1. The Lead Lifecycle Imperative Increase revenue contribution with the new marketing model Susan Linman, PresidentMairi Burns, Director of Client Services Dunthorpe Marketing GroupDunthorpe Marketing Group HR.com Virtual Conference March 13, 2012

2. Agenda  Market drivers  Traditional models  Lead Lifecycle model  Planning and strategy considerations  Lead lifecycle process case study  Lifecycle stage overview  Questions

3. Market Drivers  Shift in power between sellers and buyers –Sellers used to control the information Ability to PUSH buyers with information and offers Control the buying process –Buyers now have anonymous access to information Sellers now must PULL buyers by capturing their interest and enticing them with offers Buyers can research, compare and select products and services without sellers having any visibility –Sellers have become more reactive than proactive

4. Market Drivers  Marketing under pressure to contribute to corporate revenue goals –Lead goals –Sales ready lead goals –Conversions to pipeline opportunities –Revenue  Traditionally have been responsible for leads –Metrics based on responses –Online programs based on clicks, bounces, opens, unsubscribes

5. Traditional Marketing Models  Program-focused model –Budget and resources allocated to separate programs (online, email, lead generation, events, collateral, web, advert, PR, etc.) Programs managed as silos Each program has separate goals and little integration –New tool adoption Marketing has been quick to adopt new tools Current hot tool: social Current warm tools: SEO, Adwords, online advert Cold (and not very effective tools): email to 3 rd party lists Still operating with separate goals and little integration

6. Funnel Model is Becoming Obsolete Awareness; Print Advertising Public Relations (Tradeshows) Awareness; Print Advertising Public Relations (Tradeshows) Online-to-Inbound Programs Website Social SEO/Adwords Online Advert Newsletter Sponsorships Online Sponsored Events Online-to-Inbound Programs Website Social SEO/Adwords Online Advert Newsletter Sponsorships Online Sponsored Events Direct Programs Email to 3 rd pty list Email to in-house DB Face-to-Face Events Web Seminars Direct Mail Telemarketing (Tradeshows) Direct Programs Email to 3 rd pty list Email to in-house DB Face-to-Face Events Web Seminars Direct Mail Telemarketing (Tradeshows) Closed Deals…Revenue Interest Consideration Sales Ready Pipeline

7. Funnel Model Has Been Modified Awareness; Print Advertising Public Relations (Tradeshows) Awareness; Print Advertising Public Relations (Tradeshows) Online-to-Inbound Programs Website Social SEO/Adwords Online Advert Newsletter Sponsorships Online Sponsored Events Online-to-Inbound Programs Website Social SEO/Adwords Online Advert Newsletter Sponsorships Online Sponsored Events Direct Programs Email to 3 rd pty list Email to in-house DB Face-to-Face Events Web Seminars Direct Mail Telemarketing (Tradeshows) Direct Programs Email to 3 rd pty list Email to in-house DB Face-to-Face Events Web Seminars Direct Mail Telemarketing (Tradeshows) Closed Deals…Revenue Interest Consideration Sales Ready Pipeline Customer Cross-sell & Up-sell Lead Nurture

8. Is the Funnel Dead?  Funnel is unidirectional –Leads that don’t progress through the funnel are discarded (or ignored) –Growth is based on generating more and more new leads –Sales is given all leads to qualify and close –Does not integrate programs for existing customers –Contacts are not moved back up the funnel  Clear separation in ownership of funnel levels between sales and marketing –Marketing = generate leads –Sales = qualifying and closing deals

9. Is the Funnel Dead?  Funnel is unidirectional –Leads that don’t progress through the funnel are discarded (or ignored) –Growth is based on generating more and more new leads –Sales is given all leads to qualify and close –Does not integrate programs for existing customers –Contacts are not moved back up the funnel  Clear separation in ownership of funnel levels between sales and marketing –Marketing = generate leads –Sales = qualifying and closing deals

10. Lead Lifecycle Model

11. What’s so New about This Model?  These stages aren’t new - most companies are doing most or all of them already  The difference? –You must do all stages all of the time –Your budget needs to spread among all stages –It means possibly discontinuing silo programs that do not contribute to lifecycle conversions and sales ready leads –You must track all leads, control and pull their movement through the stages – Results are measured at each stage – including timing and costs –Investments need to focus on areas not converting to the next stage at the desired rate –You will need tools to implement this model – CRM, marketing automation –Marketing will increase contribution to revenue –Eventually you will require fewer resources to do it!

