research from harvard, mit, pinpoints hard lead conversion lessons with easy solutions
DESCRIPTION
David Elkington, Chairman and CEO of Insidesales.com, will reveal how B2B organizations are failing to take advantage of the Internet and list-based leads and how that presents impressive opportunities to launch your business beyond the competition.TRANSCRIPT
Research from Harvard, MIT Pinpoints Hard Lead Conversion Lessons with Easy Solutions
Dave Elkington CEO and Chairman
#b2blead
Today’s speaker
David Elkington has a rich background in technology, venture capital and corporate development. As CEO and Chairman, he continues to lead InsideSales.com to consecutive 50-100% annual growth starting with the company’s inception in 2004. Mr. Elkington has been active in the evolution and definition of the inside sales industry and speaks regularly. He is the co-author of the groundbreaking Lead Response industry study, has co-authored Harvard Business Review, Kellogg School of Management and many 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 movements.
@TheSalesInsider
Dave Elkington CEO and Chairman, InsideSales.com
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InsideSales.com is a lead management and sales automation cloud solution provider with over 700 clients. The InsideSales.com Research and Analytics Division tracks statistical data on aggregated de-identified sales activities:
• Over 80 Million North American Profiles. • Over 2 Billion sales and marketing touches (calls, emails, faxes, voice messages, etc.) • Over 30 Research studies published.
Research Publications and Partners:
The Background:
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Revolution in sales
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The New Inside Sales
Person
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VCs require inside sales departments
Respond Immediately
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• Source: 2007 Original Kellogg/MIT Study, Dr. James Oldroyd
Response time
Contact rates significantly drop off after 5 minutes
Contact Rate 100x decrease from 5 min to 30 min
Qualification Rate 21x decrease from 5 min to 30 min
Contacted Leads
Qualified Leads
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Omniture Summit 2008 526 54.9% 54:06 1.74
Dreamforce 2008 124 53.2% 44:31 1.14
Dreamforce 2009 2,875 39.9% 41:07 1.07
Cloudforce 2010 472 30.7% 49:49 1.32
Leads Con East 2010 57 35.1% 56:05 2.00
AA-ISP 2011 159 54.7% 40:24 2.60
• Source: InsideSales.com Response Analysis Studies
ResponseAuditTM
44:14
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• Source: InsideSales.com Response Analysis Studies
Average non-responders
There was no response from
35% to 63% of companies!
Average 43% didn’t respond
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Sales go to the first responder
For inquiries submitted on the web
78% of sales go to the first company to respond!
Source: Leads 360
Respond Persistently
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Omniture Summit 2008 526 54.9% 54:06 1.74
Dreamforce 2008 124 53.2% 44:31 1.14
Dreamforce 2009 2,875 39.9% 41:07 1.07
Cloudforce 2010 472 30.7% 49:49 1.32
Leads Con East 2010 57 35.1% 56:05 2.00
AA-ISP 2011 159 54.7% 40:24 2.60
• Source: InsideSales.com Response Analysis Studies
ResponseAuditTM
1.29
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• Source: InsideSales.com Internal Study
Percent of sales closed by call attempt
Perfect Research
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• Research rules
• $100k – 50% of time
• $10k – 10% of time
• Tools
• Research
• Predictive analytics
Sales intelligence
Voice Messaging
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30 Sec Message
% of 6 Hr Day
50 Dials/Day 32 Min 8%
100 Dial/Day 1 Hr 4 Min 18%
150 Dials/Day 1 Hr 35 Min 26%
200 Dial/Day 2 Hr 7 Min 35%
250 Dials/Day 2 Hr 38 Min 45%
• Source: InsideSales.com voice-messaging analysis studies
The voice message dilemma
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• Source: InsideSales.com voice-messaging analysis studies
The voice-message dilemma
Harder work =
more wasted time
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• Source: InsideSales.com voice-messaging analysis studies
Voice message call-back rates
Services
3% Call-back rate
Legal
21% Call-back rate
Capture Permissions
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• Source: InsideSales.com internal study
Make Every Call Productive
Capture permission on every non-yes.
15-30% of dials
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• Source: Franklin Covey Study
Turn permissions to contacts
1 rep can generate 7,500 permissions per year!
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• Source: Franklin Covey Study
Turn permissions to contacts
After one year response rates of
.5 – 1% = 37-75/month
Hot Transfer
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• Source: Non-published InsideSales.com study
Appointments drop
No-show rates
25-50%
Direct Dial
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• Source: Vorsight study
Improvement
300%
Associate Average Meetings Per Month (last 3)
% Direct Dial on Contact List
Pete Best 11 51%
Ringo Starr 13 45%
George Harrison 20 76%
Paul McCartney 22 74%
John Lennon 29 87%
George Martin 33 97.6%
Direct dial numbers
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• Source: Vorsight Study
Direct Dial Numbers
List Quality to Appts
5% -> 2.06
y = 0.4114x - 8.1934 R² = 0.9386
0
5
10
15
20
25
30
35
0 20 40 60 80 100 120
Appointment Reminders
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• Source: Non-published InsideSales.com study
Reminders increase held rates
Google or Outlook calendar invites
20% Increase held rates
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• Source: Non-published InsideSales.com study
Reminders increases held rates
4-12 Hour Reminder Call
30% Increase Held Rates
Multi-Media Calling Strategy
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Best days to contact are
Wednesday and Thursday Best times to contact are between 8–9 and 4–5
Fax contact rates up
to 7x better than email
• Source: 2007 MIT Study
More Savvy
• Time of day
• Day of week
• Response type
• Unique media
Local Presence
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Local presence effect
High/Low Range
10%-400% Contact Rate
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Average
60% Contact Rate
Phone - Local presence improvement
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Average
5.1% Improvement on Open Rate
Email - Local presence improvement
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Average
37% Improvement on response rate
Email - Local presence improvement
33% lower negative response rate
Summary and Conclusion
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Easy solutions - key action items
1. Respond Immediately – 5 minutes or less
2. Be Persistent – 8+ call attempts
3. Research time vs. call time – Remember more dials <> more deals
4. Voice Messaging – Leave great voice mail or not at all
5. Get Permission – Gather permissions on every ‘no’
6. Best Processes – Direct dials, hot transfer, reminders
7. Call Smart – 8 a.m. and 4 p.m., Wednesday and Thursday, call then email, mix media
8. Local presence – show local
ResponseAudit – We’ll test your Sales team and show you where to improve. www.ResponseAudit.com - use promo code MECLABS42
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• Dave Elkington
• CEO, InsideSales.com
• (801) 853-4090
My Contact Information
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Next Steps and Resources
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