LEAD SCORING & LEAD NURTURING

LEAD  SCORING  &    

LEAD  NURTURING  

JASON  HEKL  

RESEARCH  DIRECTOR  

SIRIUSDECISIONS  

ANDY  CLARK  

VP,  BUSINESS  DEVELOPMENT  

RIGHT  ON  INTERACTIVE  

TODAY’S  AGENDA  

•  The Case For Scoring Leads

•  The Three Pillars of Lead

Scoring

•  Building the Model

•  Common Mistakes to Avoid

•  Deploying the Lead Scoring

Model

•  Advanced Lead Scoring Topics

•  Lead Nurturing by the Numbers

•  A Foundation for Lead Nurturing

and Scoring

•  Process, Technology and

Structure

•  Understanding the Lifecycle and

Aligning your Data

•  Challenges and Results: A

Customer Story

•  Lead Nurturing Guidelines

© 2012 Copyright SiriusDecisions. All Rights Protected and Reserved.

About SiriusDecisions

3

Executive Edge CMO Demand Creation Strategies

Strategic Communications Management Sales Operations Strategies Channel Management Strategies

Marketing Operations Strategies Product Marketing and Mgmt

Advisory Services

Why Score Leads?

SiriusDecisions’ Demand Creation Waterfall

Getting lead

scoring right

improves

performance

throughout

the waterfall

by as much

as 5X.

Teleprospecting Accepted Leads (TALs)

Sales Generated

Leads (SGLs) Sales Accepted Leads (SALs) Automation Qualified Leads (AQLs)

Teleprospecting Generated Leads (TGLs)

Sales Qualified Leads (SQLs)

Won Business

Lead scoring is primarily used to identify leads

that are ready for tele-prospecting or

direct sales to work

Inquiry

Outbound Inbound

Score for the Right Result

SiriusPerspective:

The ultimate goal of scoring isn’t to find prospects who will

agree to appointments; it’s to find prospects who drive revenue.

5

Marketing Qualification

Teleprospecting Qualified Leads (TQLs)

Teleprospecting Accepted Leads (TALs) Automation Qualified Leads (AQLs)

Teleprospecting Generated Leads (TGLs) Sales Qualification Sales Accepted Leads (SALs) Sales Generated Leads (SGLs)

Sales Qualified Leads (SQLs)

Close

Won Business

Marketing still tends to settle for what

sales says it will accept and work at

the SAL stage as “good enough” Organizations must be more systematic about what characteristics result in opportunities and won business

© Copyright SiriusDecisions.

Best Practice Attributes

Sales Pipeline

Sales Alignment

Program Mix

Integrated

•

30

% + Sourced*

•

70% + Influenced*

•

Not a leads

only

focus

•

Strong SLA’s and Lead

Scoring

•

Metrics driven

•

Multi-channel

•

Web Centric

•

Nurturing Model

•

Best Practice Syndication

•

Based on Buyer Journey

•

Multi-Touch Programs

•

Data Centric

SiriusPerspective:

While there are many differences between average

and high performing companies, four characteristics are consistent.

© Copyright SiriusDecisions. All Rights Protected and Reserved.

‘Most’ Doesn’t Always Win

SiriusPerspective: Best practice organizations that deliver integrated campaigns with strong scoring, nurturing, technology and program alignment produce better results with fewer programs.

7

Average High Performance

Lead to Close 15.3 7.2 Sourced Pipeline 15.5% 30%+ Close Rate 19% 24.5% Influenced Pipeline 52% 70% + Marketing Touches 25 + 15 - 20 Programs 50 + < 30%

Program Design Single Channel Multi Channel

Campaign Focus Product Solution

Primary Source eMail Web

Lead Scoring Building Blocks

SiriusPerspective:

Many b-to-b organizations have moved past simple

definitions and are now putting lead scoring schematics in place.

SIGNIFICANCE FREQUENCY

123

ACTIVITY

BUDGET AUTHORITY NEED TIMEFRAME

PROPENSITY TO BUY

DEMOGRAPHICS

EXP

LIC

IT

IMP

LIC

IT

© Copyright SiriusDecisions. All Rights Protected and Reserved.

Impact of Demand Type of Lead Scoring

SiriusPerspective:

Pinpointing the type of demand being created drives

Creating the Lead Scoring Model

Form the Team. Sales and marketing collaborate to create the

scoring model.

