B2B Sales & Marketing Blog

The tail that wags the dog.

Any military commander will tell you that intelligence is probably the most significantly important tool they have when developing a winning strategy. Good intelligence helps, bad intelligence doesn’t.

Interestingly enough when we look at Marketing and Sales groups it is seldom Sales (the foot soldiers) who understand the value of business intelligence and how it can contribute to successful selling.

As a group Marketing certainly does … but in my experience they rarely make effective use of the valuable information they have at their fingertips.

Too few companies are willing to make a specific, sizeable investment in gathering business intelligence as a strategic tool in their sales and marketing arsenals.

Contrary to that lackadaisical attitude we at eti take the business of intelligence gathering very seriously.  We have long learned that there is always an opportunity to garner something of value during every business conversation.

We have also learned that such business information (intelligence) can be a key element in our success in the initial task of targeting and qualifying sales leads as definite and worthy new customers for clients.

And how our clients’ sales force can use this information in their presentations aimed at converting prospects to new customers. 

Business intelligence is too wide a subject to be classified into a handful of columns/titles in the database.  On the contrary it is the cumulative knowledge of what we know about the prospect and his needs.  Some intelligence is gathered simply by engaging in an interactive discussion. Or through the electronic communication behavior of prospects (.e.g, what links they clicked, or which web pages they visited, and the white papers they requested etc.) 

It’s the ability of a business development solution provider like eti to deliver a 360 degree of data to empower your sales people to know how they should approach each prospect or customer. 

To see a demonstration of how we achieve this result please call Shelley Sachs, eti Global VP of Marketing, at 1.800-466.4384. Select option 1.

There’s an interesting article in the July edition of B2B Magazine titled ‘Use of Digital Media Rising’ by Carol Krol.

The writer focuses on the findings in “The Integrated Marketing Media Mix” report published June 2008, by the Direct Marketing Association’s. It’s the first report of its kind undertaken by the trade association .

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Two items are noteworthy:

•  DMA’s research shows telephone usage ranking 6th out of the 18 media listed, with 31.9% of companies employing this medium in their integrated marketing campaigns.
• Based on the aspect of media efficiency, email ROI returned 100% more than the revenue share (1.93) relative to its share of budget.  Only telephone did better than average in the offline media, at a 1.20 share.

Although these numbers are great I suspect the email media effeciency ratings do not take into account the cost of lead qualification from email generated inquiries so it may be that telephone (which would already include these costs)  comes out even higher than email.  In fact I’m pretty sure that would be the case.

Mike

Trade Shows are an important marketing tool for many companies.

Aside from the obvious PR need to be seen at notable exhibitions, companies also hope to conclude business deals. The basic objective however, is to gather high quality sales leads resulting from conversations with prospects who’ve stopped by for information.

These leads need to be contacted and qualified for the sales force via a proper lead qualification and intelligence gathering process.

It’s essential to ascertain that all those important trade show leads return a positive ROI.  You need to know whether the result of your investment in trade shows to generate leads are worth it. Because not all sales leads are equal.  That maxim surely holds true for:

• trade show attendees who’ve actually engaged your staff in discussions, and . . .
• those who’ve mostly thrown business their business cards into the bowl for the free prize.

You’ll not be surprised to learn that those who’ve spoken to your sales personnel at the booth turn out to have the best sales potential.  But that does not mean there’s not a whole raft of profitable opportunities in other categories. Pooling some results from some of eti’s major accounts over past years, here’s what we’ve found:

• Prospects who’ve actually talked with sales personnel convert at the highest rate. Our results have fluctuated from 10% to as high as 50%!
• Attendee lists produce a conversion ratio of up to 2-5%.
• Incentive related inquiries (Business Cards in the  bowl for a free prize) produce the lowest result, as may be expected. Their interest is mainly the incentive or prizes on offer … not (necessarily) in the benefits of your products or services. Nevertheless our clients have found 3-5% profitable prospects in this category.  

It’s all a matter of economics.

Much depends on what you’re selling and the value of the average new customer to your company.  (See my related opinion item “What Costs Less Costs More” in this blog.)

Here are 5 suggestions you may want to consider when next exhibiting at a show:

1. Invite your best prospects to a pre-scheduled meeting at the booth.  (Yes an appointment.)
2. Remind prospects and clients that you’ll be exhibiting.  Maybe offer them an incentive to stop by and say hello.  Or create excitement by announcing a new/improved product launch etc.
3. At the booth make sure your sales staff have the ability to quickly scan in prospect names into the computer and be sure to document any important information about their needs.  �
   a. Identify and record decision making authority.
   b. Quantify likely purchasing volume.
   c. Budget
4. Speed of follow up is critical because your prospects are visiting competitor booths too. So follow up immediately next day, to qualify and confirm the sales potential.  You can electronically upload these prospects to eti for example for next day qualification and fulfillment.
5. Prospects not yet ‘ready to buy’ need to be held in a formal structure for lead nurturing purposes until their real sales need becomes evident.

