B2B Services and Solutions Lead Management Benchmarks ITSMA Online Survey | Abbreviated Summary

B2B Services and Solutions Lead Management Benchmarks ITSMA Online Survey | Abbreviated Summary | August 2011

ITSMA Online Survey B2B Services and Solutions Lead Management Benchmarks

Abbreviated Summary | August 2011

Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA

Abbreviated Summary | August 2011 | SV4582AS

Demand generation and lead management are top priorities for B2B marketers

Rank 2011 2010 2009 2008 Marketing’s Top Priorities 1 2 4 3 Generating demand 2 1 1 2 Enabling the sales force 3 5 2 1 Differentiating/re-positioning the company, brand, or offerings 4 3 7 5 Developing thought leadership content that drives business 5 7 9 11 Measuring marketing’s impact on the business Increasing focused marketing programs for vertical/industry 6 6 6 10 markets 7 16 11 8 Increasing use of Account-Based Marketing Deepening customer insight to improve segmentation and 8 17 17 12 increase personalization Building or enhancing a more effective lead management and 9 27 – – nurturing model Increasing cross-divisional marketing programs and messaging 10 – – – (minimizing marketing silos)

Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2007, 2008, 2009, 2010, 2011

But very few companies consider lead management a core competence

How would you characterize lead management at your company? % of Respondents (N=85)

A Core 9% Competence

Above 22% Average

Average 46%

Below 22% Average

Source: ITSMA Online Survey: Lead Management, August 2011

Most companies are in early stages of planning and implementing their lead management processes

Select the answer that best describes your marketing organization’s Lead Management Processes: % of Respondents (N=85)

We have a common definition of and taxonomy for lead 2% tracking, adopted globally by all BUs (e.g., marketing 41% 12% 25% 12% 8% qualified leads, sales accepted leads, sales qualified leads)

We have the infrastructure, systems, processes, and reviews in place to track leads from inception to close 35% 18% 29% 15% 2%

We track and evaluate all “impressions” (e.g., touch points, meetings, and marketing assets) for a specific prospect 20% 14% 32% 22% 12% We use customer data from sales and marketing interactions to optimize marketing across all channels 1% (we collect data, analyze it, and make decisions to optimize 18% 11% 26% 33% 12% marketing processes and outcomes) We map where the prospect is in the buying process and customize marketing programs and activities to that 8% 12% 22% 35% 21% 1% specific prospect in that specific phase

In place Implemented Under way/ In the Do not do, Don't for more within the partially planning no plans Know than one last year implemented stages at this year time Source: ITSMA Online Survey: Lead Management, August 2011

We created the ITSMA Lead Management Roadmap to help plan your journey to lead management best practice

Stage 3. Stage 4. Stage 1. Stage 2. Transforming Optimizing Lead Defining Building the Marketing Management the Process Infrastructure Lead Management Process Phases of Marketing Automation Plan Marketing Implement Integrate Marketing Integrate Financial Automation Marketing Automation and Other System Automation with CRM Customer Data System and/or SFA Lead Generation and Qualification Lead Scoring and Routing Lead Nurturing Marketing and Sales Alignment Lead Management Performance Measurement

Despite progress, even the leading practioners in our survey are not far down the path

In many respects, the survey results say more about what the participants are not doing than about what they are doing…

A marketing automation system is a necessity, yet few have one

Select the answer that best describes your marketing organization’s Marketing Automation: % of Respondents (N=84)

We have a marketing automation system to manage 23% 12% 27% 24% 13% 1% campaigns and lead nurturing

In place Implemented Under way/ In the Do not do, Don't for more within the partially planning no plans Know than one last year implemented stages at this year time

Source: ITSMA Online Survey: Lead Management, August 2011

Only half the B2B companies are scoring leads

Do you score leads? (e.g., assign “points” to leads, based on attributes and/or behaviors, to indicate their likelihood of becoming customers) % of Respondents (N=85)

Don’t know 5%

Yes 48% No 47%

Source: ITSMA Online Survey: Lead Management, August 2011

However, there are a few leading practitioners providing insights on how to take lead management to the next level % of Respondents (N=85) Leaders Leaders . Outperforming the 20% competition

. Lead management is a core competency or Laggards 80% above average

Source: ITSMA Online Survey: Lead Management, August 2011

What differentiates the leaders from the laggards?

