Lean marketing master

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Lean Marketing

Overview of the Course

About Noyes Limited:

*

• GU MBA

•Guerilla Tactics, LLC

• Startup Weekend

•Early stage consulting & advisory

Overview of the Course

The Course cover following topics:

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• Pirate Metrics

• Lead Generation

• Growth

• Plan

Dave McClureMaster of 500 Hats

blog: http://500hats.typepad.com/website: http://www.500hats.com/

slides: http://slideshare.net/dmc500hats/

http://500hats.typepad.com/

http://www.500hats.com/

http://slideshare.net/dmc500hats/

Customer Lifecycle / Conversion Behavior

Website.com

4. REFERRAL

Emails & widgets

Campaigns, Contests

5.

Revenu

e $$$

Biz DevAds, Lead Gen, Subscriptions, etc

2.

Activat

ion

Homepage / Landing Page

Product Features

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Networks

Blogs

Domains

3.

RETENTI

ON

Emails & Alerts

Blogs, Content

System Events & Time-based Features

Customer Lifecycle: 5 Steps to Success

• Acquisition: users come to the site from various channels

• Activation: users enjoy 1st visit: "happy" user experience

• Retention: users come back, visit site multiple times

• Referral: users like product enough to refer others

• Revenue: users conduct some monetization behaviorAARRR!

After this trash

(2) McClure, D. (2007), Startup Metrics for Pirates: AARRR


Website.com

Marketing Channels:• largest-volume (#) • lowest-cost ($)• best-performing (%)

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Networks

Blogs

Domains


Website.com

Activation Criteria:

• 10-30+ seconds

• 2-3+ page views

• 3-5+ clicks

• 1 key feature usage

Do LOTS of landing page tests & A/B tests - just make lots of dumb guesses & iterate QUICK

2.

Activat

ion


Product Features

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Networks

Blogs

Domains


Website.com

Automated emails are simple & easy retention feature

• lifecycle emails @ +3, +7, +30d

• status emails weekly/monthly

• event-based emails as they occur

2.

Activat

ion


Product Features

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Networks

Blogs

Domains

3.

RETENTI

ON

Emails & Alerts

Blogs, Content



Website.com

Only encourage users to refer *after* they have “happy” user experience; avg score >= 8 out of 10

2.

Activat

ion


Product Features

4. REFERRAL

Emails & widgets

Campaigns, Contests

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Networks

Blogs

Domains

3.

RETENTI

ON

Emails & Alerts

Blogs, Content



Website.com

5.

Revenu

e $$$


2.

Activat

ion


Product Features

This is the part *you* have to figure out… I don’t know jack about your business

4. REFERRAL

Emails & widgets

Campaigns, Contests

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Networks

Blogs

Domains

3.

RETENTI

ON

Emails & Alerts

Blogs, Content


Types of Metrics & Measurement

• Qualitative: Usability Testing / Session Monitoring– Watch what users do, figure out problems & solutions from small # of users

• Quantitative: Traffic Analysis / User Engagement– Report what users do, track usage & conversion %'s for all or empirical sample #

of users

• Comparative: A/B, Multivariate Testing– Compare what users do in one scenario vs another, see which copy/graphics/UI

are most effective

• Competitive: Monitoring & Tracking Competitors– Track competitor activity & compare against yours; if possible compare channels,

keyword traffic, demographic targeting, user satisfaction, etc.

(see slide notes for links to tools & vendors)

Quantitative & Comparative Measurement

• Conversion Criteria:

– best-performing (%) channels / campaigns / copy

– largest-volume (#) channels / campaigns / copy

– lowest-cost ($) channels / campaigns / copy

Example Conversion

Category User Status Conv % Est. Value

Acquisition Visit Site (or landing page, or external widget)

100% $.01

Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks)

70% $.05

Activation Happy 1st Visit(views X pages, stays Y sec, Z clicks)

30% $.25

Activation Email/Blog/RSS/Widget Signup(anything that could lead to repeat visit)

5% $1

Activation Acct Signup(includes profile data)

