CRM 101: Session 2: The Symbiotic Relationship Between CRM and Marketing Automation Systems

CRM Systems, Marketing Automation Systems & Best Practices in Lead

Management

CRM 101

Chuck Schaeffer

Vantive Media CEO, @cschaeffer, www.CRMsearch.com

04/07/2023 ©2012 SugarCRM Inc. All rights reserved. 2

http://www.crmsearch.com/

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The Best Practices of the Best Marketers

A research study designed to answer the questions:

What are the best performance B2B marketers doing to acquire, grow and retain more customers?

How are the highest performing B2B marketers using CRM systems in combination with Lead Management or Marketing Automation Systems?


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Methodology

Segment participants by performance level, as determined by:

volume of marketing sourced leads acquired versus plan,

quality of leads acquired versus plan

volume of marketing sourced new customer acquisitions versus plan

volume of marketing sourced revenues versus plan

level of change in marketing sourced revenues from the prior year, and

Return on Marketing Investment (ROMI)


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Composition of Respondents

Role: 67% in a marketing role, 28% in a sales role, 5% in a senior executive role and 3% in ‘other’ role.

Company equity type: 36% of the companies are publicly traded and 64% are private.

Market: All in the Business to Business market.

Industry: Participants identified themselves in a wide variety of industries. The single largest industry concentration was the Technology industry.

Company size: 35% of respondents identified as being Small Business (up to $100M), 44% were Middle Market ($100M to $500M) and 21% were Enterprise companies(over $500M).


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Marketing Budget


LEADERS MEDIANS LAGGARDS

As % of revenue 0.14 0.09 0.05

As % of margin 0.06 0.06 0.04

1%

3%

5%

7%

9%

11%

13%

15%

Marketing Budget

What is your marketing budget as a percentage of total company revenues and gross margin?

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Marketing Budget


LEADERS MEDIANS LAGGARDS

As % of revenue 0.14 0.09 0.05

As % of margin 0.06 0.06 0.04

1%

3%

5%

7%

9%

11%

13%

15%

Marketing Budget

What is your marketing budget as a percentage of total company revenues and gross margin?

High Margin Products: 8 to

21% of revenues

Low Margin Products: 1 to 5%

of revenues

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Lead Management Accountability


LEADERS

MEDIANS

LAGGARDS

5% 15% 25% 35% 45% 55% 65% 75% 85% 95%LEADERS MEDIANS LAGGARDS

Marketing 0.61 0.79 0.89

Sales 0.02 0.05 0.11

Marketing and Sales 0.19 0.09 0.05

Departmental Accountability

LEADERS

MEDIANS

LAGGARDS

5% 15% 25% 35% 45% 55% 65% 75% 85%LEADERS MEDIANS LAGGARDS

Other 0.04 0.02 0.06

Sales 0.08 0.04 0.03

Marketing 0.81 0.72 0.44

Lead Management Compensation

Which department(s) is/are held accountable for lead management performance?

Which staff are financially compensated (i.e. via commissions, salary or incentives) for lead management performance?

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Lead Management Accountability


LEADERS

MEDIANS

LAGGARDS


Marketing 0.61 0.79 0.89

Sales 0.02 0.05 0.11

Marketing and Sales 0.19 0.09 0.05

Departmental Accountability

LEADERS

MEDIANS

LAGGARDS


Other 0.04 0.02 0.06

Sales 0.08 0.04 0.03

Marketing 0.81 0.72 0.44

Lead Management Compensation

Which department(s) is/are held accountable for lead management performance?

Which staff are financially compensated (i.e. via commissions, salary or incentives) for lead management performance?

Leaders show 2X increase over

Medians and ~4X increase over

Laggards

Leaders 2X increase over

Medians & 167% increase over Laggards

Cautionary Note:Avg 12% hold both S&M accountable, but Sales

compensated avg of 6%

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Lead Sourcing and Marketing’s Contribution


LEADERS

MEDIANS

LAGGARDS


Leads Sourced by Marketing 0.42 0.29 0.18

Marketing Sourced Leads

What percentage of leads in the sales pipeline originate from marketing?

