What Every Business Services Marketer Should Know About Online Lead Generation

Marketer Should Know

about Online

Lead Generation

What Every Business Services

© Copyright 2013 InsideUp, Inc. All Rights Reserved

What’s Inside

1. Background

2. Return on Investment for Lead Generation

3. Lead Generation Survey Research

4. Effective Lead Generation Strategies

5. Outsourcing Online Lead Generation

6. Lead Generation Essentials

7. Finding Quality Lead Suppliers

8. Achieving Your Best ROI

Five Things a Good Lead Supplier Will Offer

Questions to Ask When Evaluating a Lead

Table of Content

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Background1.


Quality leads are the lifeblood of every successful business. In a recent InsideUp

survey of successful B2B marketers, participants listed access to quality leads among

the top five factors that had contributed to their success.

According to a study by the Direct Marketing Association, lead generation activities

account for about 65 percent of most marketing budgets. But maintaining a constant

stream of high-quality leads can be challenging. How do successful companies

confront this challenge? We'll be addressing this, along with several other vital

concerns affecting the lead marketplace today, such as:

How to ensure the leads you acquire are of the highest quality

How lead acquisition practices are evolving, and

Why it's so important to keep up with the changes

Companies have traditionally employed a variety of methods such as print, TV, radio,

trade shows, referrals, networking, and buying prospect lists in an effort to maintain a

steady flow of leads. Typically, the two most popular forms of business services

marketing have been trade shows/event marketing and direct marketing using

purchased lists.

Trade Shows/

Event Marketing

Trade shows and events have traditionally

been a major component of B2B advertising

spend. Trade shows can be a good source of

leads. However many trade show visitors are

in the very early stages of information

gathering. That, combined with the

intermittent nature of trade shows, can make

such events a sporadic source of leads.

Direct Marketing/

Purchased Prospect Lists

Companies can purchase lists based on

industry category and basic demographic

criteria, but list providers do not offer

marketers the ability to target leads based

on the specific needs of a business service

provider. These “leads” are nothing more

than wholly un-targeted lists of businesses

that may or may not have an interest in

your services.

Executive Summary


Return on Investment forLead Generation

2.

Why do companies continue to use traditional methods for lead generation?

One reason is that they do see some results. Many marketing executives admit that

they do not regularly quantify the results of their lead acquisition efforts in order to

calculate their true ROI. While traditional methods of acquiring leads still have some

merit, they are often less than effective, and may result in a disappointing return on

your investment.

Quantifying the value of marketing programs was cited as a top priority for 53

percent of participants in a recent survey by CMO Council. But when asked how they

tracked and measured return on marketing expenditures, nearly 20 percent revealed

that they had no means in place to do so. Thirty-four percent, however, said that

they do plan to introduce a formal ROI tracking system.

Typical metrics proposed included revenue, profits and market share; and lead

volume, caliber and conversion, as well as direct response metrics. In fact, 63 percent

of CMOs in the 2011 IBM Global Chief Marketing Officer Study said that ROI on

marketing spend will be the chief measure of their success by 2015.

By tracking the results of various marketing and lead generation efforts—comparing

all methods against one another—companies can better allocate marketing dollars

for optimum ROI. For example, if the cost of each lead from a trade show is $500, but

it only takes $100 to generate an online lead, that $500 expenditure would be

acceptable only if your ROI on trade show leads is five times higher than that of

leads acquired online.

Even companies whose average customer purchase is about $20 typically spend

much more than that to acquire each new customer, realizing that over a period of

several years, that customer will likely spend between two to three thousand dollars

or more.

Measurability Matters

Your Customer’s Lifetime Value

Calculating the lifetime value of a single customer reveals the true value of the

investment in leads to acquire that customer. Factoring in the repeat purchases a

company receives from each customer reveals how that $250 profit can turn into

several thousands of dollars over the years of their business relationship.

Customer lifetime value reflects the present total value of a customer to the company

over his or her lifetime. When we discuss CLV, we typically refer to the value of a single

customer, using the average sales of such a customer.

