Transcript handout - Modular Building Institute

Modular Building Institute
Grow Your Business: Generating Sales Leads
Through Internet Marketing
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About Jeff Hoogendam, Principal, 360MobileOffice
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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
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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
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Education
– BS Engineering from Texas A&M
– MBA from University of Texas
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About 360MobileOffice
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Lead referral service. Deliver qualified leads for:
– Modular buildings
– Mobile offices/office trailers
– Storage containers
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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
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In 2007, leads represented over $80mm in revenue
In business since 2005
Agenda
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Introduction to Online Marketing
What is a Lead Referral Service
How to Maximize a Lead Referral Service
Acquiring New Customers is Always a Challenge
Source: Yahoo! Small business survey, 2008
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Traditional Marketing Methods Have Limitations
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Referrals
Internet Advertising Revenues Growing Significantly
– Great when you can
get them, but often not
enough to grow
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Yellow pages
– Viable in the past, but
fewer and fewer
people using it
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Print
– Less effective and not
easily tracked
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Direct mail
– When’s the last time
you responded to
one?
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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)
Online Marketing is an Increasingly Important Channel
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Online marketing channel is large
– 184 million Internet users in the US, more internationally
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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)
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Interaction is real time
– Can make adjustments to campaigns by the hour if necessary
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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
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Search
– Pay per click
– Natural search (sometimes called “search engine optimization”)
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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
Pay per click section. Driven by
• Bid price
• Quality of content
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.)
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General Media Example Shows 5 Different Types of Ads on One Page
Small box ad
Thumbnail ads
Large box ad
Skyscraper ad
Classic banner ad
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Email Marketing Example
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
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What is Affiliate Marketing?
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Uses third party sites to drive traffic to your site
Typically pay for performance (leads or transactions)
– Fixed commission per event
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Third party managers exist to
– Help manage links & payments
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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
Company A Website
Link/Ad to Company B
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Commission
Traffic
Company B Website
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
Customers needs are always changing. The key to success is always
staying ahead of the competition.
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Successful Firms Using Online Marketing Do the Following
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Build a website with a strong call to action
– Constantly updating content
– Periodic usability testing and refining
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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
It takes significant investment in resources and time
to be successful with online marketing.
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Agenda
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Introduction to Online Marketing
What is a Lead Referral Service
How to Maximize a Lead Referral Service
Lead Referral Services Offer Another Way to Market Online
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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
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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
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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
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Disadvantages
• Leads are rarely exclusive
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Can supplement or replace other
online marketing efforts
Little to no marketing staff required
High variance in the quality of lead
referral services
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Church buildings in North Carolina
Offices in California
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You will usually be competing with others
for business
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
Any Size Business Can Use a Lead Referral Service
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Small companies use service as primary lead source
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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
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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
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Introduction to Online Marketing
What is a Lead Referral Service
How to Maximize a Lead Referral Service
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?
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Allows you to select leads in your specific geographies
– Down to a county level
– Why pay for leads that aren’t in your territory?
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Can send leads to multiple sales reps in your company
– Get leads directly to your field sales reps based on their expertise and territory
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Qualifies leads using people
– Don’t want to waste money on unqualified leads
– Don’t want to waste valuable salespeople’s time
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Will never sell your lead more than four times
– More than 4 times results in significant drop in close rate*
* 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.
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How to Successfully Use a Lead Referral Service
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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
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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
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Contact leads right away
– First person to frame the buying decision for the customer
– Call within 15 minutes
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.
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Questions?
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Working with 360MobileOffice
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Several market opportunities still available
– Modular building, mobile office, and storage container leads available in select
areas
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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
– [email protected]
– 512-342-8800 x335
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