Category Archives: Lead generation

Numbers Can Lie

Did you ever play “Telephone” when you were little?  Remember what happened to that whispered message passed through 10 kids and how easily “Strawberry Jam” turned into “I am a banana”? It was funny then.

Research findings, passed via content marketing and social media are a lot like “Telephone” because once a number is repeated often enough, small changes in the interpretation can create a very different story. Even worse, every time something is repeated, it takes on a greater authority – even if it’s questionable to begin with.

Here is a finding from the CEB, MLC Customer Purchase Research Survey, 2011 which is quoted extensively by subject matter experts and in other reports including “The Digital Evolution in B2B Marketing” among others.

It states that:

On average, customers progress nearly 60% of the way through the purchase decision- making process before engaging a sales rep.

This finding – fine tuned in an included chart in the report to show that almost 60 is actually 57% has surfaced, over and over and over in countless discussions and B2B studies. An additional comment about the response distribution indicates an upper limit of 70% so that number shows up quite frequently as well.

  • 57% being close to 60% is frequently represented as two thirds- once it hits 2/3’s  well, that’s  “almost 70%”
  • 70% – well that’s pretty darned close to three quarters, which is almost 80%

I’ve seen all of these numbers passed on as absolute fact.  I’ve also seen it written as 2/3-3/4  of companies have made the decision before calling in the vendor. (Just a little slant on the interpretation – It’s a “Telephone” thing)

But even the original number isn’t telling the whole truth.

In a direct quote from the Digital Evolution in B2B Marketing, about how this number came to be it states:

” To understand the scope of this issue in the B2B context, CEB’s Marketing Leadership Council (MLC) surveyed more than 1,500 customer contacts (decision makers and influencers in a recent major business purchase) for 22 large B2B organizations (spanning all major NAICS categories and 10 industries)….”

1500 contacts involved in a recent major business purchase sounds pretty impressive, but 22 companies?   What that means is the “recent major business purchase” involved an average of 68 decision makers and influencers. (1500/22=68.18)  A distribution chart in the original report clarifies that yes, indeed we are talking about only 22 companies, or a total of 22 purchases.

For 22 major purchases, each involving an average of 68 decision makers and influencers (and I’ll stick my neck out here to also suggest literally millions of dollars) the customers delayed engaging with sales reps until they were 57% through the process. I wouldn’t be at all surprised if the first 50% of the process was about figuring out what each of the obviously many involved departments required- not to mention whose budget would be taking the hit. It’s hardly what I would describe as a “striking finding” – more like a bit of a snore. But look at the fuss that number has caused.

So, for most the the B2B vendors out there who are wondering what to do with your apparently antiquated sales team, may I suggest – “Turn them loose.”

Think of it like this – Does 68 decision makers and millions of dollars look like a representative B2B sale?

More to the point – does it look like one of yours?

Bad execution means poor results

One thing that has always puzzled me in business is that once someone gets good at something, they probably stop doing it.

For instance, (while its not the best practice) successful sales people are often moved up to management where they don’t do any more selling.  Great buyers get promoted so they don’t have to do the buying anymore.

The higher up you move the more likely you are to plan and the less likely you are to actually “do” and while that might be just dandy for career tracking and personal development, it means that the dirty end of the stick- the work- the executions- are handled by the least experienced and sadly often least capable people.

Am I the only one who has a problem with that?

Selling a business service, we make sales calls, hold meetings and promise benefits to Directors and VP’s, but when push comes to shove the actual campaign work is most often executed by a comparatively junior person with precious little oversight.  And that’s what there needs to be more of, oversight and supervision on those seemingly insignificant, but truly deal breaking details.

Ideas are a dime a dozen guys. What separates brilliant from mediocre is all execution.

Stop Throwing Leads Away

Generating quality leads is – according to some very sensible sources- the #1 priority for marketing and with priorities come expenses!  So just how much of your lead generation expense is being tossed out the window when your painfully generated leads don’t get timely follow up?

