Lead Generation Programme

Managing a Lead-generation Program

• Many products and services cannot be sold
cost effectively through a one-step sales effort.
• A two-step, or multi step, program is usually
necessary when
- a significant customer investment is
required;
- when personal interaction is necessary to
complete a transaction.
Managing A Lead-generation Program

• The two major uses of a lead-generation

program are:
- Identifying prospect \customer interest or
potential prior to committing to the cost of a
face-to-face sales visit. (lead qualification)
- Generating interest and stimulating traffic into
a local retail outlet.(lead or traffic) generation
• If our needs can be met by either of these
activities we need a lead generation program
Types Of Lead Generation Program

• There are two types of lead generation

programs:

- Business-to-Business
- Business-to-Customer
Business-to-business

• The primary objective is to get qualified leads

from prospects who need more information.
• The thrust of the promotion can be encouraging
prospects to request literature with an
inducement to order by mail.
• Telephone follow-ups of those who request
literature is often an integral part of the lead
generation program.
Business-to-Business

• For more complex propositions, those requiring

interactions with a live salesperson, the
objective is to get a request for a salesperson to
call.
Business-to-Customer

• Price point and available channels of

distribution almost always dictate the feasibility
of lead-generation programs for consumer
products.
• Lead-generation programs do make eminent
sense for electronic equipment like refrigerators,
air-conditioning, freezers, etc each considered a
purchase of magnitude for the consumer.
• Manufacturers sell major equipment directly to
the consumer.
Business-to-Customer

• The objective is to get qualified leads and to

complete the transaction by mail and/or
telephone follow-up.
Quality & Quantity of Leads

• All marketers have an option to produce what

are commonly referred to as “loose” or “tight”
leads.
• Loose lead offers can be expected to produce a
higher front-end response.
• Tight lead offers can be expected to produce a
lower front-end response, but a higher closure
percentage.
Looseners
• LOOSENERS:
1. Tell less about the product.
2. Add convenience for replies.
3. Give away something.
4. Ask for only a little information.
5. Highlight the offer. 6. Make the ad
“scream" 7. Don’t ask for a phone number
8. Increase the offer’s value 9. Offer a
contest or sweeps
10. Run in more general media
Tighteners

• TIGHTENERS:
1. Mention a price
2. Mention a phone or sales call
3. Tell a lot about the product.
4. Ask for a lot of information
5. Specify rules for the offer 6.
Ask for postage on the reply 7. Bury the
offer in the copy
8. Tie the offer to a sales call 9.
Change the offer’s value
10. Ask for money
Setting the Objectives

• The special need for objectives in a lead-

generation program relates to the quality of
leads.
• The key question is - what ratio of sales to
inquiries do we need to make this program
profitable? This must be spelled out when
setting objectives.
Planning the Implementation
Stage of the Program
1. Sales Force Involvement

• Any sales force can make or break a lead-

generation program.
• Front-end involvement as well as
foreknowledge of the full promotional
effort, including media selection, samples
of ads and/or mailing packages, and
detailed explanations of any offers or
incentives is essential.
2. Capacity and Lead-flow

• Lead flow is not a faucet that can be turned on

or off at will.
• Lead flow must be planned so that leads come
in, at a rate equal to the sales force’s capacity to
handle them.
• The key point is that-either too few leads or too
many leads will work to the detriment of the
program.
3. Creative Strategy

• Creative strategy for a lead-generation

program should reflect the creative strategies
applied for other advertising efforts, including
general advertising,
• The look and feel of the communication
should be consistent with the overall image of
the company.
4. Media Strategy

• The key question is, given the target market and

the product offering, what medium will most
effectively accomplish the task?
• Whether it be mail, print, broadcast, cable-
whatever the medium-key considerations such
as penetration, key prospects reached, number
of contacts, and so forth must be considered.
5. Fulfilment Strategy

• One must know exactly what will happen to a

lead, once it is received.
• If there is to be a brochure, for example, ample
quantities must be in stock before the initial
communication occurs.
• Systems must be in place for scheduling sales
calls, referring leads to the field, call back
programs, and so on.
Other Terminologies
Capacity Planning

• Capacity planning is a key to lead

generation program, which needs to be
managed on an ongoing basis.
• Postal deliveries might be slower or faster
than anticipated, a computerized customer
file might malfunction, a new product could
take twice as much time to sell to a lead as
anticipated.
Capacity Planning

• The possibilities are endless and the solution

lies in the hand of capacity planning technique.
• At a response rate of 5% to keep a constant
flow of leads moving to the field at an average
of 3500 a month would require 70,000 mailing
pieces per month. A year’s campaign (12
months multiplied by 70,000) requires 840,000
mailing pieces.
Lead Qualification

