Can’t We All Just Get Along? Bridging the Gap between Sales and Marketing Presented to:

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. Marketing Role: Generate Leads Sales Role: Generate Revenue GAP • 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!! 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 More than 70% of leads generated are never acted upon because the information does not reach the right person at the right time Source: Gartner Research

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? Marketing

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

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