Increasing qualified lead generation and ROI with lead scoring

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1 Increasing qualified lead generation and ROI with lead scoring Jen Doyle, Senior Research Manager, MarketingSherpa Kaci Bower, Research Analyst, MarketingSherpa

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. Three simple steps you can use to increase the ROI of your lead gen efforts

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

4 Key finding from research 1,745 B2B organizations were surveyed 68% of B2B marketers have not identified a funnel process Funnel optimization strategies present great opportunity for success Q. Have you identified a marketing-sales funnel process (such as registered lead, rulesvalidated lead, phone-ready lead, etc.)? Yes 32% No 68% Source: 2011 MarketingSherpa B2B Marketing Benchmark Survey Methodology: Fielded June 2011, N=1,745 4

5 Challenges growing in pertinence Generating high quality leads Generating a high volume of leads 35% 49% 44% 74% 78% 69% B2B marketing challenges on the rise year-over-year Generating perceived value in "cutting edge" product benefits Competing in lead generation across multiple media, from podcasts to paid search to webinars to print ads 27% 41% 37% 37% 40% 36% Continual struggle between quality and quantity of leads Generating public relations "buzz" Marketing to a lengthening sales cycle Marketing to a growing number of people involved in the buying process 38% 36% 33% 33% 34% 33% 38% 41% 39% Source: 2011 MarketingSherpa B2B Marketing Benchmark Survey Methodology: Fielded June 2011, N=1,745 The marketplace is evolving, and marketers are resistant to adapt latest best practices 5

6 CMOs speak out on top challenges The greatest challenge would be lead scoring and the scoring truly representing closing sales. We lose many of our leads throughout the sales funnel. 6

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

8 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 Goals: Profile audience, segment database, and establish automated scoring and nurturing Results: 190% increase in sales conversions 8

9 Marketing Automation Customer-centric messaging CMS Open Source Web Analytics System Centralized and Segmented Database Four Nurturing Tracks Customer Community Member Corporate North America Corporate Europe E-commerce 9

10 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 10

11 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 11

12 Results 30-day trial drip #2 closing rate E-commerce #3 closing rate Request for contact #1 closing rate 190% increase in sales conversions 12

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

14 B2B Marketing 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 14

15 B2B Marketing 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 15

16 What s the key differentiator? Marketers must screen leads before sending them to Sales

17 3-step process 1. Identify 2. Score 3. Optimize

18 Step 1 of 3: IDENTIFY

19 What is a lead? 19

20 IDENTIFY: Defining a qualified lead Generate more qualified leads Improve alignment Increase sales effectiveness Accelerate sales pipelines Increase overall revenues 20

21 IDENTIFY: Defining a qualified lead By definition, a universal sales lead is one that has been determined to fit the profile of the ideal customer, has been qualified as salesready, and spells out the responsibilities and accountabilities of the participants in the program, Sales and Marketing. -Brian Carroll Executive Director of Applied Research MECLABS 21

22 IDENTIFY: Lead qualification improves ROI Sends all leads to Sales 85% Does not send all leads to Sales 115% 35% lift in lead generation ROI from screening leads Average lead generation ROI Source: 2011 MarketingSherpa B2B Marketing Benchmark Survey Methodology: Fielded June 2011, N=326 CMOs 22

23 IDENTIFY: Requirements of sales-ready leads Lead contact information has been validated to be real Lead appears to be in target market Lead has indicated a valid business need 56% 66% 71% For those marketers that do have qualification, these are the most popular criteria Lead has explicitly asked to have contact with sales Lead has indicated an acceptable purchasing budget 32% 51% Contact information, target market and valid business need Lead has downloaded content Lead has reached a certain lead score 28% 27% Explicitly asking to have contact with Sales Source: 2011 MarketingSherpa B2B Marketing Benchmark Survey Methodology: Fielded June 2011, N=1,745

24 IDENTIFY: How to define a qualified lead 1. Analyze existing qualified leads 2. Bring Sales into the loop 3. Draft and roll out 4. Adapt over time 24

25 IDENTIFY: Sample lead definition A sales-ready lead for our company has a need for CRM software -- and 'gets it.' They have some level of education on CRM and a clear understanding of the benefits. They have an adequate budget set aside for their purchase. They have downloaded one of our whitepapers on CRM software benefits. Approximately 30% of leads generated from Marketing will be salesready. Approximately 15% of sales-ready leads will be closed by the sales team. - CRM Software Developer 25

26 IDENTIFY: Resources 1. MarketingSherpa s 2011 B2B Marketing Advanced Practices Handbook 2. Post-Summit Workshop B2B Marketing Advanced Practices 3. B2B Lead Roundtable Blog