Define the Objective. Agree on the offering, desired

outcome and level of qualification.

Deconstruct Deals. Conduct post-mortems on closed won and closed lost

opportunities.

Select and Compare.

Select the categories and category values; compare them

relative to each other.

Simulation. Create test leads to model the accuracy of

the scoring model.

Iterate.

Continue refining the scoring model until it ranks leads accurately.

© Copyright SiriusDecisions. All Rights Protected and Reserved.

Simulate Results to Test Scoring Hypotheses

SiriusPerspective:

Increasing lead scoring rigor can be accomplished

without any technology – it just requires a little process.

Common Lead Scoring Pitfalls

Highest Level Target

Title Level Title Score C-Level 20 VP 17 Director 12 Family Weighting Scoring “Families” Family Score Demographics 33% Activity 33% BANT 33% Linear Scoring Company revenue Range Score $0-$100m 5 $101-$500m 10 $500m+ 15 Frequency Discounted Attended Webcast Timeframe Score 1+ in 15 days 20 1+ in 30 days 12 1+ in 60 days 5 No Degradation Whitepaper Download # Downloaded Score 1 Whitepaper 4 2 Whitepaper 7 3 Whitepaper 9

The range is too wide and could include

almost all companies. Higher (or bigger) isn’t always better; could the VP or Director level be a better entry point?

If activity doesn’t predict as well as demographics or BANT, why weight every family equally?

“Linear scoring” doesn’t help if the top range is 10x more likely to close than others.

Additional responses of the same activity type can signify an increased level of interest.

As time passes the significance of an activity decays, thus time bounds must be applied.

© Copyright SiriusDecisions. All Rights Protected and Reserved.

Lead Scoring Rollout Process

Control Group.

Select a targeted group of sales representatives.

1

Roll out.

Measure the lift the lead scoring model delivers; reference when rolling it out to sales

4

Lead flow.

If marketing focus on

delivering quality, not quantity, slowly decrease the number of passed leads.

5

Iterate.

Continue refining the scoring model until it ranks leads accurately.

3

Blind testing.

Have the control group qualify leads without seeing the lead score.

Measurement and Governance

_________Rejection Reasons_____________ ___Accepted Dispositions____

MQL’s

Sent Incorrect Routing Incomplete/ inaccurate information

Not to MQL

threshold Already Working Accepted In Process Processed Non viable Processed SQL Won Business Revenue Rep 1 100 1 [1%] 3 [3%] 0 [0%] 6 [6%] 90 [90%] 9 [10%] 36 [40%] 45 [50%] 30 [66%] $6,000,000 Rep 2 130 1 [1%] 2 1 [1.5%] 5 [4%] 121 [93%] 15 [12%] 51 [42%] 55 [45%] 35 [64%] $7,000,000 Rep 3 70 1 [1.5%] 4 [6%] 15 [21%] 4 [6%] 46 [66%] 8 [17%] 23 [50%] 15 [33%] 5 [33%] $925,000

Teleprospecting

Accepted Lead (TAL) Qualified Lead (TQL) Teleprospecting Sales Accepted Lead (SAL) Sales Qualified Lead (SQL) Close Won

Example Lead Scoring Governance Report

Measure Lead Scoring Performance through both leading and lagging metrics

The lead scoring models effectiveness is negatively impacted by Rep 3’s performance.

Example SLA Governance Report

________ SLA Followed _________ ______SLA Not Followed_______

MQL’s

Sent MQL’s Accepted Engaged in 8 hours Engaged in 8-24 hours Engaged in 24 – 48 hours

SLA

adherence SLA +24 hours SLA + 24-48 hours SLA + 48+ hours SLA not adhered to Processed SQL Rep 1 100 90 [90%] 30 [33%] 45 [50%] 15 [17%] 90 [100%] 0 [0%] 0 [0%] 0 [0%] 0 [0%] 45 [50%] Rep 2 130 121 [93%] 39 [32%] 80 [66%] 10 [8%] 129 [99%] 1 [1%] 0 [0%] 0 [0%] 1 [1%] 55 [45%] Rep 3 70 46 [66%] 12 [26%] 23 [50%] 2 [4%] 37 [80%] 3 [7%] 2 [4%] 4 [9%] 9 [20%] 15 [33%]

Rep 3’s lack of adherence to the SLA appears to be contributing to his relatively poor performance.

