Sales Kaizen Event · leads over time • We often run experiments to improve lead generation • We correlate numeric measures of lead quality with deal closes • We provide distinct

How to Generate and Sustain a 25% Increase in Sales Opportunities in 90 Days or Less

February 05, 2009Brian Carroll

Michael Webb

Sales and Marketing Kaizen Teleconference Series

2/5/2009 2009 © Copyright Sales Performance Consultants, Inc. 2

Objectives of this Webinar Series

Identify undesirable results around lead generation

Discover the causes of these poor results

Change the causes to produce desired results

Illustrate how sales kaizen

• Ensures you have identified the right cause

• Engages the team to improve the process and result

• Instills continuous improvement


Sales Kaizen Approach

A concentrated way of • Finding the right problem

• Engaging the right people

• Making the right changes the first time

• To achieve desired results quickly

• Sustain improvements permanently

Kaizen events• Quick start – 90 days or less

• Improve results by improving the process

• Establish PDCA approach


Our Guest: Brian Carroll

Author of

• “Lead Generation for the Complex Sale” (McGraw Hill, 2006)

Quoted in

• Business Week, BtoB Magazine, Selling Power, The Wall Street Journal, CMO Magazine, Target Marketing, Inc. magazine, Marketing News, DM News, Marketing Profs, MarketingSherpa, Software CEO, and Rain Today.

Blog: B2B Lead Generation Blog

• Named the Best B-to-B Marketing Blog by MarketingSherpareaders and is read by thousands each week.

CEO of InTouch (www.startwithalead.com)

Helps companies increase sales by optimizing their lead nurturing process. Through a combination of unique relationship-building practices, technology tools, content development and sophisticated call center representatives, InTouch helps companies identify, manage and escalate sales leads from inception to eventual sale by streamlining the lead management to sales process.

http://www.startwithalead.com


Agenda

• Define the “undesirable results” associated with lead generation

• Assess your company’s lead generation performance

• Learn how to identify causes of lead generation problems and fix them

• Learn to set up a fast attack (sales kaizen event) to increase quantity and quality of leads

• Identify the most fruitful issues around lead generation

• Review case example• Q&A around lead generation campaigns


Typical Undesirable Lead Generation Results

Industry data

• 80 % of leads are squandered (industry data)

Confusion

• Confusion around language “leads vs opportunities”

• Spending money on lead generation without increasing revenues

• Conflict between marketing and selling departments

• Salespeople spending time unproductively


Survey: Top Challenges With Leads

Source: MarketingSherpa Business Technology Marketing Benchmark Guide 2007-2008

Research: Marketers report that their top challenges include lead generation, lead nurturing, and keeping track of what happens with the leads.

These challenges align closely with steps we’ll cover today in the case study and playbook….


Audience Question

Which of these steps of the lead management process is your top challenge?

Audience polling results: 594 Total Responses

14%

5%

17%

17%

47%

Closing the loop withSales

Managing hand-off toSales

Nurturing early stageleads

Qualifying leads

Generating leads


SPC Lead Generation Survey Results

How good is your company at finding prospects?

• We get increasingly more qualified leads over time

• We often run experiments to improve lead generation

• We correlate numeric measures of lead quality with deal closes

• We provide distinct value to prospects early in the sales cycle

• Our nurturing process for future leads keeps competition out

• Our salespeople give immediate attention to the leads we provide

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Dual Sales Funnels

A process is required to generate leads, and to close sales

Customers

Sales ReadyLeads

Lead Generation: Teleprospecting, Events, Email Campaigns, Podcasts, Website, etc

Qualify Inquiries (Level 1)

Nurture (Level 2)

Return Prospects

For Reengagement

Not a fit

CRM

Sales Generated Leads

Existing Clients

Measure ROI

Sales Pursuit

Opportunities

Customers

Sales Pipeline

Huddles Closed Loop

Feedback & Reporting

Marketing Pipeline

Distribute and Handoff


Potential Causes of Our Lead Problem

Spending moneyon lead generationwithout increasingrevenue

Spending moneyon lead generationwithout increasingrevenue

Sales/Marketing Process(Methods)

Systems & Tools(Machines)

Measures

Market & Customers(Environment)

People(Men & Women)

No definition of “lead”

No process happens when someone pushes “submit”

Salespeople lack skills

Salespeople not closing the loop

Salespeople lack time

Leads “not qualified”

Early leads handed off –not nurtured

No clear hand-off process

No accountability

Lack of marketing system

Sales and marketing databases not integrated

The need for our offer varies in different market segments

The need for our offer varies in different market segments

No means of nurturing relationships for future return

Why?

