eDirect Marketing

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e-Direct Marketing
64157 ??????????? ????????? 2002 Spring, Week 8-1
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Offers for B2B Lead Generation

• OR
• Hello Prospect, Lets Make a Deal

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Definition

• An offer is an agreement between the prospect
  and the marketer. The prospect agrees to give
  something of value to the marketer

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Definition

• if the marketer agrees to give something of
  equal or greater value in return.

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• Therefore
• the success of your offer depends on how well
  you understand your target audience and what it
  values.

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How to find out what your audience values

• Analysis of previous successful offers
• Talk to your sales representatives what do their
  accounts mention as top challenges
• Read your white mail what are the common themes
• Conduct periodical surveys of your customer base
• Read industry publications pay attention to
  letters to editor, profiles, roundtables

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Lead Generation Offers

• Three main types of offers you can use to
  persuade prospects to indicate their level of
  interest in your product or service
• Information for information
• Information for a prize
• Limited commitment for free trial

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Information for Information Offers

• Brochure/CD Demo Request
• Bare-bones offers, where marketer exchanges
  product/service information for answers to
  lead-qualifying questions. The effectiveness of
  this approach is based on the accuracy of the
  list.
• Tip Howard Sewell, president of Direct Connect,
  finds that too many qualifying questions on a BRC
  dampens response. Limit your questions to between
  two and three, and make sure they absolutely deal
  with only the kind of information sales
  representatives absolutely need to make follow-up
  contact.

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Information for Information Offers

• Needs Analysis/Consultation
• This offer is a great way to get a phone call or
  in-person meeting without scaring prospects away
  with the words sales presentation.
• This approach is particularly suited to products
  and markets that require tailored solutions and
  pricing.

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Information for Information Offers

• Needs Analysis/Consultation
• Example Verio, a global IP service provider,
  offers prospects price discounts up to 60 but
  the real hook is the free evaluation of
  prospects circuit usage if they respond before
  the deadline. Of course, the results will point
  toward Verio being able to offer prospects better
  coverage at a competitive price.
• Tip Maintain the consultative aspect of this
  approach by referring to the sales
  representatives who will perform the follow-up
  contact as anything but sales representatives.
  Verio tells prospects they will be contacted by
  the firms engineers.

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Information for Information Offers

• Free White Paper
• A step up from simply sending a brochure or CD,
  and a favorite approach in B2B lead generation.
• While business people are overwhelmed by
  information, the attractiveness of the white
  paper depends on its relevance to your audiences
  top challenges. Youre looking to address those
  topics that keep your prospects awake at night.

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Information for Information Offers

• Free White Paper
• White papers can be produced in-house or
  purchased from outside research and consulting
  firms. Reports from third-party sourcesso long
  as they are reputablemay be perceived as more
  valuable to the prospect, since they would not be
  biased to your firm.
• Tip If you do use a white paper from a third
  party, be sure to find one that espouses topics
  and slants that fit your product features and
  positioning.

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Information for Information Offers

• Free Customized Website
• This approach is a good fit for a longer sales
  cycle, where you want to pepper prospects with
  information on a regular basis until they are
  ready to make a capital investment.
• It requires a commitment on the part of the
  marketer to set up, maintain and track this
  system.

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Information for Information Offers

• Free Customized Website
• Example Epicor, an enterprise software
  developer, funnels leads into a drip market
  program via websites that are personalized
  according to prospects interests.
• The direct mail piece uses a web address based on
  prospects names to entice them to sign up for
  their own microsites. Four vertical sites deliver
  regular content updates on industry-specific
  topics.
• E-mails drive website visits, with announcements
  of content updates.
• Epicor tracks prospects movements within the
  sites to provide sales representatives with
  detailed information for more relevant inquiries
  into prospects software needs.
• The web sites pull 15 to 22 response for lead
  generation.

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Information for Information Offers

• Free Seminar/Webinar
• This offer is similar to the offer of a free
  report or custom website, except that it allows
  marketers to get up-close and personal with
  prospects
• As with the white paper, the seminar presentation
  must offer valuable insight on the top business
  concernsbut the topic naturally will lead to the
  marketers product as a solution.
• The introduction of web-event tools have given
  rise to the webinar, which is much less expensive
  and time-consuming than meeting planning for
  several key selling regions.

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Information for a Prize

• Premiums
• Business people like getting something free as
  much as the next person. While the premium does
  not have to be related to the offer to be good at
  drawing response, the results are more meaningful
  if prospects respond to a related premium, rather
  than an all-purpose item.
• Example Epson offers a stylus pen and a CD-ROM
  of presentation tips to respondents who are
  interested in its line of light projectors.
  Unless you are someone who makes frequent
  presentations and speeches, these premiums would
  not be particularly appealing.

