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Gleansight lead nurturing - q42010 - licensed
1.
December 2010
Gleansight . Lead Nurturing Every salesperson knows that leads can go cold very quickly. They also Content know the challenge of trying to follow up on every lead in a timely manner. No Part 1: Topic Overview matter how hard you try, some leads are going to fall through the cracks. Sales Part 2: Reasons to Implement reps are incentivized to focus on short-term revenue and are always trying Part 3: Value Drivers Part 4: Challenges to determine which leads are most likely to close the fastest. However, some Part 5: Performance Metrics leads present real opportunities for converting to sales but aren’t quite ready Part 6: Success Story to buy and require a longer process. Why let these good leads go to waste? Part 7: Vendor Landscape (not If marketing could “nurture” all leads until they were fully mature and ready to included in this version) Sidebars: Survey Stats Benchmark KPIs Core Technologies Gleanster Numbers close and then, only when they are ripe and ready, hand them off to sales for closure, the sales group’s time and efforts would be maximized. Lead nurturing promises to do just that, by engaging prospects early in the buying cycle and automating engagement at a pace that the prospect controls. Prospects get the information they want but nothing more (i.e., no sales pitch) Rate & Review until they’re ready to make a buying decision. At that point, the prospect turns Related Research into a “sales-ready lead” and is forwarded to the sales department. This Tell a Friend Gleansight explores the processes for determining which leads are sales ready (versus those that should be funneled through the nurture process) as well as Note: This document is a licensed version. It does not include the Vendor Landscape section. the technologies, organizational resources and performance metrics that Top To download the full report, or to view related research, please visit www.gleanster.com. Performers are using to make lead nurturing a done deal. Entire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
2.
Gleansight: Lead Nurturing
2 Survey Stats Part 1: Topic Overview For most people, the word nurture conjures up images of coddled babies, The research findings featured in this Gleansight benchmark report pampered pets and well-tended plants. It is not a word that one generally are derived from the Q3 2010 finds in the lexicon of technology-enabled business initiatives, which is Gleanster “Lead Nurturing” survey. dominated by words that tend to be less “soft and feely” and instead have • Total survey responses: 324 more of a mechanical association (leverage, automate, optimize, etc.). • Qualified survey responses: 279 Yet lead nurturing has been widely adopted in recent years by solution • Company size: Very Small (12%); providers and industry practitioners alike to describe the topic at hand. Small (36%); Medium (26%); Large (21%); Very Large (5%) And, in many ways, the term is a perfect fit. • Geography: North America (69%); Consider the definition of the word nurture. people as possible and to qualify everyone Europe (16%); Other (15%) It can be used to mean the environmental you meet with questions and conversation factors that partly determine the structure points. When you get back to your office, you • Industries: Software and Hardware of an organism. It can also be used to flip over the business cards you collected (45%); Financial Services (15%); mean the act or process of promoting to decipher notes you scribbled on the Other High Tech (13%); Other (27%) the development of an organism. back, and start writing follow-up letters. • Job levels: C-level (5%); SVP/ For most marketing and sales executives, Sound familiar? Without a methodical system VP (15%); Director (25%); it’s not a stretch for qualifying, process- Manager & Staff (55%) Sample survey respondents: to imagine a qualified lead that “Lead nurturing ing and closing leads, going after prospects engages prospects just entered the is a shot in the dark. • Marketing Director, Logitech sales pipeline as Now imagine you are a living, breathing back in the same room • Vice President, Ingersoll-Rand • Marketing Director, SimplexGrinnell thing that is both the product of its in highly relevant, with your head three feet above the crowd. • Manager, American Express environment (e.g., what was the personalized inter- The 10 people who are ready to buy are actions, based on • Marketing Director, Oracle source of the lead all wearing the same • Director, Kronos and what was the red hats, and so are prospect behavior.” context in which easy to spot. Written • Manager, TransAct it was acquired?) on the top of each • Director, Cisco and one that also hat is the person’s requires a great deal of care and attention in chief challenge or need. You focus only on • Manager, Tetra Pak order for it to ultimately reach its full potential these 10 people and address each need • Vice President, Xerox (i.e., become a new client for the company). individually. By the end of the night, you have begun targeted, relevant relationships with all More to the point, lead nurturing is a technique of them. That’s the value of lead nurturing. for building campaigns that interact with customers across multiple touch points. Lead nurturing engages prospects in Nurture campaigns progressively move highly relevant, personalized interactions, prospects through a series of relevant content based on prospect behavior. By nurturing stages that map to the prospect’s buying cycle. leads individually, companies can increase Leads mature from awareness to a sales- revenue by