The economic pressure is not letting up and 2011 will demand more of B2B marketers than ever before. How can you deliver what CEOs most want – quality leads - within tight timelines and even tighter budgets? Where should you place your priorities? How can you rapidly make an impact on your company’s revenue capacity, profit, and growth?

1. 2011 Lead Generation
Trends and Challenges
J. David Green
Director of Best Practices, MECLABS
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2. Agenda
• Audience Poll
• Challenges and Trends
• Economics of Demand Generation and Lead Management
• Sales costs and a cost-avoidance argument
• A revenue capacity argument
• Metrics
• Summary – Key Takeaways
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3. Today’s speaker
J. David Green – Director of Best Practices, MECLABS
en &
id Gre or
Dav ayl
y J. ael C. S
• Case study: $1B pipeline in 20 months B
Mi c
h
• Author and co-author of numerous white paper, blog posts, articles, and
the book, The B2B Refinery®
• Speak at MarketingSherpa, DMA, and other events
• 25 years of wide ranging B2B lead generation experience
• Working with large Cisco partner on lead nurturing projects
• Consultant on technology channel marketing
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4. MECLABS: A science lab with a consultancy
• More than 10 years of research
• 1,300+ major experiments
• Over 1 billion emails
• 10,000 sales-paths tested
• Hundreds of publications and
conferences
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5. Audience poll
• How many direct or indirect sales full time employees do you support with
leads?
• 500+
• 100-499
• 50-99
• 20-49
• Less than 19
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6. Audience poll
• On a scale of 1-5, how advanced would you say your lead generation
practices are today? (5=best)
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7. Challenges & Trends

8. What is the biggest worry of
innovative B2B marketers?
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9. The challenge
• In 2009, 68% of marketers saw generating high quality leads as their
number one business challenge.
• In 2010, the percentage rose to 75%
Source: MarketingSherpa 2010 and 2011 B2B Marketing Benchmark Report
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10. The challenge
For the last three years, marketers have focused increasingly on lead quality.
This focus, in turn, has placed greater emphasis on:
• Data hygiene and enhancement
• Lead nurturing
• Lead scoring
• Funnel metrics
• Alignment
The current economy intensifies C-suite demands on marketing for ROI
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11. What are the content implications
of lead nurturing and lead scoring?
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12. Based on trends in 2010 and projected for 2011,
nurturing and scoring depend on content
• More segmentation for relevance (personas, stage of consideration,
verticals)
• Low-production value content (e.g., blogs, raw video)
• More employee writers/thought-leaders
• More re-purposing/multi-purposing
• Content aggregation services through web-crawling and linkage/summary
• Integration of social media into lead nurture streams (as well as a demand
generation tool)
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13. What are data implications of lead
nurturing and lead scoring?
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14. Based on trends in 2010 and projected for 2011,
relevant content-nurturing requires data
• Less-end user data capture at the top of the funnel
• Incremental, optional, conditional end-user data capture
• Great focus on data hygiene
• Data appends (account, contact, triggers)
• Account-level modeling (propensity to buy and buying
potential)
• Content extrapolation of problems, function, level, depth
of interest
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15. Economics of demand gen:
The cost of sales follow up

16. How does sales leadership see the
economics of lead generation?
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17. Eight out of ten marketers hand
raw leads straight to sales
Source: MarketingSherpa 2010 and 2011 B2B Marketing Benchmark Report
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18. Mountains of leads, molehill of sales
New leads 40
100 Filled out web form, called toll-free number, visited booth, hours
attended webinar, etc.
Valid leads 28 - 34
70 - 85 Insufficient info, bogus info, hours
not in target market
Sales-ready leads 1.6 – 2.8
4-7 Lead scoring, tele-qualifications hours
Decline in lead population through @ up to 5 attempts/lead
the funnel’s early stages. & @ 10 dials/hour
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19. So what should those funnel
numbers mean in terms of expense?
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20. “Cheap” leads cost a lot of money
Annual cost Hourly cost
Loaded cost/ Field sales rep $ (200,000) $ (102)
Leads Hours Cost/Hour
100 New leads 100 40 $ (4,082)
70 Valid leads 70 34 $ (3,469)
Sales-ready leads 7 2.8 $ (286)
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Assumes 1,960 hours per year and 19,600 dials.
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21. Economics of demand gen:
The cost-avoidance argument