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Information for a Prize

• Premiums
• Example Multi-level test for financial
  management firm
• Test conducted by The Hacker Group
• Two lead generation packages
• Package 1strong two-page letter, a response
  device, a return envelope, 10 closed-face outer
• Offer1White Paper A, calculator
• Offer2White Paper B, calculator

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Information for a Prize

• Premiums
• Example, cont.
• Package 2strong two-page letter, a response
  device, return envelope, 6? x 9? translucent
  outer
• Offer1White Paper A, calculator
• Offer2White Paper B, calculator

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Information for a Prize

• Premiums
• Example, cont.
• Package 3one-page letter that requested
  prospects to complete a short survey, a return
  envelope and a special sheet that served to
  billboard the offer through the translucent
  outer.
• OfferThree-piece mini sound system, calculator

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Information for a Prize

• Premiums
• Example, cont.
• Test Results
• All packages met or exceeded the 1 response
  target
• Survey package in 6? x 9? translucent envelope
  pulled 5.37
• 3-piece mini sound system was overall winner, at
  7.49
• While the white paper would still have performed
  to expectation, a better offer was in existence

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Information for a Prize

• Contests
• Some audiences need more persuasion to share
  details on their business plans and needs.
• Contests are your alternative to offering the
  entire prospect base a premium for response.
• This approach is also appropriate for situations
  where your audience requires an incentive with
  more cachet.
• The hot prize for many business sectors,
  particularly technology offers, is hand-held
  mobile devices.

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Limited Commitment for Product Trial

• Evaluation Period
• When you have a product or service that you
  believe is most convincing in operation, and that
  can be easily integrated into any business
  operation, a free product trial can offer a
  higher level of lead qualification.
• Inertia works for you here, as once prospects
  have the product in hand and have been using it
  on a daily basis, they will be easier to convert
  to the final sale.

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Limited Commitment for Product Trial

• Evaluation Period
• You need to judge the adequate breaking-in
  period, and then schedule follow-up calls to help
  prospects make optimum use of the productor it
  could sit in the box for the entire evaluation
  period.
• Example Pitney Bowes offers small business
  prospects a 90-day trial on one of its postage
  meters, with a nominal deposit required. It
  sweetens the conversion to paid by offering the
  scale and the first four meter refills for free.

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Dont Forget the Burger King Rule

• The standard rule for offers in direct marketing
  is to never make more than one in a single effort
• But B2B requires a second rule One-size offers
  do not fit all prospects, so you must allow the
  audience to choose one, two, maybe even three
  paths to the final response.

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Dont Forget the Burger King Rule

• Consider this the Have it Your Way Rule of B2B
  lead generation.
• According to B2B expert Bob Bly, these variations
  on the same offer produce more overall response
  for your efforts.
• Example You offer a free needs analysis to
  respondents who meet the deadline, but you also
  allow prospects who dont want to get that
  involved to request a capabilities brochure. The
  qualifying questions include a fill-in blank for
  a future date when these prospects will be
  considering making a purchase.

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Post 9/11 Trends

• More postcards and self-mailersbut many
  marketers stuck with their controls, if they
  had them before September
• Outside of lead generation, companies have
  increasingly responded to market conditions with
  more discounted offers and the inclusion of
  add-ons to increase the value of the overall
  purchase
• Slight increase in CRM efforts, with special
  offers for current customers

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Post 9/11 Trends

• No huge change in B2B creative, but a few
  companies switched from plain outers to carriers
  with teaser copy and graphics that indicated the
  pieces were advertising mail
• Mailrooms are no longer fearful of
  anthrax-tainted mailwhich means the biggest
  challenge is still getting past gatekeeper.

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PROBLEM

• GOOD NEWS
• Your marketing communications programs are
  working and producing many inquiries.
• BAD NEWS
• Inquiries are not leads and the sales group want
  only qualified and ready- to-buy sales
  opportunities.

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SOLUTION

• Your need to develop a system that delivers only
  qualified sales opportunities to the sales group.
• There are proven methods to develop such a system
  based on real world experience and best practices
• Tonights session is intended to provide the key
  points to start developing your lead
  qualification process
• Customization will be needed to fit your
  marketing and company situation

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Two Measures to Benchmark Before Starting

• How many of your current inquiries convert to a
  sale?
• Somewhere between 30-60 of all B2B inquiries
  convert to a sale within 18 months of the inquiry
• What is your cost/inquiry and cost/lead?
• 90 of all companies dont know their current
  cost/inquiry and cost/lead

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THREE STEP SYSTEM

• Heres the three step system we recommend
• Inquiry Screening
• Lead Qualification
• Sales Opportunity Development

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INQUIRY SCREENING

• The objective of the inquiry screening process is
  to identify without even talking to the
  inquirer which inquiries appear to be the best.

