Lead Generation Methods 2013 & Market Size Study: Ken Krogue - Founder

Lead Generation Methods 2013 & Market Size Study

Ken Krogue - Founder

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Dave ElkingtonCEO

Ken KroguePresident

Founders

InsideSales.com Background


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Ken KroguePresident& Founder

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#1 ranked Blog in the world on the topic of ‘Inside Sales’ and ‘Lead Response Management’

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Marquee Clients


PowerCall™

PowerDialer™

PowerSuite TM

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PowerSocial™

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Predictive Analytics Platform Neuralytics™


Recent Research

2013 Top Sales Challenges Survey

2012 DreamforceResponseAudit

2013 Lead Gen Methodologies

2013 LeadsCon ResponseAudit

2013 Distance EducationResponseAudit

2013 Inside Sales Market Size Survey


Market Size Results

Copyright © InsideSales.com Inc. All Rights Reserved© InsideSales.com Inc. InInclue

Dr. Oldroyd Study (while at MIT)

Copyright © InsideSales.com Inc. All Rights Reserved

Inside Sales Industry Growth

Source: 2009 infoUSA/MIT Study

.5%vs

7.5%15x

Original 2009 Market Size Study


Total and Projected Sales Reps

2011 2012 2013 20200

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

2,700,996 2,806,335 2,915,782 3,389,052

Outside Sales

Inside Sales

Source: BLS.gov & 2013 Market Size Study

1.3%vs

3.9%3x


Projected # of Inside Sales Reps

2011 2020 (BLS.gov projected)0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

2,700,996 3,389,052

10,749,504

12,047,948

Outside SalesmenInside Salesmen

13.5 million sales reps

15,437,000



Number of Sales Reps

2011 2012 20130

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

19.7% 20.2% 20.6%

Outside SalesmenInside Salesmen

More than 20% of sales reps are pure inside sales


Inside Sales Rep Count Total

2.81 Million Estimated Current Inside Sales Reps

3.9% Growth rate for 2013(1.3% growth for Outside Sales)

2.92 Million

Projected Reps by the end of 2013


Reps by Selected Industry

Man

ufac

turin

g

Trans

porta

tion

Softw

are

Telec

omm

unica

tions

Finan

ce

Techn

ical S

ervic

es

Man

agem

ent C

onsu

lting

Adver

tisin

g/ P

R

Educa

tion

Health

care

0

100,000

200,000

300,000

400,000

Inside Sales Employees Outside Sales Employees

Source: BLS.gov

Inside Sales larger than Outside Sales


Inside Sales

same as Outside Sales


Sales Team Composition

2011 2012 201340%

45%

50%

55%

60%

45%48%

49%55%

52%51%

Outside SalesInside Sales

Inside Sales represents 49% of sales teams


Average Headcount Growth

2011 2012 20130

5

10

15

20

25

30

35

40

45

50

2831

36

4143 43

InsideOutside

26% Growth


Sales Employment by States, 2011


Inside Sales Growth by Region

21%

50%52%

30% 33%

37%

29%

31%


Growth of IS Industries 2012

Internet Services / Web Development . . . . . . . . . . . . . . 93%

Software Engineering / Programming . . . . . . . . . . . . . . 83%

Advertising, Public Relations, and Related Services . . . 42%

Transportation, Distribution, and Warehousing . . . . . . . 26%

Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20%

Telecommunications . . . . . . . . . . . . . . . . . . . . . . . . . . . 19%

Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16%

Media and Publishing . . . . . . . . . . . . . . . . . . . . . . . . . . 11%

Other Services (Except Public Administration) . . . . . . . 6%


Changing of the guard

Inside Sales vs. Outside Sales


Total Revenue: IS vs OS

2010 2011 2012 2013 2014 $-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

Inside SalesOutside Sales

Source: 2013 Market Size Study


2010 2011 2012 2013 201475%

76%

77%

78%

79%

80%

81%

82%

83%

84%

85%

InsideOutside

Quota Attainment: IS vs OS



Sales Team Models


Common Team Models

2011 2012 201330%

35%

40%

45%

50%

55%

Generalist Generalist GeneralistSemi-Generalist Semi-Generalist Semi-GeneralistSemi-Specialist Semi-Specialist Semi-SpecialistSpecialist Specialist Specialist