Incidentally, we’ve recently started promoting the idea to our trade show clients to have another glass bowl available for business cards from interested attendees who would prefer the exhibitor to send the company’s information, rather than burden them with more stuff to carry. This bowl to be very clearly labeled with a message reading:

” Drop your business card here if you’d prefer us to send you our information. Thank you.”

Similarly you could have a bowl offering to have a sales person contact them.  Not great but a suitable conpromise if you’re short staffed.

For more specific ideas on maximizing your trade show investments call Sheldon Sachs 1.800.466.4384.

Michael Falkson

If you don’t test to verify the results of your advertising the result could be an unnecessary waste of money spent on bad advertising.

Experienced direct marketers wouldn’t dream of big expenditures without testing. It’s integral to their culture. They are very concerned to know the cost per inquiry and the cost per inquiry converted. These results guide their advertising spend.  This discipline also ensures that dollars are spent only on strategies and tactics that produce meaningful cost effective results. They are careful not to waste dollars on projects that don’t work.

The long and short of testing is that you don’t have to spend millions on ads which don’t generate enough profitable inquiries. You can tell as much after the first 2 or 3 ads. So why throw good money after bad?

Same goes for the business we’re in, namely New Customer Acquisition, based on Lead Generation and Sales Conversion.
Moreover testing with eti can provide projectable results in just a few hundred hours.  And at a fraction of the cost of the big spend usually required by advertising agencies.

If the campaign does not produce profitable results you change it and refine your strategy until you come up with a winning combination.  Sometimes when executing a major campaign in a variety of media - using gung-ho agencies - you find yourself spending a lot more before discovering that  results don’t justify expenditure.

It is always worth comparing sales leads costs generated directly by outbound telemarketing. Our own experience in such side by side comparisons is, invariably, that we can deliver far better results at much lower cost.

To illustrate this point we recently had the opportunity of making such direct comparisons for a major technology client. In the first instance the client’s campaign consisted of a series of promotional operations which included WEB based banner advertising, broadcast email, direct mail, PR as well as some events.  The campaign was managed by the client’s campaign management team of 3 people, and carried out by the client’s direct marketing agency.

Here is a concise analysis of results, measured against a later campaign by eti:

A.  Client’s Demand Generation Campaign:

Not a great result especially when you factor in the management overhead.  To be conservative we will add 20% for overhead which brings us to an overall cost of $272,400 or $7,783 per assigned opportunity. (I believe actual overhead was closer to 33%.)

Projected revenue from these leads was only $340,000 (20% conversion rate at an average of $50,000 per sale). ROI was decidedly negative.

B.   eti’s Lead Generation / Business Development project:

A comparative outbound business development effort was undertaken by eti over a 2 year period for the same client.  The program consisted of cold calling into a relatively well defined target markets to identify opportunities and qualify leads.  There was virtually no client overhead.

Now this is clearly a much better result – by a factor of 6 to 1.  However, even though there was virtually no client overhead I will, to be entirely fair, add 20% for overhead.  Total cost is then $216,000, or $1,193 per lead.  That’s still 85% lower on a cost per result basis than the above demand generation example. But that’s not all since projected revenues from these leads is a cool $1,8 million.  That’s an ROI of $8+ for every dollar spent compared to a loss in the example above. WOW!

Furthermore, we knew what the ultimate result would be after a test which only required an investment of only $20,000+. 

So what are the takeaways?

• Don’t get caught up in the hype, fancy presentations and pretty pictures.
• Test the various approaches and only rollout the winner.  
• Always test with the best:
  • The best target markets
  • The best products
  • The best sales people
  • The best business development agency
  • The best management team
• Etc.

Conclusions:

• If the best does not succeed – anything less can only lose.
• Reassign ineffective campaign management incapable of effecting high quality customer acquisition at profitable ROI.

Can eti do as much for you? Yes I believe we can. Call Shelly Sachs VP Global Business Development at1.800.466.4384 to start a purposeful conversation about how eti can increase your sales revenue while reducing your ad costs.

Michael Falkson

Aberdeen consulting has released a ground breaking study into the B2B Teleservices Industry.