Using these elements, the customer lifetime value would be CLV = TP X CL. The total

can then be multiplied by the TC for the lifetime value of your entire customer base.

Companies such as Amazon, whose average customer purchase is about $20,

typically spend much more than that in marketing dollars to acquire each customer,

because they look beyond the initial buying cycle to realize that over a period of

several years, that customer will likely spend between two to three thousand dollars

or more.

The model of CLV can be broken down as a function of three elements:

Total Annual Profit

Total Customers

TP:

TC:

(Total Sales – Cost)

CL: Average Customer Life (in years)


Return on Investment forLead Generation (cont.)

2.

CLV = TP X CL

CLV X TC =

Customer Base

B2B Lead Generation Survey for Business Services

Research Findings

InsideUp recently developed and conducted an online survey covering a variety of

key topics related to lead generation. The survey was taken by 220 marketing

professionals representing

business services firms with at

least $1 million in annual

revenues. Of the firms

represented in this survey, 80%

had annual revenues above $25

million. IT/Telecom at 20% and

Financial Services at 19%

comprised the biggest group of

respondent firms

According to this survey, a large

percentage of marketers

expressed dissatisfaction with

the results of their lead

generation efforts, reporting

that the leads were either not

targeted enough or

represented people who were

clearly not in the market to buy.

Finding online marketing talent

was seen as the biggest

obstacle to using an effective

and successful online marketing

campaign for lead generation.


*InsideUp's Survey of 220 Marketing Professionals Representing Business Services

Lead Generation Survey Research3.

Accounting/

Payroll

3% Financial Services

19%

Advertising/

Marketing

5%

Legal

6%

Training

3%

IT/Telecom/Computer

29%

Training/

Research

4%

Estate/

Construction/

Architecture

6%

Management

Consulting

9%

HR/Recuiting

7%

Design/Printing

1%

Other

Other

8%

4%

Respondents By Industry*

Dissatisfaction with Lead Generation*

220 Respondents Total

Finding talented peopleto do the work

Lack of expertise withinthe firms

Too many choices

Too expensive

Too time intensive

Other

20%

23%

18%

17%

18%

14%

16%

20%

17%

19%

6%

4%

4%

Less than $25

Between $25 and $50

Between $50 and $100



More than $250

Don't know

Not Willing to Disclose

Don’t Know

5%

25%

34%

31%


*InsideUp's Survey of 220 Marketing Professionals Representing Business Services

Lead Generation Survey Research3.

The closure rate of leads generated

from marketing campaigns was less

20% for 64% of the firms.

Having the lead qualified (34%)

received the highest value rating

when using an external source for

leads, although having the lead

verified (18%) and the reduction of

in-house marketing efforts (17%)

were considered pluses for using

external lead generation sources.

About 70% of the responding firms

are spending $50 per lead generated

through marketing and 30% are

spending less than $50.

Less 5%5%

Value of External Lead*

Marketing Campaign Closure Rate*

Amount Spent Per Lead*Research Findings (cont.)

Less 5%

Between 5% and 10%

Between 10% and 20%

More than 20%

Don't Know

20%

37%

18%

16%

9%Lead Information WasVerified

Lead Was Qualfied

Reduction in MarketingEfforts

Online Lead Management

Other


Effective Lead Generation Strategies4.

Top Quality Leads Produce the Best Results

Search Intent

Frustrated with traditional methods of generating leads, B2B marketers are funneling

more and more dollars toward online marketing and lead generation. Many such

businesses rely on the services of lead generation companies to supply high quality

leads.

A caveat to consider when purchasing leads: some lead suppliers employ unrefined,

generic lead-gathering methods, resulting in low quality, unqualified leads. Such

companies have a history of providing un-targeted leads and offering only a single

price level, giving their customers virtually no control over lead selection.

Be assured; there are ways to be certain you're getting top quality, targeted leads for

your business. Today's B2B lead gen companies leverage Web 2.0 technologies, social

networking and innovative online business-matching platforms to connect with a

multitude of business service seekers.