2% $3

Retention Email Open / RSS view -> Clickthru 3% $2

Retention Repeat Visitor (3+ visits in first 30 days)

2% $5

Referral Refer 1+ users who visit site 2% $3

Referral Refer 1+ users who activate 1% $10

Revenue User generates minimum revenue 2% $5

Revenue User generates break-even revenue 1% $25

Converting Marketing Leads

Section 2

Case Study

Website.com

Marketing Channels:• largest-volume (#) • lowest-cost ($)• best-performing (%)

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Networks

Blogs

Domains

Case Study

Website.com

Activation Criteria:

• 10-30+ seconds

• 2-3+ page views

• 3-5+ clicks

• 1 key feature usage

Do LOTS of landing page tests & A/B tests - just make lots of dumb guesses & iterate QUICK

2.

Activat

ion


Product Features

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Networks

Blogs

Domains

Case Study

Website.com

Automated emails are simple & easy retention feature

• lifecycle emails @ +3, +7, +30d

• status emails weekly/monthly

• event-based emails as they occur

2.

Activat

ion


Product Features

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Networks

Blogs

Domains

3.

RETENTI

ON

Emails & Alerts

Blogs, Content


Case Study

Website.com

Only encourage users to refer *after* they have “happy” user experience; avg score >= 8 out of 10

2.

Activat

ion


Product Features

4. REFERRAL

Emails & widgets

Campaigns, Contests

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Networks

Blogs

Domains

3.

RETENTI

ON

Emails & Alerts

Blogs, Content


Case Study

Website.com

5.

Revenu

e $$$


2.

Activat

ion


Product Features

This is the part *you* have to figure out… I don’t know jack about your business

4. REFERRAL

Emails & widgets

Campaigns, Contests

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Networks

Blogs

Domains

3.

RETENTI

ON

Emails & Alerts

Blogs, Content


Brand Awareness VS Lead Generation

Brand Awareness VS Lead Generation

• Brand Awareness

• Lead Generation

What is Lead Generation Marketing

Lead generation is getting people to “raise their hands” and say they are interested in buying or learning more about, your product or service.

Leads are people who have identified themselves as candidates who can be turned into sales.

Product Mix

The Numbers

• 15% use only brand awareness• 25% use only lead generation• 60 % use both• Halo effect

Successful Lead Generation

• Mathematics & Science

• Coordinated Tactics

• High ROI

Defining Your Leads

• What is a lead to me• What action do you want• Examples:

•E-commerce•Software

AIDA Curve

Attention

Interest

Decision

Action

Attention

• Aware• 3 Questions

• Why does this product exist?• What is its purpose?• What makes this interesting to me?

• Educate VS Sell• Education Tools:

• Case studies• Webinars• Website

Interest

• Interested but unsure• Questions

• Why should I use this product?• Why is this different than similar solutions?• How will this help me?• Do other products accomplish the same goal?• Why should I use your solution

• Sell benefits not features• Tools

• Well-written website• White papers/Case studies• Customer testimonies

The Decision Phase

• Decided they like product/service• Questions

• Why should I buy your brand?• What makes your brand better?• Where can I get the best deal on this product?

• Focus on quality or uniqueness• Tools

• White papers• Sell sheets• Product comparisons• Customer testimonials

Action Phase

•Make purchase•Questions

• Why should I buy this product/service right now

•Offer reason to buy now•Tools

•Special offers

Developing Lead Strategy

•Tactical Strategy• Integration Strategy•Lead-Generation Management Strategy

Testing

• Continuously test and measure• 10% of budget for testing• Test against strategies• Establish a baseline• Primary tactics• Secondary tactics

Tactics

Using Lead-Generation Tactics

7 Most Successful Lead-Generation Tactics

Active Passive

Direct mail Trade shows

E-mail marketing Search engine marketing

Cold Calling Social Media Advertising

Display advertising

Multi Channel Lead Generation

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5 Steps of Tactical Strategy

