The Death of Cold Calling and the

advent of web-based telemarketing

Hypothesis for today’s session

Changes in buyer lifecycles and the advent of the social web have rendered cold call much less effective in today’s “Self-Service” buy cycle

Calling into lists of suspects based on one-dimensional criteria (demographics) wastes valuable selling time and causes leads to fall through the cracks

What we’ll cover today

Cold Calling – Death versus evolution Lead generation in 2013 – Hijacking the digital

conversation The statistical failure of cold calling Where do leads originate from in 2013 and beyond? Adapting sales and marketing to optimize the digital

conversation The journey to lead to sales revenue management The changing view of telesales/inside sales

About SalesFUSION

SaaS Marketing Application HQ – Atlanta, GA – Sales Offices in Philadelphia, PA Provide a complete marketing automation platform Focus on Sales & Marketing Alignment Only solution built on a CRM database – integrated to

more CRM systems than any other vendor 99% retention rate on integrated customers

A few assumptions Death versus evolution Telephone prospecting is still very important How, why and when we telephone prospect has

changed radically

Telesales and cold calling has been fired and replaced by the internet…..but your company many not know that yet…

Buyer-lifecycle engagement has shifted

All power lies with the buyer

Retail - The Pew Internet and American Life Project has just published the results of a study on American's e-commerce habits. Among the findings: 58% of Americans say they perform online research on the products and services they're considering buying. That's up from 49% who performed online research in 2004.

B2B - 93% of business-to-business customers research companies and products online before making a purchase, according to MarketingSherpa

B2B Buyer Journey’s have become more complex

Source – Forrester Research

B2B Buyer Journey’s have become self paced

Web Social Sales

Self directed engagement by buyers

As much as 70% of buy-cycle may be self-directed and complete prior to sales engaging“Sirius Decisions”

Find Evaluate Engage

B2B Buyer Journey’s have become self paced

Web Social Sales

Find Evaluate Engage

Logic dictates that if buyers are self-evaluating, then sales must make more calls to find those who are active

The opposite may be true due to lack of efficiencies in cold calling

Cold calling to find active, self-paced buyers is non-scientific and wastes time

• Your sales people • Google• Your web site

• Peers/colleagues• Experts• Your customers

• Brand perception• Product info

• Brand perception• Features/benefits• Alternatives• Comparisons

• Brand perception• Features/benefits• Alternatives• Comparisons• Reputations• Customer opinions

• Prices

Sources of information

What buyers know in advance

Pre-Web Web 1.0 Social Web

Information Scarcity

Information OverloadAttention Abundance

Attention Deficit

© 2012 Forrester Research, Inc. Reproduction Prohibited

Buyers are in complete control now

Lead Generation in 2013 and beyond

Many b2b buyers are engaged in a digital conversation with your company Most companies don’t know about this conversation By the time telesales speaks to a prospect, opinions about you are formed Successful companies learn ways to “Hijack the Digital Conversation” Do you trust the internet to sell for you? Conversation channels are fluid and changing and evolving monthly

Demands a new paradigm for telesales…

Cold calling is a practice of starting a b2b relationship by Taking something from a prospect without asking first

Take their time

Take their information

Most people feel uncomfortable “taking” something from someone.

Why is cold calling icky?It fosters a culture of “taking”

Traditional lead generation/selling models foster an environment of “Taking”

• More calls – more appointments – more sales….or your fired.• Leads to employee dissatisfaction, unattainable quotas, re-

training costs for new hires to replace those who have been fired or quit out of frustration

Consider the following sales people’s statistics:• 44% of sales reps quit after 1 no• 22% quit after 2• 14% quit after 3• 12% quit after 4 (total is 92%)

60% of customers say no at least 4 times

Sales is a numbers game….right?

Calls

Appointments

Sales

100 Calls

2-3 Appointments.025 connect rate

.5 Sales

.005 close rate

B2B Sales Rep = COGS

• $50,000 base salary• + Benefits• Salary plus benefits =

$65,000• 100 Calls per day

• 5 Days per week• Avg. 42 Full weeks per

year• 210 calling days• 21000 calls• 525 Connects• 105 Sales

Sales is a numbers game….right?

