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David Elkington, who started InsideSales.com in 2004, has a rich background in technology, venture capital, and corporate development. As CEO and Chairman, he has delivered consecutive 50 to 100 percent annual growth rates since the companys inception. Before founding InsideSales.com, Dave co-founded Integr8ted Technology Solutions, LLC, a leading e-business consulting and application development firm. Prior to Intergr8ted, he co-founded and served as director of business development for Everfill, Inc., an e-Health distribution company. Prior to his technology company career, Dave was a financial analyst with Deutsche Bank Alex Brown, an investment bank based in Baltimore, Md. He also held positions with Merrill Lynch and MiraQuest Capital (a healthcare technology venture capital firm). Dave was recognized among the Top 25 Most Influential Inside Sales Professionals in 2010 and 2012 by the American Association of Inside Sales Professionals (AA-ISP). He serves on the board for ProvoTechX, on the national advisory board of the American Association of Inside Sales Professionals (AA-ISP) and on the BYU CVLC advisory council. Dave has been active in the evolution and definition of the inside sales industry and speaks regularly. He co-authored the groundbreaking Lead Response Management industry study in 2007 and has co-authored Harvard Business Review, Kellogg School of Management and many
other academic and industry research articles. He is recognized both locally and nationally as a leader and entrepreneur in the cloud computing and remote selling market segments and has a background in computer science. Dave holds a BA degree in Philosophy from Brigham Young University with minors in Business, Japanese and Hebrew. KEN KROGUE, EDITOR Kenneth Krogue co-founded InsideSales.com in November 2004, where he currently leads the marketing, business development, consulting, education, implementation, and support departments. In this role, he is responsible for working with the chairman and chief executive officer to set the vision and strategy for the company, as well as overseeing all dayto-day sales and marketing operations. Ken brings more than 24 years of experience in sales, development and marketing in both domestic and international markets. Prior to joining InsideSales.com, Ken was one of the original founders of UCN, now inContact (NASDAQ:SAAS), where he held a number of positions including Chief Operating Officer. Prior to inContact, he built and directed the inside sales division at FranklinCovey (NYSE:FC), a leading provider of time and life management training systems. Ken has received many industry awards including being recognized among the Top 25 Most Influential Inside Sales Professionals in 2010 and 2012 by the American Association of Inside Sales Professionals (AA-ISP). Ken is a weekly contributor to Forbes.com and an active thought leader in the inside sales industry. His personal blog is the top ranked blog in the world on the topic of inside sales. Ken speaks to audiences about twenty times a year around the country. He founded and served from 2010 to 2011 as the President of the Salt Lake City Chapter of AA-ISP. Ken attended the United States Naval Academy in Annapolis, Md., and earned a BS in Psychology from the University of Utah. SUPPORTING ROLES James W. Phillips, Supporting Author Kyle Davis, Analytics Support William Krohn, Business Intelligence Manager
RESEARCH PAPER
HIGHLIGHTS
Company websites, email, and tradeshows, are the most common marketing methods. Executive events, inside sales, and telemarketing are the most effective methods for generating leads. Social media methods are the least effective for generating leads
METHODOLOGY
InsideSales.com sent out a survey from which we compiled a dataset of 423 responses. Respondents came primarily from sales and marketing positions. Respondent Role in Company
Sales 43%
Marketing 45%
Other 12%
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Among these respondents, 31.5% classified themselves as decision makers in purchasing marketing-specific media, programs, services and technology, while 53.5% classified themselves as influencers in this area. Among all companies, the most represented industry was business services, followed by manufacturing.
Industry Representation
Retail & Wholesale Distribution 4%
Utilities & Telecommunications 3%
Other 11%
Manufacturing 19%
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An important consideration in this study is whether a company can afford to use a particular lead generation method. We asked respondents to indicate the size of their marketing budget. Results are given below.
Marketing Budget
$5M or more 4% $1M to $4.9M 8% $500K to $999K 5%
Don't Know/Prefer Not to Say 26% Less than $100K 35% $100K to $499K 22%
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Only 12% of respondents have marketing budgets adequately large to allow them to undertake large scale campaigns such as broad reach marketing. This is an important group factor to to consider as we examine methods that companies claim are effective but are not highly adopted. Finally, we examine how aggressive companies consider themselves to be in adopting new technologies. By very aggressive, we mean companies that adopt new technologies, while not at all aggressive are those that only adopt tried and true technologies. Figure 4 has the results.
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Figure 4 Aggressiveness in Adopting New Technologies 34 E 1700 S Building A Provo UT 84606 | 808.965.4316 | www.insidesales.com
RESULTS
COMPANY WEBSITES MOST UNIVERSALLY ADOPTED We asked survey takers to indicate their usage of 26 different lead generation methods. These methods can be fit into five major categories, as shown in the following table.
