director, Revenue Optimization