Leveraging mySAP® CRM for

Lead Generation (1410)

Pete Martin
Senior Partner, EntryPoint Consulting
Learning Points

• Why lead generation is the number one problem facing

most organization and what to do about it

• How mySAP CRM can tie the critical elements together to

create a truly effective lead generation program

• Four leading methods for creating a mySAP CRM

solution that delivers qualified leads
Agenda / Objectives

• Explore the challenges involved in lead generation

• Discuss the hard ROI for deploying mySAP as a tool to

generate sales lift

• Detail how mySAP CRM is helping companies both face

and meet this challenge.

• 4 leading methods for tying all the pieces together to gain

more lift from your combined efforts.
Agenda / Objectives

• Explore the challenges involved in lead generation

• Discuss the hard ROI for deploying mySAP as a tool to

generate sales lift

• Detail how mySAP CRM is helping companies both face

and meet this challenge.

• 4 leading methods for tying all the pieces together to gain

more lift from your combined efforts.
A mindset shift…
Many companies view lead generation as a marketing function, or
the responsibility of the sales force, but true lead generation
involves marketing, sales, product development, and call
centers as well as field services. Only through the use of
mySAP CRM can a repeatable, integrated marketing strategy
be successfully executed.

AIR COVER FOR THE SALES FORCE

What’s the problem?

Yankee Group Estimates that

between 40 – 80% of new
business leads are lost, not
followed up on or otherwise
mishandled due to poor
company processes!
Top 4 Reasons to focus on
Lead Generation…

Reason #4 80%
70%
Because the process stinks 60%
today! 50%
40%
70% of organizations feel 30%
that their ability to 20%
generate leads needs 10%
improvement! 0%

Impr ov ement

Expectat i ons

Expectat i ons

D on't Know
Exceeds
Needs

Meet s
Source: Making Lead Generation Work. CSO Insights. 2007
Top 4 Reasons to focus on
Lead Generation…
Reason #3
Growing revenues isn’t
getting any easier!

Deal Sizes are SHRINKING

Sales Cycles Are Longer

Economic Buyer is Unclear

Initial Lead to Sale Ratio Decl

ining Source:
Making Lead Generation Work.
Prospects are better armed CSO Insights. 2007
Top 4 Reasons to focus on
Lead Generation?
Reason #2
There has been a steady increase in
NO DECISIONS on deals.

Source: Making Lead Generation Work. CSO Insights. 2007

Top 4 Reasons to focus on
Lead Generation?
And the # 1 Reason….
Because your sales executives consider this their top priority!

Source: Making Lead Generation Work. CSO Insights. 2007

What is “Lead Generation”?

Database Marketing
1. Leveraging all
applicable

STRATEGIC MARKETING PLAN

Suspects (Target Mkts)
communication
channels. Unqualified Prospects

2. Filling the sales Qualified Prospects

funnel
Creation of Lead

Mktg Engagement

Sales Engagement

Opportunities

Wins / Losses
….versus “Lead Management”

Database Marketing
1. Execute Marketing
Campaigns

STRATEGIC MARKETING PLAN

Suspects (Target Mkts)

2. Get qualified leads Unqualified Prospects

to Reps
Qualified Prospects

3. Nurture and Creation of Lead

Incubate Cold /
Warm Leads Mktg Engagement

Sales Engagement
4. Track the disposition
of Leads Opportunities

Wins / Losses
Strategic Lead Management Process

Advertising
Advertising
Pre-
Media/Analyst
Media/Analyst Pipeline
Marketing Plan Development

Relations

Continuous
Relations

Continuous Improvement
Response Qualification
(Cold,Warm,
Hot) Win
Win

Win/Loss Program
Collateral
.
Collateral
Communication Plan
Strategic Biz Plan

Materials

TeleWeb
Materials

Events
Events D C B A

Improvement
Internet
Internet
Sales Process
Lost/
Lost/
Direct
DirectMail On
Mail
Online/Offline
OnHold
Hold
Online/Offline
Telemktg
Telemktg
Inbound/
Inbound/ Outside
Outside
Outbound Target
Outbound TargetMarket
Market
Partners
Partners//
Distributors
Distributors
Agenda / Objectives

• Explore the challenges involved in lead generation

• Discuss the hard ROI for deploying mySAP as a tool to

generate sales lift

• Detail how mySAP CRM is helping companies both face

and meet this challenge.

• 4 leading methods for tying all the pieces together to gain

more lift from your combined efforts.
Potential ROI

Average Deal Size = $50K

50% Win Rate
$1M Quota

A sales rep would need to have 40 opportunities in their pipeline during the year to
make quota
(40 opportunities X 50% close rate = 20 deals X $50K each = $1M quota attainment).

Now assume a firm invests in optimizing their lead flow, achieves parity with their
peers, and now has a 55% close rate.

They would close 5% more of the 40 opportunities they pursue, or 2 more deals per
rep (40 opportunities X 5%)

With a saleforce of 100 reps
the sales force closes 200 extra deals during the quota
year.