maintaining relationships ready stage through an automated system. with potential customers who are not yet Typically, lead nurturing is applied to the ready to buy in the short-term. In this way, pre-sales process as a multi-step communica- companies can increase sales productiv- Rate & Review tion between a potential prospect and a seller. ity by reducing the time sales reps spend cultivating prospects. They can educate and To illustrate: Imagine you are standing in a Related Research influence potential customers about products room of 500 people. Within the group are and solutions. And they can establish a Tell a Friend 10 prospects who are ready to buy. But brand reputation as a trusted advisor and which 10 and how do you find them? You Note: This document is a licensed version. It a valuable source of thought leadership. spend the evening trying to meet as many does not include the Vendor Landscape section. To download the full report, or to view related research, please visit www.gleanster.com. Entire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
3.
Gleansight: Lead Nurturing
3 Part 2: Reasons to Implement Benchmark KPIs Gleanster research findings show that, not surprisingly, Top Perform- ers view the promise of increased revenue and sales productivity as top Gleanster uses 2-3 key performance indicators (KPIs) to distinguish “Top reasons to invest in lead nurturing. But these aren’t the only reasons. Performers” from all other companies (“Everyone Else”) within a given data Improving collaboration, reducing marketing spend and increasing set, thereby establishing a basis customer profitability are also seen as large potential benefits. for benchmarking best practices. By definition, Top Performers are comprised of the top quartile of qualified survey respondents (QSRs). 69% 71% 84% Most The KPIs used for distinguish- ing Top Performers focus on Compelling performance metrics that speak to year-over-year improvement in Reasons to relevant, measurable areas. Not all KPIs are weighted equally. Implement* Increase the number Increase sales Increase revenue of sales-ready leads productivity The KPIs used for this Gleansight are: * According to Top Performers, based on 279 Qualified Survey Responses to the Q3 2010 Gleanster survey on Lead Nurturing • Change in revenue Increase revenue. Creating a dynamic Increase the number of sales-ready leads. • Change in sales pipeline nurturing program for leads can provide Automated lead nurturing delivers more • Lead-to-sale conversion rate significantly higher return on investment qualified leads to sales with much less effort than standard new-customer acquisition than pure customer-acquisition campaigns. campaigns. Lead nurturing marketing ensures By mapping content to the appropriate buying To learn more about Gleanster’s that the sales team focuses on leads that are stages, sales has a better idea of the path research methodology, please click here or email research@gleanster.com. ready to close, providing maximum revenue that each prospect took to get to the buying performance for every lead received. At the stage, what their unique needs are, and how same time, it allows marketing to cultivate to meet and exceed them in a timely manner. longer-term opportunities, resulting in higher Increasing the number of sales-ready leads overall revenue from qualified prospects that also increases the number of leads closed would otherwise fall through the cracks or and the value of those conversions. be lost to competitors. It also allows sales Increase marketing effectiveness. Lead to more accurately manage pipeline cycles nurturing consists of a series of triggers that and predict close rates based on historical release predetermined messages or informa- conversions. Companies that proactively tion based on prospect behavior, such as nurture their leads before moving them to signing up, making a purchase, abandoning sales generate more revenue by closing a shopping cart, or calling customer service. more leads and reducing cost-per-lead. Monthly statements and invoices, packing Increase sales productivity. A typical, slips and permission-based weekly or monthly manually-driven sales approach leaves sales- emails are also great opportunities for adding people chasing down dozens of leads at a time, targeted messages. These methods are many of which can turn out to be unproduc- timely, highly relevant and targeted to each tive dead ends. Lead nurturing prioritizes individual or prospect’s specific needs, and prospects so that salespeople are working on more effective than mass messaging. the hottest leads at all times and maximizing Increase collaboration between marketing the full potential of the opportunities in their Rate & Review and sales. Tight collaboration between sales pipeline. By engaging customers with marketing and sales can improve ROI relevant content in real-time across multiple Related Research anywhere from 5% to 15%. To achieve improve- channels, lead nurturing increases conversions ment, the two departments must first agree on Tell a Friend and sales performance. To increase sales a common terminology for critical terms such productivity, look for processes for deliver- Note: This document is a licensed version. It as a lead, a prospect, and what determines that ing information content within your sales and does not include the Vendor Landscape section. a lead is qualified; create a model for identify- To download the full report, or to view related marketing cycle that can be automated. research, please visit www.gleanster.com. ing qualified leads, then define the threshold Entire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
4.