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Lead Sourcing and Marketing’s Contribution


LEADERS

MEDIANS

LAGGARDS


Leads Sourced by Marketing 0.42 0.29 0.18

Marketing Sourced Leads

What percentage of leads in the sales pipeline originate from marketing?

Leaders generate 45% more leads than Medians & 133% more than

Laggards

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Lead Scoring


LEADERS

MEDIANS

LAGGARDS

0% 20% 40% 60% 80% 100% 120%

1%

1%

2%

2%

8%

15%

97%

91%

83%

Yes No UnsureN=121

LEADERS

MEDIANS

LAGGARDS

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

36%

24%

17%

63%

74%

81%

1%

2%

2%

Unsure No Yes N=121

Do you qualify leads before forwarding them to the sales team?

Do you qualify leads using a scoring model which attributes points to criterion and calculates a sum score?

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Lead Scoring


LEADERS

MEDIANS

LAGGARDS

0% 20% 40% 60% 80% 100% 120%

1%

1%

2%

2%

8%

15%

97%

91%

83%

Qualify Leads Before Transfer?

Yes No UnsureN=121

LEADERS

MEDIANS

LAGGARDS

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

36%

24%

17%

63%

74%

81%

1%

2%

2%

Lead Scoring Model?

Unsure No Yes N=121

Relative steady pattern

50% increase from Medians, 112% increase from Laggards

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Lead Scoring Continued


Budget

Authority

Need

Timefr

ame

Company S

ize

Contact T

itle

Willi

ngness

to En

gage

Incumban

t Custo

mer

Competitor C

ustomer

Socia

l Med

ia Data

Behav

orial D

ataOther

0%

10%

20%

30%

40%

50%

60%

70%

Lead Scoring Criterion

LEADERSMEDIANSLAGGARDS

N=121

LEADERS

MEDIANS

LAGGARDS

1 3 5 7 9 11 13LEADERS MEDIANS LAGGARDS

Feedback Cycles 4 7 12

Feedback Cycle Duration

N=120

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Lead Scoring Continued


Budget

Authority

Need

Timefr

ame

Company S

ize

Contact T

itle

Willi

ngness

to En

gage

Incumban

t Custo

mer

Competitor C

ustomer

Socia

l Med

ia Data

Behav

orial D

ataOther

0%

10%

20%

30%

40%

50%

60%

70%

Lead Scoring Criterion

LEADERSMEDIANSLAGGARDS

N=121

LEADERS

MEDIANS

LAGGARDS

1 3 5 7 9 11 13LEADERS MEDIANS LAGGARDS

Feedback Cycles 4 7 12

Feedback Cycle Duration

N=120

Near 2X increase from Medians, & 3X increase from

Laggards

Leaders using behavioral data

123% more than Medians

and 383% more than Laggards

Leaders using more scoring criterion; avg of 11% more than Medians and 22% more than Laggards

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Nurture Marketing


LEADERS

MEDIANS

LAGGARDS

0% 10% 20% 30% 40% 50% 60%

19%

22%

30%

52%

53%

51%

29%

25%

19%

Disqualified Not Yet Sales-Ready Sales-Ready

Volume of Leads Received which are sales-ready, not yet sales-ready and will never be sales ready (i.e. disqualified)?

LEADERS

MEDIANS

LAGGARDS

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

38%

27%

17%

62%

71%

83%

No Yes

Do your nurture campaigns distribute content based on lead persona and buy cycle stage?

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Nurture Marketing


LEADERS

MEDIANS

LAGGARDS

0% 10% 20% 30% 40% 50% 60%

19%

22%

30%

52%

53%

51%

29%

25%

19%

Disqualified Not Yet Sales-Ready Sales-Ready

Volume of Leads Received which are sales-ready, not yet sales-ready and will never be sales ready (i.e. disqualified)?

LEADERS

MEDIANS

LAGGARDS

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

38%

27%

17%

62%

71%

83%

No Yes

Do your nurture campaigns distribute content based on lead persona and buy cycle stage?

Leaders show 41% increase over Medians

& 124% increase over

Laggards.

