lead gen benchmark report excerpt

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5 LEAD GENERATION BEST PRACTICES

Excerpt From:Lead Generation Benchmark Report:

How the Best Firms Fill the Pipeline

2010 ITSMA and RainToday.com Lead Generation Survey

Katie Espinola

Senior Research Analyst

ITSMA

Julie Schwartz

Senior Vice President

Research and Thought Leadership

ITSMA

John Doerr

President

RAIN Group

Mike Schultz

Publisher

RainToday.com



Excerpted from Lead Generation Benchmark Report: How the Best Firms Fill the Pipeline . To order the complete report call 508-405- 0438or visit http://www.raintoday.com/leadgenreport.cfm.SV4579R © 2010 ITSMA & RainToday.com Reproduction Prohibited 2

INTRODUCTIONAs we compiled the results from our survey of 859 respondents at professional and technology servicescompanies, one observation stood out: not all lead generation tactics work for everyone, yet every tactic (eventelevision advertising) works for some companies, although sometimes only for a select few. Moreover, thechosen tactics will only be effective if there is thoughtful strategy behind them, as well as relevant content,

based on deep knowledge of the target audience.

Professional and technology services companies will have a better chance of meeting their marketing andsales objectives if they create an integrated plan based on strategy, content, and tactics.

Your challenge, of course, is to understand the landscape of possibilities to choose the best tactics that willwork for you.

So, what lead generation strategies and tactics can you employ that will put you ahead of the curve? InLead Generation Benchmark Report: How the Best Firms Fill the Pipeline , we set out to answer thisquestion. Our goal is for you to use this report in discussion as you:

Benchmark yourself against “Excellent” lead generation companies in terms of how much you

are spending, what tactics you are using, what your offers are, what your marketing mix is, etc.

Choose which tactics you should test – and which tactics may not be worth the work andinvestment.

Defend your lead generation plans to your managers and gain buy-in with your lead generationteam.

Budget for upcoming years.

In this report excerpt, we have presented an overview of five of the most important lead generation bestpractices gained from our analysis of the data and our everyday work with technology and professionalservices firms.

Based on the 2010 ITSMA and RainToday.com Lead Generation Survey data, we have identified eight bestpractices of top performing companies. We define top performers as companies that increased profitabilitygrowth, increased revenue growth, and rated themselves as excellent or good in their ability to generate leads.In this research excerpt, we share five of these best practices. The top performers:

1. Segment based on deep knowledge of their target markets

2. Use offers and “live” experiences to generate leads

3. Use the two most effective lead generation tactics: presenting at events and making “warm”phone calls

4. Employ dedicated salespeople, in addition to “seller-doers,” to sell their company’s services andsolutions

5. Measure their progress at each stage of the sales pipeline, in addition to the pipeline inputs(number of leads generated) and outputs (closed deals and revenue)




BEST PRACTICE #1: Segment Based on Deep Knowledge of Your Target Markets

No matter its size, any company has the potential to be well known in its target markets. The first step is toproperly define the target markets and then properly segment them. Fortunately, most companies agree thatsegmentation is important to their lead generation programs.

This segmentation needs to be based on deep knowledge of the target markets, specifically:

The composition of the target markets. Companies must know the general profile of their target markets,the names of the organizations they should be targeting, the titles of the decision makers, and, mostimportant, the actual names of the decision makers.

The business and company-specific issues of the target audiences. Companies must also beknowledgeable about their target audiences’ industries, business processes, and specific business issuesat the organizational and individual levels.

The more knowledge a company has, the better it will be at creating relevant value propositions that captureattention.

Our research shows that the high performers are doing a better job at segmenting and understanding their target

markets. They are more knowledgeable about who they should be targeting and their target markets’ industryand business issues compared to the other companies (Figure 1).

When it comes to lead generation, marketing’s goal is to build contact databases, nurture relationships, andestablish credibility with regard to its company’s value proposition and track record. To do this, marketingneeds to do its homework.