1. Determine & plan approach

2. Research target audience

3. Build your assets

4. Execute test campaign

5. Measure

Search Engine Marketing

• Search Engine Marketing• Cost effective• Accountable• Scalable• Customizable

• Search Engine Optimization

Overview

• Google & Bing• Getting Started• Plan your campaign• Target customer• Key words• Designing your ad• Text

• Headline- 25 characters• Description Lines-70 characters• Display URL• Destination URL

• Image

Overview

• Campaign Parameters• Schedule-dayparting• Geographic targeting• Budget

• Test•One week• High budget•Data collection

• Number of clicks• Number of impressions• Average CTR• Average CPC• Total cost• Average Ad Position

•Test Schedule

Social Media Advertising

Part 1 – Facebook & LinkedIN

1. Research & define your target audience1. Location2. Demographics3. Subcategories

2. Create your ad1. Title2. Body3. Image4. Destination URL

3. Set up your campaign1. Bid2. Budget3. Schedule

4. Test1. Against other ads2. Target demographics3. Schedule

Display Advertising

• Display ads• Evolution to lead-generation• Internet Advertising Bureau (IAB)• www.iab.net

Display Advertising

5 Steps

1. Research target websites1. Determine demographics2. Make list of frequented sites3. Site Media kit

1. Site profile2. Audience3. Specifications4. Advertising rates

4. Site Details1. Home page2. Current display ads3. Pricing structure

Display Advertising

2. Choose your approach1. High vs low-traffic sites2. Work directly with site3. Work with content networks4. Work with ad networks that offer ad-server

tools3. Create your ad

1. Ad placement2. Ad style3. Ad size4. File size5. File type

Display Advertising

4. Deploy your campaign1. High vs low-traffic deployment2. Ad network3. Hard copy

5. Test your campaign1. Test against other ads2. Content sites and your audience3. Test your budget

Targeting a Mailing or Contact List

Focus: List-based lead-generation marketing tactics• Direct mail• E-mail• Cold calling

Defining your target audience• Crucial step• Example:

• Pet owners• Cat owners• Purebred Siamese owners

Psychographic Targeting & Geo-Targeting• Buying behavior• Location


Buying a list• Less expensive• Less accurate• No relationship

Renting a list• More expensive• More accurate• Relationship based

Negotiating Price• Average Price

• B2C range from $20-$100 CPM• B2B range from $80-$1,000 CPM

• Negotiate CPM• Buying in bulk


Choosing a reliable list owner• Zoominfo• Hoovers• Sample list• Cooperation

The make good• Written policy• Out of date• Non-performance• Refund or a credit

Email Marketing

• Spam vs e-mail marketing

• CAN-SPAM Act• Clearly id yourself & company• Provide physical address• Easy opt-out option• No longer send email to opt-outs

Email Marketing

The 5 Steps of E-Mail Marketing Campaigns

1. Define your target audience

2. Select & Target Your List1. Rent or Buy

3. Design Your Creatives1. E-mail & Landing Page2. eMarketer & Marketing Sherpa3. HTML vs Plain Text

Email Marketing

3. Continued5. Text vs Graphic6. Your Brand7. Call-to-action 8. Subject header9. From line 10. Deployment

Email Marketing

4. Test your campaign1. Identify your test audience2. Test budget3. Test email creatives4. Test schedule

5. Measure Results1. CPA2. Open rates3. CTR

Direct Mail

• Is Direct Mail Dead• 81% read or scan• Expensive• Good for

• Long decision processes• Complicated products/services• Presenting several details at once

• Products that do well

Direct Mail

5 Steps to Direct Mail Campaigns

1. Define your target audience2. Select and target your list

1. Rent or Buy3. Design your creatives

1. Postcard2. Flyers3. Sales letter4. Brochure5. Dimensional Mailer6. Creativity is an asset7. Pesonalization

Direct Mail

5 Steps to Direct Mail Campaigns

4. Test your campaign1. Hardest tactic to test2. Delivery rate3. Open rate4. Test market

5. Measure your results1. Conversion rate2. CPA3. CPS4. Analyze

Cold Calling

5 Steps to Cold Calling Campaigns

• Intro

1. Define your target audience2. Select & target you list

1. Purchase list2. Improving your list

1. LinkedIN2. Xobni.com

3. Crediting your list

Cold Calling


3. Design your creatives1. Introduce yourself2. Describe company/purpose3. Why is it relevant4. Give Value Proposition5. Call-to-Action

