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Learning Points

Why lead generation is the number one problem facingmost organization and what to do about it

How mySAP CRM can tie the critical elements together tocreate a truly effective lead generation program

Four leading methods for creating a mySAP CRMsolution that delivers qualified leads

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Agenda / Objectives

Explore the challenges involved in lead generation

Discuss the hard ROI for deploying mySAP as a tool togenerate sales lift

Detail how mySAP CRM is helping companies both face

and meet this challenge.

4 leading methods for tying all the pieces together to gainmore lift from your combined efforts.

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Agenda / Objectives






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A mindset shiftMany companies view lead generation as a marketing function, or

the responsibility of the sales force, but true lead generationinvolves marketing, sales, product development, and call

centers as well as field services. Only through the use ofmySAP CRM can a repeatable, integrated marketing strategybe successfully executed.

AIR COVER FOR THE SALES FORCE

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Whats the problem?

Yankee Group Estimates thatbetween 40 80% of newbusiness leads are lost, not

followed up on or otherwisemishandled due to poorcompany processes!

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Top 4 Reasons to focus onLead Generation

Reason #4

0%0%0%0%

10%10%10%10%

20%20%20%20%

30%30%30%30%

40%40%40%40%

50%50%50%50%

60%60%60%60%70%70%70%70%

80%80%80%80%

Needs

Needs

Needs

Needs

Improvement

Improvement

Improvement

Improvement

Meets

Meets

Meets

Meets

Expectations

Expectations

Expectations

Expectations

Exceeds

Exceeds

Exceeds

Exceeds

Expectations

Expectations

Expectations

Expectations

Don'tKnow

Don'tKnow

Don'tKnow

Don'tKnow

Because the process stinks

today!

70% of organizations feel

that their ability to

generate leads needs

improvement!

Source: Making Lead Generation Work. CSO Insights. 2007

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Top 4 Reasons to focus onLead Generation

Reason #3

Growing revenues isntgetting any easier!

Deal Sizes are SHRINKING

Sales Cycles Are Longer

Economic Buyer is Unclear

Prospects are better armed

Initial Lead to Sale RatioDeclining Source:Making Lead Generation Work.

CSO Insights. 2007

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Top 4 Reasons to focus onLead Generation?

Reason #2

There has been a steady increase inNO DECISIONS on deals.


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Top 4 Reasons to focus onLead Generation?

And the # 1 Reason.

Because your sales executives consider this their top priority!


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What is Lead Generation?

1. Leveraging allapplicable

communicationchannels.

2. Filling the salesfunnel

Suspects (Target Mkts)

Sales Engagement

Opportunities

Wins / Losses

Creation of Lead

Qualified Prospects

Unqualified Prospects

Database Marketing

STR

ATEGIC

MAR

KETINGP

LAN

Mktg Engagement

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.versus Lead Management

1. Execute MarketingCampaigns

2. Get qualified leadsto Reps

3. Nurture andIncubate Cold /Warm Leads

4. Track the dispositionof Leads

Suspects (Target Mkts)

Sales Engagement

Opportunities

Wins / Losses

Creation of Lead

Qualified Prospects

Unqualified Prospects

Database Marketing

STR

ATEGIC

MAR

KETINGP

LAN

Mktg Engagement

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. WinWinS

trategic

BizPlan

Sales Process

Win/LossProgram

Lost/On Hold

Lost/On Hold

TeleW

eb

ResponseQua

lification

InternetInternet

Media/AnalystRelations

Media/AnalystRelations

AdvertisingAdvertising

CollateralMaterials

CollateralMaterials

EventsEvents

Direct MailOnline/Offline

Direct MailOnline/Offline

Telemktg

Inbound/Outbound

TelemktgInbound/

Outbound

Pre-

Pipeline(Cold,Warm,

Hot)

OutsideTarget Market

OutsideTarget Market

D C B A

ContinuousImprovement

ContinuousImprovement

Partners /Distributors

Partners /Distributors

MarketingPlanDevelopment

Communic

ationPlan

Strategic Lead Management Process

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Agenda / Objectives






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Potential ROI

Average Deal Size = $50K

50% Win Rate

$1M Quota

A sales rep would need to have 40 opportunities in their pipeline during the year tomake quota

(40 opportunities X 50% close rate = 20 deals X $50K each = $1M quota attainment).

Now assume a firm invests in optimizing their lead flow, achieves parity with theirpeers, and now has a 55% close rate.