• In any lead-generation program lead quality

varies a great deal.
• In fact, generally speaking, about 20 percent
of total lead result in about 80 percent of total
sales revenue. It makes sense, therefore, to
optimise time and effort with a good lead-
qualification system.
Lead Qualification

• There are two good reasons for optimising time

and effort:
1. Time is money: Given the cost of an industrial
sales call it costs much to have a salesperson
call on unqualified prospects.
2. Good leads get “cold”: While salespeople are
pursuing low-quality leads, high-quality leads
get “cold”. Each day that a lead is not acted
upon lessens the likelihood of sales conversion.
Contingency Planning

• Typical lead-flow planning model follows

normal distribution curve.
• The accompanying illustration (Fig. 0.1- next
slide), indicates that, over time the response
to mailings will almost always follow this
response curve, with 50 percent of total
response in the first four weeks and the
balance over the next six weeks.
Contingency Planning

30
25
20
Fig. 0.1
15
10
0
1 2 3 4 5 6 7 8 9 10 11
Week
‘In Queue’ or ‘Lead Bank System’

• Many companies create a ‘lead bank” system,

which is a means of always being above
capacity.
• If and when there is an under delivery of leads,
the lead bank is drawn down until additional
leads can be driven into the centre.
• Or when an over delivery occurs, the bank can
be increased temporarily until the up-front
solicitation can be decreased.
Shelf Contingency

• If the lead-generation program is direct mail,

for example, two weeks of additional mail
packages in reserve will assure a timely
response to an under delivery problem.
• After normal capacity resumes, the lead bank
can be replenished.
Tracking and Results Reporting
• Tracking and results reporting are as important
as management of leads in the sales centre.
• These activities will result in quantification of
the actual effort, relating the success of the
program to its objectives, and making
management aware of the degree of efficiency,
market penetration, and revenue streams.
Tracking

1. Number of leads by effort:

• Whether for a mailing, print ad, or broadcast
spot, the number of leads responding to each
effort should be captured.
• This is usually handled by a specific code for
each. Thus making it possible to credit the
proper promotion effort.
Tracking

2. Quality of lead /conversion information:

• The best-pulling mailing or ad is not always
the most successful, for it is conversion to
sales that is the true measure of success.
• Customer file should include all information
captured from various offers, as well as
follow-up information such as calls made,
time between provision of leads and sales
calls, and cost per sale.
An Illustration

Number Percent No. of Percent No. of

Mailed Response Responses Conversion Sales

Pack A 20,000 2.0 400 6 24

Pack B 20,000 1.0 200 15 30

Results Reporting

• It is important that results be measured and

reported.
• Documentation of results is essential for
three basic reasons:
To measure against original objectives of
the lead generation program
To prove value to the sales force, and
To prove value to the management.
Results Reporting

A Immediate
Purchase
Behavioral Need
Level

B Qualified
Lead
Conviction
Attitude Preference
Level Evaluation

Interest

Information Advertising
Level Knowledge Opportunity

Awareness

Figure 2.2
Qualifying Soft Offers

• The mailing package that is used to fulfill an

inquiry has more value than just supplying
product information.
• It is a vehicle that can be used to gather
information about the inquirer's level of
interest in buying.
The A,B,C of Bounce-cards

• The A Cards
When a sales representative is requested for
either the inquiry card or the bounce-back
card, the card is classified as "A" in the
computer and sent for follow-up as
"immediate need" .

"A" will be used for forecasting sales

potential and generating management
reports.
The A,B,C of Bounce-cards

• The B Cards

Bounce-back cards that are analyzed as

"continuing interest" are classified as "B".

They are sent to the sales representative as

qualified sales leads that need
development through personal contact.
The A,B,C of Bounce-cards
• The C Cards
 All other inquiries reside in the computer and
are classified as "C".
 They are the emerging market and a very
responsive mailing list. It is the "C" group
that represents the advertising opportunity:-

 Advertising follow-up with direct mail programs

drives the group up of the purchasing decision
hierarchy at less cost than personal selling.
 When they arrive at the qualification level, the
sales representative takes over.
In Short
You will only get the desired results when you
approach it with the right attitude.
• be pro active and build your network, not reactive and
hoping people will come to you
• stretch yourself outside your comfort zones
• be patient and persist
• choose the right type of clients for you
• you make the first move
• make the right impression from the start
• use an interesting introduction
• spend more time listening than talking
• follow up your contacts after the event
• see 'giving' as the key to networking