When research shows that 35-50% of the sales go to the vendor who responds first it makes sense that 61% of B2B marketers will send leads directly to sales.  But,  is your sales team following up on every lead in a timely fashion?  Sadly, probably not and one of the major contributing factors is the difficultly experienced by B2B callers when it comes to reaching leads, responders and even current customers live on the phone.

But, when it comes to:

  • qualifying new leads,
  • staying in touch with current customers  and
  • intelligently deciding which contacts stay with sales and which go to automated nurturing

 

There is no substitute for a live conversation.

  • Email might communicate some features
  • Voicemail can draw attention to your message
  • Downloads and web responses can hint at interest levels

But only a dialogue with someone in your company can INSTANTLY ask and answer the questions to identify which leads should demand your immediate attention.

If you are not talking with every person that your marketing programs are identifying as a lead, then why are you spending the money on lead generation?

There is a low cost, very simple way that Boxpilot can help your callers talk more and dial less. Click here to ask about it.

Stop the Summer Sales Slump

It a sure sign that summer’s here: Sun is shining, birds are chirping, kids are playing, sales are slumping (?!?!?).

What was that? you say.  Sales slumping?  That’s right, 68% of businesses report a drop in sales over the summer months.  Now, I can buy that some of those businesses may actually be seasonal, but 68%?  Surely not.

But if you think about it, summer is full of productivity killing (but certainly fun!) distractions: vacations, beaches, backyards, patios, etc.  And, if productivity is down, sales are sure to follow.

But it doesn’t have to be this way.  As a manager, I’ve been faced with this obstacle myself, and have come up with a few ways to overcome this challenge.

1) Intelligently stream responsibility:

  • Forget about a vacation “out of office” message
  • Make sure people who reach out to you in your absence are handled appropriately, whether that’s with an autoresponder or a live call— delegate a human to make this assessment.

2) Set up a predictable lead nurture program ahead of time for your active pipeline.

  • Work with your marketing department (or services like Boxpilot 🙂 ) to make sure you have a preset contact stream going out.
  • Schedule emails and/or calls with targeted messages to go out on a preset schedule.

3) Keep your cold outreach going out—your funnel will thank you.

  • Work with marketing to have daily calls and emails scheduled so that it’s like you are not gone.
  • People worry about not being there to accept response, but the fact is, response rates are low, and lower still are the number of people who are ready to buy after that first response.
  • Have cold outreach responses fed to a auto responder campaign or a live call (see #1 above).

It may seem beastly to administer, but without it, sales slump.  The best place to start is by having Sales and Marketing sit down together to lay out responsibility.  Utilizing external support from a service provider, may be the best option to solving this problem without headaches—let the 3rd party enable coverage.

Putting effort into building a great system will not only make a difference this summer, but any slump period your business typically has.

 

Blow Me Away

Have I ever told you how much I love telephone prospecting?

I lied.

Yes. It’s good when I make a connection and open the door to an interesting and potentially lucrative new business opportunity and I like to talk to new people. But, let’s be honest. Not a lot of dials end that way.

But for the dials that do end with a connection, I’ve found  it’s very hard to get their attention. Although they might prove to be interested in what you have, there is a natural reflex that promotes a mindless blow-off, even from normally thoughtful people.

Lately, they sound a lot like this:

  • You’ve got the wrong person
  • I’m in a meeting
  • Thought you were my conference call
  • We’ve got that all taken care of
  • I’m too busy to talk, and of course, the perennially popular
  • I have no money for anything

What differentiates a blow off from a genuine objection is that there is no thought behind it, it just comes tripping out of their mouth. To my eternal embarrassment it’s only recently that I’ve realized that most of those people who told me they were in a meeting were lying,. Ditto the conference call dodge.  (No wonder sales people tend to be distrustful skeptics).

I’ve found five things that help to deal with the mindless blow off:

1- Always leave a preplanned voicemail when I don’t connect and follow it up with an email that offers something I hope will be of value and maybe build up a little equity with a contact before we connect.

2. Refer to previously provided information in my opening to both refresh their memory and try and cash in on the equity.