They would close 5% more of the 40 opportunities they pursue, or 2 more deals perrep (40 opportunities X 5%)

With a saleforce of 100 reps the sales force closes 200 extra deals during the quotayear.

The net result of 200 additional deals closing at an average of $50K each wouldbe - gross revenue gains of $10,000,000with the same amount of effort, butpursuing deals with a higher likelihood of closing.

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Benchmark Returns forBest In Class Companies

$108,500 per rep during theirfirst year on quota (based on

$2M quota and 10%improvement in quota ramp-upperformance.)

Percentage of reps making quota

is 9.3% higher Conversion rates of leads to first

calls show an improvement of16.5%

Win rates rise by 7.0% Ramp-up times for new sales

people decrease by over 10%

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Waters Corp - ROI

captured over$800,000from higher

efficiency levels in lead qualification.

response rates from direct mailcampaigns rose by50%.

increased revenue from additionalcampaigns exceeds$120,000.

Significantly reduced mailing and postagecosts.

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Agenda / Objectives




and meet this challenge. 4 leading methods for tying all the pieces together to gain

more lift from your combined efforts.

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Lead ManagementLead Management: A combination ofbusiness rules and processesdesigned to quickly and consistently

move leads through the sales funnel,minimizing leakage and maximizingconversion

Lead Management: A combination ofbusiness rules and processesdesigned to quickly and consistently

move leads through the sales funnel,minimizing leakage and maximizingconversion

E-mail sent to target

Target responds andbecomes prospect

Hot lead sentto sales as

MQL

BANT scoring classifies prospectas hot, warm or cold.

Warm lead givendeepening touches

Cold lead given periodicwarming touches to attempt to

reclassify as warm

Sales accepts lead asSQL or sends back to

marketing for deepening

SQL/Opportunity

Marketing

Sales

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What Does Good Lead ManagementLook Like?

Lead generation across all interaction channels

Robust and easy-to-use external list managementtools

Accelerate the process from first interest to sale

Streamline the link between marketing and sales Qualification and dispatching

Collaboration with channel partners

Track the progress of each one through

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Lead Generation Tactics/Tools

Can be used separately orin combination to addressthe key marketingobjectives

Each tactics applicabilityvaries with the campaigngoals and target audience

Tactic selection should bebased on the cost per leadchoosing the most cost-effective tactics to reach agiven marketing goal

-

-

BillboardsWebinars

Trade ShowsNewslettersTeleconferencesEmail Marketing

CatalogsDirect Mail

Vehicle SignageTelemarketing

PlacardsBlogs

In-Store DisplaysPodcastsAlliancesOrganic Search

SponsorshipsPaid Search

Charitable EventsWeb Content

PremiumsSponsorships

SeminarsRadioContestsPublic Relations

Banner AdsRSS

Direct Response CardsSocial Networking

The secret is sequential

integration

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Lead Management in SAP CRM Streamlined process from marketing to sales

Closed loop lead management from initial interest to opportunity todeal

Lead generation across several interaction channels

Dispatch leads to internal employees

Automatic distribution based on defined workflow business rules

Automatic qualification with survey support

Business partners can be managed as leads, customers, opportunities,competitors, partners, etc. at the same time

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Lead Management Process

3rd Party(e.g. ELM)

Web

Sales Pipeline

Lead Qualification

Lead Gatheringand Targeting

Selling,Contracting

Hot

Cold

BA

CD

Customer

Status Process

BusinessPartner

Lead

Opportunity

Warm

Mobile Tele

Analyze,learn, growcustomer

QualifiedLead

QualifiedLead

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Definition of a Lead

A lead is a transaction, not a prospect!

A lead is used to describe, store, update and managethe potential interest of a business partner

(in certain timeframe and for a specific product)

Leads are linked to:Leads are linked to:Leads are linked to:Leads are linked to: Business Partner:

customer or prospect,contact person, channelpartner, sales rep. etc

Organizational Model Activities

Texts

Documents

Basic Lead Information:Basic Lead Information:Basic Lead Information:Basic Lead Information: Status

Origin

Lead Group

Priority

Qualification Level

Campaign

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Lead Management Functions

Multiple Interaction Channels Automated Qualification Rule-Based Distribution Lead Dispatching Web-Based Lead Generation

Lead Partner Management Mass Generation Interactive Forms Lead Surveys Generation of Follow-Up

Activities Lead Analysis

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New in CRM Best Practices

Lean Campaign Management

Inbound Lead Management

Outbound Lead Management

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Inbound Lead Generation

CreateLead

Answering aCustomer Call

QualifiyLead

Transfer Leadto Sales

CreateOpportunity

Identify and Confirma Business Partner

A customer contacts the call center andshows interest in a specific product.