Leaders used nurture campaigns 27% more

than Medians & 138% more than

Laggards

Leaders showed both highest

disqualification & lowest Sales

Ready rates

Tweet: #SCON1204/07/2023 ©2012 SugarCRM Inc. All rights reserved. 18

Nurture Marketing Continued

LEADERS

MEDIANS

LAGGARDS

7

6

4

Nurture Touches

LEADERS

MEDIANS

LAGGARDS

0 5 10 15 20 25 30

12

15

25

Nurture Cycle

LEADERS

MEDIANS

LAGGARDS

0% 5% 10% 15% 20% 25% 30% 35%

31%

21%

12%

Nurture Yield

On average, how many nurture touches are required to advance a non-qualified lead to sales-ready?

On average, how many weeks does it take to nurture a non-qualified lead to sales-ready?

On average, what percentage of new, non-qualified leads will eventually be nurtured to sales-ready?


Nurture Marketing Continued

LEADERS

MEDIANS

LAGGARDS

7

6

4

Nurture Touches

LEADERS

MEDIANS

LAGGARDS

0 5 10 15 20 25 30

12

15

25

Nurture Cycle

LEADERS

MEDIANS

LAGGARDS

0% 5% 10% 15% 20% 25% 30% 35%

31%

21%

12%

Nurture Yield

On average, how many nurture touches are required to advance a non-qualified lead to sales-ready?

On average, how many weeks does it take to nurture a non-qualified lead to sales-ready?

On average, what percentage of new, non-qualified leads will eventually be nurtured to sales-ready?

Leaders show 41% increase

over Medians & 124% increase over Laggards.

Leaders show 20% lower

nurture cycle than Medians & 52% lower

than Laggards

Leaders show 48% higher yield than

Medians 158% higher yield

than Laggards


Lead Transfer

How do marketers verify that leads transferred to sales are followed through timely and properly?

Other

We don't

Our system sends alerts (i.e. neglected leads)

We review dashboards or reports

We manually review lead status periodically

0% 10% 20% 30% 40% 50% 60%

3%

6%

26%

36%

27%

5%

9%

13%

30%

44%

5%

15%

4%

16%

55%

LAGGARDS MEDIANS LEADERS

When are leads sourced by marketing forwarded to sales staff?

LEADERS

MEDIANS

LAGGARDS

0% 20% 40% 60% 80% 100% 120%

8%

13%

19%

54%

60%

62%

36%

23%

15%

2%

4%

4%

When ReceivedWhen qualified as determined by an inside sales discussionWhen qualified as determined by a point or lead scoreOther


Lead Transfer

How do marketers verify that leads transferred to sales are followed through timely and properly?

Other

We don't

Our system sends alerts (i.e. neglected leads)

We review dashboards or reports

We manually review lead status periodically

0% 10% 20% 30% 40% 50% 60%

3%

6%

26%

36%

27%

5%

9%

13%

30%

44%

5%

15%

4%

16%

55%

LAGGARDS MEDIANS LEADERS

When are leads sourced by marketing forwarded to sales staff?

40% increase over Medians &

60% increase over Laggards

Leaders show 26% utilization vs 13% for Medians & 4% for Laggards

LEADERS

MEDIANS

LAGGARDS

0% 20% 40% 60% 80% 100% 120%

8%

13%

19%

54%

60%

62%

36%

23%

15%

2%

4%

4%

When ReceivedWhen qualified as determined by an inside sales discussionWhen qualified as determined by a point or lead scoreOther

Leaders use Lead Scoring model 57% more than

Medians & >2X more than Laggards

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Lead Transfer Continued …


Are leads acquired outside of marketing consistently forwarded to marketing for marketing programs?

Do you have specific criteria which dictate when a lead transferred from marketing to sales should be returned to marketing?

LEADERS

MEDIANS

LAGGARDS

5% 15% 25% 35% 45% 55% 65% 75%LEADERS MEDIANS LAGGARDS

Unsure 0.03 0.03 0.04

No 0.62 0.7 0.76

Yes 0.35 0.27 0.2

LEADERS

MEDIANS

LAGGARDS


Unsure 0.02 0.03 0.04

No 0.81 0.86 0.92

Yes 0.17 0.11 0.04

Tweet: #SCON12

Lead Transfer Continued …


Are leads acquired outside of marketing consistently forwarded to marketing for marketing programs?

Do you have specific criteria which dictate when a lead transferred from marketing to sales should be returned to marketing?