27 Step 2 of 3: SCORE

28 SCORE: Score all leads Lead scoring the process of adding or subtracting points, as a result of various lead attributes and behaviors, that identify salesready leads. 28

29 SCORE: Lead scoring improves lead gen ROI Currently using lead scoring Not using lead scoring 138% 78% 77% lift in lead generation ROI from scoring leads Average lead generation ROI Source: 2011 MarketingSherpa B2B Marketing Benchmark Survey Methodology: Fielded June 2011, N=326 CMOs 29

30 SCORE: Top lead scoring criteria Online lead activity Content download Frequency and / or recency of activity 58% 57% 71% For those who score, these are the top criteria Job title Company size Industry Budget 42% 39% 50% 49% Lead behavior is an excellent indication of engagement Anonymous tracking of website activity Time frame for purchase 38% 38% Balance behaviors with demographics Key problem / pain point 33% Subtraction of points 32% Offline lead activity 30% Source: 2011 MarketingSherpa B2B Marketing Benchmark Survey Methodology: Fielded June 2011, N=1,745 30

31 SCORE: Creating lead scoring campaigns CRITERIA EXECUTION ASSUMPTIONS FLEXIBILITY FEEDBACK Demographics and attributes Behaviors Manual execution for a small number of criteria or leads Automated execution to ensure consistency Launch with a best guess for qualified lead threshold score Test and adjust threshold over time Continual process of trial and error Gather qualitative feedback and quantitative data Check in with Sales regularly Identify problems early on 31

32 SCORE: Lead scoring attributes/behaviors Lead Scoring Attributes Industry Company size (number of employees) Annual revenue Location Budget Job title Key problem / pain point Current solution Education Lead Scoring Behaviors Website visit High-value website page visit open clickthrough Whitepaper download Webinar registration Phone call sent Visited booth at trade show 32

33 SCORE Sample lead score calculation (1) Lead scoring criteria Addition / Subtraction of points Works for a company with employees +3 Indicated an acceptable budget of $5,000 for purchase +5 Indicated a time frame to purchase of three months or less +4 Has job title that includes Manager or Director +3 Indicated desire to be contacted by a salesperson +21 Total 36 Target threshold is 21, so route lead to Sales 33

34 SCORE: Sample lead score calculation (2) Lead scoring criteria Addition / Subtraction of points Works for a company with employees +3 Indicated a time frame to purchase of three months or less +4 Clicked through on a company +2 Visited the pricing page on website +2 Downloaded a whitepaper on benefits of outsourcing +2 Lack of activity for 14 days -3 Unsubscribed from the list -5 Total 5 Under target threshold of 21, so hold lead 34

35 Step 3 of 3: OPTIMIZE

36 OPTIMIZE: Continual adaptation Adapt methodologies over time to meet the needs of our evolving marketplace Overall lead quality Universal lead definition Lead score threshold Continual Optimization Lead scoring criteria Attribution of points 36

37 OPTIMIZE: How to continually optimize 1. Audit your existing lead scoring process regularly 37

38 Example of lead scoring process audit 1. Review scores of deals that closed. Did these meet your threshold? 2. Review deal sizes and time to close for won opportunities. What were the lead scores for accounts with large purchases and short timeframes to purchase? Were they higher than other leads? 3. Review scores of deals that did not close. Were these leads under your threshold? Were some over your threshold? 38

39 OPTIMIZE: How to continually optimize 1. Audit your existing lead scoring process regularly 2. Ensure that you have a closed-loop feedback process with Sales 3. Conduct a SWOT analysis of your existing lead scoring process a. Stay abreast of industry happenings, and any internal or external factors which may influence your market and lead scoring campaigns 4. Be willing to segment lead definitions even further where there are opportunities 5. Adjust the individual scoring values based on how your company (re)defines a lead 39

40 Summary 1. Generating more high-quality leads and improving lead generation ROI are top B2B marketer challenges 2. Funnel optimization strategies present a great opportunity for success 3. Three-step process for B2B Marketing Funnel 2.0: 1. Define and identify qualified leads 2. Score all leads based on attributes that indicate sales-ready leads 3. Optimize through continual adaptation and improvement 40

41 Hands-on training Instructions for Worksheet 1 If you DO NOT have lead scoring Draft criteria for a qualified lead and initial lead scoring campaign that can be used for launch. Instructions for Worksheet 2 If you DO have lead scoring Execute SWOT (strengths, weaknesses, opportunities, threats) analysis of existing campaign. 41

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