Marketers face lengthy time spans as they progress from lead generation to conversion, making it difficult to nurture prospects while moving them through the pipeline. This chart highlights the percentages of leads in each stage of the pipeline that are likely to advance to the next stage.
One of the most challenging obstacles to marketing is the time span from lead generation to sales conversion.
These long sales cycles put pressure on marketers to streamline the lead nurturing process. When prospects first enter the pipeline, they may be months away from defining specifications, a budget or purchase timeline.
It is marketing’s responsibility to identify and fulfill the information needs of prospects at each stage and to advance prospects through the pipeline to a sales-ready stage as rapidly as possible.
What percentages of leads in each stage of the pipeline are likely to advance to the next stage? As this chart shows, on average, nearly four in 10 leads move from initial inquiry to being sales-ready, and approximately the same ratio advance from sales-ready to qualified prospect. As might be expected, the trend deteriorates moving to the next stage where only three in 10 qualified prospects convert to a sale.
The internal sales force has an edge – albeit slim – over top channel partners in percent of distributed leads closed. An organization’s own sales force is also three times as likely to close leads distributed to them as are their average channel partners.
The Deal. The Close. The Win.
Ultimately, making the sale is up to your sales team, but by implementing a sound nurturing and scoring process, you have helped them by establishing a relationship and positioning your company as a leader with the prospect. The Tools Just as a nice haircut and a manicure prepare you for that first date, every marketer should prepare for that introduction. You’ll need easy to use tools to help you nurture leads, including email, landing pages, forms, and lead scoring: essentially, a lead management solution.
Send triggered emails
Send a series of emails as part of a drip marketing campaign, or triggered based on specific prospect activities. Each email offers a document (or webinar, or trial software, etc.) that helps move your target along in their decision-making process.
Use custom landing pages
Don’t forget that custom landing pages can increase conversion rates by up to 48% during your lead nurturing as well as your lead generation activities. You only have eight seconds to get their attention, so use bullets, short forms, and no external navigation. And have only one call to action!
Use smart forms
You will get better response rates by using a form as the call to action on your landing pages, but why use the same form with the same fields over and over? Just like you wouldn’t ask your date for his or her name every time you see them, you shouldn’t ask for contact information again and again. Smart forms recognize known visitors and can fill in the fields you already know. Since you don’t have to ask for this, ask for other info, such as company size, time until decision, etc. Building the profile over time will help you in scoring the lead.
Use web analysis and lead scoring
Knowing which pages your prospects visit on your site can be very beneficial to determining their interest as well as their level of engagement. Being able to connect anonymous visits to actual prospects? Priceless.
Automate and measure
Salesforce.com and other customer relationship management (CRM) products are great, but they typically fall flat in their marketing capabilities. As marketers we need to automate the everyday tasks of building and managing lead generation and lead nurturing campaigns. We also need to more objectively score leads according to their company demographics as well as their activities on our websites, landing pages, emails and other campaigns. And a single lead source doesn’t cut it when lead nurturing. It’s great to know where we first encountered the prospect, but knowing what happens between that first meeting and closing the sale is imperative in these days of marketing accountability.
Evaluate
As you move through the nurturing process, you’ll probably discover that some of the assumptions you made are incorrect; for instance, that downloading a particular white paper means that they are close to buying or that sending a particular email would elicit a good response. Don't forget that lead nurturing – and marketing in general – is constantly changing. You'll want to stay flexible and be ready to change your lead nurturing process as you experiment with new tactics and learn what works.
What are you doing to lessen the cycle from lead generation to conversion?
By Jennifer Pricci
Showing posts with label lead scoring. Show all posts
Showing posts with label lead scoring. Show all posts
July 14, 2009
Cancel the Blamestorming Session: 3 Tips to Marketing / Sales Alignment
Historically, the relationship between marketing and sales has been (to put it politely) problematic, with lots of finger-pointing, and lots of valuable sales leads falling through the gaps between the two functions. But in an age of cautious spending, no company can afford to have sales leads disappear because of poor internal processes. To pull through the downturn successfully, you need sales and marketing teams that work together seamlessly and effectively… you need sales and marketing alignment.
And while sales may once have been the alpha in a not-so-happy-marriage, today the tables have turned. In the digital era, B2B marketing is not just responsible for getting names into the top of the funnel. They must also build relationships with those contacts, nurture them over time, provide guidance and information at every stage, and bring them to the point where they are qualified opportunities ready to convert.
1. Score Your Leads Collaboratively
Effective lead scoring is essential to ensuring that only well-qualified leads are handed over to sales. The focus should be on bringing marketing and sales teams together to agree on the definition that will be used to score leads at each stage in the funnel. Establishing this together will avoid finger-pointing later, and will enable you to develop appropriate content for leads at every stage.
Together, the teams should decide on the criteria for scoring potential buyers all the way from a basic name entering the top of the funnel, through engaged party, prospect, lead, and finally opportunity. Lead scoring will consider factors such as the prospect’s interaction with your website and social media profiles, the amount and type of content viewed, shared and downloaded, information given in registration forms, and the results of any direct mail, events or other activities.
More importantly, don’t forget to score for negative behaviors, too. Activities like unsubscribing from emails or negative social media comments are signs that a prospect no longer wants to engage. Again, these definitions need to be agreed upon between both teams.