Calls

Appointments

Sales

100 Calls

2-3 Appointments.025 connect rate

.5 Sales

.005 close rate

B2B Sales Rep = COGS• 21000 calls = $3.10 per call• 525 Connects = $123 per

connect• 105 Sales = $619 per sale

Assumptions • Consistent 100 calls per day

to new leads• Connect = telephone-based

meeting• Sale = closed revenue• Time to work deals?• Time for administrative

work?• Time in meetings?• Are these numbers even

realistic for internal personnel?

More sobering statistics

Calls

Appointments

Sales

• It takes 8.4 dials to reach a person, and 2% of all calls results in a meeting.

• If 30% of these first meetings convert into opportunities and a sales person closes 25% of these opportunities, they will have to make 1,000 calls to get 1 sale.

• If they are pounding the phones making 50 cold calls per day, they can get 1 winnable sale every 20 days.

• At this rate they can acquire 12.5 new customers per year.

More sobering statistics

Calls

Appointments

Sales

• It takes 8.4 dials to reach a person, and 2% of all calls results in a meeting.

• If 30% of these first meetings convert into opportunities and a sales person closes 25% of these opportunities, they will have to make 1,000 calls to get 1 sale.

• If they are pounding the phones making 50 cold calls per day, they can get 1 winnable sale every 20 days.

• At this rate they can acquire 12.5 new customers per year.

Marketing’s Role• Identify leads• Generate leads• Execute campaigns• Pre-qualify leads• Nurture leads• Re-Market stale sales leads

Sales’ Role• Complete lead qualification• Present and propose solutions• Propose pricing• Execute contracts• Close business• Cross-sell

• Changing traditional roles• Inside sales is no longer a sales function• Skill-sets for inside sales are changing

How are leading b2b sales/marketing teams adapting?

Identify

Capture

Quality

Present

Propose

Close

Change the way you view telesales/inside sales

• Monitor and direct lead traffic

• Exchange meaningful information with the leads

• Direct leads to the right resources

• Educate leads about value proposition and competitive position• Empowered with technology

• Higher job satisfaction• Better growth potential• They become a marketing

and field sales “Farm Team”

Key technologies inside sales needs to thrive

Website visitor tracking• View, identify, receive alerts of leads on the website• Integrate with data services to research and append contacts• View page-level activity from high-score leads

Nurture• 1-touch enrollment in multi-step campaigns • Follow up emails using trackable html email

Data appending and social tools• Research and import contacts from identified companies on the site• 1-touch enroll net new contacts into first-touch campaigns

Technology Focus MA Software provides a mechanism for

capturing pre-sales interactions Website visitor tracking helps return some

control to sales Leads and their behavior are analyzed using

best practices Answers the question “Who is on my site &

why?” Alerts, CRM integration & workflow round out

alignment

From cold to warm

Web activity drives engagement

Alerts Auto-enroll

Day in the life with Marketing AutomationWebsite monitoring

Research anonymous visitors – append with

contacts – enroll in campaigns

Pop email alert when high-value activity

occurs – assign task for call

If no phone contact made – enroll in trigger

campaign

Receive on-going alerts when lead returns to

site/responds

Cold calling evolves to a series of reactive and pro-active touches based on data gathered by the marketing automation system.

