lead generation methods - executive summary
TRANSCRIPT
JUNE 2013
LEAD GENERATION METHODS EXECUTIVE SUMMARY INSIDESALES.COM RESEARCH DIVISION PERFORMED BY BEN WARNER
34
E 1
70
0 S
Bu
ildin
g A
Pro
vo
UT
84
606
| 8
08
.96
5.4
316
| w
ww
.in
sid
esa
les.c
om
Copyright © InsideSales.com 2013
2
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning,
or otherwise, except as permitted under section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of InsideSales.com. Requests for permission should be addressed to the Legal Department, InsideSales.com, 34 East 1700
South, Suite A200, Provo, Utah 84606.
© 2013 InsideSales.com
All rights reserved, including the right of reproduction in whole or in part or in any form.
34
E 1
70
0 S
Bu
ildin
g A
Pro
vo
UT
84
606
| 8
08
.96
5.4
316
| w
ww
.in
sid
esa
les.c
om
LEAD GENERATION METHODS – EXECUTIVE SUMMARY
3
Copyright © InsideSales.com 2013
ABOUT THE RESEARCH TEAM
BEN WARNER – LEAD RESEARCHER
Ben Warner holds a master in public policy and a BS in mathematics from Brigham Young University. In his master’s program, Ben emphasized statistical and economic research methodology. His written works include consultation for the Utah Legislature on the topic of legal enforcement of immigration laws and published economic analysis with the Utah Foundation, a Utah-oriented public policy think tank. He has performed economic analysis as an actuarial assistant intern at Beneficial Financial, the largest insurance company in Utah.
At InsideSales.com, Ben was the lead researcher for the lead source close rate study which was received positively at LeadsCon 2013. In the past year at InsideSales.com he has been the primary researcher for four other studies with topics ranging from workplace personality performance outcomes to sales rep motivation.
DAVID ELKINGTON, EDITOR
David Elkington, who started InsideSales.com in 2004, has a rich background in technology, venture capital, and corporate development. As CEO and Chairman, he has delivered consecutive 50 to 100 percent annual growth rates since the company’s inception.
Before founding InsideSales.com, Dave co-founded Integr8ted Technology Solutions, LLC, a leading e-business consulting and application development firm. Prior to Intergr8ted, he co-founded and served as director of business development for Everfill, Inc., an e-Health distribution company. Prior to his technology company career, Dave was a financial analyst with Deutsche Bank Alex Brown, an investment bank based in Baltimore, Md. He also held positions with Merrill Lynch and MiraQuest Capital (a healthcare technology venture capital firm).
Dave was recognized among the Top 25 Most Influential Inside Sales Professionals in 2010 and 2012 by the American Association of Inside Sales Professionals (AA-ISP). He serves on the board for ProvoTechX, on the national advisory board of the American Association of Inside Sales Professionals (AA-ISP) and on the BYU CVLC advisory council. Dave has been active in the evolution and definition of the inside sales industry and speaks regularly. He co-authored the groundbreaking Lead Response Management industry study in 2007 and has co-authored Harvard Business Review, Kellogg School of Management and many
34
E 1
70
0 S
Bu
ildin
g A
Pro
vo
UT
84
606
| 8
08
.96
5.4
316
| w
ww
.in
sid
esa
les.c
om
LEAD GENERATION METHODS – EXECUTIVE SUMMARY
4
Copyright © InsideSales.com 2013
other academic and industry research articles. He is recognized both locally and nationally as a leader and entrepreneur in the cloud computing and remote selling market segments and has a background in computer science. Dave holds a BA degree in Philosophy from Brigham Young University with minors in Business, Japanese and Hebrew.
KEN KROGUE, EDITOR Kenneth Krogue co-founded InsideSales.com in November 2004, where he currently leads the marketing, business development, consulting, education, implementation, and support departments. In this role, he is responsible for working with the chairman and chief executive officer to set the vision and strategy for the company, as well as overseeing all day-to-day sales and marketing operations. Ken brings more than 24 years of experience in sales, development and marketing in both domestic and international markets.
Prior to joining InsideSales.com, Ken was one of the original founders of UCN, now inContact (NASDAQ:SAAS), where he held a number of positions including Chief Operating Officer. Prior to inContact, he built and directed the inside sales division at FranklinCovey (NYSE:FC), a leading provider of time and life management training systems. Ken has received many industry awards including being recognized among the Top 25 Most Influential Inside Sales Professionals in 2010 and 2012 by the American Association of Inside Sales Professionals (AA-ISP).