Specialists and Semi-Specialists are the most commonly used


Quota by Team Model

2011 2012 20130%

10%

20%

30%

40%

50%

60%

70%

80%

Generalist Generalist GeneralistSemi-Generalist Semi-Generalist Semi-GeneralistSemi-Specialist Semi-Specialist Semi-SpecialistSpecialist Specialist Specialist

Specialists and Semi-Specialists attain their quota more often


Most Used Methods of Lead Generation

1 Company Web site 15 Telemarketing2 Email 16 Seminars3 Tradeshows, Conferences 17 Online Display Ads4 LinkedIn 18 Online Video5 Inside Sales 19 Google+6 Facebook 20 Rich media 7 Sponsorships 21 Radio8 Search Marketing 22 TV Advertising9 Webinars, Webcasts 23 Virtual, On-Demand Events

10 Print Advertising 24 Other Web 2.0 Tools11 Twitter 25 Pinterest12 Direct Mail 26 Outdoor Media13 Blogs 27 Other14 Public Relations


Most Effective Business Awareness

1 Company Web site 15 Telemarketing2 Email 16 Twitter3 Tradeshows, Conferences 17 Online Video4 Inside Sales 18 Online Display Ads5 Linkedin 19 Google+6 Webinars, Webcasts 20 Rich media 7 Sponsorships 21 Radio8 Search Marketing 22 TV Advertising9 Facebook 23 Virtual, On-Demand Events

10 Blogs 24 Other Web 2.0 Tools11 Direct Mail 25 Pinterest12 Seminars 26 Outdoor Media13 Print Advertising 27 Other14 Public Relations


Most Effective Lead Generation

1 Company Website 15 Public Relations2 Email 16 Twitter3 Tradeshows, Conferences 17 Online Display Ads4 Inside Sales 18 Online Video5 Webinars, Webcasts 19 Google+6 Linkedin 20 Rich media 7 Search Marketing 21 Radio8 Sponsorships 22 TV Advertising9 Direct Mail 23 Virtual, On-Demand Events

10 Seminars 24 Other Web 2.0 Tools11 Telemarketing 25 Other12 Blogs 26 Pinterest13 Facebook 27 Outdoor Media14 Print Advertising