Cold Calling


4. Test & execute your campaign1. Rehearse/role play2. Test & Refine3. Voice Mail4. Qualify5. Converting to lead

5. Measure results1. CPA2. CPC

Cold Calling


4. Test & execute your campaign1. Rehearse/role play2. Test & Refine3. Voice Mail4. Qualify5. Converting to lead

5. Measure results1. CPA2. CPC

Trade Shows

• Intro• To Show or Not

• Meet my target audience• Effectively market product• Actionable leads• Reasonable ROMI

• Picking the right show

Trade Shows

• Participating in Tradeshows1. Setup tradeshow booth2. Provide sponsorship3. Participate in speaking opportunities

• Booths from the ground up1. Size/location

a) Booth spaceb) Booth sizec) Booth location

Trade Shows

2. Designa) Turnkeyb) Pre-madec) Custom made

3. Marketing materiala) Displaysb) Tchotchkesc) People

4. Capturing leads

Integrated Lead-Generation Marketing

• Integrated Lead-Generation• Benefits of integration• Brand marketing• Synchronizing your goals• The Halo Effect• Conclusion

Growth Hacking

What is Growth Hacking

Growth Hacking


• Airbnb Case Study• Spare rooms into hotels• Network effects• Post on Craigslist• Reverse engineer• Creativity & ability

Growth Hacking


Ideation Session

The Growth Hacking Process

• The Challenge

Plan

Step 1: Buyer Persona- Who buys and why?

• Who are your Customers?–Economic Users – writes the check–End Users – will be the actual user of your product–Technology Users – mostly concerned with the specs

• * Need to position your product and sell to all 3! (not just to the economic users)

70

Step 1: Buyer Persona- Who buys and why?

• Each Buyer Persona views your product differently–Economic Users – what’s the price/value of your product to the business?

–End Users – why is your product easier to use and improves their productivity (need to overcome resistance to change!)

–Technology Users – is your product easy and cheap to install and maintain?

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Steps towards a purchase

• Any buyer broadly moves through 5 stages of purchase, they are:

1. Inquire- Is there a solution to my problem or needs?

2. Learn- How does your solution solve my problem or needs?

3. Evaluate- Do I like your solution (and is it better than others)?

4. Justify- Do I want your solution over others?

5. Select- I am buying your solution

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Inquire Look Out

STAGES ACTIONS

Learn Read and Understand

EvaluateCompare alternatives

Justify Analyse

Select Decision Making

Write the personas:

• There are different ways to write personas. Here is one of them:

–Profile Overview: Brief description of the persona, age, literacy, financial, age, attributes.

–Pain Points: What are their worry or what they want a change? Write in their voice

–Key drivers / motivators: There are issues that mean the most for the person. I want to…. I need to…..

–Role in buying committee: Decision maker? Influencer?

–Effective influences: What influences the person in the context of the problem/ need. What allows you to communicate persuasively with the person

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Case Study

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Case Study

75

Case Study

76

Case Study

Persona Snapshot

77

Overview 30-50 year old male, middle class, highly independent, likes to stand out.

Pain Points Quality beard products not readily available

Key Driver Beard is distinct part of personality. I need products that make me look good.

Role in Buy B2C: Decision Maker

Influences Primarily independent but influenced by other bearded men, especially at competitions

Activity: Create Persona

• Using Personal Development document create persona for your business. It should include different types of buyer persona.

