The term "lead generation" is so broad that it creates all kinds of confusion! One really, really, important concept is "inbound" versus "outbound" (and yes, in leadgen there are few black and white cases, even here, but this differentiation helps). While speaking with Laura Merling today at Mashery, I started sketching out some ideas on how to compare leads that come to you versus leads that you have to go fetch.(Side note: does anyone have better terms than 'inbound v outbound'? Even these can be misleading.)
Inbound leads are, as it implies, leads that come to your company and into your website or 800#: usually through word-of-mouth and referrals, public relations, search engines or perhaps through marketing campaigns. Usually, a "Market Response" inside sales team reviews, qualifies and routes the leads to the correct salespeople. Excluding the educational inquiries (such as webinar registrations), these leads generally are already interested in what you have to offer, and are about to start a buying cycle.
Outbound leads are lead that you had to go dig up, whether through market development campaigns or a Cold Calling 2.0 or other "proactive" methods to let prospects who aren't already interested know who you are, what you do and why it should matter to them.
I realize I ain't no Picaso and I know the text is hard to read. Yet I think you can figure the important points out...and at least I had fun with this :)
Why is this important?
Here are a couple of things that should help clear some of the mistakes and confusion up in execution:
1) Differentiated sales leadgen roles: you need different roles for qualifying inbound leads ("Market Response") than Sales Development (sales prospecting). Inbound leads have an hours/days rhythm; outbound leads have a weeks/months rhythm. It's almost impossible for reps to juggle both functions well because of the different demands of the job. It's similar to asking quota-based salespeople to close both small business and enterprise deals.
2) Planning is very different for each, so plan them separately. The high-quality portion of inbound leads (word-of-mouth, referrals, some search engine leads) are mostly organic. Usually their pace leads grows steadily, bit by bit, and any big jumps or dips aren't sustainable. When they come in they come in quickly, with high close rates, but it's hard, or impossible, to grow the amount of them faster.
Outbound leads that close are like finding needles in haystacks - they're there, but they take a lot more effort, sales cycles are longer and close rates are lower. But - though this can take quite awhile - once you build your "needle finding machine" that can repeatably find the needles...generating outbound leads can be very predictable.
Don't be surprised if you start seeing more stick figure sketches in future posts!
3 comments:
Great article. Understanding the difference between inbound/outbound leads can be the difference between many sales and no sales. Once you understand these nuisances you need to know how to keep the new customer loyal... (www.readtheanswer.com/index.php?RTA=web2)
Tip #1: Know the real value of your product or service.
Loyal consumers will continue to come back to your business because they believe that there is some value to it. A customer will hear about your product or service, try it once, and if they are happy with it, they will come back time and time again. There is a sense of reward or value that they associate with your product. When you are trying to attract your ideal client, you have to know the unique value of your product or service that will create loyalty in your consumers, and tell them what it is.
Tip #2: Know the lifetime value of your customer.
Not every customer is worth the same amount to your business. Someone who spends $50 a month is not worth the same as a customer who spends $500 a month. Look at your database and see which of your clients are most profitable to your business. These people are your ideal clients, the ones you need to target for consumer loyalty.
Tip #3: Create a reward program for ideal clients.
The 80/20 rule applies here. This means that you need to identify the 20 percent of your consumers who are generating 80 percent of your revenue. These people should be given the most benefits, privileges and perks. Typically it is best to reward these consumers with something that is in sync with the product that they attracted to. For example, if you have a customer who spent $5,000 on your designer jewelry, you could give them a $100 off coupon for their next purchase. This not only shows your appreciation for their return business, but it is also an investment to get them to come back again.
When providing incentives or benefits to your most important consumers, an element of surprise or wonder is always great, especially when it is unexpected. It always creates the best response because it makes them feel valued and appreciated. These small actions establish that bond that in turn becomes consumer loyalty.
Tip #4: Communication is Key.
When you establish a trusting relationship with your loyal consumers, you have to have great communication. Loyal consumers are loyal because they feel like an integral and important part of your business and your success. Keeping them informed of the good and the bad is essential!
Open and honest communication not only strengthens the loyalty of your customer, but they will support you though tough times. As a company if you are in sync with your consumers and there is clear communication between the consumer and the company, it is a straight and mutually beneficial relationship.
Thanks for the info and check out my resource page. Feedback?
www.readtheanswer.com/index.php?RTA=web2
Aaron: you made several good points. Sorry, I've always called them "inbound/outbound" also even through the names are not very good. I think that you missed one important point.
Outbound leads can turn into inbound leads if you discover a prospect that is looking for your product/service, but just didn't know about your firm. This means that you also need to have a procedure to "flip" this lead from the outbound team over to the inbound team for a quicker, more personal follow up.
.
- Dr. Jim Anderson
The Accidental Negotiator Blog
Some really great ideas.
Post a Comment