KnowledgeStorm Research Validates the Importance of Timely Lead Responsiveness
Study shows that technology buyers have high receptivity to personal contact when being qualified by a vendor.
Atlanta, GA (PRWEB via PR Web
Direct) May 24, 2005 – KnowledgeStorm (www.knowledgestorm.com),
the Internet's top-ranked technology solutions content and search site, today
announced results from an intensive benchmarking study into best
practices for pursuing online leads. KnowledgeStorm partnered
with The Artemis
Group, a leading data analytics consulting firm, to conduct this research
and analyze the results.
For this research, over 1000 enterprise
technology buyers were contacted by phone in response to their online opt-in
research on KnowledgeStorm. Of these sales leads, 80% were "happy" or
"positive" about being contacted by the vendors who they had opted-in with. That
percentage rose to 88% when respondents were personally called the same day as
their online opt-in.
Buyers are generally quite pleased to hear from
vendors, but this research shows that receptiveness rapidly declines over time.
Four days after a lead was generated, only 70% of the leads were happy to hear
from a sales person. The conclusion: leads get cold quickly, so it is vital that
vendors implement prompt, effective lead follow-up processes.
Most
opt-in leads were found to have valid contact information, and more than 46% of
those leads were reached live on the phone. Most live conversations occurred
within the first two attempts to call the lead. Research confirms that the
likelihood of reaching someone after the second call drops
significantly.
"A major focus of any organization should be to discover
what happens internally during the follow-up and lead qualification process of
the sales cycle," notes Donovan Neale-May, executive director of the Chief
Marketing Officer (CMO) Council, an elite affinity group of chief marketing
executives in the high technology industry. "Lead qualification, the middle step
between lead generation by the marketing department and lead distribution to the
sales department, is too frequently a murky area for companies, in which neither
the sales nor the marketing department claims ownership."
Experts
believe that the percentage of leads that "fall through the cracks" ranges from
40% to 80%. SiriusDecisions, a marketing industry analyst group, recently
stated that "as many as 90% of leads are not followed up on by field sales." A
key culprit behind this waste of corporate assets is poor processes for handling
leads and assessing their value. KnowledgeStorm and The Artemis Group have found that personal contact is more
effective in qualifying leads than automated lead assessment or predictive lead
filtering systems. When a real person engages the buyer in a personal dialogue,
the resulting qualified leads are dramatically more reliable than leads scored
without personal contact.
"The results of this survey show us that the
best way to sharpen marketing efficiency and enhance the sales process is for
companies to invest in resources, either internally or externally, that are
dedicated to timely and personalized lead follow-up," says Jeff Ramminger,
executive vice president at KnowledgeStorm. "It’s a
full-time job requiring people with specialized skills.
"The more a lead
assessment team learns about the prospect before turning the lead over to the
sales force, the higher the payoff will be. We find that dedicated lead
assessment teams will respond sooner, will respond to more leads, will gather
better information and will do all of these at a lower per-lead cost than the
sales reps. A proactive strategy for timely lead assessment is a key ingredient
in leveraging your lead generation investments."
According to Neale-May,
the CMO
Council fielded an online survey last year, entitled "Gauging the Cost of
What's Lost," which reinforced the findings of the KnowledgeStorm research
initiative. The study suggests that while companies may be good at generating
large volumes of business leads, most prospects languish because the sales
organization is too frequently focused on only closing the most promising and
qualified short-term opportunities. Nearly three-quarters of the 800 CMO Council
survey respondents said they could increase revenue at least 10% with better
business development practices; 37% say they could increase the top line by more
than 20%.
A high-level summary of this research is available in the KnowledgeNote: The Fine Art of Lead Follow-Up.
About
The Artemis Group
The Artemis Group is a marketing research and management
consulting firm that uses the latest research methods and in-depth analytical
and technical skills. The group includes advanced degrees in many different
research disciplines: statistics, mathematics, computer science, social
psychology, and cognitive psychology. The Artemis Group's strong affiliation
with the research community is reflected in their publications and numerous
invited lectures and workshops. In addition, The Artemis Group includes a
network of business partners across data collection firms, academicians, and
boutique research companies that offer more specialized services (e.g., web
application developers, conjoint specialists, and Bayesian experts). For more
information about The Artemis Group, visit: http://www.theartemisgroup.com/index.htm.
About
KnowledgeStorm
Founded in 1998, KnowledgeStorm is the
Internet's top-ranked technology solutions content and search site. With the
largest online index of IT solutions, KnowledgeStorm offers technology buyers a
free, easy and comprehensive means to match business requirements to a "short
list" of technology providers and to stay current on technology topics and
trends. This information is available through the KnowledgeStorm Network, which
includes effective lead generation
services to fill sales pipelines with motivated and educated buyers. For
more information, visit http://www.knowledgestorm.com.
KnowledgeStorm and the
KnowledgeStorm logo are trademarks of KnowledgeStorm, Inc.
Media
Contact:
Amber Reed
KnowledgeStorm,
Inc.
678-597-5910
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Source : http://www.prweb.com/releases/2005/5/prweb243952.htm