Can’t We All Just Get Along?Bridging the Gap between Sales and Marketing

Presented to:

Business Marketing AssociationPittsburgh ChapterOctober 16, 2008

More than 70% of leads generated are never acted upon because

the information does not reach the right person

at the right time

Typical complaints:Marketing is only concerned about

the number of leads, not the quality

None of the leads are prioritized. I can’t tell hot leads from cold

The leads are at least a month old

Typical complaints: Sales only focuses on low-

hanging fruit.

They don’t follow-up or if they do, it’s six weeks too late

They have no interest in new prospects. How do they expect to

grow the business!!

Source: Gartner Research

Marketing Role:Generate Leads

Sales Role:Generate Revenue

GAP

What is Lead Management?

The optimal process for collecting, qualifying, nurturingdistributing and tracking to close the leads generated as a result ofmarketing activity

Whose Responsibility Is It?

Marketing Reaps the Benefits

Increased revenue without increased marketing spend

ROI analysis by marketing program/campaign that can be tracked over time

Marketing becomes viewed as a profit center

Getting Started - Collecting

At the core of every lead management effort is the database Current clients Former clients Priority prospects General or database prospects “No-way” contacts

Each of these groups is further segmented by market

Getting Started - Collecting

With each “new” inquiry, we need to collect whenever possible: Contact info Demographic information Reason for inquiring Qualifying criteria

Size of opportunity Timeframe to purchase Current provider etc.

Getting Started - Collecting

We need to capture: Source (e.g. publication name, issue date, URL,

tradeshow, etc.) Campaign identifier

We need to run the inquirer against the current database to determine: Current client Priority target Former client, etc.

Getting Started - Qualifying

Develop qualification criteria by Market segment (e.g. windows) Inquirer type (e.g. builder) Inquirer’s status (e.g. current client)

Identify hot, viable and non-lead criteria Run through “what if” scenarios

What if we only know project timeframe and no other qualifying information?

What if we only have contact info and know the segment?

Having a Checklist Helps

Getting Started - Distributing

Define the distribution process Identify the method of distribution

E-mail/spreadsheet Web CRM

Identify the frequency All leads go out immediately upon qualification Only hot leads go out immediately, viable leads go

out at the end of each day

Getting Started - Distributing

Defining the process, continued . . . If selling through distribution, identify which

channel partners will be receiving the leads Establish an internal SLA to build credibility with

the sales organization A lead will be qualified and distributed to sales

within X days of receipt

Getting Started - Tracking

Be realistic about how much info you’ll get back Give limited status options

Lead is active Not ready to decide remind me in X weeks

Win Current client agreed to purchase additional product.

Value_______ New client agreed to purchase product. Value _____

Loss Did not get additional business from current client.

Reason? Did not get new business from prospect. Reason?

Lead is not viable Information is incorrect Will not return my calls Not a decision-maker

Getting Started - Tracking

Establish clear escalation procedures if the leads are not responded to. For example: Day X - lead is sent If no response in X days lead will be resent with

copy to sales manager If no response in X days, lead will be resent with

copy to sales manager and sales exec Work toward making lead tracking part of sales

overall compensation measurement

Getting Started - Reporting

Activity by campaign Inquiries Hot leads Viable leads Non-leads

Sales lead status by campaign ROI by campaign

ROI Calculations

To calculate ROI, you need to know: Revenue % of gross margin on revenue Direct expenses by campaign

Advertising Agency fees Placement fees

Tradeshows Booth space Agency fees Travel

ROIGross margin from activity – direct expense direct expense

The goal is to track performance over time and performance across activities

Do NOT get bogged down in looking at a “snap shot”

Reporting

Overcoming the Challenges

Commitment from the top to manage the fear of accountability

Real consequences for lack of sales tracking Long-term focus – be patient

This is a fundamental shift in the way marketing and sales operates in most organizations

Redirect a small % of marketing spend to pay for a lead management program Ultimately you will generate more ROI

Paying for It

A comprehensive lead management program typically runs between 5% - 12% of total marketing spend

A case study – assume a marketing budget of $300,000

Typical leads generated annually 6,000

% of leads responded to 50%

Leads worked 3,000

Leads converted to sales 5%

Average revenue per sale 10,000$

Total revenue generated 1,500,000$

Remember the avg. is 30%

Paying for It

A case study – assume a marketing budget of $300,000, less 8% ($24,000) for a lead management program.

Typical leads generated annually 6,000

% of leads responded to 90%

Leads worked 5,400

Leads converted to sales 5%

Average revenue per sale 10,000$

Total revenue generated 2,700,000$

An increase of $1.2 mil

Thank you for your time.

Susan AllenCEO

DataBanque5500 Brooktree Rd

Suite 200Wexford, PA 15090

412-548-1010sallen@databanque.com