White Paper Webinar Web Visit Analyst Report HVC Page

Recognizing Team-Based Buying Signals

SiriusPerspective:

Account-based scoring exposes buying centers and

activity arcs within an organization.

2 3 2 4 2 1 1 2 0 0 0 0 3 2 2 3 4 7 6 4 Peggy Smith Senior Manager, Professional Services Carson Plastics Industrial, MA

There’s something going on. We should call the top title. Not a role or a department we sell into. Reject.

Bob Clark

Director, Marketing

Carson Plastics Manufacturing, CA

I’ll call and leave a message after lunch…tomorrow. Joseph McLaren Manager, Sales Operations Carson Plastics Durable Goods, MA

Looks interested, but sales isn’t who we sell into.

© Copyright SiriusDecisions. All Rights Protected and Reserved.

Key Considerations for Account-Based Scoring

SiriusPerspective:

Account-based scoring requires improvement in

process standards as well as additions to enabling technology.

Hierarchy.

Organize accounts by

how the sales organization sells.

Buying center.

Identify

who drives deal closure.

Association.

Update business processes to

ensure contacts are associated with accounts.

Value.

Determine if account scoring

makes sense for an offering.

Concept

Reality

Key Takeaways/Recommendations

•

Lead scoring is a iterative process, which must involve both

marketing and sales

•

Start with a targeted result in mind and deconstruct closed deals

to drive a more fact-based scoring approach

•

Lead scoring must not be viewed in isolation; it impacts and is

impacted by other marketing and sales processes

•

Measurement and governance processes are imperative in

Who  we  are.  

•

A  lifecycle  marke@ng  automa@on  company  that  helps  

organiza@ons  win,  keep  and  grow  business.  

•

Founded  in  2006  

•

SoRware-­‐as-­‐a-­‐Service  (SaaS)  

•

Deep-­‐rooted  experience  with  technology,  marke@ng  

What  we  do.  

•

The  all-­‐in-­‐one  lifecycle  marke@ng  automa@on  solu@on.  

–

Suite  of  tools  –  

data/campaign/content  management,  scoring,  automa2on.  

–

Data  integra@on  –  

create  a  single  view  of  your  data.  

–

Engagement  insight  –  

see  prospect  &  customer  engagement  levels.  

–

Marke@ng  automa@on  –  

targeted  cross-­‐channel  campaigns.  

How  we  are  different.  

•

We  focus  on  the  

bigger  

picture  –    

like  nurturing  all  sources  of  revenue:  

–

leads  from  marke@ng  and  sales  

–

repeat  customers  

–

referrals  

–

up-­‐sells  and  cross-­‐sells  

•

The  key  to  marke@ng  automa@on  

success  is  soRware  

and

 services.  

Lead  nurturing  by  the  numbers.  

64%  of  CMOs  have  

either  an  informal  or  

no  process  to  manage  

their  marke@ng  

automa@on.  

Focus  Research  

64%  

Purchases  made  by  nurtured  

leads  are  47%  larger  when  

compared  to  purchases  made  by  

non-­‐nurtured  leads.  

Annuitas  Group  

20%  

On  average,  nurtured  leads  

result  in  a  20%  increase  in  

sales  opportuni@es.  

DemandGen  

LEAD  NURTURING:  WHERE  TO  BEGIN  

F O U N D A T I O N  

N U R T U R I N G  

S C O R I N G  

The  FoundaQon  

Understanding  your  Business:  

•

Ideal  customer  profiles  

•

Ideal  prospect  profiles  

•

Key  prospect  segments  

•

Key  touch  points  

•

Key  Stages  for  Leads  &  

Customers  

While  automa2on  works,  the  benefits  

are  realized  only  when  implemented  

correctly.  Many  organiza2ons  face  

significant  challenges  on  this  front.  

