2010 Lead Generation Metrics Snapshot

Transcription

1 Phone Works LLC is a Sales 2.0 implementation resource with proven results in increasing revenues while decreasing sales costs for our clients. Phone Works services include optimizing inside and field sales teams, improving sales and marketing collaboration, and piloting new phone/web sales productivity programs and tools, including social media.

2 INTRODUCTION During the spring of 2010, Phone Works conducted a survey among technology companies in the San Francisco Bay Area at the request of the Bay Area TeleBusiness Alliance (TBA). We are pleased to provide you with this snapshot of the results. The respondents to this survey included: Vice Presidents, Directors and Managers 40% responsible for both Inside Sales & Lead Generation 28% responsible for Lead Generation only 32% responsible for Inside Sales only (a separate report is available on inside sales metrics) Industry Affiliation 78% of respondents were in the technology industry 8% considered themselves in the health-care industry 14% handled technology-related services/products in specialized industries Company Information 46% consider themselves start-up 92% sell business-to-business Highlights From the 2010 Survey The companies that are achieving 100% of quota indicate Higher daily talk time Contact strategy of 6 8 attempts to reach the prospect Generating 7 qualified leads/appointments per week per rep Average Conversion Rate: From Conversation to Qualified Lead/Appointment: 18% From Qualified Lead to Pipeline (Opportunity): 44% From Qualified Lead to Closed Sale: 29% Compared with 2007, the last time we conducted this survey 39% of companies are averaging more than 10 conversations a day, compared with 0% in 2007 Average talk time is up to 128 minutes, from 105 minutes in 2007 Qualified leads per week per lead generation rep are an average of 6 today vs. 3.7 in 2007 Volume of s increased to a daily average of 29 vs. 20 in 2007 Keep in mind that metrics will vary depending on your market, your position in the market, your target audience, and your implementation of technology and process. page 1

3 TABLE OF CHARTS Section 1: Organization and Management of Lead Generation Teams Chart 1: Ratio of Lead Generation Reps to Closing Reps... 3 Chart 2: Ratio of Lead Generation Reps to Manager... 4 Chart 3: Ramp Time for Lead Generation Reps... 5 Chart 4: Marketing Lead Follow-up vs. Cold Calling... 6 Chart 5: Percent of Lead Generation Rep Time on Proactive Calls... 7 Section 2: Goals & Metrics Chart 6: Goals & Metrics Used by Lead Generation Teams... 8 Chart 7: Contact Strategy: Number of Attempts to Reach Decision Maker... 9 Chart 8: Daily Calls (Dials) per Lead Generation Rep Chart 9: Daily Decision Maker Conversations per Lead Generation Rep Chart 10: Daily Talk Time per Lead Generation Rep Chart 11: Daily Activity per Lead Generation Rep Chart 12: Daily Research Activity per Lead Generation Rep Section 3: Results Chart 13: Percent of Lead Generation Reps Achieving Quota Chart 14: Qualified Leads/Appointments per Week per Lead Generation Rep Chart 15: Qualified Lead Distribution Chart 16: Conversion Rate: Conversation to Qualified Lead/Appointment Chart 17: Conversion Rate: Qualified Lead/Appointment to Pipeline Chart 18: Conversion Rate: Qualified Lead to Closed Deal Chart 19: Percent US Revenue Influenced by Lead Generation Reps Chart 20: Qualified Leads/Appointments Attributed to Marketing Inquiries Chart 21: Social Media for Lead Generation Activity About Phone Works page 2

4 Chart 1: Ratio of Lead Generation Reps to Closing Reps The ratio of lead generation reps to closing reps should be determined by 1. The volume of qualified sales opportunities or transactions the sales closer can manage 2. The length of the sales cycle 3. The complexity of the product Phone Works experience indicates a 1:3 ratio will work for most companies. page 3

5 Chart 2: Ratio of Lead Generation Reps to Manager This component of the lead management team is critical if the manager is to have sufficient time to monitor, coach and encourage rep performance to achieve optimal results. Phone Works recommends a rep-to-manager ratio of 6:1. It is encouraging to see that only a small percentage of companies are using a rep manager ratio that is 10:1 or higher. page 4

6 Chart 3: Ramp Time for Lead Generation Reps to Achieve Production Goals More than 70% of lead generation reps are starting to achieve production goals by the end of the third month. Similar results were reported in page 5

7 Chart 4: Marketing Follow-up vs. Cold Calling Type of lead generation calls being performed by lead generation teams include 25.9% ONLY follow up on marketing leads 18.5% ONLY perform cold calling 55.6% do BOTH lead follow-up and cold calling page 6

8 Chart 5: Percent of Lead Generation Rep Time on Proactive Calls Proactive calls (cold calls) account for an average of 56% of lead generation rep time across all responding companies. page 7

9 Chart 6: Goals & Metrics Used by Lead Generation Teams With only 50% of respondents, or fewer, using many of the key metrics, results indicate room for improvement in establishing and tracking metrics among a majority of companies providing input to the survey. Phone Works recommends tracking appropriate metrics to ensure Identification of areas for improvement, leading to greater results More accurate sales forecasting Predictable and scalable lead management process page 8

10 Chart 7: Contact Strategy: Number of Attempts to Reach Decision Maker It appears that increasing the number of attempts in your contract strategy can lead to higher quota achievement. The 5.6% of respondents reporting 100% quota achievement (see Chart 13) reported contact strategies of 6 8 times and 9 12 times. page 9