Gleansight: Lead Nurturing
4 43% 58% 58% Compelling Reasons to Implement* Increase relevance Increase collaboration Increase marketing of marketing communications between marketing and sales effectiveness “Automated lead * According to Top Performers, based on 279 Qualified Survey Responses to the Q3 2010 Gleanster survey on Lead Nurturing management al- point at which leads get passed from marketing to sales. After this, study the projected number data about prospects’ behaviors will yield insights that will help increase efficiency lowed us to take a of leads and determine whether rules and processes need to be adjusted to increase and improve marketing effectiveness. Automate personalized communications. more sophisticated or decrease the projected number of leads. Increase the relevance of marketing Using a marketing automation solution to deliver messages will drive lead nurturing approach and seg- communications. Utilize existing customer data to customize messages and information, through a turnkey program that maximizes relevancy and targeting. It will also automati- ment leads as they both for retention efforts and for predictive modeling purposes to locate prospects who cally score leads to determine the phase a lead is at, including which leads are hottest come in. We take mimic existing good customers. If certain types of information are missing, find a way to and which leads are cold and of no value. Remember that lead nurturing is a process, different actions collect it with a promotion offer or a survey. By requesting opt-in, new customers will willingly not a single event. Communications that grow and cultivate leads contain a consistent feel based on the qual- receive information from companies they are actively doing business with and are more and progression that help move prospects through the funnel and across the different ity of the lead, so likely to give personal information, as well. Using existing data to determine trends, issues phases of their unique buying cycle. An automated system maintains that consistency. we don’t waste and challenges to focus content, increasing the relevance of messaging. This will result in Increase customer profitability. By educating sales time focus- higher opens, clickthroughs and conversions. and informing prospects at each stage of the funnel, they are automatically being ing on lower value Reduce marketing spend. Lead nurturing reduces both cost-per-lead and overall engaged in the brand in deeper ways, without being pressured to buy. As they continue to prospects.” marketing spend through the use of automated content that is mapped directly to a customers’ move through the funnel, trust is built and their likelihood to close when they are ready buying process. Serving only the content that increases. These leads are highly prequali- matches a prospect’s need at a given point fied and are likely to be retained at the same Jim Kemp, Marketing in time—and improving that content as your length of time and at the same profitability Manager, ColombiaSoft prospect moves through the funnel—will level as valuable customers. Also, the fact that maximize every connection and minimize they were not drawn in through discounts or marketing spend. In addition, collecting premiums will add to their overall profitability. 19% 19% 28% Less Rate & Review Compelling Related Research Reasons to Tell a Friend Note: This document is a licensed version. It Implement* does not include the Vendor Landscape section. Increase customer Automate personalized Reduce marketing To download the full report, or to view related profitability communications spend research, please visit www.gleanster.com. * According to Top Performers, based on 279 Qualified Survey Responses to the Q3 2010 Gleanster survey on Lead Nurturing Entire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
5.