The net result of 200 additional deals closing at an average of $50K each would
be - gross revenue gains of $10,000,000…with the same amount of effort, but
pursuing deals with a higher likelihood of closing.
Benchmark Returns for
Best In Class Companies

$108,500 per rep during their
first year on quota (based on
$2M quota and 10%
improvement in quota ramp-up
performance.)

Percentage of reps making quota
is 9.3% higher

Conversion rates of leads to first
calls show an improvement of
16.5%

Win rates rise by 7.0%

Ramp-up times for new sales
people decrease by over 10%
•
Waters Corp - ROI

“…captured over $800,000 from higher

efficiency levels in lead qualification.”

…response rates from direct mail

campaigns rose by 50%.”

“…increased revenue from additional

campaigns exceeds $120,000.”

Significantly reduced mailing and postage

costs.
The Bottom Line

Companies that excel at

lead generation outsell
their peers by 38%!

Excel = Quality & Quantity

Source: Making Lead Generation Work. CSO Insights. 2007

Agenda / Objectives

• Explore the challenges involved in lead generation

• Discuss the hard ROI for deploying mySAP as a tool to

generate sales lift

• Detail how mySAP CRM is helping companies both face

and meet this challenge.

• 4 leading methods for tying all the pieces together to gain

more lift from your combined efforts.
Lead Management
Lead Management: A
Lead Management: A combination
combination of
of
E-mail sent to target business
business rules
rules and
and processes
processes
designed
designed to
to quickly
quickly and
and consistently
consistently
Target responds and move
move leads
leads through
through the
the sales
sales funnel,
funnel,
becomes prospect minimizing
minimizing leakage
leakage and
and maximizing
maximizing
conversion
conversion
BANT scoring classifies prospect
as hot, warm or cold.

Hot lead sent Warm lead given Cold lead given periodic
to sales as deepening touches warming touches to attempt to
MQL reclassify as warm
Marketing

Sales
Sales accepts lead as
SQL or sends back to
marketing for deepening

SQL/Opportunity
What Does Good Lead Management
Look Like?

• Lead generation across all interaction channels

• Robust and easy-to-use external list management
tools
• Accelerate the process from first interest to sale
• Streamline the link between marketing and sales
• Qualification and dispatching
• Collaboration with channel partners
• Track the progress of each one through
Lead Generation Tactics/Tools

 Can be used separately or Social Networking Direct Response Cards

in combination to address RSS Banner Ads
the key marketing Public Relations Contests
objectives
Radio Seminars
 Each tactic’s applicability Sponsorships Premiums
varies with the campaign Web Content Charitable Events
goals and target audience Paid Search Sponsorships
 Tactic selection should be Organic Search Alliances
based on the cost per lead Podcasts In-Store Displays -
choosing the most cost- Blogs Placards
-

effective tactics to reach a Telemarketing Vehicle Signage

given marketing goal
Direct Mail Catalogs
Email Marketing Teleconferences
Newsletters Trade Shows
The secret is sequential Webinars Billboards
integration
Lead Management in SAP CRM
• Streamlined process from marketing to sales
• Closed loop lead management – from initial interest to opportunity to
deal
• Lead generation across several interaction channels
• Dispatch leads to internal employees
• Automatic distribution based on defined workflow business rules
• Automatic qualification with survey support
• Business partners can be managed as leads, customers, opportunities,
competitors, partners, etc. at the same time
 Lead Management Process
3rd Party Mobile Web Tele
(e.g. ELM)

Status Process
Business Lead Gathering
Partner and Targeting
Cold
Lead Warm Lead Qualification
Hot
Qualified D Qualified
Lead C Lead
Opportunity B Sales Pipeline
A
Selling,
Customer
Analyze, Contracting
learn, grow
customer
Definition of a “Lead”

A “lead” is a transaction, not a prospect!

Leads are linked to: Basic Lead Information:

 Business Partner:  Status
customer or prospect,  Origin
contact person, channel  Lead Group
partner, sales rep. etc
 Priority
 Organizational Model
 Qualification Level
 Activities
 Campaign
 Texts
 Documents

A lead is used to describe, store, update and manage

the potential interest of a business partner
(in certain timeframe and for a specific product)
Lead Management Functions

• Multiple Interaction Channels

• Automated Qualification
• Rule-Based Distribution
• Lead Dispatching
• Web-Based Lead Generation
• Lead Partner Management
• Mass Generation
• Interactive Forms
• Lead Surveys
• Generation of Follow-Up
Activities
• Lead Analysis
New in CRM Best Practices

• Lean Campaign Management

• Inbound Lead Management
• Outbound Lead Management
Inbound Lead Generation

 A customer contacts the call center and

shows interest in a specific product. Answering a
Customer Call

 The call center agent creates a lead for the Identify and Confirm
customer with this product and forwards a Business Partner
the lead for further processing to the lead
qualifier.
Create
Lead
 The lead qualifier selects the lead from his
workflow inbox and qualifies the lead by
evaluating the customer history (customer Qualifiy
fact sheet). The qualification process can Lead
in addition be supported by
questionnaires.
Transfer Lead
 Once a lead has reached a certain to Sales
qualification level (for example, hot), it is
transferred to the sales department where Create
it can be converted into an opportunity. Opportunity
Inbound Lead Management
Outbound Lead Generation
 A target group is created in the Segment
Builder as a basis for the lead generation. Create
Target Group
 For the lead generation two alternatives are
possible: Generate Leads
 The target group is used within a
campaign and the leads are created
automatically during the campaign Create
execution. Campaign
 The leads are generated from the target
group via a report. Release
Campaign
 Subsequently the lead is processed by a
lead qualifier using the lead questionnaire. Transfer Target Group
to Channel
 Lead qualification may also be carried out
without direct customer contact based upon Qualify Lead
information on the business partner.

