Transcript Can`t We All Just Get Along?

Can’t We All Just Get Along?
Bridging the Gap between
Sales and Marketing
Presented to:
Business Marketing Association
Pittsburgh Chapter
October 16, 2008
Marketing
Role:
Generate
Leads
GAP
Typical complaints:
Typical complaints:
Sales only focuses on lowhanging 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!!
Sales
Role:
Generate
Revenue
More than 70% of leads
generated are never
acted upon because
the information does not
reach the right person
at the right time
Source: Gartner Research
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
What is Lead Management?
The optimal process for
collecting, qualifying, nurturing
distributing and tracking to close
the leads generated as a result of
marketing activity
Whose Responsibility Is It?
Marketing Reaps the Benefits
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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
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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
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With each “new” inquiry, we need to collect
whenever possible:
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Contact info
Demographic information
Reason for inquiring
Qualifying criteria
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Size of opportunity
Timeframe to purchase
Current provider etc.
Getting Started - Collecting
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We need to capture:
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Source (e.g. publication name, issue date, URL,
tradeshow, etc.)
Campaign identifier
We need to run the inquirer against the current
database to determine:
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Current client
Priority target
Former client, etc.
Getting Started - Qualifying
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Develop qualification criteria by
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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
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What if we only know project timeframe and no
other qualifying information?
What if we only have contact info and know the
segment?
Having a Checklist Helps
Getting Started - Distributing
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Define the distribution process
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Identify the method of distribution
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E-mail/spreadsheet
Web
CRM
Identify the frequency
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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
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Defining the process, continued . . .
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If selling through distribution, identify which
channel partners will be receiving the leads
Establish an internal SLA to build credibility
with the sales organization
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A lead will be qualified and distributed to sales
within X days of receipt
Getting Started - Tracking
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Be realistic about how much info you’ll get back
Give limited status options
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Lead is active
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Win
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Current client agreed to purchase additional product.
Value_______
New client agreed to purchase product. Value _____
Loss
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Not ready to decide remind me in X weeks
Did not get additional business from current client.
Reason?
Did not get new business from prospect. Reason?
Lead is not viable
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Information is incorrect
Will not return my calls
Not a decision-maker
Getting Started - Tracking
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Establish clear escalation procedures if the
leads are not responded to. For example:
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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
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Activity by campaign
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Inquiries
Hot leads
Viable leads
Non-leads
Sales lead status by campaign
ROI by campaign
ROI Calculations
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To calculate ROI, you need to know:
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Revenue
% of gross margin on revenue
Direct expenses by campaign
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Advertising
 Agency fees
 Placement fees
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Tradeshows
 Booth space
 Agency fees
 Travel
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ROI
Gross margin from activity – direct expense
direct expense
Reporting
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The goal is to
track performance
over time and
performance
across activities
Do NOT get
bogged down in
looking at a “snap
shot”
Overcoming the Challenges
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Commitment from the top to manage the fear
of accountability
Real consequences for lack of sales tracking
Long-term focus – be patient
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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
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Ultimately you will generate more ROI
Paying for It
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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
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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 Allen
CEO
DataBanque
5500 Brooktree Rd
Suite 200
Wexford, PA 15090
412-548-1010
[email protected]