Gleansight: Lead Nurturing
5 Core Technologies Part 3: Value Drivers Lead nurturing is a technique, not Most companies recognize the need to focus on a number of different a technology. However, the level of value drivers, often in combination, in order to maximize the value of their sophistication — and success — of a lead nurturing campaign is largely investment in lead nurturing. Interestingly, according to Top Performers, a function of the capabilities enabled the most important value driver relates not to putting an enabling technol- by a set of core technologies. These technologies include the following: ogy, business process or organizational resource in place. Rather, it relates to the need for the marketing and sales departments to arrive at Email Marketing. Over 80% of Top an agreed-upon definition of what a “sales ready” lead means, in the first Performers utilize email marketing for outbound customer engagement. Email place. For many, this step (which may need to be revisited on an ongoing provides a vehicle for linking other basis) is easier said than done. channels including the web, events, and social media. There are two lead nurturing techniques for deliver- 83% 89%65% ** ing email campaigns; drip-marketing (where a series of emails are delivered based on pre-determine time intervals) Most and trigger-marketing (where emails engagement is triggered by prospect behavior- for example a click-through Important on a prior email or a website visit). Today, all email marketing tools allow Value marketers to add personalized “fields” to outbound email. This could include Drivers* a prospects name in the salutation or Enable prospect qualification Agree upon the definition a reference to a recently purchased with lead nurturing of a “sales ready” lead product. Email personalization is critical to maximizing the relevance * According to Top Performers, based on 279 Qualified Survey Responses to the Q3 2010 Gleanster survey on Lead Nurturing of lead nurturing communications. ** According to Everyone Else, shown only when a notable disparity occurs relative to Top Performers Centralized Marketing Database. Agree upon the definition of a “sales ready” vs. “how to expand key product lines.” Customer data is the lifeblood of lead. It is critical that marketing and sales Align marketing content to the prospect lead nurturing campaigns. Ideally, work together seamlessly and have a singular buying cycle. With each step of the lead- lead nurturing campaigns will deliver understanding of the entire sales-marketing just the right content for just the right nurturing process, place corresponding content process, including who is responsible for what stage in the prospects buying cycle. that unobtrusively signals if a lead is moving Therefore it’s critical to track and and how the process will work and flow. A closer to the buying process. For example, monitor the type of content prospects singular lexicon across both departments is an suppose someone searched an online catalog are consuming over time. Naturally, this important first step, as well is understanding for the generic term “car stereos.” Appropriate would be difficult or impossible to do the definition of what constitutes an inquiry, manually, so automated systems should content could be an article on “How to Choose marketing-qualified lead, sales-accepted lead, collect and aggregate all customer the Best Car Stereo.” If, a day later, this Web data to one centralized database. sales-qualified lead or closed business. site visitor returned to searchon “wattage” Most automated lead management Enable prospect qualification with lead and “style,” they could be presented with an systems track email marketing, web nurturing. There are several reasons to article on “Consumer Reports’ Top-rated Car analytics, and landing page conver- sion from one centralized system for a prequalify a lead, including: reduce cost-per- Stereo Systems.” As they move closer to the complete view of all marketing activity lead; reduce the amount of time (and financial shopping cart, present them with content that with prospects and customers. investment) spent with a lead; and improve the matches their specific need at each click. value of the lead over the long term. To help Through lead nurturing, each search term, prequalify a lead, a lead-nurturing process is piece of content delivered or clicked on, not designed to move a person or company one to mention how long they spent with each step at a time through the sales/marketing piece of content, helps define where the Rate & Review prospect is on the buying continuum. Through funnel, which also provides visibility on where Related Research every lead is inside the sales funnel. Start an automated reporting structure, this path prequalifying with broad, basic questions, can be followed and continually adjusted. Tell a Friend such as: “Click here if you are a consumer Prioritize leads based on propensity to products firm” and “click here if you are a Note: This document is a licensed version. It purchase. By aligning marketing content does not include the Vendor Landscape section. business-to-business firm.” Or, prequalify to the prospect buying cycle, one can see To download the full report, or to view related them by need. For instance, whether they click research, please visit www.gleanster.com. how close (or far ) they are from conversion. on an article about “how to start a business” With this information in hand, one can easily Entire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
6.