11 Chart 8: Daily Calls (Dials) per Lead Generation Rep The average daily calls per lead generation rep of 51 is a strong improvement (40% increase) over the same metric reported in 2007, which showed an average of 37 calls per rep. However, 40% of lead generation teams donʼt track their daily calls. Calls-perday is a basic metric in any phone-based operation, whether inbound or outbound. Phone Works indicates it is reasonable to expect lead generation reps who manually dial outbound calls to complete dials per day and to record the results of these calls in the CRM. page 10

12 Chart 9: Daily Decision Maker Conversations per Lead Generation Rep More than 39% of lead generation teams are exceeding 10 decision maker contacts per day, compared with 0% for this same metric reported in This is a tremendous improvement. page 11

13 Chart 10: Daily Talk Time per Lead Generation Rep Some 70% of lead generation reps spend between 2.5 and 4 hours on the phone during the workday, with an average of just more than 2 hours. This is slightly higher than the average of 105 minutes reported in Phone Works recommends that lead generation reps spend a minimum of 3 hours per day in active calls, with a goal of 4 hours per day. This allows time for research, coaching, team meetings, training, and one-on-one meetings with the manager. page 12

14 Chart 11: Daily Activity per Lead Generation Rep Respondents report a significant increase in daily activity, which averaged 20 s per day in 2007, to an average of 29 s per day in 2010, a 45% increase. templates should be built based on the Contact Strategy (Chart 7), so they provide ongoing, consistent value and a compelling story for the prospect. page 13

15 Chart 12: Daily Research Activity by Lead Generation Rep The average amount of time spent per day on research is 21% (or approximately 95 minutes based on a 7.5-hour workday). This figure is roughly the same as was reported in Some 77.7% of reps are spending 10% 30% of their time in research, which equates to minutes (2.25 hours). page 14

16 Chart 13: Percent of Lead Generation Reps Achieving Quota While data show that only 5.6% of respondents achieve 100% of quota, these companies have three things in common: Higher talk time Contact strategy of 6 8 or 9 12 times Produce 7 qualified leads per week per rep Overall, the average quota achievement has decreased slightly since 2007, from 69% to 66% in page 15

17 Chart 14: Qualified Leads/Appointments per Week per Lead Gen Rep In 2007, only 25% of companies reported weekly qualified leads in excess of 4; whereas this year, 75% are reporting weekly qualified lead generation of more than 4 leads. The average weekly qualified lead generation in 2007 was 3.7 vs. the results of this study, which show an average of 6 qualified leads per rep per week. Phone Works recommends minimum performance standards of 50 calls per day, 7 conversations per day (15%) and 1 qualified lead per day (15%). page 16

18 Chart 15: Qualified Lead Distribution This chart depicts the lead distribution patterns for the survey respondents. Nearly 26% of lead generation teams support inside telesales (inside sales), and 52% support field sales. The balance of reps is supporting multiple sales teams. page 17

19 Chart 16: Conversion Rate: Conversation to Qualified Lead/ Appointment The average conversion rate is 18%. The fact that more than 44% of companies are achieving conversion rates of 20% 50% indicates opportunity for companies performing at a lower level to investigate ways to improve this metric. Companies unable to report on this question should ensure metrics are in place and lead generation reps are recording data correctly in the CRM. page 18

20 Chart 17: Conversion Rate: Qualified Lead/Appointment to Pipeline Companies vary in whether they measure pipeline beginning with a qualified lead or a qualified opportunity. A qualified lead simply can be a decision maker who is interested in your product, while a qualified opportunity is a purchase-ready decision maker who is in the process of selecting a vendor for the solution. Each company must establish appropriate definitions for the steps in the sales process based on its customersʼ buying behaviors. page 19

21 Chart 18: Conversion Rate: Qualified Lead to Closed Deal The average conversion rate from a qualified lead to a closed sale as reported by this group is 29% (no 2007 data available). However, it is interesting that 25% of companies are unable to provide a response to this question. Sales 2.0 companies have implemented metrics to help them analyze the steps in the lead management process, so a program of continuous improvement can be implemented. page 20

22 Chart 19: Percent US Revenue Influenced by Lead Generation Reps Average revenue attributable to lead generation reps was 46% in 2007; it is similar for page 21

23 Chart 20: Qualified Leads/Appointments Attributed to Marketing Inquiries More than 49% of respondents report that marketing inquiries account for more than 75% of qualified leads. Companies that do not track these metrics are unable to analyze return on their investment in marketing programs. The average in 2007 was 51% of leads attributable to marketing efforts, compared with the results of this survey, where the average has increased to 58.8%. page 22

24 Chart 21: Social Media for Lead Generation Activity Positive results of social medial included Increase in inbound activity Good contacts acquired from LinkedIn Revenue generated page 23

25 About Phone Works For more than 19 years, Phone Works has helped more than 350 technology companies increase sales, reduce sales costs and improve lead management results by implementing Sales 2.0 practices, including Sales Development teams that nurture leads to create sales-ready opportunities Inside Sales teams that carry sales quotas Processes/procedures to transition sales accounts from field to inside sales Working with all levels of management on behalf of the executive team, Phone Works identifies the most effective inside sales strategies to achieve your goals. Then we work with your staff to design and implement pilot programs and build scalable inside sales processes to gain velocity and ensure a high ROI. For example, at the end of the first year following a Phone Works engagement, Phone Works clients have achieved the following results: $7 million in incremental revenue at end of first year 15% increase in sales rep productivity with a 17% decrease in head count Sales pipeline tripled Sales cycle reduced by 50% New sales rep productivity increased by 50% If you already have inside sales operations, Phone Works will assess your operations and provide a scorecard against industry best practices to ensure your team is working at maximum effectiveness. Phone Works LLC (510) info@phoneworks.com page 24