Figure 1. High performers segment based on deep knowledge of their target markets

Note: Mean rating is based on a 5-point scale, where 1=very weak and 5=very strong.

* Indicates differences are statistically significant.

Source: ITSMA and RainToday.com Lead Generation Benchmark Report: How the Best Firms Fill the Pipeline, November 2010

Target markets' industry

Target markets' particular business processes

Individual organization's business issues

Individual decision maker's business issues

In terms of the general profile of our target

markets (best industry, geography, size, other

general characteristics)

In terms of the actual names of the

organizations we should target

In terms of the actual titles of decision makers

within the target organizations

In terms of the actual names of decision

makers within the target organizations

4.1*

3.8*

3.8*

3.4*

3.8*

3.3*

3.3*

2.7*

High Performers (N~105)Below Average and Average Performers (N~599)

4.4*

4.2*

3.9*

3.7*

3.8*

3.6*

3.3*

3.0*

High Performers (N~24)Below Average and Average Performers (N~79)

How strong is your company’s knowledge of its target markets? Mean Rating

Note: Only asked of a subset of survey respondents.




Takeaway #1: Know your target market. Targeting and segmentation are the first steps to any lead

generation or marketing effort and must be done with the upmost thought and rigor. Targeting goes beyondknowing the general profile of the types of clients you want. The top performers know the actual names ofdecision makers in their target companies, understand the organizations’ business issues, and understandindividual decision maker’s business issues.

Using this knowledge, top performers select lead generation tactics and offers that speak directly to buyers’issues. The first step to becoming a top performer yourself is to know your target market.




BEST PRACTICE #2: Use Content That Is Relevant (Focused on the Business

Issues), Provides Proof Points, and Builds Credibility

From both ITSMA’s How Customers Choose Solution Providers Study and RainToday.com’s How Clients Buy research, we know that buyers are looking for relevant, personalized content, as well as proof that the

company will deliver as promised. It is good to see that the services providers included in this study are inalignment with the buyers. Most companies recognize that the most effective content is high on relevancy andproof points. This includes content that is 100% focused on individual prospects’ situation, client testimonials,and client case studies (Figure 2).

The high performing companies identify a larger range of content types that are effective to generate leads. Infact, 7 out of the 10 content types we asked about were rated a 3.5 or above on a 5-point effectiveness scale.Companies with a range of content types are better able to meet the needs of buyers in different stages of thebuying cycle.

Figure 2. High performers use content that is relevant (focused on the business issues),

provides proof points, and builds credibility

Note: Effective types of content are those with an effectiveness rating of 3.5 and above on a 5-point scale.


Takeaway #2: Provide relevant content at each stage of the buying cycle. Having the right content is one of

the most important factors in getting a prospect’s attention. Content that directly addresses a buyer’s businessissues is most effective. To do this, you have to first know what issues are important to your buyers (see bestpractice #1) and then develop content that meets those issues.

High Performers Average Performers Below Average Performers

Content 100% focused on

individual prospect's specific

situation


individual prospect's specific

situation


individual p rospect's specific

situation

Client testimonials Client testimonials Client testimonials

Client case studies and success

stories


stories


stories

Best-practice methodology based

on our company's area of

expertise

Best-practice methodology based

on our company's area of

expertise

Insight into emerging business

issues and market trends

Insight on the application of

technology to solve business

problems

How-to tips, tactics, and advice

Most Effective Types of Content by Company Performance




BEST PRACTICE #3: Use Offers and Live Experiences to Generate Leads

Once a company creates the necessary lead generation content, the most effective way to showcase itsknowledge and insight is through live experiences. Think of live experiences as the equivalent of a product’s“free sample.” For high performers, live experiences include in-person events and consultative sales calls.