Gleansight: Lead Nurturing
6 53%79% 58%38% 75% ** ** Integration with CRM. Integration between marketing automation tools and CRM provides a complete history Important of marketing and sales activity on prospects and customers. In fact, this is Value absolutely critical to building an efficient lead nurturing process. Integration can help deliver automated alerts to sales Drivers* to ensure sales are focused on the high priority opportunities that have the greatest chance of closing. At the same Centralize prospect behavior Prioritize leads based Align marketing content time, this integration creates a seamless and marketing activity history on propensity to purchase to prospect buying cycle (typically in CRM) flow between marketing and sales; lead quality can be tracked and monitored * According to Top Performers, based on 279 Qualified Survey Responses to the Q3 2010 Gleanster survey on Lead Nurturing and the organization can close the loop ** According to Everyone Else, shown only when a notable disparity occurs relative to Top Performers to start collecting some tangible metrics about return on marketing investment. prioritize leads and the amount of time spentd over a given period of time? How many of the with them, based on who is most ready to sales-accepted leads became sales-qualified Lead Scoring. Advanced lead nurturing buy. This information is a moving target and leads? How many of the sales accepted techniques involve the use of lead could change as quickly as every few minutes leads closed and how much revenue was scoring and prioritization. Lead scoring or as slowly as every few months, depending associated with these leads? While it may techniques provide a mechanism on the type of products and services sold. not be possible to tease out the percentage for prioritizing leads and automating when they are passed to sales based of each sale that lead nurturing was respon- Centralize prospect behavior and marketing on numeric values that are assigned sible for, one will be able to determine that, activity history (typically in CRM). Look to different prospect activities. These of all incoming leads, the ones processed for common denominators across prospects’ “rules” assign numeric points to different by alead-nurturing program with will likely activities in the buying cycle; clicking behavior. Group together those whose buying present higher value than those that were not. an email, visiting a website, download- behavior is the same or similar. Then look ing a whitepaper, etc.). After prospects for ways to centralize and automate how Automate lead prioritization. Determining reach a pre-determined aggregate you address those behaviors, such as with which lead to follow up on next should not be threshold they are automatically passed targeted emails or direct mailers, customized arbitrary or time-consuming. Similar to the way to sales as qualified opportunities ensuring sales reps engage at just the telemarketing calls, or personalized letters. a customer service rep’s phone automatically right time, with just the right message. Grouping ‘like’ people together will also help rings when a customer is on the line, sales reps one uncover and address any gaps, problems, should be automatically fed with lead informa- issues or challenges standing in the way of tion. Use lead scoring to determine the priority Web Analytics. In a complex sales closing sales. They may also bring to light new of each lead. There are several variables that cycle, there is no question prospects will be visiting websites and looking for ideas for cross-selling and upselling to these will come into play when determining a score, research online. Web analytics data and other prospects or customer segments. including: title, industry, location, revenue and is a window into prospect needs and budget. Marketing and sales should jointly desires. Automated lead management Track lead nurturing revenue to measure determine the values/points to assign to each tools can track and monitor activity the success of marketing programs. Lead variable and what numbers should be used email click-thorughs to websites and nurturing campaigns should provide answers landing pages and incorporate this to weight the data. Once all the factors are to the following questions, which are directly into nurture marketing campaigns determined, business rules can be written to tied to ROI: How many marketing-qualified as behavioral triggers. More sophis- decide when a lead is ready for passing to ticated web analytics tools can leads did marketing nurture over a given sales and whether it is a level 1 (“hot”) priority. also be used to shape the content period of time? How many of the marketing- and messaging in lead nurturing qualified leads became sales-accepted leads campaigns. What search terms are prospects using? What content do they typically download? What 52% 29% 52% ** challenges are they trying to solve? Less Rate & Review Important Related Research Value Tell a Friend Drivers* Note: This document is a licensed version. It Automate lead Track lead nurturing revenue to does not include the Vendor Landscape section. prioritization measure the success of marketing programs To download the full report, or to view related research, please visit www.gleanster.com. * According to Top Performers, based on 279 Qualified Survey Responses to the Q3 2010 Gleanster survey on Lead Nurturing ** According to Everyone Else, shown only when a notable disparity occurs relative to Top Performers Entire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
7.