LEADERS

MEDIANS

LAGGARDS

5% 15% 25% 35% 45% 55% 65% 75%LEADERS MEDIANS LAGGARDS

Unsure 0.03 0.03 0.04

No 0.62 0.7 0.76

Yes 0.35 0.27 0.2

LEADERS

MEDIANS

LAGGARDS


Unsure 0.02 0.03 0.04

No 0.81 0.86 0.92

Yes 0.17 0.11 0.04

2/3 of all leads not consistently

managed

Bulk of stalled leads not

returned for recycling

Contributors to Lead Leakage?

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Lead Leakage


LEADERS

MEDIANS

LAGGARDS

10% 30% 50% 70% 90% 110%LEADERS MEDIANS LAGGARDS

Unsure 0.01 0.02 0

No 0.02 0.01 0

Yes 0.97 0.97 1

Do you incur lead leakage?

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Lead Leakage


LEADERS

MEDIANS

LAGGARDS


Unsure 0.01 0.02 0

No 0.02 0.01 0

Yes 0.97 0.97 1

Do you incur lead leakage?

Tightest response range in entire

survey

Only 100% response in

survey

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Lead Leakage Continued …


LEADERS

MEDIANS

LAGGARDS


Unsure 0.01 0.02 0.04

No 0.8 0.89 0.92

Yes 0.19 0.09 0.04

LEADERS

MEDIANS

LAGGARDS


Unsure 0.01 0.01 0.03

No 0.91 0.93 0.94

Yes 0.08 0.06 0.03

Do you report the number of leads lost? Do you calculate the value of leads lost?

Tweet: #SCON12

Lead Leakage Continued …


LEADERS

MEDIANS

LAGGARDS


Unsure 0.01 0.02 0.04

No 0.8 0.89 0.92

Yes 0.19 0.09 0.04

LEADERS

MEDIANS

LAGGARDS


Unsure 0.01 0.01 0.03

No 0.91 0.93 0.94

Yes 0.08 0.06 0.03

Do you report the number of leads lost? Do you calculate the value of leads lost?

Average of 98% report leakage; Only average of 10% & 6% measure volume & value

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Analytics


In the eyes of the executive team, does the head of marketing hold the same clout as the head of sales?

Does marketing tie every lead, customer and revenue dollar back to the marketing program that created them?

LEADERS

MEDIANS

LAGGARDS


Yes 59% 39% 18%

No 39% 57% 77%

Unsure 2% 4% 5%

59%

39%

18%

39%

57%

77%

2%

4%

5%

Marketing Clout?

LEADERS

MEDIANS

LAGGARDS


Yes 49% 34% 19%

No 50% 64% 77%

Unsure 1% 2% 4%

49%

34%

19%

50%

64%

77%

1%

2%

4%

Track All Revenue To Source?

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Analytics


In the eyes of the executive team, does the head of marketing hold the same clout as the head of sales?

Does marketing tie every lead, customer and revenue dollar back to the marketing program that created them?

Approximately 2/3 say No!

Laggards 3X more likely to

suffer credibility gap

Leaders tie to source 44% more than

Medians and 158% more

than Laggards

Approximately 2/3 do not

LEADERS

MEDIANS

LAGGARDS


Yes 59% 39% 18%

No 39% 57% 77%

Unsure 2% 4% 5%

59%

39%

18%

39%

57%

77%

2%

4%

5%

Marketing Clout?

LEADERS

MEDIANS

LAGGARDS


Yes 49% 34% 19%

No 50% 64% 77%

Unsure 1% 2% 4%

49%

34%

19%

50%

64%

77%

1%

2%

4%

Track All Revenue To Source?

Tweet: #SCON12

Analytics Continued …


Does marketing calculate and report ROMI (Return on Marketing Investment)?

Does marketing forecast future marketing performance as measured in revenue contribution to the company?

LEADERS

MEDIANS

LAGGARDS


Yes 49% 38% 24%

No 51% 61% 73%

Unsure 0% 1% 3%

49%

38%

24%

51%

61%

73%

0%

1%

3%

Calculate ROMI?