 Once the lead has reached a certain Transfer Lead to Sales

qualification level (for example,hot), it is
passed on to the sales department where it
Create Opportunity
can be used to create an opportunity.
Lean Campaign Management

Create overall
marketing plan

Create marketing
campaign
• Customer segmentation Business partner
segmentation
• Marketing calendar
Campaign Execution
• Campaign execution via channel / Open Channel

• Personalized E-mails Campaign Execution

via channel E-mail
• External list management
Run trade show
• Campaign analysis
Maintain address lists

Run campaign
efficiency analysis
Lead Management Analysis

Lost Leads:
Provides an overview of the number of lost leads in a particular period and the reasons the
loss of the leads.

Historical Evaluation:
Compare leads over different intervals (qtrs/yrs) to see if general characteristics in the
processing of leads can be identified for these periods.

Efficiency Reporting:
Analyze the efficiency with which leads are qualified.

Channel Mgmt.: Top-n Lost Leads (Current Year):

An analysis of the leads lost by a Channel Manager over the past 12 months (as well as
leads lost by your Channel Partners.)

Channel Analysis:
Determine the best channels by which business partners are contacted in the context of a
marketing campaign to compare the success of a given channel.
Agenda / Objectives

• Explore the challenges involved in lead generation

• Discuss the hard ROI for deploying mySAP as a tool to

generate sales lift

• Detail how mySAP CRM is helping companies both face

and meet this challenge.

• 4 leading methods for tying all the pieces together to gain

more lift from your combined efforts.
Generate Necessary Quantity
of Leads
Bottoms-Up Analysis Top Down Analysis
• Define the number Sales Revenue $2,000,000 Targets Available 17,000
Target
of leads required
Average Contract $500,000 Response Rate 1%
based on the Size
business No. of Deals Needed 4 Prospects Needed 170

plan/strategy and Win Rate 50% MQL Rate 10%

fund appropriately. SQLs Needed 8 MQLs Needed 17

Sales Acceptance 50% Sales Acceptance 50%
Rate Rate
MQLs Needed 16 SQLs Needed 8.5
MQL Rate 10% Win Rate 50%
Prospects Needed 160 No. of Deals 4.25
Needed
Response Rate 1% Average Contract $500,000
Size
Targets Needed 16,000 Revenue Forecast 2,125,000
Properly Qualify &
Prioritize Prospects

Properly
defining the
characteristics
of a “good”
lead can lead
to much better
processes…
and
consequently
results!
Improve Your “Offer”

• Offers are designed to stimulate

response from a given target
audience. The
The premise
premise ofof an
an offer
offer is
is that
that
• The right offer will: to
to Get
Get Something
Something (e.g.,
(e.g.,
name
name and
and phone
phone number),
number),
• Reduce the cost per lead and we
we have
have to
to Give
Give Something
Something
marketing of
of equal
equal value
value (e.g.,
(e.g., white-
white-
• Increase the response rate paper
paper
• Draw a higher quality
respondent
Integrate Your Tactics
Best Practices (long version)
 Secure cross-enterprise agreement on the definitions of raw leads, suspects,
prospects, and active opportunities.

 Document how you handle each class and who is responsible for those
activities.

 Agree on what metrics you will use to measure effectiveness and how that data
will be collected and analyzed.

 Invest in data scrubbing / cleansing so that the data you use for targeting your
programs is current and accurate.

 Implement SAP CRM Lead Management to integrate marketing automation and

program management, allowing you to manage all aspects of your various
campaigns; direct/digital mail, events, web site visits, broadcast/print/web
advertising, etc.

 Integrate the demand generation system into your existing CRM framework so
that you can easily pass qualified leads on to sales and track the
disposition of those opportunities.

 Leverage analytics to determine the effectiveness of each and every program

and, based on results, double down on the winning programs and modify or
cancel the losers.
“Slap on the forehead”
Best Practices

• Clearly define your target prospects

• Integrate your tactics
• Track and nurture your current leads
Key Learnings

• The potential payoff for focusing on lead management is

huge.
• Your sales and marketing executives are “asking for it”
• “Best practices” includes developing a roadmap to;
Clearly define your target prospects
Integrate your tactics
Track and nurture your current leads

• mySAP CRM 2005+ is ready to handle the job

For More Information…

For more information, discuss our CRM capabilities and how

we will tie our fees to your CRM success….contact;

Pete Martin, Senior Partner

(216) 674-9068
pmartin@entrypointconsulting.com