How Marketers Are Transforming Mounting Pressure, Challenges into Revenues

2012 B2B Marketing Benchmark ReportHow Marketers are Transforming Mounting P Ch ll i t R

Benchmark Report

Pressure, Challenges into Revenues

October 18 2011October 18, 2011

B2B Lead Roundtable

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Today’s speakers

About Jen DoyleAbout Jen DoyleSenior Research Manager at MarketingSherpa covering B2B marketing, social media and search engine marketing. Jen is the Lead Author of the 2011 and 2012 Editions of the B2B Marketing Benchmark Report, the B2B Advanced Practices Handbook and the 2011 Search MarketingB2B Advanced Practices Handbook, and the 2011 Search Marketing Benchmark Reports. Jen is a speaker at MarketingSherpa and partner events, a MarketingSherpa newsletter columnist, blog contributor, and a speaker f M k ti Sh d t bi H h h b

@JenLDoylefor MarketingSherpa and partner webinars. Her research has been instrumental in the development of new media marketing practices, including the FUEL methodology for B2B marketing effectiveness.

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Today’s speakers

About Kaci BowerAbout Kaci BowerKaci Bower is a Senior Research Analyst with MarketingSherpa. Her area of focus is Search Marketing, and she’s the lead author of both the SEO and PPC editions of the 2012 Search Marketing Benchmark Report and is currently working on what will be MarketingSherpa’sReport and is currently working on what will be MarketingSherpa sfirst Inbound Marketing Handbook to be released early next year.

Kaci is also a co‐presenter at the B2B Advanced Practices Workshopwhere she speaks on the topics of mastering essential lead@KaciBower where she speaks on the topics of mastering essential lead generation and lifting results.

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Today’s speakers

About Brian CarrollAbout Brian CarrollBrian Carroll is Executive Director of Applied Research at MECLABS. Brian is also co‐founder of InTouch (now part of the MECLABS Leads Group), a B2B marketing firm and one of the first companies to provide lead generation services for the complex saleprovide lead generation services for the complex sale.

Author of the popular book, Lead Generation for the Complex Sale (McGraw‐Hill), Carroll is a leading expert in lead generation and he's profiled and regularly quoted in numerous publications. Brian also@brianjcarroll profiled and regularly quoted in numerous publications. Brian also speaks to 20,000 people a year on improving sales effectiveness and lead generation strategies.

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MarketingSherpa is a research and publishing i i i h k i iorganization serving the marketing community

MarketingSherpa’s annual researchMarketingSherpa s annual research cycle provides knowledge for continuous marketing improvement

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About MECLABS• More than 10 years of research• Over 1 billion emails• 1,300 major experiments• 10,000 sales‐paths tested• Hundreds of publications and conferences• 5 million phone calls• 500,000 conversations

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Today, we’re going to discuss:

• Key findings of research on 1,745 B2B organizations

• How one B2B company applied an integrated nurturing approach that created a 69% increase in inbound calls

• Top B2B marketing opportunities for 2012

i i i f l• A 5‐step process to optimizing your funnel

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Research background

1,745 B2B marketers were surveyed on:

• Top challenges

• Barriers to success

• Best practices

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Key finding: Challenges growing in pertinence

• B2B marketing challenges on the rise year‐over‐year 69%

78%74%

Generating high quality leads

• Last year’s focus on quality has brought 37%

35%

37%

44%

41%

49%

Generating perceived value in "cutting edge" product benefits

Generating a high volume of leads

201120102009q y g

marketers back to volume this year

33%

27%

36%

36%

38%

40%

Generating public relations "buzz"

Competing in lead generation across multiple media, from podcasts to paid search to …

• Continual struggle between quality and quantity of leads

39%

33%

34%

41%

33%

38%

Marketing to a growing number of people involved in the buying

Marketing to a lengthening sales cycle

q y33%34%p p y g

process

Source: ©2011 MarketingSherpa B2B Marketing Benchmark Survey Methodology: Fielded June 2011, N=1,745

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Key finding: Challenges apparent in effectiveness

• Perceived effectiveness of all tactics 31%

50%

S h i ti i ti

Website design, management and optimization

experienced severe declines this year

20%

26%

29%

25%

40%

36%

Tradeshows

Email marketing

Search engine optimization (SEO)

• It’s becoming more challenging to accomplish results from

13%

16%

19%

35%

23%

43%

Telemarketing

Paid search (PPC)

Virtual events / webinars

20102011

the same activities

6%

13%

13%

16%

22%

31%

Social media

Direct mail

Public relations

6%

6%

10%Print advertising

Social media


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Despite an increasingly challenging environmentDespite an increasingly challenging environment, marketers are not optimizing their funnels.

