Research from Harvard, MIT, Pinpoints Hard Lead Conversion Lessons With Easy Solutions

Research from Harvard, MIT Pinpoints Hard Lead Conversion Lessons with Easy Solutions

Dave Elkington CEO and Chairman

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Today’s speaker

David Elkington has a rich background in technology, venture capital and corporate development. As CEO and Chairman, he continues to lead InsideSales.com to consecutive 50-100% annual growth starting with the company’s inception in 2004. Mr. Elkington has been active in the evolution and definition of the inside sales industry and speaks regularly. He is the co-author of the groundbreaking Lead Response industry study, has co-authored Harvard Business Review, Kellogg School of Management and many other academic and industry research articles. He is recognized both locally and nationally as a leader and entrepreneur in the cloud computing and remote selling movements.

@TheSalesInsider

Dave Elkington CEO and Chairman, InsideSales.com

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InsideSales.com is a lead management and sales automation cloud solution provider with over 700 clients. The InsideSales.com Research and Analytics Division tracks statistical data on aggregated de-identified sales activities:

• Over 80 Million North American Profiles. • Over 2 Billion sales and marketing touches (calls, emails, faxes, voice messages, etc.) • Over 30 Research studies published.

Research Publications and Partners:

The Background:

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Revolution in sales

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The New Inside Sales

Person

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VCs require inside sales departments

Respond Immediately

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• Source: 2007 Original Kellogg/MIT Study, Dr. James Oldroyd

Response time

Contact rates significantly drop off after 5 minutes

Contact Rate 100x decrease from 5 min to 30 min

Qualification Rate 21x decrease from 5 min to 30 min

Contacted Leads

Qualified Leads

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Omniture Summit 2008 526 54.9% 54:06 1.74

Dreamforce 2008 124 53.2% 44:31 1.14

Dreamforce 2009 2,875 39.9% 41:07 1.07

Cloudforce 2010 472 30.7% 49:49 1.32

Leads Con East 2010 57 35.1% 56:05 2.00

AA-ISP 2011 159 54.7% 40:24 2.60

• Source: InsideSales.com Response Analysis Studies

ResponseAuditTM

44:14

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• Source: InsideSales.com Response Analysis Studies

Average non-responders

There was no response from

35% to 63% of companies!

Average 43% didn’t respond

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Sales go to the first responder

For inquiries submitted on the web

78% of sales go to the first company to respond!

Source: Leads 360

Respond Persistently

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Omniture Summit 2008 526 54.9% 54:06 1.74

Dreamforce 2008 124 53.2% 44:31 1.14

Dreamforce 2009 2,875 39.9% 41:07 1.07

Cloudforce 2010 472 30.7% 49:49 1.32

Leads Con East 2010 57 35.1% 56:05 2.00

AA-ISP 2011 159 54.7% 40:24 2.60

• Source: InsideSales.com Response Analysis Studies

ResponseAuditTM

1.29

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• Source: InsideSales.com Internal Study

Percent of sales closed by call attempt

Perfect Research

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• Research rules

• $100k – 50% of time

• $10k – 10% of time

• Tools

• Research

• Predictive analytics

Sales intelligence

Voice Messaging

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30 Sec Message

% of 6 Hr Day

50 Dials/Day 32 Min 8%

100 Dial/Day 1 Hr 4 Min 18%

150 Dials/Day 1 Hr 35 Min 26%

200 Dial/Day 2 Hr 7 Min 35%

250 Dials/Day 2 Hr 38 Min 45%

• Source: InsideSales.com voice-messaging analysis studies

The voice message dilemma

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• Source: InsideSales.com voice-messaging analysis studies

The voice-message dilemma

Harder work =

more wasted time

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• Source: InsideSales.com voice-messaging analysis studies

Voice message call-back rates

Services

3% Call-back rate

Legal

21% Call-back rate

Capture Permissions

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• Source: InsideSales.com internal study

Make Every Call Productive

Capture permission on every non-yes.

15-30% of dials

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• Source: Franklin Covey Study

Turn permissions to contacts

1 rep can generate 7,500 permissions per year!

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• Source: Franklin Covey Study

Turn permissions to contacts

After one year response rates of

.5 – 1% = 37-75/month

Hot Transfer

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• Source: Non-published InsideSales.com study

Appointments drop

No-show rates

25-50%

Direct Dial

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• Source: Vorsight study

Improvement

300%

Associate Average Meetings Per Month (last 3)

% Direct Dial on Contact List

Pete Best 11 51%

Ringo Starr 13 45%

George Harrison 20 76%

Paul McCartney 22 74%

John Lennon 29 87%

George Martin 33 97.6%

Direct dial numbers

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• Source: Vorsight Study

Direct Dial Numbers

List Quality to Appts

5% -> 2.06

y = 0.4114x - 8.1934 R² = 0.9386

0

5

10

15

20

25

30

35

0 20 40 60 80 100 120

Appointment Reminders

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• Source: Non-published InsideSales.com study

Reminders increase held rates

Google or Outlook calendar invites

20% Increase held rates

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• Source: Non-published InsideSales.com study

Reminders increases held rates

4-12 Hour Reminder Call

30% Increase Held Rates

Multi-Media Calling Strategy

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Best days to contact are

Wednesday and Thursday Best times to contact are between 8–9 and 4–5

Fax contact rates up

to 7x better than email

• Source: 2007 MIT Study

More Savvy

• Time of day

• Day of week

• Response type

• Unique media

Local Presence

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Local presence effect

High/Low Range

10%-400% Contact Rate

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Average

60% Contact Rate

Phone - Local presence improvement

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Average

5.1% Improvement on Open Rate

Email - Local presence improvement

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Average

37% Improvement on response rate

Email - Local presence improvement

33% lower negative response rate

Summary and Conclusion

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Easy solutions - key action items

1. Respond Immediately – 5 minutes or less

2. Be Persistent – 8+ call attempts

3. Research time vs. call time – Remember more dials <> more deals

4. Voice Messaging – Leave great voice mail or not at all

5. Get Permission – Gather permissions on every ‘no’

6. Best Processes – Direct dials, hot transfer, reminders

7. Call Smart – 8 a.m. and 4 p.m., Wednesday and Thursday, call then email, mix media

8. Local presence – show local

ResponseAudit – We’ll test your Sales team and show you where to improve. www.ResponseAudit.com - use promo code MECLABS42

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• Dave Elkington

• CEO, InsideSales.com

• delkington@insidesales.com

• (801) 853-4090

My Contact Information

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