Gleansight: Lead Nurturing
7 Part 4: Challenges There are numerous challenges associated with launching a lead nurturing program. They range from securing executive level buy-in to getting sales and marketing onto the same page, educating staff at various levels throughout the company and from across a variety customer touch points, understanding the prospect audience; putting the right technology solutions in place in a timely manner; determining business rules; making joint decisions such as scoring values and which software to use; and putting metrics and measurement tools in place. Like the lead nurture funnel itself, each one of these steps should be handled in a particular order, one step at a time, and most importantly, together. 80% 82% Most Challenging Aspects* Achieving acceptable Developing effective nurture customer data quality marketing campaign content * According to All Companies, based on 279 Qualified Survey Responses to the Q3 2010 Gleanster survey on Lead Nurturing Developing effective nurture marketing Finally, capture the search terms thatprospects campaign content. To map the right content use online and compare search terms for those to each buying stage, understand the attitudes who convert against the search terms used for (i.e., what’s important to their buying decision those who don’t convert. Spot the gaps and and what their deciding factors are) and audit the search process for improvements. behaviors (i.e., do the majority of prospects Fostering a sales and marketing alignment follow a pattern prior to buying and how culture within the organization. For lead can you help them achieve those behaviors nurturing to succeed, sales and marketing through specific content) prospects exhibit. must work together seamlessly. That means Once these attitudinal and buying behaviors being in agreement on all goals and objec- are understood, craft content ideas that match tives, definitions—including knowing when those intents. Example: Manager A wants a lead is sales-ready—and metrics. To a recycled paper stock that is as white as a align the culture between marketing and No. 1 sheet; Manager B wants an affordable sales, the two departments must be willing catalog stock but doesn’t want any show- to agree on and automate business rules, through. Each of these distinct issues can be then share all resulting data, and agree on addressed through different pieces of content. the data’s interpretation. If sales is measured Achieving acceptable customer data on the quality of the lead, there must be quality. The best data for making actionable separate metrics in place to incentivize and decisions is behavioral. Work backward from credit marketing for doing its part, too. Rate & Review conversion and capture each individual step Measuring ROI on lead nurturing activi- the prospect made until you reach a threshold ties. Calculating a true ROI on lead nurturing Related Research where the steps are no longer unique and campaigns can be difficult because nurturing become general. Also, attitudinal data will help Tell a Friend leverages a variety of different channels make visible how prospects perceive your (email, search, Web content, white papers, Note: This document is a licensed version. It brand vs. the competition. In addition, cleansing analytics, webinars) across the life of a does not include the Vendor Landscape section. data regularly is critical. Eliminate wrong To download the full report, or to view related campaign. This makes it difficult to allocate research, please visit www.gleanster.com. addresses, expired emails and phone numbers revenue to direct costs for a true cost- and merge duplicates on a regular basis. Entire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
8.
Gleansight: Lead Nurturing
8 52% 55% 64% Challenging “The difference Aspects* between good and great marketing is having a process Measuring return on investment Measuring ROI on lead nurturing activities Fostering a sales and marketing alignment that is integrated culture within the organization * According to All Companies, based on 279 Qualified Survey Responses to the Q3 2010 Gleanster survey on Lead Nurturing and measurable to benefit analysis. Also, today’s prospects and customers may have been influenced computing, although talked about heavily but still only sparingly used, will eventually become understand what by any number of factors, including competi- tors, friends and family, bloggers, etc. It is a driving force in the elimination of legacy apps. This will increase sales and marketing’s marketing is work- not possible to tease out a lead-nurture- only ROI separate from other efforts, as reaction time in addressing prospects’ needs and speed up the process of delivering leads ing for your audi- lead nurturing is part of a holistic approach. However, upper management generally to the nurture system or the sales team. Securing executive level buy-in. The CEO ence and what mar- will want marketing to be able to justify the use of lead nurturing, so keep track of lead is only interested in one thing: ROI. However, there are stakeholders at multiple levels. It keting customers nurturing’s participation in each conversion and compare those numbers to the number often makes sense to open up a dialogue with the lower-level executives to win their are responding to.” of leads converted that were not nurtured, support first, and remember to ask them along with their equivalent lifetime value. for their opinions about the company’s pain Measuring return on investment. Sales is points. Accumulate some wins to help plead based on short-term metrics, while marketing, your case, starting with a series of small tests. Director, Web and Direct Marketing, when measured at all, can be looked at Use the test results to extrapolate projec- National Instruments with either a short- or a long-term view. tions for a larger projects, and be prepared Since prequalified leads tend to result in to show how lead nurturing can help. better-targeted customers who have higher Securing the right operational and analytic long-term value, it is important to maintain resources. When requesting funding for a long-term view of the value of customers your lead nurturing