Key finding: Marketers must improve funnel i i ioptimization

of B2B marketers have not identified68% of B2B marketers have not identified their Sales and Marketing funnel68%

Source: ©2011 MarketingSherpa B2B Marketing Benchmark Survey

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Methodology: Fielded June 2011, N=1,745



send all leads directly to sales61%61% Only 27% of those leads will be qualified at point of conversion


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have not established lead scoring79% have not established lead scoring79%


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have not established lead scoring79% have not established lead scoring79%have not established lead nurturing65%


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How can I generate more qualified leads?

Case Study: Background

Experiment ID: Postcard ManiaLocation: MarketingSherpa Case Study LibraryT t P t l N b #CS31948

k d d k ll d

Test Protocol Number: #CS31948

Research Notes:

Background: A B2B direct‐marketing company serving small to mid‐size businesses did not sell online, and needed to generate offline sales.

Goal: To drive inbound calls which resulted in 19% conversion rate.

Primary research question: Which approach will drive the best inbound call volume?

Approach: Implement a lead generation effort with a three partApproach: Implement a lead‐generation effort with a three‐part nurturing funnel to turn web‐form registrations into inbound calls.

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The Problem

• Did not sell online, and needed to generate offline sales

• Customers becoming more averse to engagement and offline response

• Web form leads converted at 5% but web leads who called in converted at• Web form leads converted at 5%, but web leads who called in converted at 19%

“We were trying very hard to get [a potential y g y g [ pcustomer’s] first touch to be a call‐in, which is harder and harder each year.”

‐Sarah Kicinski, SVP Marketing and Business gDevelopment, PostcardMania

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Multichannel lead generation

• PostcardMania drove leads to landing pages using:• Direct mail• PPC ads• Organic searchOrganic search• Social media

L d i ll i• Lead generation calls to action included: • Free postcard samples• Free marketing reports

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Relevant, multichannel nurturing campaign

• Nurturing tracks included 28 emails on:• Facts about PostcardMania• Marketing tips• Information about directInformation about direct

mailing lists

• Calls to action included• Calls to action included• A reason to call a sales rep,

signed by the prospect’s rep

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Relevant, multichannel nurturing campaign

• Incorporated teleprospecting and direct mail to support nurturing

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Staggered nurturing frequencies

onon

Immediate thank you email and call

Immediate thank you email and call

h 2

h 2onth 1

onth 1

onversi

onversiemail and call

from teleprospector

email and call from teleprospector

Prospects receive mail every 3 days

Prospects receive mail every 3 days

Frequency drops to once a week

Frequency drops to once a week

Mon

thMon

thMo

Mo

s 3 ‐4

s 3 ‐4

Upo

n co

Upo

n co weekweek

Frequency drops to once a month

Frequency drops to once a month

Mon

ths

Mon

thsUU

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Results

69% increase in inbound rep callsThe campaign optimization resulted in 69% more calls

Approach Inbound calls

Web leads contacted

The campaign optimization resulted in 69% more calls

Original nurturing campaign 29% 67.7%

Optimized nurturing campaign 49% 77.6%

Relative difference 69% 15%

What you need to understand: Optimizing the lead‐generation effort! What you need to understand: Optimizing the lead generation effort with a three‐part nurturing funnel successfully converted web‐form registrations into inbound calls.

!

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Marketers must use funnel optimi ation strategies toMarketers must use funnel optimization strategies to ensure optimal qualified lead generation.

What is funnel optimization? Sales and marketing functions and processes that encourage a lead’s progression through the sales and marketing funnel. Processes include lead qualification, scoring, nurturing, management and optimizationnurturing, management and optimization

Leads generated

Sales qualified? Y/NLead qualification & scoring

Qualified leads go to Sales – others get nurtured

Lead nurturing & management

Continual optimization

Lead conversion

New customer nurturing 26

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Funnel optimization – benefits

Funnel optimization will enable you to:• Generate a greater volume of qualified, sales‐ready leadsg q , y• Dramatically reduce any frustrations that exist among Sales• Improve sales and marketing alignment• Increase sales effectiveness• Increase sales effectiveness• Accelerate sales pipeline performance• Ultimately increase overall revenues

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Key finding: Lead generation is top priority,

• Interdependence of lead

conversion is greatest challenge60%

L d iInterdependence of lead generation and conversion

52%

48%

57%Converting qualified leads into paying

customers

Lead generation

• Marketers now prioritize lead conversion over branding, reputation and 40%

38%

44%

45%

Lead nurturing

Branding, reputation and awareness

PriorityChallengebranding, reputation and

awareness37%

40%

36%Lead qualification and scoring

Challenge

22%

18%Lead hand‐off and management


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Key finding: Funnel optimization presents great

• Marketers beginning to 46%13%

Lead generation

opportunityg g

embrace sales conversion as a sales andmarketing priority, however… 31%

37%

41%

46%

23%Lead qualification

Lead generation

• Marketers are struggling to gain maturity in funnel

19%

41%

29%

30%

41%

Lead nurturing

Lead scoring

No process or guidelines currently

optimization tactics

29%

22%

37%

38%

25%Lead hand‐off / management

y

Informal process, few guidelines, sporadic performanceFormal process, thorough guidelines, routine

16%34%

38%Funnel optimization

performance


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How can we gain maturity in funnelHow can we gain maturity in funnel optimization?

