Tag Archives: lead nurture

A big mistake your B2B sales team is likely making…

Focusing on the Decision Maker vs. the Decision Making Process

A single decision maker for b2b purchases is increasingly a myth. Focusing on trying to convince a decision maker vs. focusing on understanding the decision making process is a mistake even experienced sales professionals make. In today’s b2b world, most businesses have some process of prioritizing projects and internal resources in addition to budgets. Rare is the case that someone wants to 100% own the responsibility of signing an agreement, spending budget money and owning a project when it’s likely other projects were seeking those same funds and resources.

A caveat here, if the firm you are selling to is very small or your product is transactional (e.g. non-subscription) and relatively inexpensive (e.g. less than $5,000) the below may only loosely apply  – but even President / Owner / CEO’s seek other’s opinions before signing on the line that is dotted.

Asking whether or not someone has the authority to make a decision is a pretty standard 101 question that will rarely give you enough information or insights to either accurately forecast the sale or even move the sale towards closing. This self-identified “decision maker” likely can make a decision, but that decision is usually whether or not they want to pursue the deal internally vs. actually making the final decision on the go/ no-go.

No matter what you are selling, every business has a list of projects in a queue waiting priority and you are competing with the attention bandwidth applied to those items; whether they are related to your offering or not. A better course of action is to seek clarity how decisions are made within the organization; including the financial decision as well as the project priority process.

How do you do that?

Ask better questions related to the process itself once you’ve earned the right to do so. Below are some very simple examples that you can adjust to your specific situation:

  • Mr. Prospect, based on my experience working with other clients, there are often other individuals at the business that like to be aware of what my company will be providing to your business; if only to avoid any confusion once you’ve made a decision. When your business has made similar purchase decisions – how did that process work? Do you typically involve others in the evaluation process as well? How do you recommend we work them into this process to make this as smooth as possible?
  • Mr. Prospect, I have to imagine there are other projects looking for budget or resources that might be unrelated to this; where do you think this project would fit into those priorities at the executive level and how do we best work together to help you navigate that?

TIP: Don’t fall easy victim to the false positive of your proposal going to executive committee / management meeting or board meeting for review. Always clarify that your proposal is on the agenda and a priority. All too often I’ve heard a deal forecasted because it was going to committee for final signoff only to learn that the board never got around to discussing the proposal and it’s pushed off to the next meeting.  Make sure your sales executives ask the question “are we formally on the agenda for the meeting as a priority?” It might feel uncomfortable to a sales rep to ask that (which I don’t get) but without confirmation, you are flying blind.

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Top Five Reasons Lead Generating Initiatives Fail

Lead Generation is hot…you don’t need this blog post to tell you that – but if you still need evidence: 

  • A recent article from the Wall Street Journal in October stated “…marketers continue to put their ad dollars towards performance-based advertising, which includes search and lead generation inititives”
  • The Center for Exhibition Industry Research has identified the #1 objective of trade show exhibitors today to be lead generation
  • An August trend report from GlobalSpec on Industrial Marketing identified customer acquisition and lead generation as the top two priorities of industrial marketers

There are countless additional examples and 3rd party articles to support this as well but something tells me you likely already knew lead generation is a hot topic…

However did you know likewise that lead follow-up is the #1 concern of marketers?

Whoa…something is out of whack.

How can my #1 objective also be my #1 concern?

Why isn’t “Fixing Lead Follow-Up” the #1 priority over generating more leads that are going to continue to have follow-up issues?

Is it because lead follow-up is perceived as not being a marketing issue and therefore sales has the problem and therefore needs to find the solution?

Unfortunately for many organizations, that seems to be the common excuse to which I call bullsh*t – let’s just use common sense and see if that blame game make sense :

Who’s catching hell when leads don’t convert to sales?

When was the last time you heard sales budgets were being cut due to lack of ROI?

Compare that with what we are all dealing with  in regards to our marketing budgets – At best they are flat but more likely they are being reduced due to lack of ROI and we’re being tasked with accountability measures like never before.

Seems marketing is catching hell for lead follow-up issues vs. sales, but let’s revisit Lead Follow-Up responsibility. 

Aren’t we all on the same team with the same objective regardless if I’m in sales or if I’m in marketing?