Articles or white papers authored by company experts are also effective for high performers.Comparing the most effective offers across companies by business performance, we were surprised to seethat the average and below average performers don’t even have one offer rated high enough to make the list(Figure 3). It is likely that that the average and below average performers, unlike the high performers, lack theright content behind their offers. It is the combination of the offer and the content (see best practice #2) thatleads to superior results.

Figure 3. High performers use offers and live experiences to generate leads

Note: Effective offers are those with an effectiveness rating of 3.5 and above on a 5-point scale.


Takeaway #3: Create and leverage offers and experiences. Engaging any new technology or professional

services company is a leap of faith. The client is never certain of what they will actually get, whether theprovider is reputable and reliable, or whether the process will work with their culture. Your prospects considerall of these questions (and more) before they buy from you.

Top performers shorten this leap of faith with valuable offers and experiences that allow buyers to see, touch,and taste a bit of what you will provide for them as a client.

High Performers Average Performers Below Average Performers

In-person conferences and seminars(produced by our company)

None None

In-person conferences and seminars

(produced by a third-party; we are a

sponsor or speaker)

Introducto ry/consultative sales call

Articles or white papers authored by

experts in our company

Most Effective Offers by Company Performance




BEST PRACTICE #4: Use the Two Most Effective Lead Generation Tactics:

Presenting at Events and Making “Warm” Phone Calls

Unfortunately, there is no silver bullet to generate leads. It is the combination of tactics, orchestrated as part ofa multimodal, multi-touch program that yields the best results. It takes careful planning and experimentation toget the mix, timing, and messaging right. That said, most companies do not have unlimited time or resources.Most need a place to start. Based on the analysis of the data by performance, two tactics stand out: speakingengagements and “warm” phone calls (Figure 4). Therefore, at the very least, companies should be:

Actively managing a speaker program that gets the company thought leaders in front of prospects

Creating the air cover to build brand awareness and familiarity to “warm” prospects

Presentations and speaking engagements at events can stand on their own. However, making warm phonecalls is a two-step process:

“Warm” the prospect. Through lead nurturing, marketing progressively builds a relationship with theprospect through multiple touches that build awareness, stimulate interest and educate, identify needs, andengage the prospect in an ongoing dialogue. The best ways to nurture and educate prospects is throughthe offers mentioned in best practice #3: the in-person events, articles and white papers, online seminars,

and company-conducted research reports. Of course, it is critical to use relevant content, targeted valuepropositions, and proof points to substantiate claims in these offers (best practice #2). Such offers introducethe company to potential buyers and demonstrate the company’s thought leadership and insight.

Follow up with the prospect. There could be two scenarios for following up with a prospect. One ismarketing (telemarketing or inside sales) makes a “warm” phone call to further nurture and qualify a lead. Inthe other scenario, sales turns a “warm” phone call into a “sales-ready” lead, previously handed over tosales by marketing.

Lead nurturing is one of the strongest ways to reduce the effort and cost of moving a prospect through thesales funnel. The sales process is labor-intensive and sales resources are expensive. Although marketingwill never replace sales, it can replace certain steps in the sales process (e.g., lead nurturing), thus freeingsales to be more productive and allowing sales to engage with buyers when they are further along the salesfunnel and more likely to purchase.

Research from CSO Insights has also shown that when salespeople receive nurtured leads, more of them willmeet their quotas, conversion rates and win rates will increase, and the sales cycle will be shorter.




Figure 4. High performers use the two most effective lead generation tactics—presenting

thought leadership at events and making “warm” phone calls


Takeaway #4: Lead generation is a multi-step process. Getting through to C-level decision makers, getting

your message of value seared into their heads, and getting them over the tipping point of becoming a seriouslead takes multiple touches, time and marketing savvy. Top performers use multiple touches and offers towarm prospects over time.