Ken is a weekly contributor to Forbes.com and an active thought leader in the inside sales industry. His personal blog is the top ranked blog in the world on the topic of inside sales. Ken speaks to audiences about twenty times a year around the country. He founded and served from 2010 to 2011 as the President of the Salt Lake City Chapter of AA-ISP. Ken attended the United States Naval Academy in Annapolis, Md., and earned a BS in Psychology from the University of Utah.
SUPPORTING ROLES
James W. Phillips, Supporting Author
Kyle Davis, Analytics Support
William Krohn, Business Intelligence Manager
34
E 1
70
0 S
Bu
ildin
g A
Pro
vo
UT
84
606
| 8
08
.96
5.4
316
| w
ww
.in
sid
esa
les.c
om
LEAD GENERATION METHODS – EXECUTIVE SUMMARY
5
Copyright © InsideSales.com 2013
RESEARCH PAPER
LEAD GENERATION METHODS
HIGHLIGHTS
Company websites, email, and tradeshows, are the most common marketing methods.
Executive events, inside sales, and telemarketing are the most effective methods for generating leads.
Social media methods are the least effective for generating leads
EXECUTIVE SUMMARY VS THE FULL REPORT
The executive summary contains sections on the background and motivation, the most commonly used methods, and how effective they are at generating leads. The full report contains all the same information as the executive summary but also includes an analysis of the adoption rate versus effectiveness of different methods for driving brand awareness. It includes a comparison between the lead generation effectiveness of a method and its effectiveness at driving brand awareness. The full report also contains a summary of the top problems that respondents faced.
BACKGROUND AND MOTIVATION
In March of 2010, Forrester released its last in a series of studies on lead generation entitled Rethinking the B2B Tech Marketing Mix in the Digital Age (Ramos, 2010). The study included questions about how effectively various marketing tactics generated leads and improved brand awareness. We found the Forrester study to be a valuable resource; unfortunately, it was no longer being produced. Accordingly, we decided to produce a similar report for 2013.
This study includes 26 specific marketing methods. Unlike the Forrester study, we break social media into five specific methods: LinkedIn, Facebook, Google+, Twitter, and Pinterest. We present results around these methods both specificly and considered as a whole.
34
E 1
70
0 S
Bu
ildin
g A
Pro
vo
UT
84
606
| 8
08
.96
5.4
316
| w
ww
.in
sid
esa
les.c
om
LEAD GENERATION METHODS – EXECUTIVE SUMMARY
6
Copyright © InsideSales.com 2013
METHODOLOGY
InsideSales.com sent out a survey from which we compiled a dataset of 423 responses. Respondents came primarily from sales and marketing positions.
Among these respondents, 31.5% classified themselves as decision makers in purchasing marketing-specific media, programs, services and technology, while 53.5% classified themselves as influencers in this area.
Among all companies, the most represented industry was business services, followed by manufacturing.
Respondent Role in Company
© InsideSales.com 2013
Figure 1—Respondent Role in Company
Marketing 45%
Other 12%
Sales 43%
34
E 1
70
0 S
Bu
ildin
g A
Pro
vo
UT
84
606
| 8
08
.96
5.4
316
| w
ww
.in
sid
esa
les.c
om
LEAD GENERATION METHODS – EXECUTIVE SUMMARY
7
Copyright © InsideSales.com 2013
An important consideration in this study is whether a company can afford to use a particular lead generation method. We asked respondents to indicate the size of their marketing budget. Results are given below.
Industry Representation
© InsideSales.com 2013
Figure 2—Industry Representation
Business Services 30%
Manufacturing 19%
Media, Entertainment,
Leisure, or Consumer-Oriented Services
12%
Other 11%
Software 8%
Finance & Insurance
7%
Public Sector
6%
Retail & Wholesale Distribution
4%
Utilities & Telecommunications
3%
34
E 1
70
0 S
Bu
ildin
g A
Pro
vo
UT
84
606
| 8
08
.96
5.4
316
| w
ww
.in
sid
esa
les.c
om
LEAD GENERATION METHODS – EXECUTIVE SUMMARY
8
Copyright © InsideSales.com 2013
Only 12% of respondents have marketing budgets adequately large to allow them to undertake large scale campaigns such as broad reach marketing. This is an important group factor to to consider as we examine methods that companies claim are effective but are not highly adopted.