Aren’t we both trying to help the company sell more stuff and do so efficiently and profitably?

I continue to be perplexed as to how companies end up in these sales vs. marketing silos with finger pointing as to where blame resides.

Ultimately it appears to be a sales/marketing culture issue; to which blame truly resides with executive management. At some point; a CEO needs to demand that their sales forces become more effective and that marketing departments help them get there and equally hold them accountable.

A guy can dream…right?

In the interim; reality continues to exist and millions upon millions of ad dollars are getting thrown against lead-generation initiatives and many of these initiatives will fail. By fail I simply mean not live up to the full potential they could have through a better integrated sales and marketing culture and process.

So why do they fail to live up to their promise? 

Here’s my perspective on the top 5 reasons lead generating initiatives fail:

1. No Follow-Up At All
All of us at some point have heard, read or experienced the statistics that continually tell us that less than 20% of sales leads ever get followed-up on. It’s a sad statement of business reality but most companies do not have a detailed, documented process that covers even the basics of how a lead will get nurtured or routed to sales. So when a marketing program takes place, the leads are never given the necessary attention. Test this yourself; do you have a documented process for “what happens” when an email comes into your website or a phone call comes into your office or a visitor pops by your booth?

Does it get logged and coded or does it just get forwarded as an “FYI” and left to an individual in sales or a marketing admin to ensure follow-up occurs?

Scary isn’t it?

Brian Carroll, a lead generation (and more) expert has a great quote on this – “To me it’s better to not be involved with a customer at all than to start a relationship and then drop the ball”

2. Slow Follow-Up
Like Bread or Beer – leads go stale. When people inquire, they’re interested right then and chances are they’re aren’t just looking at your solutions to satisfy their interests, especially in the B2B space. In addition to their interest in your offerings, you have to expect that your competition is also in the mix and maybe responding while you sit on the sidelines.

 As communication platforms like twitter, facebook and linkedin have pervasively grown; people are also going elsewhere beyond vendors for opinions on your products and competitive options while you twiddle your fingers ignoring the lead at its source. 

Who would you rather have following up on an inquiry that came directly to you? Someone from your marketing or sales group or an anonymous source on twitter?

Don’t just take my word for it; Knowledgestorm has years of research on purchase behavior in the IT and related space and they’ve repeatedly told their advertisers “Leads Get Cold Quickly”.

Almost as bad as ignoring them altogether – if leads aren’t nurtured quickly – it’s a waste, because you aren’t leveraging the original investment made to generate the inquiries.

3. Limited Follow-Up
I’m guessing some of you are thinking #1 and #2 don’t apply to you – because you have a system in place where 100% of your leads are followed up via an email or phone call within a reasonable time frame.

So why are your programs failing to reach their potential?

Maybe because that initial follow-up is all that is occurring and a process for continued follow-up and nurturing isn’t mapped out.

Let’s start with the basics – the majority of leads, even good leads, aren’t ready to buy right away. The buying process itself, depending on the complexity of the “product” or “service” being sourced, may not be a single person process and may be stretched over several months. Additionally, in the B2B space “Impulse Buying” does not exist  and potential B2B buyers spend a lot of time doing research and comparing options.

How the hell are you going to add value to that complex process with one-off emails or a single qualifying phone call?

According to Reed Business Information Systems statistics – the number of personal sales calls necessary to close an order is 5.2 and an average buyer sees nearly 2 sales people per week. Factor in the realities of the buyers also hiding behind automated switchboards, voice-mail, spam and junk e-mail filters and it seems that even legitimate leads are actually discouraging sales people from trying to connect. In my world – we call that “noise”; and you have to elevate and rise above all that noise for your message to be heard….and trust me; one phone call or one follow-up email isn’t going to do it.

True lead nurturing builds relationships with the right people at the right companies through relevant and consistent dialogue and touch points,  regardless of their timing to buy. This nurturing helps turn an initial lead into a sales-ready or transactional lead when the timing is right.

4.  Wrong Follow-Up
One of the challenges of following up on leads is agreeing what a lead is to begin with. Ask a sales rep and they’ll likely tell you a lead is a thoroughly qualified potential customer who is ready to buy today, credit card in hand. Ask a direct marketer and they’ll like tell you a lead is anyone from a targeted potential customer who gave up their contact information, whether it was to download a white paper or they checked a box on a Web site or dropped a card in the bowl at a trade show.