12. Planning and Strategy: Target Audience  Audience analysis –Identify target audience Companies matching ideal size, industry, geography, etc Contacts matching ideal titles and responsibilities –Match target audience characteristics with current prospect database –What % of targets are included in db? –(Most companies have only 5-25% match rate according to Gartner study) –Make sure data is up to date Data decays at 2-4% per month according to D&B

13. Planning and Strategy: Process Review  Sales process review, such as: –Lead qualification and routing: leads are followed up, qualified and routed to the correct next step –Average time to sale –Customer tracking and communications –Pipeline to close rate  Marketing process review, such as: –Results from all elements of all campaigns and stages (sales readiness and conversions) –Lead speed: monitor leads and measure time to sale –Cost: measure cost/lead, cost/qualified lead, cost/oppty  Sales and marketing integration –Lead definition and scoring –Routing and SLAs for sales and marketing process –Metrics and methodology for reporting results –Data use and updates

14. Planning and Strategy: Conversion Metrics and Results  Marketing executives and departments are given goals measuring contribution to revenue – usually focus on # sales-ready leads (not raw leads)  Evaluate and set specific metrics for conversions from one stage of lead lifecycle to the next stage –New leads generated –Leads qualified and immediately sales ready –Longer term leads qualified and included in nurture program –Nurtured leads converted to sales ready –Average time between stages –Customer upsell and cross sell interest and qualified as sales ready –Other

15. Planning and Strategy: Content and Asset Mapping  Matching content to the lead lifecycle stages –Industry thought leadership through many information sources, to pull inbound leads –Match early messages to contacts that are interested but may not be ready to buy (educational) –Develop compelling content to pull contacts through the stages (motivate contacts with valuable offers and calls to action) –Introducing competitive and product information when contacts are considering several finalists (the short list) –Nurture leads with ongoing information until they’re sales ready –Keep an ongoing dialogue with customers –Ensure effective assets to offer at every stage

16. Case Study: Marketing Process Development Program objectives –Improve conversions at every lifecycle stage –Accelerate activity from stalled leads –Utilize marketing automation to streamline the process and enhance results Scoring, email, PURLS, registration, scheduling, routing, etc. Program strategy – Evaluate positioning and messaging and match to lifecycle levels –Implement a multi-touch lead generation and nurturing program –Score all incoming leads –Move prospects through lifecycle levels Awareness Interest Desire Action –Measuring results Monitor conversions moving D’s  C’s, C’s  B’s, B’s  A’s Monitor conversion timeframe

17. Leads Lifecycle Process Example Awareness Sales Action Interest Desire Qualifying Calls Calls to Stalled Leads Monthly Email Newsletter A Leads C/D Leads B Leads Lead Generation Desire

18. Marketing Automation Fueled the Process Awareness Sales Action SALs -> SQLs Sales activity tracking Pipeline mgmt Interest Email invites to overview webinar Personal registration/landing page (PURL) Ongoing emails to non-registrants Desire Qualifying Calls Call queue Routing Calls to Stalled Leads Call queue Routing Monthly Email Newsletter A Leads C/D Leads B Leads Lead Generation Score/rescore leads Route leads Auto email responses Lead Generation Score/rescore leads Route leads Auto email responses Desire (Nurture programs) Emails with variety of offers Online demos Webinars and F2F workshops PURLS (targeted resources)

19. Leads Lifecycle Process Results Awareness Sales Action Interest (Convert 11% to B leads within 30 days) Desire Qualifying Calls Convert 10.7% to A leads Calls to Stalled Leads Convert 6.7% to A leads Monthly Email Newsletter A Leads C/D Leads B Leads Lead Generation Desire

20. Detailed Process Flow Diagram

21. Lead Lifecycle Model

22. Infrastructure: Marketing Automation  Goal is to leverage MA tools for: –Lead scoring and routing –Campaign delivery and interactions that result in a more sales- ready lead –Seamless and automated lead flow between Marketing and Sales (and back again!)  Growth in availability of tools and ease of use (Marketo, Eloqua, Silverpop, etc.)  Thorough discovery to determine the right tool for you: an expensive decision! Review the different levels available in each tool and the functionality of each.