The call center agent creates a lead for thecustomer with this product and forwardsthe lead for further processing to the leadqualifier.

The lead qualifier selects the lead from hisworkflow inbox and qualifies the lead by

evaluating the customer history (customerfact sheet). The qualification process canin addition be supported byquestionnaires.

Once a lead has reached a certain

qualification level (for example, hot), it istransferred to the sales department whereit can be converted into an opportunity.

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Inbound Lead Management

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Outbound Lead GenerationOutbound Lead GenerationOutbound Lead GenerationOutbound Lead Generation

ReleaseCampaign

CreateTarget Group

CreateCampaign

Transfer Target Groupto Channel

Qualify Lead

Transfer Lead to Sales

Create Opportunity

Generate Leads

A target group is created in the SegmentBuilder as a basis for the lead generation.

For the lead generation two alternatives arepossible:

The target group is used within acampaign and the leads are createdautomatically during the campaignexecution.

The leads are generated from the targetgroup via a report.

Subsequently the lead is processed by alead qualifier using the lead questionnaire.

Lead qualification may also be carried outwithout direct customer contact based uponinformation on the business partner.

Once the lead has reached a certainqualification level (for example,hot), it ispassed on to the sales department where itcan be used to create an opportunity.

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Lean Campaign Management

Create overallmarketing plan

Create marketingcampaign

Business partnersegmentation

Campaign Executionvia channel / Open Channel

Campaign Executionvia channel E-mail

Run trade show

Maintain address lists

Run campaignefficiency analysis

Customer segmentation

Marketing calendar

Campaign execution

Personalized E-mails

External list management

Campaign analysis

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Lead Management Analysis

Lost Leads:Provides an overview of the number of lost leads in a particular period and the reasons theloss of the leads.

Historical Evaluation:Compare leads over different intervals (qtrs/yrs) to see if general characteristics in the

processing of leads can be identified for these periods.

Efficiency Reporting:

Analyze the efficiency with which leads are qualified.

Channel Mgmt.: Top-n Lost Leads (Current Year):An analysis of the leads lost by a Channel Manager over the past 12 months (as well as

leads lost by your Channel Partners.)

Channel Analysis:Determine the best channels by which business partners are contacted in the context of a

marketing campaign to compare the success of a given channel.

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Agenda / Objectives



Detail how mySAP CRM is helping companies both faceand meet this challenge.


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Properly Qualify &Prioritize Prospects

Properlydefining thecharacteristicsof a goodlead can lead

to much betterprocessesandconsequentlyresults!

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Improve Your Offer

Offers are designed to stimulate

response from a given targetaudience.

The right offer will: Reduce the cost per lead and

marketing

Increase the response rate

Draw a higher qualityrespondent

The premise of an offer is thatto Get Something (e.g.,name and phone number),

we have to Give Somethingof equal value (e.g., white-paper

The premise of an offer is thatto Get Something (e.g.,name and phone number),

we have to Give Somethingof equal value (e.g., white-paper

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Integrate Your Tactics

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Best Practices (long version) Secure cross-enterprise agreement on the definitions of raw leads, suspects,

prospects, and active opportunities.

Document how you handle each class and who is responsible for thoseactivities.

Agree on what metrics you will use to measure effectiveness and how that datawill be collected and analyzed.

Invest in data scrubbing / cleansing so that the data you use for targeting yourprograms is current and accurate.

Implement SAP CRM Lead Management to integrate marketing automation andprogram management, allowing you to manage all aspects of your variouscampaigns; direct/digital mail, events, web site visits, broadcast/print/webadvertising, etc.

Integrate the demand generation system into your existing CRM framework sothat you can easily pass qualified leads on to sales and track thedisposition of those opportunities.

Leverage analytics to determine the effectiveness of each and every programand, based on results, double down on the winning programs and modify orcancel the losers.

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Slap on the forehead

Best Practices

Clearly define your target prospects

Integrate your tactics Track and nurture your current leads

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Key Learnings

The potential payoff for focusing on lead management ishuge.

Your sales and marketing executives are asking for it

Best practices includes developing a roadmap to;

Clearly define your target prospects

Integrate your tactics

Track and nurture your current leads

mySAP CRM 2005+ is ready to handle the job

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For More Information

For more information, discuss our CRM capabilities and howwe will tie our fees to your CRM success.contact;

Pete Martin, Senior Partner

(216) [email protected]