Sales kaizen cause and effect diagram (fishbone diagram) Ishikawa diagram


How do we get organized to do a fast attack on sales lead problems?


Launch a Sales Kaizen Event

Sponsor team is created (spontaneously, or by assignment)

Sponsor team develops theme, selects leader and facilitator

Above group jointly develops kaizen team objective & project

frame

Core team leader recommends core team members

Core team catch-balls project frame with sponsors and team

leader

Go!


Sales Kaizen Project Frame – Page 1

Expected Outcomes:

Boundaries:

Objective:

Improvement Theme: Establish an effective lead generation process

Improve quantity of qualified leads in the sales funnel

To improve the number of new, qualified leads salespeople are pursuing by March 31. These will be leads salespeople did not create on their own, and leads that salespeople will readily accept as qualifiedopportunities.

There will be a “marketing funnel” with measurable flow of names of prospects opting-in and engaging with our material. There will be a split-test program for proving the best offers. Account executives will have had input to the information and the offers. Account executives will have good feedback on the new leads they have received.

US Market only. One product line, one specific market segment for first attempt.Low cost outside systems only, no major systems investments.We cannot exceed our existing marketing budget.


Sales Kaizen Project Frame – Page 2

Team Assignments:

Project Plan:

Results Measures:

Stage

Quantity of opt-ins per day/weekAmount of information secured about opt-insDistinguishing between sales ready and leads requiring nurturingSalespeople’s quality scores of new leadsClose ratio of new leads generated in this campaign

Sched Description

Pre-Event Jan 30 Select product line, target market segment, gather initial VOC, rough out customer journey, identify sales qualification and other input

During-Event Feb1-5 Brainstorm potential offers, test with prospects and salespeople, develop

rough cut and automation requirementsPost-Event

Feb 5 –Mar 31

Deploy lead generation via PPC and mail campaign, survey customer’s for response, survey salespeople for effectiveness

Notes Probably will need to try two or three iterations of whitepaper offers before we get one with good results.

Marketing Jill Smith

Product management Frank Kern

Sales Beth Schneider

IT / Website Sam Clemons


When planning a kaizen event focused on generating opportunities, what are the most fruitful questions to ask?

• How to identify the best target market?

• How to develop offers and productive interactions?

• How to determine the best media?


How To Identify the Best Target Market?

Determine the ideal customer profile

• Most profitable, easiest to do business with, etc.

– This will be a market segment – not everyone

• How did the sale begin?

– What drove the need?

• Who was involved?

– What were their pains/motives?

• What stages did they go through?


How To Develop Offers / Interactions?

Attraction

• When they perceive the problem, what do people look for?

• Information helpful, problem focused content is king

• Make offers of information, education marketing

Urgency / qualification vs nurturing

• What compelling events might be happening?

• How can you help them with this?


How to Determine Media

Internet, PPC, SEO, etc.

• Start with Internet marketing

• Fulfillment, landing pages, offers, nurturing

Direct mail, trade advertizing

• Once the argument works, move it to a different medium

Call Center

•

•


InTouch Case Study

§ Simplifies IT management of desktops, servers; offers real-time change management capabilities

§ $80 million annual revenue

§ 100 Channel partners

§ 27 Salespeople, 10 Marketers

Client Company Overview

Let’s look at some of the problems the company faced….

What Happens in a Typical Project?


§ Generated more activity, but same results

§ Marketing felt leads went into “black hole”

§ < 2% lead-to-sale pipeline conversion rate

§ Sales did not close the loop on every lead

§ Unable to consistently measure ROI

Problems Identified

Do any of these lead management issues sound familiar?

InTouch Case Study


§ Lack of consensus – what is a “lead” anyway?

§ Leads weren’t being qualified and prioritized

§ Early stage leads weren’t nurtured

§ Sales team didn’t pursue majority of leads

§ No clear hand-off process

§ No accountability process or “huddles”

Issues We Addressed

What results did we achieve by rectifying these issues?