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Marketing Method Categories TV Advertising Radio Direct Mail Print Advertising Public Relations Outdoor Media Tradeshow, Conferences (in person, large scale) Sponsorships and/or Associations Executive Events: Breakfasts, Seminars, Hospitality Events (in person, small scale) Virtual On-Demand Events Webinars, Webcasts Company Website Email or Electronic Marketing Search Marketing Blogs Online Display Ads Other Web 2.0 Tools: RSS Subscriptions, Mashups, Widgets, Wikis Online Video Rich Media: Podcasts, Flash Demos, Interactive PDFs Facebook Twitter LinkedIn Google+ Pinterest Inside Sales Telemarketing
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Traditional
Events
Online
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Social
Outbound
Some of these methods could fit into more than one category, but for the purposes of this study we will group methods as they are above. Figure 5 shows the percentage of companies using each method.
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Methods Used
0.0% Company Web site Email or electronic newsletters Tradeshows, conferences Inside Sales LinkedIn Facebook Direct mail Print advertising Sponsorships and/or associations Twitter Search marketing Webinars, webcasts Public relations Blogs Online video Online display ads Telemarketing Executive Events Google+ Rich Media Radio TV advertising Pinterest Outdoor media Other Web 2.0 tools Virtual, on-demand events 20.0% 40.0% 60.0% 80.0% 100.0%
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We see in Figure 5 that more than any other method, companies use websites, which is unsurprising. Email and tradeshows are also both very popular. More surprisingly, many flashy and interactive Web 2.0 tools were mostly ignored, including podcasts, virtual, on-demand events, and other Web 2.0 tools. SOCIAL MEDIA INEFFECTIVE AT GENERATING LEADS We asked survey respondents to indicate their perception of the effectiveness of each lead generating method. The graph below shows
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the percentile rank of effectiveness plotted against the percentage of those who adopted the method.1 Effectiveness at Generating Leads vs. Adoption Rate
1.0 Underused
Executive Events Telemarketing Inside Sales
Established Value
Effectiveness
TV Advertising
0.5
Blogs Radio Online Display Ads Outdoor Media Public Relations Rich Media Print Advertising LinkedIn Online Video
One of the most interesting results we found was that social media tools were not considered effective for generating leads. LinkedIn, Facebook, Google+, Twitter, and Pinterest were all rated near or below the bottom quartile for effectively generating leads. Few marketers are using Pinterest or Google+ anyway, but LinkedIn and Facebook have more than 50% adoption, and are therefore being overused.
An effectiveness index was calculated which was 2 * (% that ranked it highly effective) + (% that ranked it somewhat effective) (% that ranked it not very effective) (2 * % that ranked it ineffective). Results were then ranked according to this metric. The y-axis shows the percentile between 0 and 1 of that rank. Adoption rate (the x-axis) simply shows the percentage of respondents who said they use that tactic.
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Other lead generation methods were rated as having above average effectiveness, yet were not being used by the majority of companies, including executive events, telemarketing, virtual on-demand events, and TV advertising. Executive events and telemarketing were rated the second and third most effective methods, yet only one-third of companies are using them. These methods should be considered. These data can help marketing managers take advantage of others successful experiences in generating leads. OUTBOUND MARKETING RATED THE MOST EFFECTIVE For each of the lead generating methods, we asked survey respondents to indicate if it was highly effective, somewhat effective, not very effective, or ineffective. To avoid cluttered graphs, we report these results using the larger method groupings as defined previously. Figure 7 shows the percentages of methods that were marked highly effective. How Many Considered the Method Highly Effective for Lead Generation
50% 39%
40%
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30%
27%
20%
17% 10% 5%
10%
Figure 7 How Many Considered the Method Highly Effective for Lead Generation
We see in Figure 7 that events and outbound methods are best for generating leads, while social media and traditional methods are least effective.
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CONCLUSION
We have seen that executive events, telemarketing, webinars, and search marketing are effective yet underutilized methods for generating leads. Companies should more frequently use these methods. One the other hand, social media showed very poor lead generating effectiveness. Even though LinkedIn was rated the most effective social media tool in the survey, it barely reached above the bottom quartile in marketing method effectiveness. LinkedIn, Facebook, and Twitter are all overutilized considering their poor effectiveness. Tradeshows, email or electronic newsletters, and company websites are recognized as highly effective at generating leads and are used broadly. Inside sales, however, was the highest rated method for generating leads. Companies should use the data in this report to better focus their marketing resources into those channels which are most effective.
Works Cited
34 E 1700 S Building A Provo UT 84606 | 808.965.4316 | www.insidesales.com
Ramos, L. (2010). Rethinking the B2B Tech Marketing Mix in the Digital Age. Cambridge: Forrester.
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