LEADERS

MEDIANS

LAGGARDS


Yes 19% 11% 6%

No 81% 88% 91%

Unsure 0% 1% 3%

19%

11%

6%

81%

88%

91%

0%

1%

3%

Marketing Forecast Revenues?

Tweet: #SCON12

Analytics Continued …


Does marketing calculate and report ROMI (Return on Marketing Investment)?

Does marketing forecast future marketing performance as measured in revenue contribution to the company?

LEADERS

MEDIANS

LAGGARDS


Yes 49% 38% 24%

No 51% 61% 73%

Unsure 0% 1% 3%

49%

38%

24%

51%

61%

73%

0%

1%

3%

Calculate ROMI?

LEADERS

MEDIANS

LAGGARDS


Yes 19% 11% 6%

No 81% 88% 91%

Unsure 0% 1% 3%

19%

11%

6%

81%

88%

91%

0%

1%

3%

Marketing Forecast Revenues?

Only 49% Leaders!29% over Medians, 104% over Laggards

Average of 11%. Leaders 73% more than Medians & 217% more

than Laggards

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Technology


LEADERS

MEDIANS

LAGGARDS


Yes 0.45 0.29 0.16

No 0.55 0.71 0.84

Use Lead Management System?

OtherImprove marketing ROI

Improve lead management reporting & analysisImprove top line revenuesImprove lead cycle velocity

Improve lead flowImprove conversion rates

Improve quality of leads acquiredImprove volume of leads acquired

Automate lead management processesAdd rigor and discipline to lead management processes

Improve alignment between marketing and salesImprove marketing productivity

Empower marketing to control more of the process

0% 5% 10% 15% 20% 25% 30%

Top Reasons For LMS Purchase

Tweet: #SCON12

Technology


LEADERS

MEDIANS

LAGGARDS


Yes 0.45 0.29 0.16

No 0.55 0.71 0.84

Use Lead Management System?

OtherImprove marketing ROI

Improve lead management reporting & analysisImprove top line revenuesImprove lead cycle velocity

Improve lead flowImprove conversion rates

Improve quality of leads acquiredImprove volume of leads acquired

Automate lead management processesAdd rigor and discipline to lead management processes

Improve alignment between marketing and salesImprove marketing productivity


0% 5% 10% 15% 20% 25% 30%

Top Reasons For LMS Purchase

Leaders 55% more than Medians; 181% more than Laggards

Top 3 Factors

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Technology Continued …


Developing volume of nurture content necessary

Changing processes to accommodate the software

Difficult software customization

Difficult system integration

Unable to use most of the software functionality

Missing software functionality

High Total Cost of Ownership (TCO)

Unexpected add-on fees for related products and services

Under-utilization of the technology

Required more resourcing to operate than anticipated

Required more technical skills and resources than anticipated

Implementation took longer and cost more than expected

0% 5% 10% 15% 20% 25% 30% 35%

Top LMS Frustrations

What are your top 3 frustrations with your LMS?

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Technology Continued …


Other

Improve marketing ROI

Improve lead management reporting & analysis

Improve top line revenues

Improve lead cycle velocity

Improve lead flow

Improve conversion rates

Improve quality of leads acquired

Improve volume of leads acquired

Automate lead management processes

Add rigor and discipline to lead management processes

Improve alignment between marketing and sales

Improve marketing productivity


0% 5% 10% 15% 20% 25% 30% 35%

Top LMS Benefits

What are the top 3 benefits you've realized with your LMS?

3 biggest purchase factors in line with

realization

Largest positive deviation, by 80%

60% increase

50% increase

Largest negative deviation, by 33%

27% decrease

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What To Do Next

On Monday morning—download the report, at www.crmsearch.com.

Over the next week—evaluate whether your most strategic objectives would likely be impacted by replicating Leader performance practices in your own company.

Over the next month—research, review and design the implementation for select top practices in your organization.

Over the next 1 to 2 quarters—implement, measure & refine.

In February 2013—participate in the CRMsearch.com survey to compare your practices among your peers.


http://www.crmsearch.com/


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CRM 101: Session 2: The Symbiotic Relationship Between CRM and Marketing Automation Systems

Business

Transcript of CRM 101: Session 2: The Symbiotic Relationship Between CRM and Marketing Automation Systems