The leaders have a leg up when it comes to infrastructure and lead tracking . Formal processes to manage lead generation and flow . Marketing automation systems to support a closed-loop lead management process . Ability to track leads from initial inquiry through to closed business

However, not even the leaders are mining the data from their systems to optimize marketing’s performance…

 Use data to customize marketing programs  Use data to optimize conversion rates  Update lead scores based on new information

Alignment with sales is also a problem…

We still just throw it over the wall

Most have processes to hand off leads but fewer have feedback loops or SLAs with sales

Select the answer that best describes your marketing organization’s Marketing and Sales Alignment: % of Respondents (N=84)

65% 13%

35% 32% Implemented 14% within the 52% 15% last year

In place for 21% 17% more than one year

We have a formal process We have a formal process for There is a formal agreement for marketing to hand off sales to provide feedback to between sales and marketing leads to sales marketing on the quality of regarding lead generation and the leads that marketing management including hands off to sales specified SLAs (e.g., sales- ready leads will be contacted within 48 hours) Source: ITSMA Online Survey: Lead Management, August 2011

Most marketers do not have the data needed to demonstrate how marketing activities support business goals and deliver results Marketing does not:

 Measure the conversion rates from one stage of the buying process to the next

 Measure lead velocity—the rate at which leads pass from one stage of the sales cycle to the next

 Evaluate the conversion rate of campaigns by stage of the buying process

 Measure marketing’s impact on business closed

 Calculate customer acquisition cost

How can you become a lead management leader? Follow the ITSMA Lead Management Roadmap.

Keep these five end goals in mind

Lead Sales and Management Lead Generation Lead Scoring Lead Marketing Performance and Qualification and Routing Nurturing Alignment Measurement

Data Statistical Behavior-based Sales and Lead Stage Enhancement Lead Scoring Lead Nurturing Marketing SLA’s Metrics . Centralized . Data analytics to . Editorial calendar . Sales feedback . Metrics to track marketing score leads . Content creation on lead quality prospect database . Predictive models process . Cold leads routed movement . Data governance to determine ideal . Drip campaigns back to marketing through the . Third-party customer profile . Customized funnel information marketing . Progressive messages profiling

Appendix Methodology and Definitions Used in this Study

Methodology

 Online Web-based survey

 Survey invitations were emailed during the summer of 2011 to ITSMA member and nonmember companies

 85 representatives from 76 companies responded to the Web survey

 ITSMA analyzed the data by: – Company type (Sells products and services or Primarily services) – Annual revenue (Less than $100M, $100M–$999M, More than or equal to $1B) – Lead management performance (Leaders and Laggards)

Source: ITSMA Online Survey: Lead Management, August 2011

Definitions Used in this Study

 Marketing Activity Categories:  Lead management included in this – Reputation: Marketing programs to survey: shape and promote the brand and build – Lead generation awareness and eminence – Validation – Revenue: Marketing programs to – Qualification capture leads, nurture them until sales – Scoring ready, and help sales move them – Routing through the various stages of the sales – Nurturing cycle – Measurement – Relationships: Marketing programs to build relationships such as loyalty/  Potential Lead Management Challenges: satisfaction programs, customer – People: Sufficient resources and skill councils/advisory boards, client forums levels or roundtables, branded online – Process: Organizational alignment, communities, executive one-on-one compliance, and executive support programs – Technology: Systems integration, adoption, and data quality and availability – Content: Sufficient quantity and quality Continued »

Source: ITSMA Online Survey: Lead Management, August 2011

Definitions Used in this Study (Continued)

 Permission Process for Lead Nurturing  Marketing Automation: The use of – We nurture leads without asking their technology to generate, nurture, score, and permission (CAN-SPAM minimum) qualify leads, and drive sales, using – We require “single opt-in” before we will customized, multi-touch marketing nurture leads (e.g., nurturing anyone who communications tailored for each contact’s registers on your website or attends a profile, level of interest, behavior, or place trade show) in the buying process – We require “double opt-in” for lead – Source: nurturing (e.g., after leads register on the http://www.acquireb2b.com/what-is- website or attend a tradeshow, sending a marketing-automation follow-up email to obtain their permission before sending additional marketing materials)

Source: ITSMA Online Survey: Lead Management, August 2011

For More Information

Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA Email: [email protected] Phone: +1-407-788-8220