program, be sure to align converted through lead nurturing. Also, the your strategy with the company’s goals. more holistic the measurement is (i.e., across Show upper management how lead nurturing all channels), the more accurate it will be. helps the firm achieve those goals. When Eliminating the use of legacy applications. discussing budget requirements, be sure to As the enterprise becomes more holistic start with your small wins and extrapolate and the customer becomes more multi- what that would equate to in a roll out along channel-oriented, it becomes increasingly with the timing for payback. Ask the vendor more important to eliminate siloed data and for case studies of companies of similar size applications, replacing them or integrating them and need and present their ROI, as well. tightly with other customer-facing apps. Cloud 28% 37% 49% Less Rate & Review Challenging Related Research Aspects* Tell a Friend Note: This document is a licensed version. It does not include the Vendor Landscape section. Securing the right operational Securing executive Eliminating the use To download the full report, or to view related and analytic resources level buy-in of legacy applications research, please visit www.gleanster.com. * According to All Companies, based on 279 Qualified Survey Responses to the Q3 2010 Gleanster survey on Lead Nurturing Entire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
9.
Gleansight: Lead Nurturing
9 Gleanster Numbers Part 5: Performance Metrics 76 Sales is a department that is driven entirely by performance. When it Percentage of top performers comes to lead nurturing, marketing is inexplicably tied to sales, and so (compared to 39% of Everyone Else) it becomes imperative that all steps along the lead nurturing path are utilizing lead nurturing campaigns measured. Justifying the value of lead nurturing requires tangible, improv- able metrics, and marketing should be able to correlate how lead nurturing 72 Percentage of top perform- contributes to the sales pipeline and, ultimately, to revenue. ers utilizing drip-marketing techniques for lead nurturing 79% 90% 98%88% ** 34 Most Percentage of top performers utilizing Commonly multi-channel trigger marketing techniques for lead nurturing Used 12 Metrics* Lead Volume Email Click- Revenue Percentage of total leads that in Sales Pipeline Through Rates are deemed “sales-ready” that actually result in an immediate sale * According to Top Performers, based on 279 Qualified Survey Responses to the Q3 2010 Gleanster survey on Lead Nurturing (across all survey respondents) ** According to Everyone Else, shown only when a notable disparity occurs relative to Top Performers Revenue. The revenue metric is a good quarters, serves as an accurate predictor of 89 example of the cliché, “You get out of it what future sales. With this metric, Marketing can Percentage of top performers who you put into it.” Companies that use lead determine whether an increase or a course cited “personalized email engage- ment” had the most significant impact nurturing generate more revenue from their correction are needed in its acquisition on revenue growth over the last year lead-generation activities than companies that marketing and/or lead nurturing efforts. Even do not. This is mainly because their leads are a sales pipeline that is flowing smoothly and better prequalified. Moreover, the company performing on target should be monitored 63 earns their trust over time, which results in a continuously and analyzed for trends that Percentage of top performers that did deeper relationship and meets needs in a more could affect future performance. An automated not have a problem securing executive targeted, relevant fashion. While sales will be lead nurturing system can help the sales level buy-in for lead nurturing initiatives more interested in short-term results, marketing pipeline maintain sales volume objectives. should remember to continue to measure Cost per lead. Many companies purchase 89 revenue over the long-term (i.e. lifetime online media on a CPM basis, but measure Percentage of top performers that value) from each individual or company that results on a cost-per-lead basis. Lead nurturing share the definition of a “sales-ready became sales-ready through lead nurturing. can play a significant role in helping companies lead” between sales and marketing Email clickthrough rates. Clickthroughs keep within their cost-per-lead targets. The are an important first step in getting content challenge with cost per lead is that it generally viewed and absorbed. The key to understand- does not follow the click through to conver- ing their value, however, is to not measure sion and cannot show whether one lead them in a vacuum. While it’s important to turned out to be more valuable than another. measure them, it’s an accepted fact that By using predictive modeling to source high clickthroughs don’t equal conversions, leads that mimic best and most growable and smart marketers know not to stop there. customers, companies can adjust cost per Clickthroughs are just one part of a holistic lead—and their lead nurturing program— approach to understanding your prospect’s accordingly, based on a projected LTV. Rate & Review total value by including where your prospect Average deal size. Across the board, the Related Research goes on your website, time spent on your site, economic downturn has affected average deal whether they register or make a purchase, and Tell a Friend size. But companies that utilized their existing whether they forward your email to others. customer data to create relevant and timely Note: This document is a licensed version. It Lead volume in the sales pipeline. Hitting offers and content for most valuable prospects does not include the Vendor Landscape section. To download the full report, or to view related sales targets requires a constant flow of have likely suffered the least and remained research, please visit www.gleanster.com. sales leads, and understanding the current the most stable. Some have even continued sales pipeline volume, as compared to past to grow and sustain profitability despite the Entire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
10.