Finally, we examine how aggressive companies consider themselves to be in adopting new technologies. By “very aggressive,” we mean companies that adopt new technologies, while “not at all aggressive” are those that only adopt tried and true technologies. Figure 4 has the results.
Marketing Budget
© InsideSales.com 2013
Figure 3—Marketing Budget
$5M or more 4%
$1M to $4.9M 8%
$500K to $999K 5%
$100K to $499K 22%
Less than $100K 35%
Don't Know/Prefer
Not to Say 26%
34
E 1
70
0 S
Bu
ildin
g A
Pro
vo
UT
84
606
| 8
08
.96
5.4
316
| w
ww
.in
sid
esa
les.c
om
LEAD GENERATION METHODS – EXECUTIVE SUMMARY
9
Copyright © InsideSales.com 2013
RESULTS
COMPANY WEBSITES MOST UNIVERSALLY ADOPTED
We asked survey takers to indicate their usage of 26 different lead generation methods. These methods can be fit into five major categories, as shown in the following table.
Aggressiveness in Adopting New Technologies
© InsideSales.com 2013
Figure 4— Aggressiveness in Adopting New Technologies
Very aggressive
12%
Somewhat aggressive
34% Not very
aggressive 37%
Not at all aggressive
17%
34
E 1
70
0 S
Bu
ildin
g A
Pro
vo
UT
84
606
| 8
08
.96
5.4
316
| w
ww
.in
sid
esa
les.c
om
LEAD GENERATION METHODS – EXECUTIVE SUMMARY
10
Copyright © InsideSales.com 2013
Some of these methods could fit into more than one category, but for the purposes of this study we will group methods as they are above. Figure 5 shows the percentage of companies using each method.
Marketing Method Categories
Traditional
TV Advertising
Radio
Direct Mail
Print Advertising
Public Relations
Outdoor Media
Events
Tradeshow, Conferences (in person, large scale)
Sponsorships and/or Associations
Executive Events: Breakfasts, Seminars, Hospitality Events (in person, small scale)
Virtual On-Demand Events
Webinars, Webcasts
Online
Company Website
Email or Electronic Marketing
Search Marketing
Blogs
Online Display Ads
Other Web 2.0 Tools: RSS Subscriptions, Mashups, Widgets, Wikis
Online Video
Rich Media: Podcasts, Flash Demos, Interactive PDFs
Social
Google+
Outbound Inside Sales
Telemarketing
© InsideSales.com 2013
Table 1—Marketing Method Categories
34
E 1
70
0 S
Bu
ildin
g A
Pro
vo
UT
84
606
| 8
08
.96
5.4
316
| w
ww
.in
sid
esa
les.c
om
LEAD GENERATION METHODS – EXECUTIVE SUMMARY
11
Copyright © InsideSales.com 2013
We see in Figure 5 that more than any other method, companies use websites, which is unsurprising. Email and tradeshows are also both very popular. More surprisingly, many flashy and interactive Web 2.0 tools were mostly ignored, including podcasts, virtual, on-demand events, and other Web 2.0 tools.
SOCIAL MEDIA INEFFECTIVE AT GENERATING LEADS
We asked survey respondents to indicate their perception of the effectiveness of each lead generating method. The graph below shows
Methods Used
© InsideSales.com 2013
Figure 5—Method Adoption Rates
0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
Company Web site
Email or electronic newsletters
Tradeshows, conferences
Inside Sales
LinkedInFacebook
Direct mail
Print advertising
Sponsorships and/or associations
Search marketing
Webinars, webcasts
Public relations
Blogs
Online videoOnline display ads
Telemarketing
Executive Events
Google+
Rich Media
Radio
TV advertisingPinterest
Outdoor mediaOther Web 2.0 tools
Virtual, on-demand events
Traditional Events Online Social Outbound
34
E 1
70
0 S
Bu
ildin
g A
Pro
vo
UT
84
606
| 8
08
.96
5.4
316
| w
ww
.in
sid
esa
les.c
om
LEAD GENERATION METHODS – EXECUTIVE SUMMARY
12
Copyright © InsideSales.com 2013
the percentile rank of effectiveness plotted against the percentage of those who adopted the method.1
One of the most interesting results we found was that social media tools were not considered effective for generating leads. LinkedIn, Facebook, Google+, Twitter, and Pinterest were all rated near or below the bottom quartile for effectively generating leads. Few marketers are using Pinterest or Google+ anyway, but LinkedIn and Facebook have more than 50% adoption, and are therefore being overused.