2. Stop Valuable Leads From Falling Through the Cracks
Once you have decided on how to define and score activities during the complete sales funnel, you will also need to set the ground rules for when a lead should be handed over to sales. Handing over only highly-qualified leads means Sales focuses all of its efforts on leads that are ready to convert, resulting in increased revenue and a better B2B marketing ROI.
But what if the weeks or months pass and the lead doesn’t move on to the next stage? That’s when many leads tend to fall into a limbo where neither marketing nor sales feels responsible for them. With budgets tight, marketing has understandably wanted to focus on getting more sales leads into the funnel, and on pursuing the ones that show a greater propensity to buy. There simply hasn’t been time or money to lavish attention on stalled leads that may never become customers.
But now, technological advances have made it possible to nurture leads over the long term cost-effectively, by keeping in regular automated contact and providing useful content based on what you already know about the lead.
But lead nurturing can’t be conducted independently by sales. There needs to be regular two-way communication between the functions, so that sales knows what activity the lead has undertaken and what messages and content have already been communicated to them. There also needs to be a smooth process for sales to hand back leads that have failed to convert, so they can be put back into the funnel for further nurturing.
3. Use Metrics to Show What’s Worked
One of the biggest challenges for any marketing team is to demonstrate how marketing spend is driving revenue for the business. Done properly, regular lead scoring and comprehensive lead nurturing deliver ample data that demonstrate how leads have been progressed through to conversion.
You still need to choose the right metrics. To truly demonstrate marketing’s value, you need to be measuring things like marketing program performance, impact on revenue and profit per customer.
Key Takeaway
Marketers, avoid a shotgun wedding by creating a long-term, healthy and happy relationship with sales. Strive to understand their needs like they understand the customer. Rely on them for the great information they bring from the field. Work together to define your ideal lead. That information will inform all of your marketing activities. The rest is doing your due diligence when it comes to getting the job done. While your role may be getting those leads into the funnel, it’s also about keeping that funnel clear of debris.
By Jennifer Pricci
And while sales may once have been the alpha in a not-so-happy-marriage, today the tables have turned. In the digital era, B2B marketing is not just responsible for getting names into the top of the funnel. They must also build relationships with those contacts, nurture them over time, provide guidance and information at every stage, and bring them to the point where they are qualified opportunities ready to convert.
Let’s cancel this week’s blamestorming session…
Here are 3 tips to promote effective sales and marketing alignment:
Here are 3 tips to promote effective sales and marketing alignment:
1. Score Your Leads Collaboratively
Effective lead scoring is essential to ensuring that only well-qualified leads are handed over to sales. The focus should be on bringing marketing and sales teams together to agree on the definition that will be used to score leads at each stage in the funnel. Establishing this together will avoid finger-pointing later, and will enable you to develop appropriate content for leads at every stage.
Together, the teams should decide on the criteria for scoring potential buyers all the way from a basic name entering the top of the funnel, through engaged party, prospect, lead, and finally opportunity. Lead scoring will consider factors such as the prospect’s interaction with your website and social media profiles, the amount and type of content viewed, shared and downloaded, information given in registration forms, and the results of any direct mail, events or other activities.
More importantly, don’t forget to score for negative behaviors, too. Activities like unsubscribing from emails or negative social media comments are signs that a prospect no longer wants to engage. Again, these definitions need to be agreed upon between both teams.
Once you have decided on how to define and score activities during the complete sales funnel, you will also need to set the ground rules for when a lead should be handed over to sales. Handing over only highly-qualified leads means Sales focuses all of its efforts on leads that are ready to convert, resulting in increased revenue and a better B2B marketing ROI.
But what if the weeks or months pass and the lead doesn’t move on to the next stage? That’s when many leads tend to fall into a limbo where neither marketing nor sales feels responsible for them. With budgets tight, marketing has understandably wanted to focus on getting more sales leads into the funnel, and on pursuing the ones that show a greater propensity to buy. There simply hasn’t been time or money to lavish attention on stalled leads that may never become customers.
But now, technological advances have made it possible to nurture leads over the long term cost-effectively, by keeping in regular automated contact and providing useful content based on what you already know about the lead.
But lead nurturing can’t be conducted independently by sales. There needs to be regular two-way communication between the functions, so that sales knows what activity the lead has undertaken and what messages and content have already been communicated to them. There also needs to be a smooth process for sales to hand back leads that have failed to convert, so they can be put back into the funnel for further nurturing.
3. Use Metrics to Show What’s Worked
One of the biggest challenges for any marketing team is to demonstrate how marketing spend is driving revenue for the business. Done properly, regular lead scoring and comprehensive lead nurturing deliver ample data that demonstrate how leads have been progressed through to conversion.
You still need to choose the right metrics. To truly demonstrate marketing’s value, you need to be measuring things like marketing program performance, impact on revenue and profit per customer.
Key Takeaway
Marketers, avoid a shotgun wedding by creating a long-term, healthy and happy relationship with sales. Strive to understand their needs like they understand the customer. Rely on them for the great information they bring from the field. Work together to define your ideal lead. That information will inform all of your marketing activities. The rest is doing your due diligence when it comes to getting the job done. While your role may be getting those leads into the funnel, it’s also about keeping that funnel clear of debris.
By Jennifer Pricci
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