Transcript
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Learning Points
Why lead generation is the number one problem facingmost organization and what to do about it
How mySAP CRM can tie the critical elements together tocreate a truly effective lead generation program
Four leading methods for creating a mySAP CRMsolution that delivers qualified leads
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Agenda / Objectives
Explore the challenges involved in lead generation
Discuss the hard ROI for deploying mySAP as a tool togenerate sales lift
Detail how mySAP CRM is helping companies both face
and meet this challenge.
4 leading methods for tying all the pieces together to gainmore lift from your combined efforts.
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Agenda / Objectives
Explore the challenges involved in lead generation
Discuss the hard ROI for deploying mySAP as a tool togenerate sales lift
Detail how mySAP CRM is helping companies both face
and meet this challenge.
4 leading methods for tying all the pieces together to gainmore lift from your combined efforts.
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A mindset shiftMany companies view lead generation as a marketing function, or
the responsibility of the sales force, but true lead generationinvolves marketing, sales, product development, and call
centers as well as field services. Only through the use ofmySAP CRM can a repeatable, integrated marketing strategybe successfully executed.
AIR COVER FOR THE SALES FORCE
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Whats the problem?
Yankee Group Estimates thatbetween 40 80% of newbusiness leads are lost, not
followed up on or otherwisemishandled due to poorcompany processes!
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Top 4 Reasons to focus onLead Generation
Reason #4
0%0%0%0%
10%10%10%10%
20%20%20%20%
30%30%30%30%
40%40%40%40%
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80%80%80%80%
Needs
Needs
Needs
Needs
Improvement
Improvement
Improvement
Improvement
Meets
Meets
Meets
Meets
Expectations
Expectations
Expectations
Expectations
Exceeds
Exceeds
Exceeds
Exceeds
Expectations
Expectations
Expectations
Expectations
Don'tKnow
Don'tKnow
Don'tKnow
Don'tKnow
Because the process stinks
today!
70% of organizations feel
that their ability to
generate leads needs
improvement!
Source: Making Lead Generation Work. CSO Insights. 2007
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Top 4 Reasons to focus onLead Generation
Reason #3
Growing revenues isntgetting any easier!
Deal Sizes are SHRINKING
Sales Cycles Are Longer
Economic Buyer is Unclear
Prospects are better armed
Initial Lead to Sale RatioDeclining Source:Making Lead Generation Work.
CSO Insights. 2007
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Top 4 Reasons to focus onLead Generation?
Reason #2
There has been a steady increase inNO DECISIONS on deals.
Source: Making Lead Generation Work. CSO Insights. 2007
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Top 4 Reasons to focus onLead Generation?
And the # 1 Reason.
Because your sales executives consider this their top priority!
Source: Making Lead Generation Work. CSO Insights. 2007
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What is Lead Generation?
1. Leveraging allapplicable
communicationchannels.
2. Filling the salesfunnel
Suspects (Target Mkts)
Sales Engagement
Opportunities
Wins / Losses
Creation of Lead
Qualified Prospects
Unqualified Prospects
Database Marketing
STR
ATEGIC
MAR
KETINGP
LAN
Mktg Engagement
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.versus Lead Management
1. Execute MarketingCampaigns
2. Get qualified leadsto Reps
3. Nurture andIncubate Cold /Warm Leads
4. Track the dispositionof Leads
Suspects (Target Mkts)
Sales Engagement
Opportunities
Wins / Losses
Creation of Lead
Qualified Prospects
Unqualified Prospects
Database Marketing
STR
ATEGIC
MAR
KETINGP
LAN
Mktg Engagement
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. WinWinS
trategic
BizPlan
Sales Process
Win/LossProgram
Lost/On Hold
Lost/On Hold
TeleW
eb
ResponseQua
lification
InternetInternet
Media/AnalystRelations
Media/AnalystRelations
AdvertisingAdvertising
CollateralMaterials
CollateralMaterials
EventsEvents
Direct MailOnline/Offline
Direct MailOnline/Offline
Telemktg
Inbound/Outbound
TelemktgInbound/
Outbound
Pre-
Pipeline(Cold,Warm,
Hot)
OutsideTarget Market
OutsideTarget Market
D C B A
ContinuousImprovement
ContinuousImprovement
Partners /Distributors
Partners /Distributors
MarketingPlanDevelopment
Communic
ationPlan
Strategic Lead Management Process
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Agenda / Objectives
Explore the challenges involved in lead generation
Discuss the hard ROI for deploying mySAP as a tool togenerate sales lift
Detail how mySAP CRM is helping companies both face
and meet this challenge.
4 leading methods for tying all the pieces together to gainmore lift from your combined efforts.
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Potential ROI
Average Deal Size = $50K
50% Win Rate
$1M Quota
A sales rep would need to have 40 opportunities in their pipeline during the year tomake quota
(40 opportunities X 50% close rate = 20 deals X $50K each = $1M quota attainment).