1 An effectiveness index was calculated which was 2 * (% that ranked it highly effective)
+ (% that ranked it somewhat effective) – (% that ranked it not very effective) – (2 * % that ranked it ineffective). Results were then ranked according to this metric. The y-axis shows the percentile between 0 and 1 of that rank. Adoption rate (the x-axis) simply shows the percentage of respondents who said they use that tactic.
Effectiveness at Generating Leads vs. Adoption Rate
© InsideSales.com 2013
Figure 6—Generating Leads vs. Adoption Rate
Company Website
Email or Electronic Newletters
Tradeshows, Conferences
Inside Sales
Direct Mail
Print Advertising
Sponsorships / Associations
Search Marketing
Webinars
Blogs
Public Relations
Telemarketing
Online Display Ads
Online Video
Executive Events
Google+
Rich Media
Radio
TV Advertising
Outdoor Media
Other Web 2.0 Tools
Virtual, On-Demand Events
0.0
0.5
1.0
0% 50% 100%
Effe
ctiv
en
ess
Adoption
Underused Established Value
Being Abandoned
Overused
34
E 1
70
0 S
Bu
ildin
g A
Pro
vo
UT
84
606
| 8
08
.96
5.4
316
| w
ww
.in
sid
esa
les.c
om
LEAD GENERATION METHODS – EXECUTIVE SUMMARY
13
Copyright © InsideSales.com 2013
Other lead generation methods were rated as having above average effectiveness, yet were not being used by the majority of companies, including executive events, telemarketing, virtual on-demand events, and TV advertising. Executive events and telemarketing were rated the second and third most effective methods, yet only one-third of companies are using them. These methods should be considered. These data can help marketing managers take advantage of others’ successful experiences in generating leads.
OUTBOUND MARKETING RATED THE MOST EFFECTIVE
For each of the lead generating methods, we asked survey respondents to indicate if it was highly effective, somewhat effective, not very effective, or ineffective. To avoid cluttered graphs, we report these results using the larger method groupings as defined previously. Figure 7 shows the percentages of methods that were marked highly effective.
We see in Figure 7 that events and outbound methods are best for generating leads, while social media and traditional methods are least effective.
How Many Considered the Method Highly Effective for Lead Generation
© InsideSales.com 2013
Figure 7— How Many Considered the Method Highly Effective for Lead Generation
17%
27%
39%
5%
10%
0%
10%
20%
30%
40%
50%
Online Events Outbound Social Media Traditional
34
E 1
70
0 S
Bu
ildin
g A
Pro
vo
UT
84
606
| 8
08
.96
5.4
316
| w
ww
.in
sid
esa
les.c
om
LEAD GENERATION METHODS – EXECUTIVE SUMMARY
14
Copyright © InsideSales.com 2013
CONCLUSION
We have seen that executive events, telemarketing, webinars, and search marketing are effective yet underutilized methods for generating leads. Companies should more frequently use these methods. One the other hand, social media showed very poor lead generating effectiveness. Even though LinkedIn was rated the most effective social media tool in the survey, it barely reached above the bottom quartile in marketing method effectiveness. LinkedIn, Facebook, and Twitter are all overutilized considering their poor effectiveness.
Tradeshows, email or electronic newsletters, and company websites are recognized as highly effective at generating leads and are used broadly. Inside sales, however, was the highest rated method for generating leads. Companies should use the data in this report to better focus their marketing resources into those channels which are most effective.
Works Cited Ramos, L. (2010). Rethinking the B2B Tech Marketing Mix in the Digital Age.
Cambridge: Forrester.
34
E 1
70
0 S
Bu
ildin
g A
Pro
vo
UT
84
606
| 8
08
.96
5.4
316
| w
ww
.in
sid
esa
les.c
om
LEAD GENERATION METHODS – EXECUTIVE SUMMARY
15
Copyright © InsideSales.com 2013
ABOUT INSIDESALES.COM
The InsideSales.com platform accelerates efficient lead response management and qualification. Key features include: PowerDialer, integrated with the InsideSales.com Lead Response Platform or the Salesforce® CRM; ResponsePop, the ability to respond to web leads in under 10 seconds; automation of standard sales functions, such as the ability to leave a voice message or email with the click of a mouse or through one or more pre-defined trigger events, otherwise known as sales workflow automation; extensive sales analytics that enable visibility down to the sales rep level. A brief list of our enterprise clients includes: Groupon, Dell, Eloqua, and Marketo. To learn more, visit www.InsideSales.com.