Optimize your Sales and Marketing Funnel

Step 1: Identify your sales and marketing funnel

Step 2: Establish lead qualification and scoring

Step 3: Nurture non‐qualified leads until they are ready to engage

Step 4: Continue to nurture throughout the funnelStep 4: Continue to nurture throughout the funnel

Step 5: Adapt & optimize

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• The funnel does not begin once a lead is handed off to Sales, it begins once a lead has responded to a marketing campaign.

• Three guiding principles in developing your funnel:• It should be measurableIt should be measurable• It should encourage accountability• It should be simple

Measurability

SimplicityAccountability SimplicityAccountability

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Demand Generation Content

Response Capture

Lead Scoring

Lead Nurturing

Sales EngagementLead to Pipeline Sale Conversion Rate X% g gConversion Rate

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• Determine your universal lead definition (ULD)

• Outline specific criteria of a qualified lead

• Develop automated scoring methodologies using demographics and• Develop automated scoring methodologies using demographics and behaviors

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Action Item: ULD

Create your own version of the universal lead definition, apply it to every lead and leave room for iteration asapply it to every lead, and leave room for iteration as you close the loop with your sales team.

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Action Item: ULD checklist

What makes a good sales lead?

• How can we raise the bar and give your better more actionable leads?• What initiative or need makes this a good fit?• What info is necessary to determine if a lead is worth the follow‐up?• What info is necessary to determine if a lead is worth the follow‐up?• What are the titles/job functions of economic buyers and influencers?• What does this company values? What’s its culture like?• What are the common business issues?

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What information is required to qualify leads as being sales ready?

• What are the characteristics of the ideal sales opportunity?• What are the questions sales want answered before getting a lead?• What info is must‐have vs nice‐to‐have?• What info is must‐have vs. nice‐to‐have?• Which questions tend to gather the most‐needed information?• What should we start doing to make leads more actionable?• What things should we stop doing with leads that don’t value?

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Use the ULD to delineate “sales ready” vs. “nurture” lead statuses

• Will there be a time frame to evaluate and implement a solution?• Will there be a formal or informal budget in place?• Are there specific behaviors or traits you are looking for?Are there specific behaviors or traits you are looking for?

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Action Item: ULD next steps

Identify key info a sales rep would value in speaking with a prospect

• What fuels interest and how must we focus on it with the solution?• Where is the best entry point?• Who is involved in the buying process as it evolves? • Should anyone else be contacted?• Where’s the funding coming from and who has authority over it?

Then, only send as many sales ready leads that the sales person can effectively handle

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Step 3: Nurture non‐qualified leads until they

Nurturing – the process of relevant, ongoing communications to increase

are ready to engage

Nurturing the process of relevant, ongoing communications to increase interest and engagement

• Ongoing nurturingO go g u u g• Outreach nurturing• Engagement nurturing

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Step 3: Nurture non‐qualified leads

Action Item: Set up basic lead nurturing

1. Set up your nurturing database• Include all of the people you could potentially sell to: people c ude a o e peop e you cou d po e a y se o peop eyou’ve met at trade shows, who have spoken with your sales team, who have responded to your website, etc.

2. Review your database• What do you know about the people in it? • What industry are they in?• What industry are they in? • What are their titles?

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3. Decide what information would be most relevant to them• Ask your sales team, “What questions do your customers ask most s you sa es ea , a ques o s do you cus o e s as osoften? What do they care about? What issues are they facing?”

• Find content to address these issues. • Pass this content by your sales team Ask them whether theirPass this content by your sales team. Ask them whether their customers would value it. As much as you can, repurpose content.

4 Email prospects this relevant content4. Email prospects this relevant content• Whatever you do, don’t pitch!

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5. Follow up with a human touch• Make a personal connection and follow up emails with phone calls a e a pe so a co ec o a d o o up e a s p o e ca sto directly gauge prospects’ interest. Never rely on email alone.