Online lead generation solutions that utilize social media and the immense online

community of business service buyers are able to place service providers in front of

qualified prospects in a very cost-effective manner. Advances in online technology

enable B2B lead suppliers to educate prospects, build trust and create brand

recognition for their clients while generating quality, ready-to-buy leads.

According to a 2012 B2B Buyer Behavior Survey Report by G3 Communications, 78

percent of B2B buyers begin the buying process by conducting research online. After

the initial research stage, 43 percent went on to compile a short list of potential

providers.

A study by GlobalSpec found that 83 percent of buyers who researched purchases

under $1,000 had read three or fewer pieces of content. For purchases greater than

$10,000 however, 70 percent of buyers had considered four or more pieces of content

in making their decision.



Conversion Tactics

The 2012 Lead Generation Benchmark Report by MarketingSherpa does reveal a

continued movement toward online marketing strategies, as shown in the chart below.

“These tactics,” states the report, “have a well-known reputation for being cost effective

and quick to generate results.” It goes on to say, however, that “many marketers struggle

with generating high-quality leads with limited budgetary resources.”

Source: © 2012 Marketing Sherpa Lead Generation Benchmark Survey.

Methodology: Fielded January 2012 N=1,915.

Marketing Sherpas’ 2012 Benchmark Report (copyright 2002-2012) by MarketingSherpa Inc

For a copy, visit www.sherpastore.com.

43%

14%

5%2%

22%

5%

29%

12%

6%

1%

25%

6%

Organic

Search

Paid Search Social Media

Sites

Social MediaAd

Placements

Email

MarketingCampaigns

Other

ReferringSites

Traffic Converting Traffic

Conversion Rates by Lead Source



Resources in the Complex Purchase Process

The sources of information relied on for making large and complex purchases like

business technology are changing at a rapid pace. Lead buyers can leverage

emerging online lead generation platforms to educate their prospects, engage in

regular communication and build trust.

Social networking tools such as interactive

wiki articles, business blogs, search-

optimized white papers and active

participation in discussion forums allow

business service vendors to consistently

communicate with prospects. In essence,

these tools provide a one-stop shop for

online marketing, social networking and

high-quality lead generation.

This free flow of information builds a level

of trust between the seeker and buyer.

Once engaged, business buyers provide information directly related to their category

as well as information about their particular needs. This information is then scored

and matched in real time with service providers that are uniquely qualified to deliver

the solution.

This approach allows close matches between the needs of the prospect and

capabilities of the business service provider. As a result, buyers are able to source

more qualified service providers based on their needs and lead buyers capture

valuable, detailed information about the buyer that helps to qualify the opportunity,

ultimately improving sales conversion rates.

These new strategies have taken lead acquisition to an entirely new level, and

companies are scrambling to take advantage of the new opportunities to target high-

quality decision makers for their services. Lead generation companies that utilize

these methods have raised the bar for the quality of purchased leads.

OnlineMarketing

Tele-Marketing

Email

MobileSearch

Social Media& Blogs

ContentSyndication

OtherMedia

WWW

Active

Buyer

LeadActive

Affiliates


Outsourcing Online Lead Generation5.

1. They Capture Leads You Would Otherwise Miss

2. You Access Leads Gathered from a Wider Variety of Sources

3. There is No Such Thing as an Exclusive Lead

4. Results are Guaranteed

Many of your potential customers simply will not submit their contact information to an

individual vendor. These customers find it more efficient to utilize a service that offers

pricing and feature comparisons of several vendors simultaneously. Many such services

have a platform that allows seekers to be matched ONLY to vendors that meet their specific

needs and business profile, and to receive competitive bids from each vendor. The lead

company acts as a neutral source for businesses to compare pre-screened vendors.

If your business is like most, you probably have one or two methods that are working well

for you and are producing some leads. Lead vendors, however, have a diverse repertoire of

lead-gathering methods. These comprehensive systems bring in leads from a broad range

of online sources such as opt-in email, video advertising, white paper syndication, social

media marketing and contextual advertising that complement or exceed your own lead

generation tactics. You get access to a wide variety of possible buyers for your service on a

cost-per-lead basis.

