Improving Qualified Lead Generation and ROI with Lead Nurturing

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1 Improving Qualified Lead Generation and ROI with Lead Nurturing Brian Carroll, Executive Director of Applied Research Kaci Bower, Senior Research Analyst

2 Today, we re going to discuss 1. Key findings from research from more than 1,745 B2B marketers 2. A case study in which a B2B company increased sales conversions by 190% 3. Five key components you can use to increase the ROI of your lead gen efforts through nurturing

3 Research background 1,745 B2B organizations were surveyed on: Top challenges Barriers to success Best practices 3

4 Average Indication of Challenges Key Finding: Challenges are still growing 45% 44% 43% 42% 41% 40% 44% 45% B2B organizations rated the pertinence of several challenges including: 1. Lead quality 2. Lead volume 3. Conveying value 4. Competing in multichannel lead generation 5. Generating PR buzz 39% 38% 39% Year of Response Source: 2011 MarketingSherpa B2B Marketing Benchmark Survey Methodology: Fielded June 2011, N=1,745 4

5 Average Indication of Challenges Key Finding: Challenges are still growing 45% 44% 43% 42% 41% 40% YEAR YEAR 44% 45% B2B organizations rated the pertinence of several challenges including: 1. Lead quality 2. Lead volume 3. Conveying value 4. Competing in multichannel lead generation 5. Generating PR buzz Average indications of challenges continue to grow 39% 39% 38% Year of Response Source: 2011 MarketingSherpa B2B Marketing Benchmark Survey Methodology: Fielded June 2011, N=1,745 5

6 Key Finding: Challenges are still growing Generating high quality leads Generating a high volume of leads Generating perceived value in "cutting edge" product benefits 49% 44% 35% 41% 37% 37% 74% 78% 69% B2B marketing challenges on the rise year-over-year Continual struggle between quality and quantity of leads Competing in lead generation across multiple media, from podcasts to paid search to webinars to print ads Generating public relations "buzz" 40% 36% 27% 38% 36% 33% The marketplace is evolving, and marketers are resistant to adapt latest best practices Marketing to a lengthening sales cycle 38% 41% 39% Marketing to a growing number of people involved in the buying process 33% 34% 33% Source: 2011 MarketingSherpa B2B Marketing Benchmark Survey Methodology: Fielded June 2011, N=1,745 6

7 Key Finding: Tactics losing effectiveness Website design, management and optimization 31% 50% Search engine optimization (SEO) marketing Trade shows Virtual events / webinars Paid search (PPC) Telemarketing 29% 26% 25% 20% 19% 23% 16% 13% 36% 40% 43% % External and internal factors influence challenges and perceptions Evolved marketplace due to the economic crisis Adoption of latest best practices Public relations 13% 31% Direct mail 6% 22% Social media 6% 16% Print advertising 6% 10% Source: 2011 MarketingSherpa B2B Marketing Benchmark Survey Methodology: Fielded June 2011, N=1,745 7

8 Key Finding: Tactics losing effectiveness Website design, management and optimization 31% 50% Search engine optimization (SEO) marketing YEAR Trade shows Virtual events / webinars YEAR Paid search (PPC) Telemarketing 26% 29% 36% 40% Dramatic declines on 25% 20% External and internal factors influence challenges and perceptions Evolved marketplace due to the economic crisis Adoption of latest best 43% perceptions on 19% % % effectiveness of all tactics 35% practices 13% Public relations 13% 31% Direct mail 6% 22% Social media 6% 16% Print advertising 6% 10% Source: 2011 MarketingSherpa B2B Marketing Benchmark Survey Methodology: Fielded June 2011, N=1,745 8

9 CMOs speak out on toughest challenges Generating valuable content. Finding the right system, right capabilities, at the right cost to automate lead generation and nurture programs. We lose many of our leads throughout the sales funnel. 9

10 So what s really at the root of all these challenges?

11 Adoption of latest best practices is sluggish 68% Have not identified their Sales and Marketing funnel 61% send all leads directly to Sales Only 27% will be qualified at time of conversion 79% have not established lead scoring 65% have not established lead nurturing 11