Method Most Used

Website 1

Email 2

Tradeshow 3

LinkedIn 4

Inside Sales 5

Facebook 6

Sponsorships 7

Search Marketing 8

Webinars 9

Print 10

Twitter 11

Direct Mail 12

Blogs 13

PR 14

Telemarketing 15

Seminars 16

Online Display Ads 17


Method Awareness

Website 1

Email 2

Tradeshow 3

Inside Sales 4

LinkedIn 5

Webinars 6

Sponsorships 7

Search Marketing 8

Facebook 9

Blogs 10

Direct Mail 11

Seminars 12

Print 13

PR 14

Telemarketing 15

Twitter 16

Online Video 17



Method Lead Gen

Website 1

Email 2

Tradeshow 3

Inside Sales 4

Webinars 5

LinkedIn 6

Search Marketing 7

Sponsorships 8

Direct Mail 9

Seminars 10

Telemarketing 11

Blogs 12

Facebook 13

Print 14

PR 15

Twitter 16



Method Most Used Awareness Lead Gen Variance

Website 1 1 1 0

Email 2 2 2 0

Tradeshow 3 3 3 0

LinkedIn 4 5 6 -2

Inside Sales 5 4 4 +1

Facebook 6 9 13 -7

Sponsorships 7 7 8 -1

Search Marketing 8 8 7 +1

Webinars 9 6 5 +4

Print 10 13 14 -4

Twitter 11 16 16 -5

Direct Mail 12 11 9 +3

Blogs 13 10 12 +1

PR 14 14 15 -1

Telemarketing 15 15 11 +4

Seminars 16 12 10 +6

Online Display Ads 17 18 17 0


Business Awareness High Use

0 75 1500

140

280

Use

Bu

sin

es

s A

wa

ren

es

s

Hig

h

HighLow

Low

WebsiteEmailTradeshowInside Sales


Business Awareness Low Use

0 75 1500

140

280

Use

Bu

sin

es

s A

wa

ren

es

s

Hig

h

HighLow

Low

OtherOutdoor MediaPinterestOther Web 2.0On-Demand Events


Business Awareness Under-Used

0 75 1500

140

280

Use

Bu

sin

es

s A

wa

ren

es

s

Hig

h

HighLow

Low

WebinarsSearch MarketingSponsorships

SeminarsPublic RelationsTelemarketing


0 75 1500

140

280

Use

Bu

sin

es

s A

wa

ren

es

s

Business Awareness Over-Used

Hig

h

HighLow

Low

Linkedin

FacebookDirect MailPrint AdsTwitter


0 75 1500

120

240

Use

Le

ad

Ge

ne

rati

on

Lead Generation High Use

Hig

h

HighLow

Low

WebsiteEmailTradeshowInside Sales


0 75 1500

120

240

Use

Le

ad

Ge

ne

rati

on

Lead Generation Low Use

Hig

h

HighLow

Low

OtherOutdoor MediaPinterestOther Web 2.0On-Demand EventsTV Advertising


SeminarsTelemarketing

0 75 1500

120

240

Use

Le

ad

Ge

ne

rati

on

Lead Generation Under-Used

Hig

h

HighLow

Low

WebinarsSearch Marketing


0 75 1500

120

240

Use

Le

ad

Ge

ne

rati

on

LinkedinFacebookPrint AdsTwitter

Lead Generation Over-Used

Hig

h

HighLow

Low


Tools Used by Inside Sales Reps

List/Lead Providers

Appointment Setting

DashboardsDialers

ACDsIncentives

Social MediaCoaching

CRM

Calendaring


Tools: Most Used

Tools UsingCalendaring Tools 92%

CRM 80%

Conferencing / Presentation Software 70%

Social Media Tools 67%

Reporting / Dashboard Tools 66%

Compensation / Commission / Incentive Tools 65%

List / Lead Providers 57%

Training Tools 52%

Coaching Tools 45%

Appointment Setting Tools 34%

ACDs (Automated Call Distributers) 13%

Dialers 13%

IVRs (Interactive Voice Recognition) 8%


Tools: Most Used

ToolsPlan to

UseTraining Tools 25%

Coaching Tools 25%




Dialers 17%




CRM 11%



Calendaring Tools 4%


Tools: Most Used

ToolsDon't Plan

to Use



Dialers 70%


Coaching Tools 30%


Training Tools 23%





CRM 9%



Tools: Highest Quota Attainment

Tools% of

Quota

Coaching tools 77%


Training Tools 76%



Dialers 76%CRM 75%


Appointment Setting Tools 75%Social Media Tools 75%

Conferencing / Presentation Software (e.g. WebEx, GoToMeeting) 73%

IVR - Interactive Voice Recognition 73%

ACD - Automated Call Distributer 70%


Tools: Highest Quota Attainment

Tools UsingPlan to

Use

Don't Plan to

Use% of

QuotaCalendaring Tools 92% 4% 5% 76%

CRM 80% 11% 9% 75%

Conferencing / Presentation Software 70% 14% 16% 73%

Social Media Tools 67% 18% 15% 75%

Reporting / Dashboard Tools 66% 19% 15% 76%

