LEAD SCORING & LEAD NURTURING

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1 LEAD SCORING & LEAD NURTURING JASON HEKL RESEARCH DIRECTOR SIRIUSDECISIONS ANDY CLARK VP, BUSINESS DEVELOPMENT RIGHT ON INTERACTIVE

2 TODAY S AGENDA LEAD SCORING The Case For Scoring Leads The Three Pillars of Lead Scoring Building the Model Common Mistakes to Avoid Deploying the Lead Scoring Model Advanced Lead Scoring Topics LEAD NURTURING Lead Nurturing by the Numbers A Foundation for Lead Nurturing and Scoring Process, Technology and Structure Understanding the Lifecycle and Aligning your Data Challenges and Results: A Customer Story Lead Nurturing Guidelines

3 About SiriusDecisions Account-Based Marketing Channel Management Strategies Advisory Services Demand Creation Strategies Executive Edge CMO Marketing Operations Strategies Product Marketing and Mgmt Sales Enablement Strategies Sales Operations Strategies Strategic Communications Management 2012 Copyright SiriusDecisions. All Rights Protected and Reserved. 3

4 Why Score Leads? Lead scoring is primarily used to identify leads that are ready for teleprospecting or direct sales to work SiriusDecisions Demand Creation Waterfall Inquiry Inbound Marketing Qualification Teleprospecting Qualified Leads (TQLs) Automation Qualified Leads (AQLs) Teleprospecting Accepted Leads (TALs) Outbound Teleprospecting Generated Leads (TGLs) Getting lead scoring right improves performance throughout the waterfall by as much as 5X. Sales Qualification Sales Generated Leads (SGLs) Sales Accepted Leads (SALs) Sales Qualified Leads (SQLs) Close Won Business PATENT PENDING

5 Score for the Right Result SiriusPerspective: The ultimate goal of scoring isn t to find prospects who will agree to appointments; it s to find prospects who drive revenue. Inquiry Inbound Outbound Organizations must be more systematic about what characteristics result in opportunities and won business Marketing Qualification Automation Qualified Leads (AQLs) Teleprospecting Accepted Leads (TALs) Teleprospecting Qualified Leads (TQLs) Sales Qualification Sales Generated Leads (SGLs) Teleprospecting Generated Leads (TGLs) Sales Accepted Leads (SALs) Sales Qualified Leads (SQLs) Close Won Business Marketing still tends to settle for what sales says it will accept and work at the SAL stage as good enough 5

6 Best Practice Attributes SiriusPerspective: While there are many differences between average and high performing companies, four characteristics are consistent. Sales Pipeline 30% + Sourced* 70% + Influenced* Program Mix Multi-channel Web Centric Nurturing Model Best Practice Syndication Sales Alignment Not a leads only focus Strong SLA s and Lead Scoring Metrics driven Integrated Based on Buyer Journey Multi-Touch Programs Data Centric * Varies by organizational size and target markets Copyright SiriusDecisions. All Rights Protected and Reserved. 6

7 Most Doesn t Always Win SiriusPerspective: Best practice organizations that deliver integrated campaigns with strong scoring, nurturing, technology and program alignment produce better results with fewer programs. Average Lead to Close Sourced Pipeline 15.5% 30%+ Close Rate 19% 24.5% Influenced Pipeline 52% 70% + Marketing Touches Programs 50 + < 30% High Performance Program Design Single Channel Multi Channel Campaign Focus Product Solution Primary Source Web Marketing Pipeline Cost 2% - 3%.5% -1.5% Copyright SiriusDecisions. All Rights Protected and Reserved. 7

8 Lead Scoring Building Blocks SiriusPerspective: Many b-to-b organizations have moved past simple definitions and are now putting lead scoring schematics in place. DEMOGRAPHICS PROPENSITY TO BUY EXPLICIT COMPANY INDIVIDUAL BUDGET AUTHORITY NEED TIMEFRAME ACTIVITY IMPLICIT RECENCY 123 FREQUENCY SIGNIFICANCE Copyright SiriusDecisions. All Rights Protected and Reserved. 8

9 Impact of Demand Type of Lead Scoring SiriusPerspective: Pinpointing the type of demand being created drives messaging, offers and certainly the way lead scoring is used. Copyright SiriusDecisions. All Rights Protected and Reserved.

10 Creating the Lead Scoring Model Form the Team. Sales and marketing collaborate to create the scoring model. Select and Compare. Select the categories and category values; compare them relative to each other. Simulation. Create test leads to model the accuracy of the scoring model. Define the Objective. Agree on the offering, desired outcome and level of qualification. Deconstruct Deals. Conduct post-mortems on closed won and closed lost opportunities. Iterate. Continue refining the scoring model until it ranks leads accurately. Copyright SiriusDecisions. All Rights Protected and Reserved.