When visitors to your site are comparison shopping, you can be sure that yours is not the

only vendor form they will fill out. In fact, the average person who is seriously considering

purchasing a service for their company will leave contact information with at least three or

four other vendors during the course of their online research.

If you have been reluctant to purchase leads from a lead generation company, believing

that there is more competition for these buyers, you could be doing your business a

disservice by missing out on one of the richest sources of leads available.

Lead generation companies are the only source of leads that come with a performance

guarantee: you will only pay for qualified leads that have verified contact information. No

wasting of expensive clicks or having your sales reps deal with non-qualified leads.

Four Major Benefits of Using a Lead Generation Company

How can you find these avant-garde lead generation companies?

Respondents ranked these qualities in order of importance as follows:

First, it will help to

have a working knowledge of how lead generation companies acquire and qualify leads.

InsideUp, in its survey of business service professionals, found that the four most essential

aspects of a quality lead are motivation, financial qualification, lead source and lead age.

Lead Generation Essentials6.

Leads purchased from a lead supplier should meet these four criteria as a minimum basic

requirement, although top lead generation companies will go beyond these four key

factors to qualify leads even further through a detailed system of lead scoring.

Lead Quality Ensures Optimal Responses


Lead

SourceLead

Age

Prospect

Motivation

Financial

Qualification4 Lead QualityEssentials

Prospect Motivation 1% 12% 45% 41% 1%

Financial Qualification 2% 10% 42% 45% 1%

Lead Source 3% 17% 40% 38% 2%

Lead Age 3% 15% 47% 34% 1%

NotImportant

SomewhatImportant Important

HighlyImportant Don't KnowQuality Lead Indicator


Finding Quality Lead Suppliers7.


1. An Online System that Targets Business Prospects

2. Bidding on Leads, so Market Determines Prices

3. Leads that are Ready to Buy

Many service firms don't think their business audience is reachable using a variety

of online marketing, including search marketing. On the contrary, a good lead

generating system will use a variety of strategies to gather valuable details about

service seekers.

These new media marketing tactics are very effective in generating a pipeline of

prospects that are open to two way communications, are willing to provide detailed

information about their needs, are highly profiled by innovative lead scoring

technology, and are ready to buy.

Rather than the lead generation provider defining a static price for all leads, the

lead buyer and the open market drive the value of the lead based on criteria they

deem as important indicators of a quality prospect. The value of the lead is

determined by how closely it matches parameters specified by the lead buyer.

Also, different business filters should be worth a different lead price e.g., companies

of a 50+ employee size are worth more than those of a 5+ employee size. You

should be able to use as many filters as you choose, with different price points, to

find what works best.

When a prospect is ready to receive a quote for a project, they can submit a

"request for quote" based on category-specific information about the prospect's

needs. The lead generation company then funnels these ready to buy leads directly

to the lead buyer's CRM systems or delivers them by email.


Finding Quality Lead Suppliers7.


4. Lead Scoring that Shows Propensity to Purchase

5. Verified Business Data and Contact Information for Each Lead

In-depth information gathered from a prospect's online behavior will help to

accurately gauge their level of interest, or engagement, and to assess the

prospect's BANT qualifications (Budget, Authority, Need, Time frame). Lead buyers

are then responding to prospects that have expressed an immediate need for and

interest in their service and are qualified to make the decision.

A good lead company obtains this higher level of data through progressive

profiling, which utilizes smart forms that can recognize a prospect and update their

profile according to their activity on each subsequent visit. Activities such as

reviewing blogs, articles, and other types of content will indicate, not only their

interest in particular services, but also where the prospect is in the purchase cycle.

Each of these activities is assigned a score, and each lead is given a score based on

which and how many of these activities they perform. A total of 20 points might

indicate a "warm" lead, whereas a company or individual with a score of 50 would

be considered a "hot" lead. If several people from the same company visit the site,

their data should be combined to create a company score, which will give you an

insightful overview of that company.

Ideally, the lead supplier will use a third-party verification system to ensure that

each lead is contactable and the data is correct.