3. In the face of a blow off, address it head on. For example,” I’m in a meeting.” might be immediately met with ” When can I call you?”  It’s surprising how many too-busy-to-talk people were suddenly ready to open up the conversation with ” Well, what’s this about?”

4. Ignore the blow off and dive in.  This is not my favorite thing to do, but I include it as a possibility because I have so many people do it to me and sometimes it works.

5. Rework your opening line.  You have VERY little time to get someones attention so you have to learn to skip that deadly boring recap of your name, your title, your company, their leading clients, etc, etc.  Why not trying something different – like jumping directly into what you hope to be able to accomplish for someone even before you give them your name? (They don’t care who you are until you have something they want anyway). What are your main points? Now re-order them to get the stuff that your contact will care about upfront.

And finally, while I said there were five points, let’s just throw in number six – Most of us are resistant to change, but if what you are doing right now isn’t working, stop wasting your time (and your financial future- not to mention your mental health) throwing blame onto the market, your leads or the people you’re talking to.

Accept the responsibility  and work with what you can control.  Look at what you’re doing and find ways to improve it for a better result.

 

 

 

 

 

Expectations – A Painful Wake-Up in a Tough Market

Managing a potential customers expectations is only important if you want to make more than a single sale. Buyers beware. The company that promises more than you have a reasonable right to expect might not be looking at anything more than this month’s revenue.

The biggest problem with managing expectations with integrity is that it will easily and often cost you the business, when a realistic expectation is not what your prospect is willing to hear.  The painful part is that money from companies with head-in-the sand expectations goes just as far to pay the bills.

Do you have any idea just how much it hurts when a sales rep is forced to take your lofty expectations and smash them (probably along with the sale) on the jagged rocks of reality?  Do you thank them for it? Probably not. In fact, judging from past experience, you probably give your business to the other guys- the ones who told you that “Absolutely. We can do that.”  But it didn’t work out that way did it?  And now, you’ll just stay away from that type of service because it doesn’t work.

Let me illustrate:

One of our reps recently spoke with a company and here is how it went:

  • Prospect – A Director of Sales & Marketing for a small software company
  • Target – CEO, CFO, CIO/CTO – Manufacturers
  • List – 2,000 names from inbound leads collected within the last two years
  • Contact Success – Average of 3 attempts – one voicemail and two email follow ups -without a response
  • Campaign Objective – Send one voicemail + email message with a free demo offer to the list to revitalize it with budget of $10.00 per response.

To many, this looks like a reasonable expectation, but it’s not. So, what’s wrong with this picture?

1- For starters, how can you tempt a CEO, a CFO and a CIO to leap from basically no interest to responding to a demo offer with the same message? They are, after all, working with some different priorities. As a starting point you must begin with at least three different message approaches.

2- If the list of 2000 names has been collected at an even rate over the past two years, given that the average rate of decay in a B2B list is at least 2% a month. You can expect that 500 of these records are no longer valid.

3- If the combined cost to reach your list of 2000 contacts is $2/name and you (should) already know that only 1,500 are likely even there to reach, at your budgeted cost per lead of $10.00 you need to get 400 responses. Off a maximum base of 1500 names assuming total delivery  that’s a response rate of 26%.

Usually, it is considered that the fault of the numbers lies in the fact that the cost per name is two dollars when the expectation was that it should be around twenty cents, but if you were making those calls with your own sales team, what would they cost you? – Let me give you a hint – @ 50 calls a day that’s 12 weeks of work for one person.

There is a solution, which involves, stripping down the list, focusing on a single audience, building a case over repeated contacts and setting up these prospects to be contacted by a real sales rep to get that demo trial, which is, a significantly higher quality lead than a $10 click-through-to-an-article download.

The sales environment has changed and the smart money is with those who can change their expectations and approaches to match it.

 

 

 

Lead Generation – A 2012 Report from the Bridge Group

I love reports on B2B lead generation and particulary those from the Bridge Group who manage to look at lead generation from both the marketing side and the sales side – and that seems to be rare lately.

I’ve been away and didn’t get through all my emails yesterday, which means that usually I do a slash and burn on my inbox and only keep emails directly relating to my clients – but I’m really glad I held onto Trish Bertuzzi’s message.