Common definitional issues wreak havoc on lead generation and follow-up programs; and all it takes is one sales person calling a marketing defined lead and getting blown off to summarize that all these marketing defined leads “stink”…or what we call “poisoning the well” and you are right back to Issue #1 – leads start to get ignored.

If you are resource constrained and can’t afford to extend incremental resources to qualify and nurture leads before handing them to sales; at a minimum sales should fully understand how the leads are being generated and the context of the inquiry; not just the content of who’s contacting. A well integrated sales and marketing group, even an understaffed one, can make huge gains in lead conversions simply by better understanding how to best follow-up and nurture an early stage lead.

In other words, if you are currently just dumping leads over the fence to the sales side of the house – STOP!

Take the time once a week, once a month or once a quarter to review how the leads are being generated and have an open / honest discussion on how to best follow-up to ensure maximum success.

5. Losing Sight of the Buy-Cycle (Not Qualifying Leads)
I mentioned it in #3 above and if you’ve read much of my blog posts; you’ve probably picked up that I frequently mention the “buy-cycle” when talking about marketing trends, research or studies. I do this because I happen to be a big believer in tying marketing strategies and tactics back to common sense buyer behavior.

At the risk of sounding “basic”, essentially the buy-cycle simply means that there are natural steps or stages we go through as consumers before we ultimately decide to purchase (or not); and I think this is true whether we are talking about software, cranes or even product certification services. Some other marketers refer to this as a purchase funnel – either way…

1. We become aware of, or INTERESTED-IN a particular product or service – whether by direct need or curiosity

2. We CHECK IT OUT, maybe do some research or talk to peers

3. And then we COMPARE & DECIDE which to buy; if any.

Depending on the complexity of the “product” or “service” being sourced, this may not be a single person process and may be stretched over several months; but in the B2B space one thing is certain and that’s “Impulse Buying” does not exist. Potential B2B buyers spend a lot of time doing research and comparing options; and numerous third party studies support that this research is increasingly being done online. While online, it’s just commons sense that these potential buyers see a lot of ads, messages and brands  – and those messages that are contextually related to the research they are pursuing are going to be noticed and retained; and who they ultimately do business with or purchase from is generally the outcome of these targeted multiple influences over time.

Targeted impressions and results from the first few exposures and searches done by a potential customer online create the baseline that the buyer uses to compare all options under consideration as final selection nears.

In short; if a buyer frequently sees ads, comments or references towards Brand A while they are researching Topic X…Brand A is going to stand out as a market leader or, at a minimum, a baseline to compare other options.

As a result, a marketer needs to build awareness, consideration and purchase intent before a purchase decision by the buyer is ever made.

What does all the above mean to your lead generation initiatives?

Without first qualifying a lead – you have no clue where in the buy-cycle an individual is; it’s like timing the stock market.

How can you add value to a complex buying process if you aren’t sure if they are just in preliminary research stages or narrowing down to a final few options for purchase in the next few days? Without qualifying; you can really flub your lead follow-up and waste your time and your potential clients time if you try pitching an early stage buyer just as bad as you can by trying to re-educate a late stage buyer.

All lead follow-up activities; regardless of who is handling it, should have minimum qualifying questions. 

BONUS (#6):
Whenever possible; use a phone – nothing can compete with a real, live phone dialog to qualify and nurture a genuine lead, regardless of where they are in the buying cycle. The phone is the #1 sales and marketing tool to maximize any lead generation program.

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Is a lead with a public email address as valuable as a lead with a business email address?

Since a good portion of my dialog with marketing folks revolves around the topic of lead generation; I’m sometimes in situations where what I perceive to be a valuable lead is not necessarily what my clients perceives to be a valuable lead. As I’ve said in some prior posts – I’ve learned the hard way that the first thing I absolutely have to do is get on the same page as my client / prospect as to what their definition of lead is, and a quality lead at that. Simple common definition issues can really create problems or expectation issues down the road; or even kill the sale altogether without common understanding of each other’s perceptions and definitions of leads.

One lead generation issue that has recently come up is the perceived value of a lead when the individual opts to use a public email address, such as a yahoo, hotmail or gmail as opposed to their “business” email address. There were some questions as to whether a lead had value, or the same kind of value, if they weren’t explicitly using their business email address.