12 How can I generate more highquality leads, and improve lead generation ROI?

13 Case Study: Background Experiment ID: Jaspersoft Location: MarketingSherpa Case Study Library Test Protocol Number: #CS31447 Research Notes: Background: A B2B software developer generated a large database of open-source clients, and needed to convert them to paying customers. Goal: To segment and nurture open source database to move leads through the funnel. Primary research question: Which nurturing approach will convert the most leads? Approach: Implement a lead nurturing effort with segmentation, scoring and automation to progress open-source clients through the funnel to paying customers. 13

14 Case Study: Revamping lead gen My challenge is not to increase the number of leads, but to get improved conversion rates throughout the funnel. Nick Halsey VP Marketing Jaspersoft 14

15 Case Study: Revamping lead gen The goal was to create a powerful combination of: Customer profiling Database segmentation Automated campaigns Outbound promotions Lead scoring 15

16 Case Study: A seven-step approach Segment databases according to profile and activity Create automatic drip campaigns for specific actions Implement lead scoring Merge databases and systems into a unified platform Customize outbound communications for contacts preferences Use dynamic registration forms to develop prospect profiles Route leads to the appropriate sales person 16

17 Marketing Automation Customer-centric messaging CMS Open Source Web Analytics System Ecommerce Centralized & Segmented Database Four Nurturing Tracks 1. Customer 2. Community Member 3. Corporate North America 4. Corporate Europe 17

18 Qualification and scoring Applied demographic and behavioral scoring Collected information through dynamic registration forms Handed leads off to Sales once the qualified lead threshold was met 18

19 Triggered nurturing and hand-off Download of 30-day trial version of software Series of five automated s Automated sub campaigns Actions indicating readiness to buy Hand-off to Sales 19

20 Case Study: Results 190% increase in sales conversions Since implementing the new strategy, the team has achieved a 190% increase in conversion rate from qualified lead to close Highest Close Rate: Prospects who asked to be contacted by sales Second-Highest Close Rate: Prospects who enter the automated drip campaign for the professional evaluation 30-day trial Third-Highest Close Rate: Prospects who have purchased something from the e-commerce store 20

21 How can we approach the funnel in a new way?

22 B2B Funnel 1.0 Leads enter the system Leads go directly to Sales Sales cherry-picks the best leads Sales spends significant time checking in with the rest to see if they are ready to buy 22

23 B2B Funnel 2.0 Qualified lead criteria established Leads enter system Qualified leads go to sales Leads scored per criteria Non-qualified leads stay in marketing for nurturing 23

24 What s the key differentiator? Not all leads are immediately sales-ready, and require further nurturing

25 Average lead gen ROI by use of nurturing Currently using lead nurturing 107% Not using lead nurturing 79% +35% Organizations using lead nurturing experienced a 35% lift Nurturing provides the information leads need to progress through the funnel Average lead generation ROI Source: 2011 MarketingSherpa B2B Marketing Benchmark Survey Methodology: Fielded June 2011, N=326 CMOs 25

26 Funnel optimization demonstrates lifts in ROI Trial Transition Strategic +65% 148% Average lead generation ROI by funnel optimization maturity 95% 80% From Trial to Strategic phases, organizations received a 65% lift in lead generation ROI Average lead generation ROI Source: 2011 MarketingSherpa B2B Marketing Benchmark Survey Methodology: Fielded June 2011, N=326 CMOs 26

27 Overall funnel op leads to dramatic lift in ROI Currently using marketing automation software Not using marketing automation software 155% +163% Average lead generation ROI by use of marketing automation software 59% Organizations using automation experienced a 163% lift in lead generation ROI Average lead generation ROI Source: 2011 MarketingSherpa B2B Marketing Benchmark Survey Methodology: Fielded June 2011, N=326 CMOs 27