Compensation / Commission / Incentive Tools 65% 16% 19% 76%

List / Lead Providers 57% 15% 28% 75%

Training Tools 52% 25% 23% 76%

Coaching Tools 45% 25% 30% 77%

Appointment Setting Tools 34% 19% 47% 75%

ACDs (Automated Call Distributers) 13% 10% 77% 70%

Dialers 13% 17% 70% 76%

IVRs (Interactive Voice Recognition) 8% 9% 83% 73%

Under-Utilized Tools


Tools: By Industry 2012

Average Spent on Tools / technology

per IS Rep

Average Quota Per IS Rep

in 2012

Internet services/web development $7,487 $290,395

Software Engineering/Programming $6,841 $138,385

Manufacturing $12,512 $117,212

Consulting $4,815 $80,443

Telecommunications $21,517 $30,694


Inside Sales vs Outside Sales 2011

Remote45%

Onsite32%

Travel12%

Commute2%

Other10%

Remote79%

Onsite6%

Travel2%

Commute3%

Other10%

Inside Sales Outside Sales

Source: 2011 InsideSales.com, 2ND SURVEY



Inside Sales vs Outside Sales 2013

Commuting and Travel

8%

Travel4%

Remote58%

Onsite6%

Meetings and Other Activities

25%

Commuting and Travel

7%

Travel17%

Remote23%

Onsite34%

Meetings and Other Activities

20%

Inside Sales Outside Sales

Copyright © InsideSales.com Inc. All Rights Reserved 2007-2012 ResponseAudit Research Studies – InsideSales.com

ResponseAuditTM

Dreamforce 2009 2,875 39.9% 41:07 1.07

Cloudforce 2010 472 30.7% 49:49 1.32

LeadsCon East 2010 57 35.1% 56:05 2.00

Dreamforce 2011 3,051 51.4% 57:28 1.20

AA-ISP 2011 159 54.7% 40:24 2.60

AA-ISP 2012 696 64.2% 39:20 2.05

Dreamforce 2012 2,148 55.0% 38:30 1.57

Distance Education 69 73.0% 24:18 3.48

LeadsCon 2013 311 49.8% 17:17 1.63

Companies

AvgResponse Time by Phone

% Respondedby Phone or

Email

Avg Response Attempts

Avg

40:28

Copyright © InsideSales.com Inc. All Rights Reserved2007-2012 ResponseAudit Research Studies – InsideSales.com

ResponseAuditTM

Dreamforce 2009 2,875 39.9% 41:07 1.07

Cloudforce 2010 472 30.7% 49:49 1.32

LeadsCon East 2010 57 35.1% 56:05 2.00

Dreamforce 2011 3,051 51.4% 57:28 1.20

AA-ISP 2011 159 54.7% 40:24 2.60

AA-ISP 2012 696 64.2% 39:20 2.05

Dreamforce 2012 2,148 55.0% 38:30 1.57

Distance Education 69 73.0% 24:18 3.48

LeadsCon 2013 311 49.8% 17:17 1.63

Companies

AvgResponse Time by Phone

% Respondedby Phone or

Email

Avg Response Attempts

Avg

1.88


Average First Call Time by Study

Lead

sCon

Cloud

forc

e

Distan

ce E

duca

tion

Sales

2.0

Sellin

g Pow

er

Dream

forc

e0

12

24

36

48

17:1721:50

24:1827:44

31:44

38:30

Ho

urs


Average # of Attempts by Study

Distan

ce E

duca

tion

Sales

2.0

Lead

sCon

Cloud

forc

e

Dream

forc

e

Sellin

g Pow

er0

1

2

3

43.48

2.22

1.63 1.48 1.36 1.29

Nu

mb

er

of

Att

em

pts


Top Performers (First Call Under 5 Mins)

1

2

3

4

5

6

7

8

9

10

12

11


Come Meet us at our Booth #517

Get 3 New Research StudiesAnd See Your Response Times!


Join InsideSales.com Tomorrow

David Elkington

CEO and Co-founderInsideSales.com

Session: Wring the Most Value Out of Your Leads and the Metrics Behind It Date: Wednesday, March 20th Time: 3:00PM – 3:45PM

Room: Events Center C-3


eMail: [email protected]


Blog: kenkrogue.com

LinkedIn: linkedin.com/in/kenkrogue

Twitter: @kenkrogue


Connect with me!

Questions?


Come Meet us at our Booth #517

Get 3 New Research StudiesAnd See Your Response Times!


Join InsideSales.com Tomorrow

David Elkington

CEO and Co-founderInsideSales.com

Session: Wring the Most Value Out of Your Leads and the Metrics Behind It Date: Wednesday, March 20th Time: 3:00PM – 3:45PM

Room: Events Center C-3


eMail: [email protected]


Blog: kenkrogue.com

LinkedIn: linkedin.com/in/kenkrogue

Twitter: @kenkrogue


Connect with me!

Technology

Lead Generation Methods 2013 & Market Size Study: Ken Krogue - Founder