OFFERS

Presenting/

Speaking at Events

Relevant Content

In-person events (produced by your company or a third-party)

“Warm” Phone Calls

Articles or white papers

Online seminars

Company-conducted and published research report




BEST PRACTICE #5: Employ Dedicated Salespeople, in Addition to “Seller-

Doers,” to Sell Your Company’s Services and Solutions

Not all professional services companies have dedicated professional sales forces. Instead, they rely onpartners, or “seller-doers” to bring in new business and grow existing relationships.

However, the research shows that many more of the high performing companies have staff dedicated toselling services and solutions compared to the below average performing companies: 70.4% compared to41.2%, respectively (Figure 5). These dedicated sales resources appear to give the high performers a leg upon the competition. Of course, marketing, sales, partners, company leaders, and other customer-facingemployees must work together to reach the company’s lead generation goals. Nevertheless, professionalsalespeople are especially important to this process due to their focus, training, and drive. Over time, they holdthe lion’s share of knowledge about the market and the company’s clients. They are also the ones deliveringthe company’s messages and value propositions directly to the individual buyers.

Figure 5. High performers employ dedicated salespeople in addition to “seller-doers,” to

sell their company’s services and solutions

Note: Differences are statistically significant.


Takeaway #5: Put the right people in the right roles. In professional service companies, often those

responsible for generating new leads are also responsible for delivering the services, leading salesconversations, closing deals, and managing clients. So what happens when these service providers andleaders get busy with their client work? Lead generation and sales get pushed to the backburner. If you wantto succeed in lead generation, you must have an engine that continually generates new leads.

Top performers are much more likely to have dedicated salespeople in addition to seller-doers to bring in newbusiness. You need to have the right people in the right roles to feed the funnel and sustain your leadgeneration engine.

70.4

58.2

41.2

29.6

41.3

58.8

0.4

Yes No Don't know

Do you have staff dedicated to selling your services and solutions (i.e., professional salespeopleor business developers)? % of Respondents

HighPerformers

(N=108)

AveragePerformers

(N=479)

BelowAverage

Performers(N=131)




Now Available!Lead Generation Benchmark Report:

How the Best Firms Fill the Pipeline

In addition to the lead generation insights presented in this summary, the complete report includes:

The best kept secret: lead generation tactics that are highly effective in generating qualifiedleads, but the majority of companies overlook

What sets top-performing companies apart: learn how top-performing companiesincreased revenue and profitability growth, and what separates them from the competition

Industry-by-industry comparisons: see how your industry differs from the norm,discover the top lead generation tactics, which ones work best, and how your challenges aredifferent from the rest

The $200,000 question: find out what your peers and competitors would be doing if theyhad an extra $200,000 to spend on their lead generation efforts

The best offers to generate leads: learn which offer is more likely to be effective—anintroductory/consultative sales call, an ebook, a free trial, an event, or a white paper

And more (see table of contents on following pages)

If you’re looking to generate new leads and grow your business, this report is a must-read. It will provideyou with the information you need to develop a roadmap for lead generation success.

To order your copy ofLead Generation Benchmark Report :How the Best Firms Fill the Pipeline

Call: 508-405-0438

Visit:http://www.raintoday.com/leadgenreport.cfm




Table of Contents for Lead Generation Benchmark Report: How the

Best Firms Fill the Pipeline

PAGE

Foreword .............................................................................................................................................................. 1How to Use This Report ................................................................................................................................. 1Definition of Lead Generation ........................................................................................................................ 1

Executive Summary ............................................................................................................................................... 2Methodology ................................................................................................................................................... 2Uncovering the Standout Performers ............................................................................................................ 2Lead Generation Best Practices .................................................................................................................... 3

Segment Based on Deep Knowledge of Your Target Markets .......................................................... 4Conduct Formal Research, in Addition to Other Tactics, to Gain an Understanding ofYour Target Markets’ Business Needs ............................................................................................... 6Proactively Tap Your Network and Current Clients to Create Referrals for New