28 Five Key Components for Nurturing 1. Segmentation 2. Content 5. Optimization 3. Channels 4. Timing

29 Five Key Components for Nurturing 1. Segmentation

30 Segmentation Deliver highly relevant content by segmenting based on multi-dimensional traits, and developing unique lead nurturing tracks for segments. Buyer personas identify traits, interests and needs Balance buyer personas with buying cycle stage 30

31 Buyer persona traits Create research-based, detailed profiles that represent actual, real-life groups of your target audience. Include demographics and behaviors. Demographics Job title / responsibilities Organization size Primary market Industry Location Budget 31 Behaviors Key concerns for purchase Interests Motivations Expectations Goals Preferences

32 Early buying cycle stages Nurturing Type Buying Cycle Stage Campaign Goal Campaign Examples Engagement Nurturing Early Build stronger relationships and increase interest Outreach Nurturing Early to mid Captures new leads, permissions, additional data Ongoing Nurturing All Consistent communications to stay top of mind Conversion Nurturing Late Support sales conversion Thought leadership content Valuable download whitepaper or report SEGMENTED monthly newsletter Buyers guides, ROI calculators New Customer Nurturing End of initial buying cycle Repeat purchases, reputation, referrals How to info, getting started, support 32

33 Early to mid buying cycle stages Nurturing Type Buying Cycle Stage Campaign Goal Campaign Examples Engagement Nurturing Early Build stronger relationships and increase interest Outreach Nurturing Early to mid Captures new leads, permissions, additional data Ongoing Nurturing All Consistent communications to stay top of mind Conversion Nurturing Late Support sales conversion Thought leadership content Valuable download whitepaper or report SEGMENTED monthly newsletter Buyers guides, ROI calculators New Customer Nurturing End of initial buying cycle Repeat purchases, reputation, referrals How to info, getting started, support 33

34 Early to mid buying cycle stages Nurturing Type Buying Cycle Stage Campaign Goal Campaign Examples Engagement Nurturing Early Build stronger relationships and increase interest Outreach Nurturing Early to mid Captures new leads, permissions, additional data Thought leadership content Valuable download whitepaper or report Ongoing Nurturing All Stay top of mind SEGMENTED monthly newsletter Conversion Nurturing Late Support sales conversion Buyers guides, ROI calculators New Customer Nurturing End of initial buying cycle Repeat purchases, reputation, referrals How to info, getting started, support 34

35 Late buying cycle stages Nurturing Type Buying Cycle Stage Campaign Goal Campaign Examples Engagement Nurturing Early Build stronger relationships and increase interest Outreach Nurturing Early to mid Captures new leads, permissions, additional data Thought leadership content Valuable download whitepaper or report Ongoing Nurturing All Stay top of mind SEGMENTED monthly newsletter Conversion Nurturing Late Support sales conversion Buyers guides, ROI calculators New Customer Nurturing End of initial buying cycle Repeat purchases, reputation, referrals How to info, getting started, support 35

36 Late buying cycle stages Nurturing Type Buying Cycle Stage Campaign Goal Campaign Examples Engagement Nurturing Early Build stronger relationships and increase interest Outreach Nurturing Early to mid Captures new leads, permissions, additional data Thought leadership content Valuable download whitepaper or report Ongoing Nurturing All Stay top of mind SEGMENTED monthly newsletter Conversion Nurturing Late Support sales conversion Buyers guides, ROI calculators New Customer Nurturing End of initial buying cycle Repeat purchases, reputation, referrals How to info, getting started, support 36

37 Personas Sample segmentation plan Buying Cycle Engagement Nurturing Outreach Nurturing Ongoing Nurturing Conversion Nurturing New Customer Nurturing Buyer persona 1 Buyer persona 2 Buyer persona 3 Buyer persona 4 37

38 Five Key Components for Nurturing 1. Segmentation 2. Content

39 Content Create important, relevant and valuable content that will nurture your leads through the buying cycle. Challenge Creating content is expensive and time consuming Marketers constantly have a need for more quality Solution Many marketers have a library of existing content that has only reached a small portion of their targets Audit your library of content assets, then reformat and repurpose for lead nurturing campaigns 39