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INQUIRY SCREENING

• This process evaluates the inquiry by four
  criteria to determine what potential the inquiry
  might have based on --
• The outbound communications media
• The offer accepted by the inquirer
• The media used to inquire
• Their sweet spot profile

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Outbound Media

• The number of qualified leads found in the pool
  of inquiries will vary by media you used to
  communicate to suspects
• Public Relations low number
• Banner advertising
• Trade advertising (print)
• Trade shows
• Direct mail
• Telemarketing high number

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The Offer Accepted

• The harder the offer the more leads per every
  100 inquiries
• for more information not really an offer
• Soft offers free, premiums, literature
• Value offers white paper, technical reports,
  etc. that provide the inquirer objective
  information of value to them
• Hard offers a commitment of some kind

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The Inbound Media

• The interest of the inquirer is tipped off by how
  they choose to inquire
• Bingo card low interest
• Web registration
• Business reply card
• Letter
• Phone call high interest

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Profiling The Sweet Spot

• The sweet spot is defined as the type of
  companies where youre sure your best sales
  opportunities lie.
• Three common parameters
• Size of company employee size is best
• Type of business SIC/NAICS code
• Relational demographic fact something specific
  to your selling situation (e.g. equipment in use)

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Inquiry Screening Summarized

• Most companies cannot allocate expensive
  resources (telemarketing) to qualify all the
  inquiries.
• Inquiry screening provides a system to determine
  which inquiries appear to have the greatest
  potential to become leads.

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LEAD QUALIFICATION

• The objective of lead qualification is to qualify
  as many inquiries as possible into leads without
  losing any.

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Lead Qualification

• There are four traditional criteria used to
  qualify leads
• Need for the product/service
• Timing of the need and/or decision
• Budget available to spend
• Authority of the individual(s) to make a decision

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Some Tips and Techniques

• You need to define what is a qualified lead using
  these criteria (plus others specific to your
  company) before setting up the lead qualification
  system.
• This is not as easy as it may sound! Sales,
  product management and marketing communications
  will have different definitions.

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Tips and Techniques

• The order each qualification criteria was listed
  (NTBA) is generally the order in which the
  prospect will be able to answer lead
  qualification questions.
• Not all inquiries can answer all the four
  questions particularly if they are beginning
  their buying process
• Allow the prospect to proceed at the natural pace
  of their buying process dont arbitrarily rush
  them.

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Tips and Techniques

• Not all inquiries are at the same stage of the
  buying process. As an example
• 20 are curious
• 40 are beginning their buying process
• 30 are actively engaged in evaluation
• 10 are ready to buy and should be handed off to
  your sales group now
• Your job is to separate and handle them
  accordingly

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Tips and Techniques

• Speed of response is the single most important
  element to increase conversion to sale.
• Particularly when the prospect is actively
  engaged in the buying process or ready to make a
  decision
• Speed of your response not only captures the
  ready to buy group but portrays your company as
  having its act together!

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Lead Qualification Summary

• Lead qualification is a difficult job and with
  the high cost of a sales call, its now the job
  of marketing to get it right!
• Any successful lead system will be based on
  proven methods customized to your companys
  market, product or service and distribution
  system.

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SALES OPPORTUNITY DEVELOPMENT

• The objective of sale opportunity development is
  to create more ready to buy potential accounts
  for immediate sales contact.

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Sales Opportunity Development

• Not all leads are ready to be handed off to a
  sales resource even though they may well be
  qualified.
• A qualified lead means that the prospect is
  serious and capable to buy your product or
  service.
• That doesnt mean that its necessarily time to
  send a sales person.

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The Role of The Buying Process

• Determine the standard buying process by market
  segment an example
• Need awareness
• Information gathering
• Vendor evaluation/narrowing of choices
• RFQ or RFP
• Presentation or demonstration
• Decision process
• First order

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When is this a sales opportunity?

• In the preceding generic example, the sales
  opportunity exists at the time of the
  presentation or demonstration request.
• Its marketings job to move the lead to that
  stage and then hand over to the sales group for
  conversion.

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Tips and Techniques

• Additional offers should be developed to motivate
  the prospect to advance in the buying process.
• Outline the normal buying process for the
  product/service you are offering
• Develop an offer that would be logical to move
  the buyer to the next step
• Determine which step the inquirer is in and make
  the appropriate offer

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Some Realities

• Most sales people do not value or follow-up
  leads that have been sent because, quite
  frankly, in the past they werent very good
  leads.
• Therefore, much time and money has been wasted on
  lead programs as sales didnt follow up.
• Straight Talk is required to change the
  attitude and behavior of sales.

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Some Of This Straight Talk

• Definition of a sales opportunity
• Number of sales opportunities per week or month
  that will be followed-up
• Timing and system of feedback on what happened
• A lead hand-back system when the lead needs
  more development attach no penalty to sales for
  giving it back.

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Summary

• The inquiry to sales opportunity process has the
  highest potential in most companies of any sales
  and marketing process to generate sales and
  marketing productivity improvements.
• Theres a 99 chance that you can improve this
  process in your company by using one or more of
  these suggestions.