1. Can’t We All Just Get Along? Bridging the Gap between Sales and Marketing Presented to: Business Marketing Association Pittsburgh Chapter October 16, 2008

3. More than 70% of leads generated are never acted upon because the information does not reach the right person at the right time Typical complaints: Marketing is only concerned about the number of leads, not the quality None of the leads are prioritized. I can’t tell hot leads from cold The leads are at least a month old Typical complaints: Sales only focuses on low- hanging fruit. They don’t follow-up or if they do, it’s six weeks too late They have no interest in new prospects. How do they expect to grow the business!! Source: Gartner Research Marketing Role: Generate Leads Sales Role: Generate Revenue GAP

4. What is Lead Management? The optimal process for collecting, qualifying, nurturing distributing and tracking to close the leads generated as a result of marketing activity

5. Whose Responsibility Is It?

6. Marketing Reaps the Benefits  Increased revenue without increased marketing spend  ROI analysis by marketing program/campaign that can be tracked over time  Marketing becomes viewed as a profit center

7. Getting Started - Collecting  At the core of every lead management effort is the database  Current clients  Former clients  Priority prospects  General or database prospects  “No-way” contacts  Each of these groups is further segmented by market

8. Getting Started - Collecting  With each “new” inquiry, we need to collect whenever possible:  Contact info  Demographic information  Reason for inquiring  Qualifying criteria  Size of opportunity  Timeframe to purchase  Current provider etc.

9. Getting Started - Collecting  We need to capture:  Source (e.g. publication name, issue date, URL, tradeshow, etc.)  Campaign identifier  We need to run the inquirer against the current database to determine:  Current client  Priority target  Former client, etc.

10. Getting Started - Qualifying  Develop qualification criteria by  Market segment (e.g. windows)  Inquirer type (e.g. builder)  Inquirer’s status (e.g. current client)  Identify hot, viable and non-lead criteria  Run through “what if” scenarios  What if we only know project timeframe and no other qualifying information?  What if we only have contact info and know the segment?

11. Having a Checklist Helps

12. Getting Started - Distributing  Define the distribution process  Identify the method of distribution  E-mail/spreadsheet  Web  CRM  Identify the frequency  All leads go out immediately upon qualification  Only hot leads go out immediately, viable leads go out at the end of each day

13. Getting Started - Distributing  Defining the process, continued...  If selling through distribution, identify which channel partners will be receiving the leads  Establish an internal SLA to build credibility with the sales organization  A lead will be qualified and distributed to sales within X days of receipt

14. Getting Started - Tracking  Be realistic about how much info you’ll get back  Give limited status options  Lead is active  Not ready to decide remind me in X weeks  Win  Current client agreed to purchase additional product. Value_______  New client agreed to purchase product. Value _____  Loss  Did not get additional business from current client. Reason?  Did not get new business from prospect. Reason?  Lead is not viable  Information is incorrect  Will not return my calls  Not a decision-maker

15. Getting Started - Tracking  Establish clear escalation procedures if the leads are not responded to. For example:  Day X - lead is sent  If no response in X days lead will be resent with copy to sales manager  If no response in X days, lead will be resent with copy to sales manager and sales exec  Work toward making lead tracking part of sales overall compensation measurement

16. Getting Started - Reporting  Activity by campaign  Inquiries  Hot leads  Viable leads  Non-leads  Sales lead status by campaign  ROI by campaign

17. ROI Calculations  To calculate ROI, you need to know:  Revenue  % of gross margin on revenue  Direct expenses by campaign  Advertising  Agency fees  Placement fees  Tradeshows  Booth space  Agency fees  Travel  ROI Gross margin from activity – direct expense direct expense

18.  The goal is to track performance over time and performance across activities  Do NOT get bogged down in looking at a “snap shot” Reporting

19. Overcoming the Challenges  Commitment from the top to manage the fear of accountability  Real consequences for lack of sales tracking  Long-term focus – be patient  This is a fundamental shift in the way marketing and sales operates in most organizations  Redirect a small % of marketing spend to pay for a lead management program  Ultimately you will generate more ROI

20. Paying for It  A comprehensive lead management program typically runs between 5% - 12% of total marketing spend  A case study – assume a marketing budget of $300,000 Remember the avg. is 30%

21. Paying for It  A case study – assume a marketing budget of $300,000, less 8% ($24,000) for a lead management program. An increase of $1.2 mil

22. Thank you for your time. Susan Allen CEO DataBanque 5500 Brooktree Rd Suite 200 Wexford, PA 15090 412-548-1010 sallen@databanque.com