78

Step 2: Product Positioning & Messaging

• Once you have designed buyer persona, you can create Buyer’s Stage table. This helps you in creating different message based on prospects buying stage. This table will help you to understand value proposition at each stage and the preferred marketing medium

79

Example:

80

Tips for good positioning message

• Differentiate your product from competition• Address customer’s buying criteria• Articulate key characteristics• Taking your positioning to the next level requires:

–Establishing one to one connection. End of the day business is B2I (business to individual)!

–Start with “why”? Reaching out to buyer at emotional level is far more effective than taking it to pragmatic level

–Use Personal tone. Connect them in your message at a personal level

81

Case Study

Buyer Stage Statement Snapshot

82

Inquire Learn Evaluate Justify Select

New User Do these products exist?

They exist and there are a few options.

Do I need the best or cheapest?

If I am going to do this I should be the best.

I’ve got to have the best.

Beardsman Where can I find these products?

There are a few options.

How much do I want to spend?

This is who I am. I need the best.

I’ve got to have the best.

Gift Where can I find a gift for husband/boyfriend

Several options.

What would make the best gift?

It’s a one time gift. Might as well spend the $.

Beardbrand

Activity: Write your positioning statement

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Step 3: Lead Generation

• Before we move forward, we need to understand what is a lead. Lead is a prospective customer who is interested In the product.

• Prospects = Individuals/Companies which fit your Buyer Personas descriptions. The intention is to convert prospects in to leads through marketing channels.

• How do you reach them? (based on an understanding of your target customers’ lifestyle and work habits) – these are your potential marketing channels

• For each marketing channel, how many of your prospects can be reached? At what cost?

84

Marketing Channel

• Goals of Marketing

–Brand Awareness

–Leads Generation

• Your goal is to communicate branding while generating leads (due to limited resources)

• Branding

–Based on your Distinctive Competence (or Unique Selling Proposition)

–Brand = Brand Attributes built in the mind of your end customers

–Brand awareness marketing efforts aim to deepen Brand Associations between your Brand and the attributes you want to associate to your brand

85

Steps to generate leads

• Step 1: Compute your Leads Requirement–Establish the following:

•Your revenue target•Lead to Customer Conversion rate•Visitor to Lead Conversion rate•% of sales and marketing generated lead

86


• Step 2: Create your strategy–Come up with a strategy that will unify all sales and marketing efforts (i.e., how marketing will get leads, with what message, and how sales will convert them)

–Explore strategy to generate free leads

87


• Step 3: Layout the Marketing Campaign Plan

–Select channels to use. Ideal channels are those that reach

the most prospects at the least cost (preferably free!)

– Estimate number of leads that can potentially be acquired

from each channel

– Total of estimated number of leads from all channels must

equal your leads requirement

–Agree with the sales team on the plan

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89

Products Channels Execution Date Leads Target Budgeted Expenses Target Cost per lead

A B B/A

Sum of A Sum of B Sum of B/ A

Marketing Campaign Plan:

Case Study

Marketing Campaign Snapshot

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Product Channels Ex. Date Lead Target Budgeted Expense

Target Cost per lead

Beard oil Webstore 1/2013 10,000 1,000 .10

Grooming Kit Webstore 1/2013 5,000 1,000 .20

Apparel Events 3/2013 200 500 2.5

Total 15,200 2,500 2.80

Case Study

Products

Channels Actual Leads

Generated

Actual Cost of Lead

Generation

Number of sales

closure

Actual Cost

per lead

Actual cost per

conversion

Sales Conversio

n %

A B C B/A B/C C/B

Beard oil Webstore 200 1,000 75 $5 $13.35 .75%

Grooming Kit

Webstore 50 1,000 10 $20 $100 .1%

Apparel Events 125 500 50 $10 $10 .1%

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Performance

Activity: Marketing Campaign plan

•Develop a Marketing Campaign Plan and create system to measure performance of each channels

92

Step 4: Lead Management

• Sales consideration- A lead is someone who is ready to talk now and fund the purchase

• Marketing consideration- Anyone who is a “hand raiser”

• Hence it is important to have Lead Management System that unified understanding between these two professionals

• It encompasses a set of integrated, unified processes and systems for funneling prospects through a process with scoring and nurturing