11 Simulate Results to Test Scoring Hypotheses SiriusPerspective: Increasing lead scoring rigor can be accomplished without any technology it just requires a little process. Copyright SiriusDecisions. All Rights Protected and Reserved. 11

12 Common Lead Scoring Pitfalls Poor Ranges Number of employees Range , , Score The range is too wide and could include almost all companies. Linear Scoring Company revenue Range $0-$100m 5 $101-$500m 10 $500m+ 15 Score Linear scoring doesn t help if the top range is 10x more likely to close than others. Title Level Title Highest Level Target C-Level 20 VP 17 Director 12 Score Higher (or bigger) isn t always better; could the VP or Director level be a better entry point? Frequency Discounted Attended Webcast Timeframe 1+ in 15 days in 30 days in 60 days 5 Score As time passes the significance of an activity decays, thus time bounds must be applied. Family Weighting Scoring Families Family Score Demographics 33% Activity 33% BANT 33% If activity doesn t predict as well as demographics or BANT, why weight every family equally? No Degradation Whitepaper Download # Downloaded Score 1 Whitepaper 4 2 Whitepaper 7 3 Whitepaper 9 Additional responses of the same activity type can signify an increased level of interest. Copyright SiriusDecisions. All Rights Protected and Reserved.

13 Lead Scoring Rollout Process 1 Control Group. Select a targeted group of sales representatives. 2 Blind testing. Have the control group qualify leads without seeing the lead score. 3 5 Iterate. Continue refining the scoring model until it ranks leads accurately. Lead flow. If marketing focus on delivering quality, not quantity, slowly decrease the number of passed leads. 4 Roll out. Measure the lift the lead scoring model delivers; reference when rolling it out to sales Copyright SiriusDecisions. All Rights Protected and Reserved.

14 Measurement and Governance Measure Lead Scoring Performance through both leading and lagging metrics Teleprospecting Accepted Lead (TAL) Teleprospecting Qualified Lead (TQL) Sales Accepted Lead (SAL) Sales Qualified Lead (SQL) Close Won Example Lead Scoring Governance Report Rejection Reasons Accepted Dispositions MQL s Sent Incorrect Routing Incomplete/ inaccurate information Not to MQL threshold Already Working Accepted In Process Processed Non viable Processed SQL Won Business Revenue Rep [1%] 3 [3%] 0 [0%] 6 [6%] 90 [90%] 9 [10%] 36 [40%] 45 [50%] 30 [66%] $6,000,000 Rep [1%] 2 1 [1.5%] 5 [4%] 121 [93%] 15 [12%] 51 [42%] 55 [45%] 35 [64%] $7,000,000 Rep [1.5%] 4 [6%] 15 [21%] 4 [6%] 46 [66%] 8 [17%] 23 [50%] 15 [33%] 5 [33%] $925,000 Example SLA Governance Report SLA Followed The lead scoring models effectiveness is negatively impacted by Rep 3 s performance. SLA Not Followed MQL s Sent MQL s Accepted Engaged in 8 hours Engaged in 8-24 hours Engaged in hours SLA adherence SLA +24 hours SLA hours SLA hours SLA not adhered to Processed SQL Rep [90%] 30 [33%] 45 [50%] 15 [17%] 90 [100%] 0 [0%] 0 [0%] 0 [0%] 0 [0%] 45 [50%] Rep [93%] 39 [32%] 80 [66%] 10 [8%] 129 [99%] 1 [1%] 0 [0%] 0 [0%] 1 [1%] 55 [45%] Rep [66%] 12 [26%] 23 [50%] 2 [4%] 37 [80%] 3 [7%] 2 [4%] 4 [9%] 9 [20%] 15 [33%] Rep 3 s lack of adherence to the SLA appears to be contributing to his relatively poor performance. Copyright SiriusDecisions. All Rights Protected and Reserved.

15 Advanced: Account-based Lead Scoring

16 Recognizing Team-Based Buying Signals SiriusPerspective: Account-based scoring exposes buying centers and activity arcs within an organization. Peggy Smith Senior Manager, Professional Services Carson Plastics Industrial, MA Bob Clark Director, Marketing Carson Plastics Manufacturing, CA Joseph McLaren Manager, Sales Operations Carson Plastics Durable Goods, MA White Paper Webinar Web Visit Analyst Report HVC Page Sales Reaction Not a role or a department we sell into. Reject. I ll call and leave a message after lunch tomorrow. Looks interested, but sales isn t who we sell into. There s something going on. We should call the top title. Copyright SiriusDecisions. All Rights Protected and Reserved. 16

17 Key Considerations for Account-Based Scoring SiriusPerspective: Account-based scoring requires improvement in process standards as well as additions to enabling technology. Concept Buying center. Identify who drives deal closure. Hierarchy. Organize accounts by how the sales organization sells. Association. Update business processes to ensure contacts are associated with accounts. Value. Determine if account scoring makes sense for an offering. Reality Copyright SiriusDecisions. All Rights Protected and Reserved. 17

18 Key Takeaways/Recommendations Lead scoring is a iterative process, which must involve both marketing and sales Start with a targeted result in mind and deconstruct closed deals to drive a more fact-based scoring approach Lead scoring must not be viewed in isolation; it impacts and is impacted by other marketing and sales processes Measurement and governance processes are imperative in order for lead scoring to achieve its full potential Copyright SiriusDecisions. All Rights Protected and Reserved.