Achieving Your Best ROI8.

Questions to Ask When Evaluating a Lead Generation Supplier

If you're ready to take that step and begin purchasing leads for your business, you will

want to start by doing some of your own research to be sure you'll be getting leads of the

highest quality. Here are some questions to ask:

Feel free to ask for details about the company's lead gathering methods. Reputable lead

generation companies will use a variety of strategies for producing qualified leads and

should be willing to explain each method to you.

Has the prospect's data been verified using both third-party verification and phone

verification? A good lead vendor will validate the information given with each lead and

guarantee all leads to be contactable. Innovative lead generation sources go the extra

step to verify the list or online lead information using their own proprietary sources, or by

using a third party dedicated to maintaining accurate, up-to-date contact information.

Do they have a detailed rating system in place to assess each lead's readiness to buy?

New lead generation sources are able to capture category and project specific information

about the prospect and score the information based on a lead buyer's criteria.

Also, rather than the lead provider defining a static price for all leads, the company should

offer different prices based upon different filters. This gives the purchaser more control,

enabling them to value leads based on criteria that they deem as important indicators of a

quality prospect. The value of the lead is therefore determined by how closely it matches

parameters specified by the lead buyer.

How does the company generate leads?

What methods do they use to verify leads?

What measures does the company use to qualify leads?

Does the platform allow me to profile my prospects based on industry-

specific criteria?

Q:

Q:

Q:

Q:


8.

Questions to Ask When Evaluating a Lead Generation Supplier

Q:

Q:

Q:

Does it provide easy two-way communication with my prospects?

Am I able to pay for leads based on the value to my business?

Are the prospects I am receiving ready to buy, and are they highly qualified

for my service?

Generating a quality lead is largely dependent on your ability to have meaningful

interaction with your prospects. It is critical to be able to interact with your prospects

to learn about business needs, pain points and deadlines, and match those needs with

your service offerings.

The best lead suppliers will offer leads at various pricing levels: you can buy premium

real-time leads, slightly older leads at a bulk rate, or a combination of the two.

Online business-matching communities provide a forum for service providers to

interact on a daily basis with potential prospects.

When a prospect is ready to receive a quote for a project, they can submit a request for

quote that captures category specific information about the prospect's needs. As a

lead buyer, you are then responding to prospects that have expressed an immediate

need for your service, and are ready to buy. These leads will be funneled to your

desktop in real time.

InsideUp connects businesses with vendors by offering a unique, dynamic online community where businesses can

get matched to high-quality vendors using our proprietary matching system. Plus community members can rate

vendors, provide references and answer questions from other members.

Achieving Your Best ROI

About InsideUp

High-Quality Leads

Easy to Set Up

Optimized Lead Generation

Pay-Per-LeadQualified Business Network

Real-time Delivery

Live Phone Transfer

Online Access

- We use only high

quality business traffic and media

partners.

- No campaigns to

manage. Account setup takes just a few

minutes.

- Using

proprietary technology and lead scoring

algorithms.

- You only pay for

qualified leads. No set-up and no

monthly fees.

- Leverage

our community of buyers who actively

use our service when making business

purchases.

- Leads posted to

your CRM, delivered by email or

accessed from dashboard for quick sales

conversion.

- Free automated

live transfer of leads to your sales

number.

- View analytics, reports,

billing, credits, leads and more.

InsideUp was founded to solve a critical

market need – to help firms effortlessly

connect with a community of businesses

actively looking to purchase services.

What We Provide

Ready to Learn More?

Contact Us TodayCall

(800) 910-7638

Clickinsideup.com/getleads

[email protected]

As the leading platform to acquire new business customers, InsideUp has

pioneered new ways of connecting service providers with buyers.

Our unique and proprietary platform, designed specifically for business services

firms, allows our customers to be matched with and provide custom quotes to

targeted, ready-to-buy decision makers. InsideUp also offers a lead clearinghouse,

which lets lead buyers pre-select the type of leads they wish to purchase


The leading platform to

ACOUIRE NEW BUSINESS CUSTOMERS/

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