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CRM

Demand Funnel

95

Defining the stages gives you the foundation for segmentation, scoring, routing, nurturing, reporting and

creates the common language between sales and marketing

Demand Funnel

• An effective demand funnel includes:–Agreed-upon stage definitions and a taxonomy–Defined stage ownership and triggers for conversion between

–stages–Service level agreements (SLAs) for each stage–Marketing automation and customer relationship management

–Systems to support the funnel model and processes–Forecasts and measurements for the quantities of each–Stage and the conversion percentages between stages

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Definition of stages

• Suspect— A potential buyer in the total available market for the product or service.

• Inquiry—A raw response or hand-raiser. • Marketing-Qualified Lead—An inquiry that meets minimum

fit criteria (qualification and interest) as jointly defined by sales and marketing and is ready for sales engagement.

• Sales-Accepted Lead—A lead that has been formally accepted by sales, which must work the lead within a given timeframe to determine if a qualified opportunity exists.

• Sales-Qualified Lead—Sales has confirmed that a viable opportunity exists and has committed it to the pipeline with an estimated dollar value and timeframe to close.

• Customer—An opportunity that has come to fruition.

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Referred to as Marketing Funnel

Referred to as Sales Pipeline

Believe in recycling your pipeline

When a prospect doesn’t respond or doesn’t have a budget, or some other roadblock crops up somewhere down the funnel before being converted to opportunity,

Cold Lead them. These Cold Lead can be used for further nurturing with the goal of reengagement at a later time.

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Goals of Lead Management

• Quantity- How many leads are in each stage?

• Velocity- How long are these leads sitting at a particular stage? How long does the conversion takes?

• Predictability- What is the number of leads that has moved each stage? Predictability of close won at the higher stage of the funnel?

99

Sales Pipeline Management

• Once Sales accepted the leads, after qualification it is changed to an opportunity.

• Each of these opportunities are measured how close they are to sales closure.

• Organization may use Iron, Bronze, Silver, Gold to classify each stage.

• Sales takes over the leads and monitors them from now on.

100

Sales Pipeline Classification

• Iron- Sales person explains opportunity about the goods/ services

• Bronze- Second level interaction between sales staff and opportunity. This discussion is more detailed and in depth.

• Silver- Expression of interest by the opportunity. Willing to discuss about pricing

• Gold- Organisation sends quotation and discusses pricing with the opportunity

• Closed Won- Opportunity changed to a customer. A sales closure where customer paid and purchase goods/ services

• Closed Lost- At any given stage if the opportunity do not wish to progress towards, change the opportunity to Closed Lost. Update reasons to perform Win/Loss Analysis

101

Case Study

Lead Management Process Snapshot

102

Category Action

Beard-Curious Follows link from FB ad or Blog post

Beard-Interested Spends 1-3 minutes on website or views About pages

Beard –Serious Puts item in cart

Beard-Customer Completes purchase

Beard-Abandoned Left website or abandoned cart

Activity- Lead management process

• Develop a lead management process for the company

103

Step 5: Lead Scoring

• Lead scoring is the process of assigning a ranking to sales prospects based on an understanding of the prospects’ interests and buying intentions.

104

Lead Scoring

• It’s not a predictor of who will close or who will buy.

• It’s not a forecast.

• Rather, it provides a prioritized, inbound to-do list for the sales rep and a way to systematically status leads from inquiry to marketing qualified

105

Lead Scoring Model

• There are many scoring models, however this section limits to Two Dimensional Scoring Model.

• The two dimensions are:–Interest scoring—Use behavior to gauge a prospect’s interest and suitability.

–Qualification scoring—Conversely, in this model, we ignore behavior and focus solely on “fit”—the characteristics/attributes of the prospect.

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Two Dimensional Scoring Model

• Qualification scoring though subjective analysis that’s informed by the judgment and experience of your task force. Ask your salespeople to describe the ideal customer. What are the attributes that make up the total profile?