Before we answer this question – I think there is an opportunity to first ask – why would a legitimate potential client choose to utilize a public email address vs. their work provided email address?

Based on my experience – here are a few reasons why:

• Prioritization: Most folks have “dual” addresses – we all have a gmail or yahoo account. If we registered for everything using our business email we would likely get 2-3 times as many emails as we already receive – my business email is for urgent business from external clients and internal correspondence…my sourcing and business research takes place in my gmail or yahoo account, which doesn’t mean it’s not important – it’s just typically not as urgent.

• Comfort: Plain and simple, most folks are just not comfortable using work email for anything but internal correspondence or client correspondence

• Privacy: People use public email accounts to “screen” information simply to make sure the site or information they’ve requested lives up to what they were expecting it too. My company sees this all the time from existing clients requesting some of our whitepapers – they use their gmail address; even though we have their business email address already on file.

• Control: A public email address gives me one level of anonymity in the event I’m not ready to engage in further dialog yet. My research is important – but again, it may not be urgent yet.

• Accessibility: Public email accounts are accessible via any web browser – any where; without having to log into secure VPNs or remote desktops – just simpler to do for folks when traveling or away from work computer on evenings, weekends etc.

• Portability: Folks like a permanent address in addition to their current address – if / when they switch jobs – they can still access certain information without interruption.

• Spam Control: Public email services like yahoo, gmail etc. have invested heavily in spam control technology…in some cases better than my own corporate spam controls.

 • Restrictions: There are certain companies and industries that flat out restrict the use or even access of work email for external communication due to security issues. For example; I spent two years working for a defense contractor– I was unable to receive or send email outside of the defense contractor network – but there were designated computers for external communication – but I had to use a public service email address when using them.

As you scan the list above – they all seem like plausible / reasonable answers why someone might elect to use a public email services – but I don’t think any of them ‘detract’ from the value of the lead. Whether a prospect opts to use a public email service or a business email service, it does not mean the individual is not a legitimate, qualified prospect – it simply means they are willing to receive unsolicited email – but only on their terms.

Hope this helps.

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Forrester Floats Five-Year View…FIFTY FIVE BILLION

The fact that online advertising is continuing to grow while traditional media declines is of no surprise to anyone anymore really; but Forrester has put out a “fresh” contemporary view on where online advertising marketing might be heading and it’s a staggering $55 Billion by 2014 – a 4x increase from where they expect it to top out this year…link to follow.

I wrestle with 5-year views like this mainly because five years ago platforms like linkedin, facebook, twitter and even the IPhone didn’t exist…so change can and will occur in terms of platforms and technology that have a high likelihood of impacting these “projections” – but at the same time; you can’t sit idle and say “why bother…it’s just going to change…” – successful businesses and marketers are always skating to where the puck will be.

That being said – a few things stand out to me:

1. Despite the growth…looks like online will still only account for 21% of all advertising spend; is it because it’s still “cheaper” and therefore throwing the ratios off or are people really going to still be allocating 80% of their resources, time and manpower against traditional declining / dying stuff? I hope it’s the former…

2. Search will continue to dominate – hovering consistently around 60% of allocated online spend…clearly this last click mentality where Google gets overkill credit for customer wins / conversions will still prevail for years to come while I’ll continue to hope for enlightenment in thinking and measuring for all aspects of the buy cycle (see my posts on marketing to the buy cycle).

3. Social media will grow from 3% of budgets to 6% of budgets – but I suspect a disproportionate amount of time and resources are getting haphazardly thrown against this today as people either attempt to “figure it all out” or “play around” or try and “catch up”…look for a future post on measuring social media and what I’ve learned while playing around in the social media sand box

Link to Forrester research via their blog: http://blogs.forrester.com/marketing/2009/07/interactive-marketing-nears-55-billion-advertising-overall-declines.html

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Understanding the Buying Process Online, Part IV: Consideration & Comparison

In this continuing series of posts, we’ve explored the online buying process from a sales & marketing perspective. In previous posts we’ve reviewed the various phases of the buying process including initial discovery through creating curiosity and awareness as well as how to get in front of those individuals already engaged in specific research and search activities.