InTouch Case Study


InTouch Lead Management Playbook

1. Refine universal lead definition of “sales ready”

2. Qualify leads based on universal lead definition

3. Nurture early stage leads until “sales ready”

4. Define hand-off process from marketing to sales

5. Close the loop via Sales and Marketing “huddles”

Five Key Steps

These five steps are the foundation of our closed loop lead management system. Let’s break down these steps….


Inquiries with ULD vs. WithoutStep 1: Refine Universal Lead Definition

Survey: Lead Rate Comparison – Average vs. Best Practices

Source: MarketingSherpa B-to-B Lead Generation Handbook

What you need to understand: Higher standards on qualifying inquiries to into leads positively impacts conversion with lead-to-pipeline and lead-to-sale.


Step 2: Qualify Leads With ULD

Partner’s Lead to Sales Pipeline Rate Opportunity Rate

Before: No lead qualification or ULD 4%

After: Lead qualification with ULD 12%

Relative Difference: 200%

What you need to understand: Leads qualified against a universal lead definition had a 200% higher lead-to-opportunity conversion rate.

Qualification With ULD vs. Without


No Nurturing vs. With Nurturing

Step 3: Nurture Early Stage Leads

Converted to Sales Ready Leads MonthlyLead Vol.

Before: No lead nurturing (1 touch) 16

After: With nurturing (3+ touches) 76

Relative Difference: 375%

What you need to understand: Holding leads back and nurturing them with relevant communication and multiple touches increased conversion to sales ready leads by 375% in 8 months.


Results and Impact Of The “Playbook”§ Now closing the loop on every “sales ready” lead

§ Cost per sales ready lead: $465 (decreased by 57%)

§ Cost per opportunity: $4,611

§ 375% growth in sales ready leads

§ 200% growth in lead-to-sales-pipeline rate

§ $4.9 million in additional sales pipeline growth in 8 months§ Results achieved without significant budget increase

Key Point: Cost-per-opportunity is a more valuable ROI indicator than cost-per-lead because it tracks viable sales opportunities – not just leads that drive more activity.

If you’re just measuring CPL and not CPO, you won’t know if your leads are actually helping your sales team sell more.

Key Point: Cost-per-opportunity is a more valuable ROI indicator than cost-per-lead because it tracks viable sales opportunities – not just leads that drive more activity.

If you’re just measuring CPL and not CPO, you won’t know if your leads are actually helping your sales team sell more.

InTouch Case Study


Offers

Brian: http://www.startwithalead.com (bottom)

Mike: How to Conduct a Sales Kaizen Event

Implementation Guidebook

3 Ring binder format

Special 2 week promo, members only $323 (regularly $470)

http://www.salesperformance.com/products/sales-kaizen-guidebook-professional

http://www.startwithalead.com

http://www.salesperformance.com/products/sales-kaizen


Questions & Answers

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Next Educational Event

Date Result To be Fixed “Little” Kaizen Theme DescriptionJan 08 Low rate of Gain access to Jill Konrath, author

new account meetings big companies “Selling to Big Companies”

Feb 05 Too few leads, poor Developing lead Brian Carroll, author “Leadquality leads generation programs Generation for the Complex Sale”

Feb 12 Variable, unreliable How to Design Michael Webb, sales process a Sales Process Robert Ferguson

Feb 19 Low conversion, How to Define Michael Webb, wrong customers Qualification Criteria Robert Ferguson

Mar 05 High selling cost, Helping salespeople Brian Dietmeyer, Think, Inc.weak margin negotiate effectively Author, “Rational Negotiation”

Mar 19 Low conversion, margin, How to Map Michael Webb, perception of value Customer Value Robert Ferguson

Apr 02 High lead cost, Implementing lead Jim Cecil, Eric Rabinowitzlead leakage nurturing programs “Nurture Marketing”Institute

Apr 23 Weak, unreliable How to Measure Sales Production Michael Webb, process metrics and Continuously Improve Results Robert Ferguson

May 07 High / uncontrollable Improve Your Sales Ralph Jeswald, CPA process cost Process Cost expert in sales process costing

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Documents

Sales Kaizen Event · leads over time • We often run experiments to improve lead generation • We correlate numeric measures of lead quality with deal closes • We provide distinct