23. Infrastructure: Marketing Automation Successful implementation requires:  Clearly defined and documented path through the lead lifecycle  Understanding of the drivers and triggers that will move a lead onto the next stage  Agreement between Marketing and Sales: –Lead flow –Definition of each lead status (what characteristics constitute a qualified lead!) –Timing of how long a lead sits at each stage (how long does Sales have to review and accept a Marketing Qualified Lead)  Data that is accurate, up-to-date, and standardized…

24. Lead Lifecycle Stages  Database building  Lead generation  Lead qualifying  Lead nurturing  Lead opportunity / sales pipeline  Customer upsell and cross sell

25. Database Building  Goal to build a database of target companies and contacts to fuel the entire lead lifecycle  Sales and marketing agree on target criteria  Add contacts and companies by appending your current data –Purchase 3 rd party lists –Telemarketing calls to complete contact profiles and add missing companies and titles  Clean contacts and companies currently in your database –Monitor campaign responses –Use surveys to verify data –Telemarketing calls to verify, update and replace data

26. Database Building  Benefits –Ensures marketing investment and efforts focus on most likely buyers –Provides ability to segment audience for specific content, offers and assets –Aligns sales and marketing on priority accounts and contacts (sales will not think decision maker leads from target accounts are “crap”) –Regain control over generating leads and improving conversions by targeting only the accounts and contacts you want to reach

27. Lead Generation  Goal is to stimulate a response from target contacts that will lead to revenue –Deliver the right content to the right person at the right time  Lead generation best practices –Audience segmentation –Relevant content Offers appropriate for each segment Match to early stage in lifecycle –Multiple touch points using varied media It is more important to reach your target audience than to shout to the universe Frequent, regular communication will improve results exponentially –Test all elements

28. Lead Qualifying  Goal to qualify all leads using campaigns and/or telequalifying calls to determine sales readiness and those matching BANT criteria (budget, authority, need, timeframe)  All leads are scored and routed to next steps (made possible by marketing automation)  Leads passed to sales –Currently, 80% of marketers pass raw, unqualified leads to sales teams according to Marketing Sherpa –This is primary cause of poor conversions from leads to pipeline –In lead lifecycle model only sales ready leads are routed to sales

29. Lead Nurturing  Goal to cultivate and convert longer term leads  Lead nurture programs –Effective lead nurturing is a program of multi-touch campaigns motivating action using relevant and compelling offers –Lead nurture is not simply a monthly newsletter, periodic phone call (“you ready to buy yet?”) or a disjointed set of touches  Buying timeframe reality according to a Reed Business study of 40,000 lead responders –11% purchased within three months of inquiring –17% purchased within four to six months –25% purchased within seven to 12 months –47% bought in a year or more

30. Lead Nurturing  Benefits –Companies that excel at lead nurturing generate 50% more sales ready leads at 33% lower cost –Decrease the percent of marketing-generated leads that are ignored by sales from as high as 80% to as low as 25% according to Forrester  Challenges –Difficult to get support (and budget) for campaigns that may not result in revenue for 1 year or longer

31. Customer Upsell and Cross Sell  Goal to generate additional revenue from current clients  Marketing and selling to existing customers is often the most ignored stage in the lifecycle –Marketing no longer owns or communicates with customers –Sales reps have moved onto new deals  The opportunity –80%: average share of new business revenue that comes from existing customers –3x: response rate multiplier for customers –HALF; the number of customer contacts it takes to deliver twice as many closed deals vs. new prospects –5X: the average costs of finding a new customer versus keeping an existing one According to Sirius Decisions

32. Lead Lifecycle Model

33. Thank You  Questions?  Interested in another lead lifecycle webinar? We offer webinars each month on planning, marketing automation and lifecycle stages - www.dunthorpemarketing.com/webinar  Contact us directly: –Susan Linman, slinman@dunthorpemarketing.com –Mairi Burns, mburns@dunthorpemarketing.com  Please contact us if we can help you with lead lifecycle strategy and planning or developing and executing campaigns for any of the lifecycle stages  We have extensive experience with HR industry clients: CareerBuilder, Kronos, AIRS, Monster/HotJobs, ADP, Compli, EBIX Health/A.D.A.M., MME Dunthorpe Marketing Group, Inc. 8825 SE 11 th Avenue, Suite 100 Portland, OR 97202 503.236.4242 www.dunthorpemarketing.com