In part IV; we’ll talk about the third phase of the buying process – consideration & comparison. This is the phase where your potential customer has completed most of their informational searches and research and is in the process of comparing various options.

Buy-Cycle Phase 3. Consideration & Comparison

At this stage, your potential customers have completed most of their informational searches and research and are now considering specific options, including your company. This is the prime opportunity for your company to differentiate themselves from the perceived comparable alternatives also under consideration. The customer is likely considering specific information from each alternative supplier related to specifications, cost, brands, and how the products or services make them feel in general. The reality is; most individuals online are trying to narrow and compare similar features first before they look for what makes one product different (better or worse) than the other. Websites that make this “comparison” easier like industrial directories, specialized search engines and online buyers guide play an increasing role for potential customers at this stage. Publishers of these resources recognize that end-users are looking for easier ways to compare suppliers and offerings side-by-side. Since a potential customer is starting to compare finer details and information; the information you subsequently make available via your website or information published on these resources becomes increasingly important. It’s also important at this stage for you to build trust that you should be the vendor they ultimately select. Hopefully as the potential customer first discovered you, you’ve captured the prospects’ contact information (or an email address at a minimum). Now it’s time to put it to use as part of a nurture campaign; which is essentially the continuation of the education process by providing value to your prospective clients, typically via email. Your goal is to keep the lines of communications open and one of the most effective ways to continue communicating with your prospects is with an email follow-up campaign. There are several “best demonstrated practice” resources available online for setting up a lead nurturing program; but they all have in common a desire to continue to reinforce that you know how to provide value to your customers and should be the vendor they ultimate decide to purchase from. Once they are considering and comparing you as a potential vendor; you want to make sure the information you are providing give them the specific detail that helps them fill in the gaps. You can do that by providing access to the technical information that may not have been relevant until now. You are basically seizing the opportunity to politely nudge and nurture them towards ultimately becoming a customer of yours. For example; as they go deeper into website; provide plenty of ancillary links to even more detail about not only your product line or solutions, but value-add services and client case studies.

Marketing Tactic Considerations:

Participation in directory products and programs that make it easier for end-users to compare similar suppliers should be a no-brainer if you are interested in reaching potential customers at this phase. Continued visibility in the search engines should also continue to be considered as well contextually-placed banner ads; provided these ads are placed alongside or with keyword or category search results to give your company a little extra visibility and differentiation among similar or related alternatives. As stated above; if you’ve been fortunate enough to gain earlier stage leads with contact information; using direct email nurture campaigns will increase your chances of ultimately securing a customer as well.

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Understanding the Buying Process Online, Part III: Specific Interest & Search

In part II of Understanding the Buying Process Online;  we reviewed from a sales & marketing perspective, the importance of being discovered as early in the buying process as possible. In that post we covered creating overall awarness, interest and even curiosity through push marketing online.

In part III; we’ll talk about the second phase of the buying process – specific interest and search. This is the phase where your potential customer is getting more proactive in their information research. We’ll also introduce more “pull” marketing tactics in addition to maintaining the “push” initiatives.

Buy-Cycle Phase 2: Specific Interest & Search

As potential customers “get serious” about their interest in a topic; they begin to become more proactive and specific in their research online and potentially more urgent in their need for relevant information or solutions. Various research studies, surveys and opinions indicate that b2b professionals go online first anywhere from 85-95% of the time they have a specific interest or need.

In most cases, their activity begins on a search engine (either a general search engine such as Google or Yahoo!, or a B2B search engine such as Globalspec, Business.com, Knowledgestorm etc.). The exact percent of individuals who use a search engine at this phase varies greatly from study to study; with ranges from 65 – 85%; however no study pegs this number at “100%”; meaning resources like industry portals, community sites, B2B sites and vendor websites are still the first choice option for some professionals; but search engines remain the choice of the majority.