Readers of this blog can obtain a free copy by clicking here.

The following press release provides some background.

B2B TELESERVICES: THE 2008 BUYER’S GUIDE

BOSTON, MA – May 28, 2008 – In a first-time, comprehensive research study of the B2B TeleServices industry, Aberdeen, a Harte-Hanks Company (NYSE: HHS) examines the lead discovery and qualification pressures faced by marketing and sales practitioners, the actions they consider to drive peak performance in their marketing investments, and how Best-in-Class performers utilize outsourced teleservices methodologies to drive maximum pipeline content and bid-to-win performance ratios. As an end-user’s “buyer’s guide” to a sector rarely covered by objective research methodologies, this April 2008 study reveals leading practices in lead lifecycle management deployed by teleservices customers, as well as exploring blended human / technology solutions they have managed to ROMI success.

Data acquired from over 200 enterprises reveals a number of impactful data points, according to Peter Ostrow, VP/Group Director, Customer Management at Aberdeen, the study’s author.  “Best-in-Class companies place a premium on lead quality, whereas Laggards reveal an interest in utilizing services to help address an out-of-control lead generation process — too many leads to handle — at a pace more than five times as high as that of top-performing organizations,” he explains.  “This reflects a lack of organizational and vendor management capabilities among Laggards, who benefit the least from their efforts to drive actionable intelligence to the sales team.” 

In addition to the quality/quantity balance necessary to achieve Marketing/Sales harmony, the Best-in-Class companies in Aberdeen’s research demonstrate a preference for the well-defined deliverables provided by appointment-setting methodologies.  “Top performers clearly wish to tee-up ready-booked appointments or conference calls for their sales team,” Ostrow says, “ but only if the meetings are highly substantiated by relevant account intelligence, identification of appropriate business pressures and the involvement of powerful influencers or decision-makers in the conversation.”  He also cautions against an over-reliance on appointment-setting as a sole methodology, pointing out that survey respondents who do so actually experience losses in year-over-year metrics such as sales performance against quota, and average deal size.  “Best-in-Class companies who remain flexible about their execution, compensation and delivery model from B2B teleservices providers,” concludes Ostrow, “realize 15 to 20% increases in these crucial performance metrics.”

The required actions for companies seeking to gain the most benefit from external tele-provider services, according to Ostrow, include adopting a high degree of collaboration between outsourced calling staff and the customer’s marketing and even sales personnel, preferably building 1-1 relationships that maximize their potential to improve on account penetration strategies, messaging quality and overall program ROI.

To obtain a complimentary copy, visit:

http://www.aberdeen.com/link/sponsor.asp?spid=30411182&cid=4883

 

Michael Falkson

Sometimes it’s nice to get a compliment …

—–Original Message—–
From: Name withheld
Sent: 20, 2008 1:19 PM
To: Name withheld

Subject: ETI vs/ Siebel

Hi Michael,

“Your ETI sales system is very impressive. Having been the top sales rep at Siebel Systems for five years, I have seen numerous implementations of SFA. Never have I seen anything as seamless and easy to use as your application. I look forward to closing business for “Hi Tech client offering mobile video solution” in partnership with your company.”

Thank you,
Name Withheld

 More information on eti’s technology solutions can be found at here.

Michael Falkson

On April 25, I was honored to serve as the moderator of a stimulating panel discussion at the 2008 MIT Sloan School of Management Sales Conference entitled Enterprise Sales: Winning Complex Large Accounts.  The panel consisted of some industry heavyweights including:

• David Chan, Chief Operating Officer, Rainbow Semiconductor

• Lee Levitt, Program Director Sales Advisory Service, IDC 

• Michael Lock, Director, Enterprise Sales, Google

• Steven Meyers, Director, Sales, Pega Systems

It turned into a spirited discussion.  After I kicked things off with the first question, the audience took over asking question after question until our time was exhausted.  In the end, we covered as best we could, three areas of interest to attendees:

1. Identifying and managing diverse stakeholders

2. Techniques for winning large and complex accounts

3. How to turn those sales into long-term relationships

Some brief observations from the panelists:

• The sales process has changed.  Customers know more about your product and or service than they ever will.  

• Sales cycles are longer.

• More decision makers are involved in decision making than ever before.

• It’s still personal.

• Speed of business has increased.  Large companies are not built for speed and have trouble keeping up.  Yet they have a desire to be fast.

• Google trying to make sales less complex.  Smaller transactions and grow the accounts.

• Always formulate ROI.  Why should they buy?  What’s the USE case?

• Maximize existing relationships … opportunity management.