Now assume a firm invests in optimizing their lead flow, achieves parity with theirpeers, and now has a 55% close rate.
They would close 5% more of the 40 opportunities they pursue, or 2 more deals perrep (40 opportunities X 5%)
With a saleforce of 100 reps the sales force closes 200 extra deals during the quotayear.
The net result of 200 additional deals closing at an average of $50K each wouldbe - gross revenue gains of $10,000,000with the same amount of effort, butpursuing deals with a higher likelihood of closing.
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Benchmark Returns forBest In Class Companies
$108,500 per rep during theirfirst year on quota (based on
$2M quota and 10%improvement in quota ramp-upperformance.)
Percentage of reps making quota
is 9.3% higher Conversion rates of leads to first
calls show an improvement of16.5%
Win rates rise by 7.0% Ramp-up times for new sales
people decrease by over 10%
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Waters Corp - ROI
captured over$800,000from higher
efficiency levels in lead qualification.
response rates from direct mailcampaigns rose by50%.
increased revenue from additionalcampaigns exceeds$120,000.
Significantly reduced mailing and postagecosts.
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Agenda / Objectives
Explore the challenges involved in lead generation
Discuss the hard ROI for deploying mySAP as a tool togenerate sales lift
Detail how mySAP CRM is helping companies both face
and meet this challenge. 4 leading methods for tying all the pieces together to gain
more lift from your combined efforts.
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Lead ManagementLead Management: A combination ofbusiness rules and processesdesigned to quickly and consistently
move leads through the sales funnel,minimizing leakage and maximizingconversion
Lead Management: A combination ofbusiness rules and processesdesigned to quickly and consistently
move leads through the sales funnel,minimizing leakage and maximizingconversion
E-mail sent to target
Target responds andbecomes prospect
Hot lead sentto sales as
MQL
BANT scoring classifies prospectas hot, warm or cold.
Warm lead givendeepening touches
Cold lead given periodicwarming touches to attempt to
reclassify as warm
Sales accepts lead asSQL or sends back to
marketing for deepening
SQL/Opportunity
Marketing
Sales
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What Does Good Lead ManagementLook Like?
Lead generation across all interaction channels
Robust and easy-to-use external list managementtools
Accelerate the process from first interest to sale
Streamline the link between marketing and sales Qualification and dispatching
Collaboration with channel partners
Track the progress of each one through
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Lead Generation Tactics/Tools
Can be used separately orin combination to addressthe key marketingobjectives
Each tactics applicabilityvaries with the campaigngoals and target audience
Tactic selection should bebased on the cost per leadchoosing the most cost-effective tactics to reach agiven marketing goal
-
-
BillboardsWebinars
Trade ShowsNewslettersTeleconferencesEmail Marketing
CatalogsDirect Mail
Vehicle SignageTelemarketing
PlacardsBlogs
In-Store DisplaysPodcastsAlliancesOrganic Search
SponsorshipsPaid Search
Charitable EventsWeb Content
PremiumsSponsorships
SeminarsRadioContestsPublic Relations
Banner AdsRSS
Direct Response CardsSocial Networking
The secret is sequential
integration
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Lead Management in SAP CRM Streamlined process from marketing to sales
Closed loop lead management from initial interest to opportunity todeal
Lead generation across several interaction channels
Dispatch leads to internal employees
Automatic distribution based on defined workflow business rules
Automatic qualification with survey support
Business partners can be managed as leads, customers, opportunities,competitors, partners, etc. at the same time
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Lead Management Process
3rd Party(e.g. ELM)
Web
Sales Pipeline
Lead Qualification
Lead Gatheringand Targeting
Selling,Contracting
Hot
Cold
BA
CD
Customer
Status Process
BusinessPartner
Lead
Opportunity
Warm
Mobile Tele
Analyze,learn, growcustomer
QualifiedLead
QualifiedLead
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Definition of a Lead
A lead is a transaction, not a prospect!
A lead is used to describe, store, update and managethe potential interest of a business partner
(in certain timeframe and for a specific product)
Leads are linked to:Leads are linked to:Leads are linked to:Leads are linked to: Business Partner:
customer or prospect,contact person, channelpartner, sales rep. etc
Organizational Model Activities
Texts
Documents
Basic Lead Information:Basic Lead Information:Basic Lead Information:Basic Lead Information: Status
Origin
Lead Group
Priority
Qualification Level
Campaign
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Lead Management Functions
Multiple Interaction Channels Automated Qualification Rule-Based Distribution Lead Dispatching Web-Based Lead Generation
Lead Partner Management Mass Generation Interactive Forms Lead Surveys Generation of Follow-Up
Activities Lead Analysis
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New in CRM Best Practices
Lean Campaign Management
Inbound Lead Management
Outbound Lead Management
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Inbound Lead Generation
CreateLead
Answering aCustomer Call
QualifiyLead
Transfer Leadto Sales
CreateOpportunity
Identify and Confirma Business Partner
A customer contacts the call center andshows interest in a specific product.