Gleansight: Lead Nurturing
10 53% 56% 60% Commonly Used “It all starts with Metrics* a clearly defined taxonomy for lead New customer acquisition rate Average deal size Cost per lead stages and align- * According to Top Performers, based on 279 Qualified Survey Responses to the Q3 2010 Gleanster survey on Lead Nurturing recession. To increase average deal size, work status and feed the content engine with that ment with the to understand, predict and address prospects’ wants and needs even further. And remember information, as well as content that solves the problems of the most valuable customers. sales team. You that the customer base is a moving target. Continue to regularly refresh and analyze Landing page activity. The landing page can’t nurture un- should drive visitors in a natural pattern from data about customers and prospects. the top (or broader) information down toward New customer acquisition rate. A percent- the shopping cart, registration or conversion til you know how age of the customer base will be lost every year to natural erosion (moved away; marriage; point. If visitors are jumping from place to place in an unnatural order, or moving in a pattern you want to treat the company is acquired; the company goes out of business; a new competitor in the other than the preferred one, rearrange your landing page to match their behavior, putting different types of marketplace). Without proactive replace- ment, one could lose an entire customer links or teasers to the most popular informa- tion at the top. Ensure that the landing page, leads.” base in just a few years. By comparing the rate of new customer acquisition against registration page and shopping cart are clear and easy to use. Any flaw in site functionality the attrition rate, one can determine whether and usability can cause a lower conversion. customers are being acquired as fast or Doug Sechrist, VP of Demand Return on marketing investments. To justify Marketing, Taleo faster than they are being lost. Coupled with your lead nurturing program’s existence, monitoring the new customer acquisition measure its contribution to the sales pipeline rate, one should track and proactively work and to conversions. Use an automated, to keep customers who are attrition risks. closed-loop system where data can easily Ratio of sales-ready leads to total leads. be exchanged between sales and marketing The ratio of sales-ready leads to total leads and prospects can be tracked through the will help determine if: 1) if the right media, sites lead generation lifecycle. By automating this or networks for reaching the target audience process, you will be able to measure your are being used, and if the right targeting return on marketing investment as often parameters are being used; and 2) if the lead- as necessary in real time. Well-aligned nurturing program is working as effectively organizations use a closed-loop measure- and efficiently as it could be. To increase ment process to see what messaging is the ratio of sales-ready leads to total leads, converting buyers at different phases, as well continually analyze the type of content that as the points where leads may be leaking is driving the most conversion to sales-ready from the sales and marketing funnel. 29% 43% 50%12% ** Less Rate & Review Commonly Related Research Used Tell a Friend Metrics* Note: This document is a licensed version. It Return on Landing page Ratio of sales-ready does not include the Vendor Landscape section. marketing investments activity leads to total leads To download the full report, or to view related research, please visit www.gleanster.com. * According to Top Performers, based on 279 Qualified Survey Responses to the Q3 2010 Gleanster survey on Lead Nurturing ** According to Everyone Else, shown only when a notable disparity occurs relative to Top Performers Entire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
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