• Walk away if it is not a fit.

• After the sale, handholding is an essential component.

• In Government sales, secrecy is a problem.  Develop an ally and feed them all the information so that they can help you make the sale.

• Foreign companies selling into large US enterprises don’t face the same hurdles as US companies selling internationally.

• If you don’t ask the question, you won’t get the sale.

• Prioritize sales opportunities.  Focus on high probability prospects.  Get rid of those that have a low probability of closing.

• If there is no pain, there is no opportunity.

The session can be heard here.

The entire conference can be heard at http://www.sloansalesconference.com/media/media_player.htm.

Sheldon Sachs

Anne Holland from Marketing Sherpa recently posted an interesting piece entitled ‘The perils of moving entirely to electronic statements & customer touches.’

When it comes to customer service and account management, I cannot agree more with Anne.  There is simply nothing better than the human touch.

When it comes to lead nurturing, there is also a tendency to try to automate and deliver content electronically.  On a cost per cost comparison this certainly makes sense because the cost of email is nothing compared to the cost of having a person calling one up by phone.

The only problem is the result. My guess is nil, nada, zilch, zero.

Few studies have been done on the subject but  were I a betting man I would guess that only very small percentage of electronic touches are ever seen by your customers or prospects - regardless whether you agreed to receive mail from the sender. And once the receiver’s spam prevention program classifies you as a spam sender you’re just going to be spinning your wheels.

In the lead nurturing business there is simply nothing more effective than a one on one interactive dialog designed to enhance the brand and build trust.  It is the only method that ensures the message you want to communicate is delivered to the right person effectively and interactively. 

Result-wise there is simply no substitute for the human touch.

Michael Falkson

Recently I posted an article on the eti website entitled “Leads don’t sell. Only sales people do” that focuses on how important sales people are to the lead generation process.

This got me thinking about Lead Scoring.  Many service agencies as well as CRM systems offer the ability to score leads.  The thinking here is that if a lead gets a higher score then the sales person should have an easier time closing the sale.

Lead Scoring Methodologies

While methodologies vary between systems, the basic premise is the same.  Essentially a score is attached to various pieces of information.  Some score all the elements.  Some score only 3 or 4 critical ones.  Some weight the elements in terms of importance … some don’t.  (eti Sales Support has offered a sophisticated lead scoring facility for some 15 years that allows for scoring any numbers of data elements including weighting as outlined above.)

Mostly however, regardless of the method used, the majority of the leads will fall into a broad band in the middle. 

So how effective is lead scoring?  In our experience – very little.  First if the score is provided to sales persons then what happens next becomes virtually obvious.  If the score is high they will pursue the opportunity with vigor.  If it is low they will hardly bother to make the call.  If however, it is in the middle then we are faced with the regular sales behaviors as discussed in the “Leads don’t sell. Only sales people do” article. 

If on the other hand the rep is not provided with a score you can then measure the effectiveness of your sales force according to the actual results. This would be a useful metric to identify strengths and weaknesses both in the sales process as well as that of each individual sales person. Based on our experience however, few clients show much interest in such performance metrics.  (This is probably a good subject for another blog.)

So is lead scoring worth it?  In our experience rarely.  It’s just another gimmick that focuses on process rather than on real sales force productivity.  We have not, in the 20 years we have been in the Lead Generation / Lead Qualification business, found Lead Scoring to be a practical or an effective sales management tool.

So what works?  Without divulging some secrets, eti has a far more effective “Bubble Up” Technology as well as comprehensive Lead Rating systems which has a far greater impact on the positive outcomes of lead generation and lead qualification projects.  If you are interested in this aspect please call 1-800-466-4384 (option 1) We’ll be happy to elaborate.

Michael Falkson

We received an early look at a study being undertaken by Aberdeen Group.  It’s a research study into the B2B Teleservices industry.    It’s called “B2B TeleServices and Technologies: The 2008 Buyer’s Guide”.  (As far as we are aware, this is the first attempt into a study of this kind.)

An initial highlight is that of the 200+ initial respondents, about 33% of their lead generation budgets are being dedicated to outsourced B2B teleservices.  That was a rather surprising finding.  Moreover, the expectations are that for companies that are viewed as part of the “Best in Class” group this ratio will probably rise to 40% or more.  Stay tuned.

How much of your budget is being invested in B2B Teleservices?  Maybe it’s time for a review?  If 40+% of “Best in Class” companies are making a substantial investment, and they’re the market leaders, then there must be something to it.

If you are interested in participating in the study you can do so by clicking here.

Shelly Sachs