The call center agent creates a lead for thecustomer with this product and forwardsthe lead for further processing to the leadqualifier.
The lead qualifier selects the lead from hisworkflow inbox and qualifies the lead by
evaluating the customer history (customerfact sheet). The qualification process canin addition be supported byquestionnaires.
Once a lead has reached a certain
qualification level (for example, hot), it istransferred to the sales department whereit can be converted into an opportunity.
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Inbound Lead Management
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Outbound Lead GenerationOutbound Lead GenerationOutbound Lead GenerationOutbound Lead Generation
ReleaseCampaign
CreateTarget Group
CreateCampaign
Transfer Target Groupto Channel
Qualify Lead
Transfer Lead to Sales
Create Opportunity
Generate Leads
A target group is created in the SegmentBuilder as a basis for the lead generation.
For the lead generation two alternatives arepossible:
The target group is used within acampaign and the leads are createdautomatically during the campaignexecution.
The leads are generated from the targetgroup via a report.
Subsequently the lead is processed by alead qualifier using the lead questionnaire.
Lead qualification may also be carried outwithout direct customer contact based uponinformation on the business partner.
Once the lead has reached a certainqualification level (for example,hot), it ispassed on to the sales department where itcan be used to create an opportunity.
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Lean Campaign Management
Create overallmarketing plan
Create marketingcampaign
Business partnersegmentation
Campaign Executionvia channel / Open Channel
Campaign Executionvia channel E-mail
Run trade show
Maintain address lists
Run campaignefficiency analysis
Customer segmentation
Marketing calendar
Campaign execution
Personalized E-mails
External list management
Campaign analysis
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Lead Management Analysis
Lost Leads:Provides an overview of the number of lost leads in a particular period and the reasons theloss of the leads.
Historical Evaluation:Compare leads over different intervals (qtrs/yrs) to see if general characteristics in the
processing of leads can be identified for these periods.
Efficiency Reporting:
Analyze the efficiency with which leads are qualified.
Channel Mgmt.: Top-n Lost Leads (Current Year):An analysis of the leads lost by a Channel Manager over the past 12 months (as well as
leads lost by your Channel Partners.)
Channel Analysis:Determine the best channels by which business partners are contacted in the context of a
marketing campaign to compare the success of a given channel.
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Agenda / Objectives
Explore the challenges involved in lead generation
Discuss the hard ROI for deploying mySAP as a tool togenerate sales lift
Detail how mySAP CRM is helping companies both faceand meet this challenge.
4 leading methods for tying all the pieces together to gainmore lift from your combined efforts.
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Properly Qualify &Prioritize Prospects
Properlydefining thecharacteristicsof a goodlead can lead
to much betterprocessesandconsequentlyresults!
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Improve Your Offer
Offers are designed to stimulate
response from a given targetaudience.
The right offer will: Reduce the cost per lead and
marketing
Increase the response rate
Draw a higher qualityrespondent
The premise of an offer is thatto Get Something (e.g.,name and phone number),
we have to Give Somethingof equal value (e.g., white-paper
The premise of an offer is thatto Get Something (e.g.,name and phone number),
we have to Give Somethingof equal value (e.g., white-paper
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Integrate Your Tactics
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Best Practices (long version) Secure cross-enterprise agreement on the definitions of raw leads, suspects,
prospects, and active opportunities.
Document how you handle each class and who is responsible for thoseactivities.
Agree on what metrics you will use to measure effectiveness and how that datawill be collected and analyzed.
Invest in data scrubbing / cleansing so that the data you use for targeting yourprograms is current and accurate.
Implement SAP CRM Lead Management to integrate marketing automation andprogram management, allowing you to manage all aspects of your variouscampaigns; direct/digital mail, events, web site visits, broadcast/print/webadvertising, etc.
Integrate the demand generation system into your existing CRM framework sothat you can easily pass qualified leads on to sales and track thedisposition of those opportunities.
Leverage analytics to determine the effectiveness of each and every programand, based on results, double down on the winning programs and modify orcancel the losers.
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Slap on the forehead
Best Practices
Clearly define your target prospects
Integrate your tactics Track and nurture your current leads
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Key Learnings
The potential payoff for focusing on lead management ishuge.
Your sales and marketing executives are asking for it
Best practices includes developing a roadmap to;
Clearly define your target prospects
Integrate your tactics
Track and nurture your current leads
mySAP CRM 2005+ is ready to handle the job
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For More Information
For more information, discuss our CRM capabilities and howwe will tie our fees to your CRM success.contact;
Pete Martin, Senior Partner
(216) 674-9068pmartin@entrypointconsulting.com
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