Long-term nurturing and short-term calling combine to provide a more effective

• Activity creates sales trigger

• Triggers sales alerts

• Data presented in CRM

• Complete marketing history/contextual

• Keeps sales excited about the lead gen process

• Real-time

Lead Routing

Marketing Intelligence – to assist sales Give telesales the tools to access info and take action This view allows for telesales to view activity and enroll leads in campaigns

The importance of marketing automation tools Provides a mechanism for real-time lead monitoring Reduces lead response time Allows for enrollment in pre-defined trigger campaigns Increases touches in first 30-days following initial inquiry Allows for research and appending of data through

sources such as Jigsaw Alerting via email ensures leads are touched quickly

Create a lead-centric cultureEstablish a dialog between marketing/sales Regular meetings – rotate between pipeline-centric meetings to

lead/demand generation-centric meetings Understand sales-team issues with leads – volume, where they come

from Brainstorm sessions about lead profiles, verticals, targets, messaging

and hot buttons Sales is the best source for “Why a lead buys” informationConsiderations Sales may be resistant to change or dis-interested in leads Old-School sales cultures must be changed CRM system tuning will be required Marketing technology MUST integrate seamlessly to CRM Reporting must be in place to track the process and hold constituents

accountable

What information needs to be pushed through to CRM from MA

Event Attendance

Landing Page Click Throughs

Landing Page Visits

Email Campaign History

Website Page Visits

0% 20% 40% 60% 80%

5%

4%

12%

22%

34%

25%

32%

33%

56%

28%

34%

43%

49%

56%

58%

63%

67%

73%

Top Performers Everyone Else

Data Integration

How marketing automation supports this model

Lead Scoring/Routing enables automated nurturing of leads

Trigger-based email campaigns – prebuilt and tied to scores

Lead scoring must be tuned, tested and agreed upon with sales

Objective is to treat every suspect the same initially Eliminate lead leakage Target content based on behavior and demographics

How important is this to your upper funnel success?According to Aberdeen, who tracks the performance of “Best Practice” organizations utilizing marketing automation tied to telesales….

Inside sales achieves quote 11% more when marketing automation is deployed Lead conversions (to opportunities) increased by 7% Inside sales make an additional 7-9 connects per day Overall sales team quota achievement is higher by nearly 3% Company revenue is higher by over 3%

Why? For the same Reason Henry Ford was able to produce more cars for less Efficiency gains through automation Connects are more meaningful when data is made easily accessible Fewer (if any) leads fall through the cracks

Source: Forrester Research-October 2006, “Improving B2B Lead Management” report

MA software plugs the gaps in lead/sales handoffLack of technology to support integrated funnel causes lead leakage

Hotspot – this is the area of risk where leads that marketing pays for fall out

Technology Enablement – Aligning marketing & sales through technology

CRM/MA

Analytics

ProcessPeople

Bestpractices

Lead Record

Marketing & Sales agree on processes

and workflow

Metrics are in place to track key metrics

on leads to opportunities

Marketing Software is integrated to CRM

Lead Scoring and lead management is based on

best practices and common workflow

Standard and automated

processes are in places to ensure

consistent lead flow – Lead Scoring, Lead Routing

The new sales funnel

Marketing – owns the sales funnel through pre-qualification

Based on rules for SQL/MQL Fewer, better leads to sales Inside sales/telesales – report to marketing Sales is laser focused on closing the deals Shared pipeline Marketing – incented for number of SQL Produced Mutual responsibility for the whole funnel

The new sales funnel

Takes advantage of eMarketing technology Marketing information is immediately available to

sales Format of information – visual and helpful to

sales MA is integrated to CRM – Like CRM is integrated

to ERP Completes the acquisition to retention lifecycle

Re-thinking the Sales Funnel

Leads In from Campaigns

Marketing Ownership Through pre-qualification MQL Visibility into CRM Lead Status Take action on lead status Re-route to MQL, Report

Marketing Ownership

MA CRM

Lead acceptance – moves lead from MQL to SQL

When integrated properly, the number of SQL’s should be relatively small with high close rates. Sales is left to focus on closing.

Final thoughts

Human interaction (via the telephone) is increasingly valuable because fewer people engage in it

The social web cannot sell for you and you must learn how to put sales personnel in the mix

Technology-assisted selling through marketing automation can have dramatic revenue implications

Sales & Marketing alignment has quickly become a de facto state of success…not a nice to have

Thank you!

Q&A Register for our MA-Assisted Selling Demo on

Wednesday, May 29th@ 2PM Visit our on-demand webinar library See a live one/one demo