Business ............................................................................................................................................... 7Use Content That Is Relevant (Focused on the Business Issues), Provides ProofPoints, and Builds Credibility ............................................................................................................... 8Use Offers and Live Experiences to Generate Leads ........................................................................ 9Use the Two Most Effective Lead Generation Tactics: Presenting at Events andMaking “Warm” Phone Calls ............................................................................................................. 10Employ Dedicated Salespeople, in Addition to “Seller-Doers,” to Sell YourCompany’s Services and Solutions .................................................................................................. 11Measure Your Progress at Each Stage of the Sales Pipeline, in Addition to thePipeline Inputs and Outputs .............................................................................................................. 12

Chapter 1. Meeting the Lead Generation Challenge ....................................................................................... 13Lead Generation Competitive Environment ................................................................................................ 13

Top Lead Generation Challenge ................................................................................................................. 16Companies’ Performance in the Competitive Environment ........................................................................ 17Three Groups by Company Performance ................................................................................................... 18

Chapter 2. First Step: Segmentation and Targeting ........................................................................................ 23Defining and Segmenting Target Markets .................................................................................................. 23Basis of Segmentation: Deep Knowledge of the Target Markets .............................................................. 24Steps Taken to Gain the Necessary Knowledge ........................................................................................ 28

Chapter 3. Using Referrals to Generate Leads ................................................................................................ 31Top Way to Generate Leads ....................................................................................................................... 31Sources for Referrals ................................................................................................................................... 32

Chapter 4. Most Effective Types of Content and Offers ................................................................................. 35

Types of Content Used ................................................................................................................................ 35Most Effective Types of Content .................................................................................................................. 36Types of Offers Used ................................................................................................................................... 39Most Effective Offers .................................................................................................................................... 40

Chapter 5. Most Popular and Effective Lead Generation Tactics ................................................................. 43Use of Social Media Channels .................................................................................................................... 44Changes in the Tactics Used ....................................................................................................................... 47Effectiveness of Lead Generation Tactics ................................................................................................... 48No Silver Bullet, But Some Tactics Come Close ........................................................................................ 49




Chapter 6. Staffing for Lead Generation ........................................................................................................... 53

Chapter 7. Lead Generation Measurement ....................................................................................................... 56Lead Generation Metrics ............................................................................................................................. 56

Appendix A. Additional Top-Line Results ........................................................................................................ 59Sales and Marketing Budgets ...................................................................................................................... 59

Challenges.................................................................................................................................................... 61Lead Generation Budget .............................................................................................................................. 63Other Top Ways to Generate Leads ........................................................................................................... 63Other Ways to Proactively Create Referrals ............................................................................................... 66Online and Offline Lead Generation Tactics ............................................................................................... 67The $200,000 Question ............................................................................................................................... 79Use of External Resources .......................................................................................................................... 81Target Market ............................................................................................................................................... 82

Appendix B. Methodology and Respondent Demographics ......................................................................... 85Methodology ................................................................................................................................................. 85Data Collection ............................................................................................................................................. 85Data Analysis ............................................................................................................................................... 85

Appendix C. Company Performance Index ...................................................................................................... 92

Appendix D. 2007 vs. 2010 Respondent Demographics ................................................................................ 98

Appendix E. Crosstabs by Company Size ...................................................................................................... 102

Appendix F. Crosstabs by Industry ................................................................................................................. 134

Appendix G. Crosstabs by Company Performance ...................................................................................... 206

Appendix H. Definitions and Full Descriptions .............................................................................................. 244Lead Generation Definition ........................................................................................................................ 244Company Definition .................................................................................................................................... 244Full Descriptions of Industry Sectors ......................................................................................................... 244

Full Descriptions of Types of Content ....................................................................................................... 244Full Descriptions of Offers .......................................................................................................................... 244Full Descriptions of Online Tactics ............................................................................................................ 245

About ITSMA and RainToday.com ................................................................................................................... 246About ITSMA .............................................................................................................................................. 246About RainToday.com ............................................................................................................................... 246

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