As a result, at this stage most marketers put the emphasis of their online budgets against search engines. However, too often the “last click” from a search engine gets all the credit for ultimately creating a sale, even though the conversion was the outcome of multiple influences over time. A study by the Atlas Institute titled “How Overlap Impacts Reach, Frequency and Conversions,” asserts that 90 percent of the clients that converted were reached by placements other than the last ad seen, and that far too often the proper credit for the sale is inappropriately given to search. The study found that two out of three clients who eventually took a responsive action were reached by ads across multiple portal sites before actually going on to ultimately make a purchase. To understand how the credit for the sale is “unfairly” being attributed to Google; consider this “offline” analogy:

You’re headed to the supermarket to buy some food and on your way in you see the big sign in the window advertising Hamburger for $3.99 a pound. You need some anyway and it was on your “list” so you buy it. In the online world, which measures the last ad seen, that sign alone would be given credit for your purchases in the store. But it’s quite likely that you were going shopping in the first place because you saw something in the weekend circular that you wanted to buy or maybe you heard a radio ad or your spouse asked you etc. Under the last-ad-seen model, the circular ad is worth nothing and everything else far less than the ad for hamburger hanging in the storefront window. Using this analogy; you can see the danger of relying on the last ad seen as not all advertising is intended to be immediate direct response; and the same can be said for online advertising.

Marketing Tactic Considerations:

Based on the overwhelming use of search engines by potential customers in this phase; search engine campaigns (both paid and unpaid) should be considered to ensure you are visible when individuals are searching by keywords. You should also continue to consider

e-newsletter campaigns to targeted prospects and customers and targeted banner advertising on industry portals and b2b sites to ensure your message is getting in front of individuals using these resources to find solutions to their problems and answers to their research questions. These types of tactics are more often associated with the term “pull marketing”; as you are attempting to pull and attract “web surfers” to your website when they have a need vs. “pushing” your message to them and trying to stimulate a need.

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Understanding the Buying Process Online, Part II: Curiosity & Awareness

In a posting last week, I described the buying process online. In that post, I mentioned that it’s important to remember that when we evaluate our marketing strategies and tactics; it’s critical to remember that new client acquisitions (new sales) are generally the outcome of multiple influences over time. I also made reference to maximizing your visibility to your target customers during all aspects of the buy cycle.

In this week’s post – we’ll review the earliest phase of the buy-cycle; curiosity and awareness.

From a sales & marketing perspective, being discovered as early in the buying process as possible is critical.

Buy-Cycle Phase 1: Curiosity & Awareness

Since the primary goal of most overall marketing campaigns is to eventually create new customers; getting these potential customers to think of you first when they need to satisfy a need, want or desire should be among the target outcomes of any marketing campaign. Generally referred to as “exposure”; creating curiosity or general awareness about what your company does or offers provides familiarity to those that have not yet discovered you or visited your website. The overarching idea is that when a person needs to satisfy a need, want or desire they remember your name or your site and visit you directly. A strong curiosity or awareness component of any marketing campaign will keep your company in the minds of people who might not be ready to act now, but who might take action down the road.

As a prospective customer first becomes aware of your company and / or your offerings, they might be curious as to what else you can do or whether your company or your solutions or products can do everything they need for the price they can afford or in the time frame they require. At this stage, your organization is in good position to be one of the top of mind vendors for your potential customer; but you still potentially have a knowledge and / or a credibility gap with the potential customer.

The best thing any organization can do at this stage is to build a bridge across the knowledge or credibility gap. The bridge is as simple as providing something of value as soon as possible to your potential customer. More times than not, that “something of value” will be in the form of sharing information that the company has and the prospect does not. In other words, your goal at this stage is continue to educate. This education can take shape in numerous ways that provide value to your potential customers:

  • Whitepapers,
  • PDF data sheets or catalog downloads
  • Case Studies or Application Notes
  • Online videos or Webinars
  • Email newsletters or blog postings
  • Press Clippings / PR and any number of other methods

Marketing Tactic Considerations:

To promote the availability and accessibility of this information; you should consider a combination of E-newsletter campaigns, broadcast banner advertising to a wide, but targeted audience, and direct email campaigns to your target market.

These types of campaigns are often referred to a “push” marketing as you are attempting to push your message in front of your target market to create interest and demand as opposed to waiting for them to be looking for a solution, as in the later phases of the buy cycle, and attempting to “pull” them towards you as a vendor of choice.

As potential customers “get serious” about their interest in a topic; they begin to become more proactive and specific in their research online and potentially more urgent in their need for relevant information or solutions. We’ll cover more about this as next week I’ll cover “Specific Interest and Search”as we continue to talk about marketing alignment to the buy-cycle.

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