web lead eval and scoring study 04 07 06 FINAL · – Identify how specific content generates Web leads at various stages of the sales cycle – Debunk myths and theories around what

Web Lead Evaluation and Scoring Study

The Artemis Group and KnowledgeStorm, Inc.

March 2006

2Copyright 2005 KnowledgeStorm, Inc. All rights reserved.

Increased Marketing ROI


In This Report

• About This Study

• Study Demographics

• Key Findings

• Conclusions

• About KnowledgeStorm

• Other Thought-Leadership Initiatives from KnowledgeStorm




About The Web Lead Evaluation and Scoring Study

• Business Objectives:

– Identify the characteristics of Web leads that maximize sales

opportunities

– Identify how specific content generates Web leads at various stages

of the sales cycle

– Debunk myths and theories around what makes a “good” or a

“qualified” sales lead

– Help KnowledgeStorm customers (B2B technology vendors) continue

to enhance their lead follow-up strategies around their online

marketing campaigns




More About This Study…

• Methodology:

KnowledgeStorm and The Artemis Group, an independent data analytics

firm, conducted an in-depth analysis of 15,452 Web leads generated by

KnowledgeStorm.

– Conducted on Web leads gathered from June – December 2005

– Data was gathered through phone contact with the Web leads (consisting of business

and IT professionals researching technology solutions and topics online)

– Data set included demographics, activities, behaviors, calling history and call outcomes

of Web leads

– All of the Web leads were North American and were generated for technology vendors

on KnowledgeStorm’s Lead Assessment Service

• To our knowledge, this is the largest study of business-to-business

technology Web leads ever conducted.




Study Demographics

2001+31%

501 to 200013%101 to 500

15%

21 to 10015%

1 to 2026%

• Company Size by Employees




Study Demographics

CEO, President, Owner, Principal, Partner 12.4%CFO, Controller, Treasurer 1.3%CIO, CSO, CTO 3.0%Consultant, Specialist 11.2%Customer Service Professional 1.2%Engineering Professional 3.9%Executive VP, General Manager 3.0%Financial/Accouting Professional 2.3%Human Resources Professional 1.2%Industry Analyst 1.1%Investment Professional, VC 0.2%IS/Technology Professional 29.4%Manufacturing/Production/Operations 2.1%Marketing/Advertising Professional 4.2%Media/Press Member 0.2%Other (not listed) 8.9%Privacy Officer 0.2%Product Development/R&D Professional 3.1%Purchasing Professional 1.2%Sales Professional 3.6%Student 1.2%VP, General Business Professional 5.2%

100.0%

• Job Title/Role




Study Demographics

Authorize Purchases for multiple

departments9%

Authorize Purchases9%

Select Providers or Vendors

12%

Recommend Purchase

19%

Conduct detailed evaluation

11%

Determine needs, gather requirements

20%

Research Only20%

• Purchasing Involvement




Study Demographics Aerospace and Aviation 1.9%Agriculture and Forestry 0.3%Automotive 1.3%Banking and Finance 7.8%Computers and Technology 27.5%Education and Training 3.5%Engineering, Construction and Scientific 2.2%Entertainment, Travel and Hospitality 0.7%Food and Beverage 1.0%Government and Public Administration 5.5%Healthcare 7.0%Insurance 3.9%Legal Solutions 0.7%Manufacturing Industries 7.2%Media and Information Publishing 1.7%Natural Resources 0.3%Nonprofit Organizations and Trade Associations 1.6%Other Industry Specific (not listed) 8.3%Pharmaceutical 1.4%Professional, Scientific and Technical Services 5.1%Real Estate 1.0%Retail and Wholesale 2.8%Telecommunications 4.1%Textiles and Apparel 0.2%Transportation and Shipping 1.3%Utilities 1.6%

100.0%

• Industry




• Web leads identifying themselves as “Recommenders” produce a higher percentage of qualified sales prospects than leads claiming they “Authorize Purchases”

• Functional or professional titles edged out C-level and executive titles by several percentage points when measuring the number of leads with projects in place or budgets established

• Pairing product content with research increases the likelihood of positive lead outcomes by 50% (the best Web lead generation results are achieved with a balance of research and product content)

• Product-related content generates 2x the amount of Web leads that are further in the buying cycle compared to white papers and other research content

• With white papers and other research assets, minor details such as title choice and messaging have a major impact on quality of Web leads and outcomes

• Reaching a Web lead within 4 business days significantly increases the likelihood of that lead becoming a sales prospect

Key Findings Summary




• “Recommenders” produce the highest percentage of Web leads that are further along in the buying cycle

– Web leads stating their acquisition involvement as “Recommend Purchase”

edged out all other groups including “Select Providers” and “Authorize

Purchases”

– Good content will make it to the C-level and other executives through the

recommenders

• Don’t dismiss the power of the “recommender” in the decision-making

process; “recommenders” have access to the C-level executives that

technology vendors covet

• Technology vendors need to reach out to the people who are actually

doing the research on different products, educating others and making

recommendations — this group is quicker to respond and it is easier to

gauge their interest level.

Key Findings




Key Findings

• Functional or professional titles, on average, become the best prospects—even more so than C-level or executive titles

– Functional or professional titles such as Operations, HR professional,

IS/Tech Professional and Finance/Accounting professional outscored C-level

and executive titles

• This is the group of people tasked with finding out if the solution can

really do what the company needs it to do

• They are critical as they will “recommend” a solution based on their

experience with it

• Technology vendors cannot rely solely on past relationships with a

company or its subsidiaries to get a recommendation for their solutions;

vendors need to market and sell to everyone in an organization’s

decision network




Key Findings

• Content details, such as title, have major impact on Web lead outcomes.