40 Top tactics for creating engaging content Using a multichannel messaging strategy Improving thought leadership Segmenting the delivery of content Incorporating social media 37% 36% 46% 45% Multichannel messaging, thought leadership and segmentation rated as top engagement tactics Testing and optimizing value proposition Testing the timing and delivery of content Establishing buyer personas Sponsoring third-party content 21% 20% 27% 26% Research audience preferences for subject matter, format, style, etc. Allowing audience to select communication preferences 16% Source: 2011 MarketingSherpa B2B Marketing Benchmark Survey Methodology: Fielded June 2011, N=1,745 40

41 Personas Sample segmentation and content plan Buying Cycle Engagement Nurturing Outreach Nurturing Ongoing Nurturing Conversion Nurturing New Customer Nurturing Buyer persona 1 Best practice article series 1 Whitepaper download series 1 Newsletter 1 Updates Buyer s guide 1 Comparison 1 ROI Calculator 1 Getting started series 1 Buyer persona 2 Best practice article series 2 Whitepaper download series 2 Newsletter 2 Updates Buyer s guide 2 Comparison 2 ROI Calculator 2 Getting started series 2 Buyer persona 3 Best practice article series 3 Whitepaper download series 3 Newsletter 3 Updates Buyer s guide 3 Comparison 3 ROI Calculator 3 Getting started series 3 Buyer persona 4 Best practice article series 4 Whitepaper download series 4 Newsletter 4 Updates Buyer s guide 4 Comparison 4 ROI Calculator 4 Getting started series 4 41

42 Five Key Components for Nurturing 1. Segmentation 2. Content 3. Channels

43 Channels Lead nurturing often begins with , but channels can be expanded for greater results. Consider the original lead source - was it , Web form, or phone call? Test new channels for nurturing, like direct mail, teleprospecting, social Ask! Survey your audience on channel preferences 43

44 Five Key Components for Nurturing 1. Segmentation 2. Content 3. Channels 4. Timing

45 Timing Deliver relevant content to your audience WHEN they want and/or need to receive it. Timing and frequency of delivery Combine scheduled and triggered blasts Make an educated guess for launch, then monitor and test over time 45

46 Frequency of lead nurturing touches Multiple times a day 9% Majority have a Once per day A few times a week Once a week Once every other week Once every three weeks 5% 8% 17% 18% 20% frequency of a few times a week, once a week and once every other week Start with an educated guess, then test Once a month 12% More than once a month 11% Source: MarketingSherpa B2B Marketing Benchmark Survey Methodology: Fielded Aug 2010, N=935 46

47 Five Key Components for Nurturing 1. Segmentation 2. Content 5. Optimization 3. Channels 4. Timing

48 Optimization Your lead nurturing campaigns will be a moving target with continual optimization. All aspects of your lead nurturing campaign should be tested and optimized: Segmentation Content Channels Timing 48

49 Optimization Questions to Ask Segmentation Are there additional segments that can be added? Do our existing segments need further detail? Content Is the subject matter resonating and engaging? Is the content format preferred? Is the language / style resonating? Channels How are existing channels performing? What new channels can we add and test? Timing What time of day, week, month do our nurturing campaigns perform the best? What frequency generates the most engagement? 49

50 Five Key Components for Nurturing Summary 1. Segmentation 5. Optimization 2. Content 3. Channels 4. Timing

51 Thank you Brian Carroll Executive Director of Applied Research, Kaci Bower Senior Research Analyst, 51

52 Hands-on Training: Evaluate lead nurturing Evaluate the sample lead nurturing segmentation and content plan. What s working? Which nurturing materials could be used more effectively elsewhere? What are the other opportunities for improvement? 52

53 Improving Qualified Lead Generation and ROI with Lead Nurturing Brian Carroll, Executive Director of Applied Research Kaci Bower, Senior Research Analyst

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