• Interest is the other dimension of lead scoring. Someone may meet the qualifications established for a lead, but if they don’t show any buyer interest, the lead score is lower

• Sales and Marketing staffs should jointly agree on the attributes to score qualification and interest

• Once we have the qualification and interest model, we must develop a scoring formula that combines these two dimensions into a very simple rating system

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108

Level of Fitment in the purchase of

the product

Level of interest to make the purchase


109

Establish an agreement between sales and marketing team that A, B, or C lead is a

marketing-qualified lead (MQL) while D and E leads are merely inquiries (in our Demand

Funnel)

Service Level Agreement

• At this stage we need to have following SLA:–Time period permissible for Sales to take over leads from Marketing and change them to Opportunity e.g. 48 Hours

–Time period permissible for Sales to keep any opportunity at a particular stage (Iron, Bronze, Silver or Gold) e.g. less than 2 weeks

–Establish Criteria for Closed Lost and Cold Lead

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Maintain Your Lead Scoring System

• A lead-scoring framework is not a “set-it-and-forget-it” proposition

• Periodically review the SLAs that have been established between sales and marketing

• Do the stats show a need for revisiting the SLAs, a need for sales training, or a need for greater staffing/coverage?

• Always obtain feedback from your teammates in sales. They are closer to the customers and can be your early-warning system for detecting and responding to changes in the market

• Review opportunity-to-close ratios to gauge the effectiveness of your scoring system. Reexamine Your Qualification Questions and Reexamine Your Weightings

111

Create Lead Scoring

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Step 6: Lead Nurturing

• What creates the momentum for a lead to move along its journey through the Demand Funnel?

• Lead Nurturing is an automated process of engaging in a two-way dialogue with prospects to provide and obtain the information each party needs at key stages of the buying cycle. The ultimate goal of lead nurturing is to help prospects understand that your product or service is the best choice to achieve their objectives

113

Ways to nurture leads

• Engage in a dialogue with prospects- Engagement means dialogue, not monologue. It means creating communication that has value for both parties, so that buyer and seller both have an interest in continuing to communicate

• Gauge each stage of the buying process- prospect goes through a multistage process before making a purchase decision.

114


• Remember, the prospect’s buying process is not the same as your selling process! Typically, the buying process looks like this:

115


• Help prospects achieve their objectives—Why do prospects become customers? Ultimately, it’s because they feel and decide your solution will help them achieve their objectives. They believe that yours is the best choice, for various reason(s), to solve their problem

116

Lead Nurturing along the Demand Funnel

117

MQL= Marketing Qualified Leads, SAL= Sales Accepted Leads, SQL= Sales Qualified Leads,

Types of Nurturing

• Nurture to educate

Greatest opportunity to engage with your prospect and generate real, sustained interest in your offering. Use your exciting multimedia content, webinars, and other similar resources as calls to action

• Nurture to connect sales

Move the lead from MQL to Sales Accepted (sales-ready) Lead (SAL) status. The primary goal is to connect the prospect with a lead development rep or salesperson. Tools like needs assessments, free consultations, and personal demonstrations works.

• Nurture to onboard/ upsell

It’s a lot more expensive to get a new customer than to keep an old one, so now it’s up to you to keep building rapport and on boarding nurtures are a great way to achieve that. Start with a “welcome aboard” nurture for net-new customers, followed by on boarding and training nurtures. Provide guidance on adoption, continue nurturing for loyalty, upsell/cross sell

• Nurture to recycle

Send these leads into your recycle nurture program that gets them back through the Demand Funnel and reengaged with sales in the future. If you don’t, a huge percentage of these contacts will buy from a competitor because you didn’t stay engaged with them. Better approach is to put them into a win-back nurture that puts them in hibernation for a period and checks in to ask, “How are things going?

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Why Lead Nurturing Matters?

• Companies that excel at lead nurturing generate 50% more sales-ready leads at 33% lower cost per lead (Forrester Research).

• Nurtured leads produce a 20% increase in sales opportunities over non-nurtured leads (Demand Gen Report).