Here are just a few of my favorite tidbits from:

Lead Generation Metrics and Compensation Report for B2B Technology Companies

  • In spite of what you might have heard lately – outbound marketing is still where the majority of companies are placing their focus
  • Lead Generation is more likely to report to sales than to marketing, although for the companies who place their activity focus on inbound marketing, the lead gen group is more likely reporting into marketing.
  • I was surprised to read that inbound focussed reps made fewer connection attempts than outbound reps (but they contacted you first!)

There is a lot more of interest in this report.  You can check it out here

2014 B2B Lead Generation Trends from MarketingProfs

According to a recently released Infographic from MarketingProfs, Inside Sales, immediately followed by; Executive Events, Telemarketing and Tradeshows are the four most effective ways to generate B2B Sales Leads.

In spite of the buzz around inbound and social, the old tricks are not old hat. According to MarketingProfs ..“figuring out the most effective methods for generating B2B sales leads should be top of mind for companies looking to connect ROI to their marketing efforts. That will ensure that you’re feeding the sales machine, and, as every marketer knows, that means more support for the equally crucial but longer-term marketing activities that are harder to attach to a quarterly goal.”

Read more: http://www.marketingprofs.com/chirp/2013/12161/b2b-lead-generation-trends-for-2014-whats-hot-and-whats-not#ixzz2rF0Yyff2

The Definitive Guide to Lead Generation

I think you need to be living under a rock not to be familiar with Marketo and so I expect a great number of people will be delighted to hear that they have just released their Definitive Guide to Lead Generation.

I haven’t read the entire report yet. At a hefty 160 pages that might take a while, but I was very gratified to note a section devoted to Telephone Based Lead Generation.

Considering the number of  people who seem to be of a mind that anything ouside of inbound and social marketing is a passé , it really says something when the company who many consider to represent the gold standard in online and inbound marketing so readily acknowledges that the telephone  and specifically telesales   “..provides the human interaction needed to turn your marketing leads into opportunities and sales.”

 

Sales Prospecting and Quality Leads

If there was ever a good reason for marketing and sales to drop the walls and find new and better ways to work together, the priority the market has placed on generating high quality leads would be it.

In some companies it’s possible that sales is completely out the lead generation (better known in sales circles as “prospecting”) game.  But I speculate that organizations with a marketing organization that enjoys the budget and the staffing to be able to keep sales supplied with a stream of high quality leads are few and far between.  And that means that in thousands of companies, sales reps are still hitting the phones and there is one very good thing about that. In spite of the difficulties that they face, when an experienced sales rep does manage to develop a lead for their use, chances are it’s a good one.

What is this statement based on?

A few things actually, all of which revolve around how most sales reps prospect for their own leads

  • Sales reps tend to work from more targeted lists.  They will spend more time calling into those markets that reflect their current customer base – accounts where there is already a better chance of finding a fit. Cherry picking can have its advantages
  • Sales reps call to the titles who they have found in the past are actually involved in the different aspects of the business decision.
  • Sales reps use a one-on-one more personal outreach than the one-to-many approach that marketing teams are required to follow.  As difficult as it might be to register a message these days, are you likely going to pay more attention to an individual calling you or just another mass message from a faceless corporate entity? (Granted, every message has to be a good one)
  • Messages that sales reps leave are more tailored to the companies and the titles that they are reaching out to than many mass marketing messages will ever be.
  • Sales reps tend to reach out in different ways. Email, phone and regular mail feature prominently instead of just more and more low-cost online messaging
  • Sales leads are finally developed though a live dialogue, with some qualification questions and an indication of interest..

So, when you add up all the factors that are contributing to the sales prospecting process, its pretty easy to understand why and to accept, that when a sales rep develops a lead through their own prospecting efforts, it will almost inevitably be a better quality lead than will come from most mass efforts.

The problem of course, is the time and effort it takes for sales people to get those leads and their failure to consistently keep feeding their own sales funnel….which is why the sales/marketing relationship needs some co-operative effort.

….more to come