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Step 4: Continue to nurture through the funnel

• Conversion nurturing• New customer nurturingg

Leads generated

Sales qualified? Y/N

Qualified leads go to Sales – others get nurtured

Conversion materials Customer

iLead conversion

New customer nurturing

experience materials

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Action Item: Ongoing lead nurturing

1. Establish a lead‐development process

2. Motivate sales people to have consistent contact with prospects who may not yet be ready to buy

3 Ensure that your Sales team hands back inactive leads for further3. Ensure that your Sales team hands back inactive leads for further nurturing by marketing

• Leverage a centralized data base• Ask sales can to make notes why a lead is sales ready• Ask sales can to make notes why a lead is sales‐ready

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Action Item: Ongoing lead nurturing

4. Capture future opportunities that are being currently missed

5. Leverage content to position sales people as trusted advisors• A carefully crafted lead nurturing program anticipates the prospect’s questions and responds with timely answersp p q p y

• This builds value by providing useful information• Relevancy is the key

6. This process positions sales people as trusted advisors.

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Step 5: Adapt and optimize

• Evaluate lead generation performance• Evaluate funnel optimization performancep p

• Lead qualification and scoring• Lead nurturing• Lead management

Lead genLead gen• Lead management

• Deliver marketing value to the C‐SuiteLead

qualificationLead

qualificationLead

managementLead

management

Lead scoringLead scoringLead nurturingLead

nurturing

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Step 5: Adapt and optimizeEvents, Events, Summits, Guides, Subscribers, Website, Teleprospecting

Not a FitInquiries (Level 1)

Marketing Pipeline

Level 3,4,5 Leads

Nurturing (Level 2)

Sales Pi liPipeline

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Marketing Pipeline

Level 3,4,5 Leads

Nurturing (Level 2)

lHANDOFF

Sales Pi li

Sales Ready Leads

Sales Generated

Leads

Existing Clients

Pipeline

Customers54

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Marketing Pipeline

ReturnedLevel 3,4,5 Leads

Nurturing (Level 2)

Returned Prospects

lHANDOFF

Sales Pi li

Sales Ready Leads

Sales Generated

Leads

Existing Clients

Pipeline

Customers55

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Marketing Pipeline

ReturnedLevel 3,4,5 Leads

Nurturing (Level 2)

Closed LoopFeedback

Returned Prospects

l

CRMHANDOFF

Sales Pi li

Sales Ready Leads

Sales Generated

Leads

Existing Clients

Pipeline

CustomersMeasure ROI

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Funnel optimization framework review

In an increasingly challenging environment, funnel optimization presents a great opportunity to marketers




Step 4: Continue to nurture throughout the funnel


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Today’s key takeaways

2012 B2B Marketing Benchmark Report• Key findings of 1,745 B2B organizations y g , g• Struggle to generate both high quality/quantity of leads• Declining effectiveness of tactics

The Opportunity: To optimize the sales and marketing funnel

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2012 B2B Marketing Benchmark Report• Key findings of 1,745 B2B organizations y g , g• Struggle to generate both high quality/quantity of leads• Declining effectiveness of tactics

The Opportunity: To optimize the sales and marketing funnel

Case Study• Tactical steps to increase inbound calls 69%• Multichannel lead generationg• Staggered multichannel nurturing campaign

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The funnel optimization framework1. Identify your sales and marketing funnely y g2. Establish lead qualification and scoring3. Nurture non‐qualified leads ready to engage4 Continue to nurture through the funnel4. Continue to nurture through the funnel5. Adapt & optimize

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The funnel optimization framework1. Identify your sales and marketing funnely y g2. Establish lead qualification and scoring3. Nurture non‐qualified leads ready to engage4 Continue to nurture through the funnel4. Continue to nurture through the funnel5. Adapt & optimize

Your tactical action items• Define your Universal Lead Definition• Implement near and long‐term nurturingp g g• Refine your lead management model

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MECLABS Research Partnership Opportunities

MECLABS conducts rigorous experiments in the new science of optimization. We apply our discoveries to help leaders optimize the financial performance of their sales and marketing programsof their sales and marketing programs.

Learn more about how you may be a fit for a MECLABS researchbe a fit for a MECLABS research partnership:

• Select your Research

✗

Partnership interest type on the post‐webinar survey

di l• Contact us [email protected]‐877‐635‐0565

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B2B Lead Roundtable

1. You will receive a link to the webinar recording

2 Pl fill t th t bi2. Please fill out the post‐webinar survey

3. View past and sign up for future webinars• B2BLeadBlog com/webinarsB2BLeadBlog.com/webinars

4. Join the B2B Lead Roundtable LinkedIn group• B2BLeadBlog.com/Linkedin

5. Connect and share• B2BLeadBlog.com• Twitter @B2BLeadBlog

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