• 60% of marketers believe that technology can help them develop more high-quality leads (Forrester Research).

• Sales reps dedicate 14% of their time to lead development, but only 6.3% of leads are utilized (Sirius Decisions).

• Nearly 80% of marketing leads never convert into sales. Lack of lead nurturing is the common cause of this poor performance (Marketing Sherpa).

• 84% of qualified leads are not ready to buy (Aberdeen Research)

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Manage your content to move leads

• You need to speak in different ways to different buyers at different phases of the sales cycle

• In fishing vernacular, you need lots of different lures and lots of different kinds of bait to catch lots of different fish!

• Content marketing strategy is a serious discipline involving the planning, creation, delivery, and management of informational content

–Frequency—Content generation and dissemination must maintain momentum to be effective.

–Relevance—Marketing automation systems, data segmentation, and personas enable you to pinpoint your messaging to specific targets. Take advantage of that ability

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Contents at different stages of buying process

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Step 7: Analytics

• A marketing automation system that’s integrated with CRM enables us to measure performance “from click to close.”

• KPI

–Number of leads generated to meet targeted sales order

–Cost per lead, Cost per opportunity, cost per closure- Actual cost of lead generation divided by number of leads/ opportunity/ sales closure

–Stage Conversion Rates- report how many prospects move from one stage to the next level

–Average Time at Each Stage- Measuring how long the average prospect spends in each stage tells you the velocity of your Demand Funnel

–Campaign Performance- Comparison of targeted lead generation and actual within a defined budget

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Case Study

Lead Nurture

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Create Lead Nurturing Plan

Lead NurturePhilosophy: Everyone is a potential customer or brand advocate.

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Key metric for Lead generation

• Cost per lead- Total amount spent to generate leads divided by number of leads generated

• Cost per conversion- Cost per lead can be misleading sometimes as it there is always a difference between “Marketing qualified leads” and “Sales accepted leads”. Cost per conversion is the amount spent to complete a purchase. Total amount spent on lead generation divided by sales closure

• Conversion rate- Different channels behave differently. Number of sales closures divided by number of opportunity (represented in %).

• Lead generation budget- Amount spent in generating required leads in order to meet targeted revenue

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Keeping Score Of Your Success

• Quantifying Marketing• Automation & Integration• Data Capture• Metrics That Matter• Metric-Driven Marketing Culture


Start With The End

• What should you measure?• Start with the end• PPT or Excel• Automation & integration tools• www.manufacturingdemand.com

http://www.manufacturingdemand.com/


There Is No GAAP For Marketing

• No agreed upon standards• Models, Comparisons & Benchmarks• Commercial ready solutions• PPT & Excel


The 3 C’s

• What can you Count?• What Counts?• What can you Count on?


3 Categories of Marketing Analytics

• Executive KPI’s• Demand Funnel KPI’s• Campaign Performance


Executive KPI’s

• Marketing Sourced Leads & Opps• Marketing Contribution to Revenue• Marketing Influence on Opps & Revenue


Demand Funnel KPI’s

• Prospect/Contacts at Each Funnel Stage• Stage Conversion Rate• Average Time at Each Stage• Lead-Score Distribution


Demand Funnel KPI’s

• Prospect/Contacts at Each Funnel Stage• Stage Conversion Rate• Average Time at Each Stage• Lead-Score Distribution


Campaign & Asset Performance

• Campaign Performance• Asset Performance


Quick Tips For Developing Culture

• Design from the start• Build process• Define KPI’s• Create simple reports• Dedicate a resource• Explain your KPI’s• Enhance your website, campaigns & CRM

Case Study

• Key Metrics

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Metric Baseline 1 2 3 4 5

# of Visitors

10 450 1000 4000 8000 17000

Cost of Acq.

$100 $45 $1 $0.25 $0.12 .056

Conclusion

Contact

Brett Noyeswww.noyeslimited.combrettnoyes@startupweekend.org509-910-3496@brettnoyes

http://www.noyeslimited.com/

mailto:[email protected]

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