Understanding  your  Processes:  

•

Marke@ng/Sales  Process  Flow  

•

SoRware,  Technology  and  Data  

MarkeQng/Sales  Process  Flow  

MarkeQng  Qualified   Nurturing  

ProspecQng  

IniQal  MeeQng/Phone  Call   Discovery   Site-­‐Visit   Demo   Proposal  Development   Proposal  Sent   NegoQaQon/Review   Closed  Won   InacQve  Clients   AcQve  Clients   Re tu rn  to  N ur tu rin g   Ca mp ai gn s   Closed  Lost  

Inventory  Data  

Purchasing  Data  

So^ware,  Technology  and  Data  

Your  Brand   Sales   Sales  Reps   Marke@ng   Marke@ng   Manager   Designer   Support/

Services   Accoun@ng/Billing  

Understanding  your  “Stages”  

Qualified  

New  

Customer  

Customer  

Loyal  

Lead  

Suspect  

Stage  Criteria  

• Marke@ng  focus  

• Need  more  data  

• Marke@ng   nurturing   • Sales  focus   • Iden@fy  budget,   need,  @meline   • No  Opportunity   • Sales  nurturing   • Budget,   @meline,  need,   process   iden@fied   • Opportunity   • New  customers   • Onboarding   campaigns   • Current   customers   • Brand  advocate   campaigns  

Aligning  Data  and  Key  Segments  

Qualified  

New  

Customer  

Customer  

Loyal  

Lead  

B2B  Lead  Nurturing:  Challenge  

•

Growing  tech  company  out  

of  Madison  WI  

•

Cloud  based  digital  asset  

management  solu@on  

•

Long  sales  cycle  

B2B  Lead  Nurturing:  Results  

•

Targeted  messaging  based  on  

website  request.  (Demo  Request  

VS  Whitepaper)  

•

Priori@ze  Leads  from  sales  team  

•

More  qualified  Leads  to  sales  

team  

•

Key  off  of  key  profiles  

Content  

Email  

1   Email  2   Content   Email  3   Content   Email  4   Content   Email  5   Content  

+ 7 days + 10 days + 5 days + 14 days

Nurturing  Campaign  Guidelines  

Sales  Nurturing  Campaigns:  

•  Objec@on  –  Timeline  

•  Objec@on  –  Budget  

•  Objec@on  –  Approval  Process  

•  Objec@on  –  Mo@va@ng  Factor  

•  Follow  Up  –  Demo  /  Ini@al  Mee@ng  

•  Follow  Up  –  Site  Visit  

Customer  Nurturing  Campaigns:  

•  Inac@ve  Client  Win-­‐Backs  

•  Ac@ve  Client  Upsell/Cross-­‐sell  Products

MarkeQng  Nurturing  Campaigns:  

•  General  Awareness/Newslejer  

•  Lead  Source  Focused  

•  Website  Ac@on  –  Ask  An  Expert  

•  Website  Ac@on  –  Watch  Videos  

•  Website  Ac@on  –  Review  Case  Study  

•  Email  Responses  –  Bounce  

ROI  Customer  Lifecycle  MarkeQng™  

Pre MQL Lead Nurturing: Sample Flow Definition of MQL (insert here):

TIME (Months) Month 1 Month 2 Month 3

Month 0

MARKETING

TELE

SALES

Theme takes demand type, audience, area of interest into account

Complement Touch No Yes Message: Offer: Info Collection: Delivery Method: Touch A Message: Offer: Info Collection: Delivery Method: Touch B Message: Offer: Info Collection: Delivery Method: Touch C

Evolve touches based on behavior A gr ee m en t o n MQ L D efi ni tio n Month 4 Marketing is the core driver Raw inquiry or hand-raise Meets MQL Criteria? No Yes Meets MQL Criteria?

MQL: Marketing Deems Lead is Worthy of Hand-Off to Sales

Process starts— sales accepts or

rejects lead

Process continues with sales qualifying the

Active Recycled Nurturing: Sample Flow

Disqualification reason (insert reason here):

TIME (Quarters) Q1 Q2 Q3 Q0 MARKETING TELE SALES Marketing provides backup support Theme takes DQ reason into account

DQ: Compete Re-Enter Nurture Call Opt Out Complement Touch No Yes Requal. DQ Process starts with the DQ Message: Offer: Info Collection: Delivery Method: Touch A Message: Offer: Info Collection: Delivery Method: Touch B Message: Offer: Info Collection: Delivery Method: Touch C Message: Offer: Info Collection: Delivery Method: Touch D

Evolve touches based on behavior

Key  Learnings  

•

Strong  founda@on:  Know  your  message  and  

organiza@onal  goals.  

•

Know  your  audience:  scoring  is  a  powerful  

tool.  

•

Define  and  measure:  Understand  

campaigns  before  launch  and  adapt  based  

on  engagement  levels.  

QuesQons  

Andy  Clark        

@clarkao  

aclark@[email protected]

Jason  Hekl    

@the_hekler  

[email protected]