19 Who we are. A lifecycle company that helps win, keep and grow business. Founded in 2006 SoRware- as- a- Service (SaaS) Deep- rooted experience with technology, and

20 What we do. The all- in- one lifecycle Suite of tools data/campaign/content management, scoring, automa2on. Data create a single view of your data. Engagement insight see prospect & customer engagement levels. targeted cross- channel campaigns. Visualize graphically show progress of your rela2onships.

21 How we are different. A sorware built for lifecycle We focus on the bigger picture like nurturing all sources of revenue: leads from and sales repeat customers referrals up- sells and cross- sells The key to success is sorware and services.

22 Lead nurturing by the numbers. On average, nurtured leads result in a 20% increase in sales 64% 64% of CMOs have either an informal or no process to manage their Focus Research 20% 47% DemandGen Purchases made by nurtured leads are 47% larger when compared to purchases made by non- nurtured leads. Annuitas Group

23 LEAD NURTURING: WHERE TO BEGIN SCORING NURTURING FOUNDATION

24 The FoundaQon Understanding your Business: Ideal customer profiles Ideal prospect profiles Key prospect segments Key touch points Key Stages for Leads & Customers Understanding your Processes: Process Flow SoRware, Technology and Data Structure While automa2on works, the benefits are realized only when implemented correctly. Many organiza2ons face significant challenges on this front.

25 MarkeQng/Sales Process Flow MarkeQng Process Nurturing Awareness MarkeQng Qualified Return to Nurturing Campaigns Sales Process Nurturing ProspecQng IniQal MeeQng/Phone Call Discovery Site- Visit Demo Proposal Development Proposal Sent NegoQaQon/Review Customer Support/ RetenQon InacQve Clients AcQve Clients Closed Lost Closed Won

26 So^ware, Technology and Data Purchasing Data Inventory Data Call Center

27 OrganizaQonal Structure Your Brand Sales Support/ Services Billing Sales Reps Manager Designer

28 Understanding your Stages Suspect Lead Qualified New Customer Loyal Customer Stage Criteria focus Need more data nurturing Stage Criteria Stage Criteria Stage Criteria Stage Criteria New customers Onboarding campaigns Sales focus budget, No Opportunity Sales nurturing need, process Opportunity Current customers Brand advocate campaigns

29 Aligning Data and Key Segments Suspect Lead Qualified New Customer Loyal Customer

30 B2B Lead Nurturing: Challenge Growing tech company out of Madison WI Cloud based digital asset management Long sales cycle Lean sales team

31 B2B Lead Nurturing: Results Targeted messaging based on website request. (Demo Request VS Whitepaper) Leads from sales team More qualified Leads to sales team Key off of key profiles of campaigns

32 ROI Campaign Tracking

33 ROI Individual Tracking

34 Nurturing Campaign Guidelines MarkeQng Nurturing Campaigns: General Awareness/Newslejer Lead Source Focused Website Ask An Expert Website Watch Videos Website Review Case Study Responses Bounce Responses Unsubscribe Sales Nurturing Campaigns: Timeline Budget Approval Process Factor Follow Up Demo / Follow Up Site Visit Customer Nurturing Campaigns: Client Win- Backs Client Upsell/Cross- sell Products 1 Content 2 Content 3 Content 4 Content 5 Content + 7 days + 10 days + 5 days + 14 days

35 ROI Customer Lifecycle MarkeQng Focus on the prospect and customer lifecycle.

36 Definition of MQL (insert here): Pre MQL Lead Nurturing: Sample Flow Theme takes demand type, audience, area of interest into account Evolve touches based on behavior Marketing is the core driver Message: Touch A Message: Touch B Message: Touch C Raw inquiry or hand-raise Offer: Info Collection: Offer: Info Collection: Offer: Info Collection: MARKETING TELE Agreement on MQL Definition Meets MQL Criteria? No Yes Delivery Method: Process starts sales accepts or rejects lead Delivery Method: Complement Touch Meets MQL Criteria? Delivery Method: Process continues with sales qualifying the lead No Yes SALES MQL: Marketing Deems Lead is Worthy of Hand-Off to Sales Month 0 Month 1 Month 2 Month 3 Month 4 TIME (Months)

37 Active Recycled Nurturing: Sample Flow Disqualification reason (insert reason here): Theme takes DQ reason into account Evolve touches based on behavior Marketing provides backup support Touch A Message: Touch B Message: Touch C Message: Touch D Message: Offer: Offer: Offer: Offer: Info Collection: Info Collection: Info Collection: Info Collection: Delivery Method: Delivery Method: Delivery Method: Delivery Method: MARKETING Re-Enter Nurture Opt Out Complement Touch No Yes TELE Process starts with the DQ Call DQ SALES DQ: Compete Requal. Q0 Q1 Q2 Q3 TIME (Quarters)

38 Key Learnings Strong Know your message and goals. Know your audience: scoring is a powerful tool. Define and measure: Understand campaigns before launch and adapt based on engagement levels. Learn your prospect and customer lifecycle.

39 QuesQons Andy Jason

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