22. What financial yardsticks exist in
your company for measuring lead
generation effectiveness?
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23. Sales prospecting costs more than a CFO might expect
• How much time do your
sales people spend
prospecting?
• How much is that
prospecting time costing
your company?
Source: CSO Insights “Sales Performance Optimization” report, 15th edition: over 1,800 companies surveyed. Copyright © 2009 CSO Insights. All Rights Reserved.
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24. Sales prospecting cost ≥ Marketing budget?
Sales prospecting
scenario In this example at 20%
of time spent on sales
Revenue $ 1,000,000,000
prospecting, the entire
Profit $ 100,000,000 marketing budget
Marketing budget $ (50,000,000) equals the portion of
the sales budget
Sales budget $ (250,000,000)
allocated to
Other expenses $ (600,000,000) prospecting.
Sales budget
line item
Time prospecting $ 1,000,000,000
Prospecting allocation $ 50,000,000
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25. Sales prospecting equals a lot of FTEs
Given that $50m budget allocation to sales prospecting from the prior slide, a
$200k loaded cost/field resource is the equivalent of 250 sales people.
Annual cost
Sales budget $ (50,000,000)
Loaded cost/field sales rep $ (200,000)
Sales FTEs 250
($50m sales budget allocation) / ($200k/rep) = 250 reps
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26. Economics of demand gen:
The revenue capacity argument

27. What revenue capacity can lead
generation unleash?
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28. Sales & Marketing Resource Allocation & the Buying Cycle
Lead generation scales sales
100% These reallocated
sales resources
As much as possible, replace result in
Less these sales resources with lower- increased
efficient cost methods of marketing & revenue
sales Allocated telemarketing contact capacity/higher
resources percent of sales productivity
sales
More resources
efficient
sales
resources 0%
Prospecting Nurturing Selling
Buying cycle stages 28
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29. Sales-ready leads increase revenue capacity,
profits and growth
• 10% more selling time
Sales prospecting Scalable lead gen
• $10m increase in
scenario scenario
marketing budget
Revenue $ 1,000,000,000 $ 1,100,000,000
Profit $ 100,000,000 $ 190,000,000
Marketing budget $ (50,000,000) $ (60,000,000)
Sales budget $ (250,000,000) $ (250,000,000)
Other expenses $ (600,000,000) $(600,000,000)
Sales budget line item
Time prospecting 20% 10%
Prospecting allocation $ (50,000,000) $ (25,000,000)
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30. Economics of demand gen:
Key pipeline metrics for forecasting and analysis

31. What funnel metrics can improve
sales and marketing planning,
forecasting and efficiency?
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32. For the first time in the seven years of this
report, a slim majority (51%) of responding firms
now track the ROI of their marketing campaigns.
Source: CSO Insights “2010 Lead Generation Optimization” report. Copyright © 2010 CSO Insights. All Rights Reserved.
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33. Measuring discrete funnel stages improves
forecasting and operational efficiency
New leads • Complex sales make
Registered leads forecasting, analysis
and funnel-tuning
Rules-validated leads difficult
Buying cycle
Phone-ready leads • Discrete funnel
conversion stages
Phone-validated leads improve forecasting
Sales-ready leads accuracy and narrow
75%
problem identification
to
Sales-validated leads
95% • Feedback loops can
Sales-forecasted opportunities improve upstream and
downstream stages.
Sales outcomes
Copyright © MECLABS 2010, all rights reserved. 33
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34. Key takeaways

35. Key takeaways
• Lead quality concerns are driving initiatives in lead nurturing and lead
scoring, which both are driving numerous marketing changes
• Sales prospecting offers marketers a financial yardstick for measuring
lead generation effectiveness
• The cost avoidance argument:
• Sales qualification is very expensive
• Sales prospecting is very expensive
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36. Key takeaways
• The revenue capacity argument: lead generation can improve the sales
and marketing expense-to-revenue ratio (sales scalability and sales
productivity)
• The right metrics can improve forecasting and drive continuous funnel
improvement
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37. Contact information
Dave Green
Director of Best Practices, MECLABS
Co-Author of The B2B Refinery® en &
Gre ylor
vid
dave.green@meclabs.com J. Da ael C. S
h
a
Mi c
409-770-0710
MECLABS.com ∙ MarketingExperiments.com
MarketingSherpa.com ∙ StartWithaLead.com
StartWithaLead.com/LinkedIn
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