– Qualitative analysis confirmed that content titles and approaches

significantly impacted results.

• For example, a white paper using a title such as “News and Views…”

produced far fewer Web leads ready to engage in discussions with the

vendor versus a white paper with a call-to-action title such as “Creating

More Business Value with…”

• Web leads further along in the buying cycle often come from advanced

keyword searches because the technology buyer knows exactly what

solutions and information they are looking for

• It is important to evaluate the effectiveness of online content early in a

campaign, as well as, throughout a campaign, in order to maximize ROI




• Reaching a Web lead within 4 business days significantly increases the likelihood of that lead becoming a sales prospect

– Web leads showed high levels of engagement when reached within 4 business

days

– Web leads need timely lead follow-up because they go cold more quickly than

other types of leads — this is due to the immediacy of information exchange

through online vehicles and user expectations

– Timely lead follow-up translates into a positive brand association with Web

leads and the technology vendor’s company

– After 7 business days, the opportunity to engage with a Web lead when

initially reached dropped 20% — a similar finding as reported in

KnowledgeStorm’s previous Web lead study with the Artemis Group detailed

in the whitepaper The Fine Art of Lead Follow Up

Key Findings




Key Findings

• Technology vendors with a good balance of product (or service) specific content as well as educational content (such as white papers andWebcasts) generally produce the best results

– Top vendors in the study (those with the most Web leads further along in the buying cycle) had ratios of product-specific content to educational content that were 1:1 and higher

– Technology vendors use educational content to educate and evangelize their products as well as build brand awareness and influence the buyer’s “short list” of chosen vendors.

– Audience attention is different at the various stages of the buying cycle; it is important to have the right type of content available for all stages to make sure buyers have access to the right information, at the right time

• Educational content engages buyers at the initial phases of the buying cycle as well as throughout long buying cycles

• Product-specific content facilitates buyers further along in the buying cycle




Key Findings

• Product-specific content generates Web leads that are further in the buying cycle

– Product-specific content, as compared to educational content,

generated 2x the amount of Web leads that were ‘defining

requirements’ or ‘had a specific project in place’

– Technology buyers viewing solution-specific content often know more

about the parameters of their projects, including budgets and timelines




Conclusions

• While marketers typically target the C-suite and under-value professional and functional titles, the reality is that the latter have a better chance of becoming qualified prospects and sales opportunities.

• Another common pitfall in lead evaluation involves the priority given to leads claiming ultimate purchase authority versus some level of purchase involvement. Our study reveals that Web leadsclaiming to be “recommenders” in the purchase process are more often converted to qualified sales opportunities than those claiming they “authorize purchases.”

• An effective lead scoring process should place the most weight on lead behaviors, engagement time and the content engaging the lead. Lead demographics should be a secondary data point.




Conclusions

• Not all content is created equal. Leads created from one content asset or event should not be valued or scored the same as leads created from a totally different asset. Quality and outcomes ofleads need to be tracked regularly for all lead generation assets.

• Quality research content, such as a professionally written whitepaper or analyst report, can be a very effective lead generation tool when properly positioned. However, programs that combine research with well written, detailed product information consistently produces more qualified sales opportunities.

• Immediate, personal communication with Web leads is critical forachieving positive results. Initial follow-up activities occurring beyond one week automatically lower chances of successful contact by 20%.




About KnowledgeStorm

• KnowledgeStorm is the Internet’s top-ranked search resource for

technology solutions and information.

– KnowledgeStorm provides vendors with the most opportunities to

reach business and technology buyers on the Internet and to

convert them into Web leads.

– KnowledgeStorm makes it fast and easy for business and IT

professionals to find the information they need as they research

technology solutions and topics on the Internet.




The KnowledgeStorm Process

• KnowledgeStorm is an online site that aggregates content from B2B technology

vendors. This content includes white papers, Webcasts as well as information about

specific technology product and service offerings.

• When KnowledgeStorm users (business and IT professionals) are researching

technology solutions and topics on the Internet they can search by specific

keywords or browse by topic seeing a list of relevant search results.

– When the user chooses to view specific content on KnowledgeStorm, they

are asked to register.

– Once the user has registered, they become a Web lead.

– Web leads flow into KnowledgeStorm’s lead management system, where

technology vendors can have immediate access to them.

– KnowledgeStorm Lead Assessment is an optional service where initial

contact with the Web lead is made by KnowledgeStorm on behalf of the

technology vendor.




Other KnowledgeStorm Thought Leadership Initiatives

• Lead Generation and Management: Online Strategies and Best Practices -Webcast presenting research from SiriusDecisions, Summer 2004

• The Fine Art of Lead Follow Up - white paper with research from Sirius Decisions and lead

analysis by The Artemis Group, June 2005

• IT Executive Outlook: Key Tactics to Improve Your Marketing Results -Webcast and analyst report from MarketingSherpa, Fall 2005

• Define What’s Valued Online - survey conducted with the CMO Council, Fall 2005

• How Savvy Technology Marketers Can Improve Results with an Intelligent

Content Strategy - whitepaper, October 2005

• What Technology Buyers Want You to Know About Online Content – whitepaper,

December 2005

• 2006 Email Trends: B2B Data and Tactics to Improve Your Email Results -Webcast in conjunction with MarketingSherpa survey data, January 2006

• Search Engine Marketing: Maximizing Results for Technology Vendors -whitepaper, February 2006

For more information, please contact:Amber Reed

Public Relations ManagerKnowledgeStorm

[email protected]

web lead eval and scoring study 04 07 06 FINAL · – Identify how specific content generates Web leads at various stages of the sales cycle – Debunk myths and theories around what

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