This Lead Generation slide deck by Sales Benchmark Index gives information on setting up Lead Management – approaches, roles, compensation, pros & cons...

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Lead Management: Approach &
Roles Guidance
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2. Approach
• The goal of this document is to
understand the roles and structure of a
Lead Management team, including
demand generation and lead
development functions
• SBI recommends a phased approach
• The staffing solution for launching phase I
should be determined based on the
projected end state
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3. LDR Team Approach
• Hybrid Approaches
– Single Lead Development Rep (LDR) role performs both demand
generation outbound activities and lead development nurturing
• Unintentional Blending: Outbound efforts begin to help load balance
demand generation shortcomings and seasonality issues
• Planned Blending: Budget to stand up an LDR team often comes from
outdated call center appointment setting (in-house or outsourced) and
sales has expectations of some level of outbound. Also influenced by the
need to drive field event attendance.
– Single Inside Sales Rep (ISR) role performs demand gen, lead
development and the sales role
• Common with ISR teams that have evolved with changes to buying process
• Single role underperforms vs. specialized distinct roles
• Dedicated Approach – The Ideal Approach
– The roles of the Lead Development Rep and Demand Generation Rep
are unique
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4. LDR Role Purpose
• Lead Development Representative (LDR)
– Responsible for executing the Lead Development
process to transform prospects through to
opportunity (Sales Ready Leads - SRLs)
– The main role is to educate and introduce new
concepts --- not to sell
– In the purist sense, this role is dedicated 100% to
nurturing prospects and does not perform outboard
cold-calling
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5. LDR Comp Structure – Example
• Lead Development Reps – focus here is
quality and conversion results.
– Base salary: Varies significantly, 70-80% base
– Variable target: $20k per LDR
• $X/Sales Ready Leads; paid monthly as we do today
• $Y/SRL’s that become Opportunities; paid
quarterly, providing LDR is maintaining X% conversion
rate from Prospect to SRL
– Quarterly accelerator: Additional $X per SRL
once LDR is 100% of goal for the quarter
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6. LDR Role Comparison
In-house Outsource
• Pros • Pros
– Advantageous for building – Speed to market
rapport due to enhanced – Lower cost to start-up
knowledge of company LDRs – Lower risk – Expanded HR issues associated with employment vs.
– Most cost effective long-term outsource
– Speed to Tune --- Quickly fine • Cons
tune and adjust – Lead Development is a strategic capability that should not be
process, techniques, nurture outsourced (no different than outsourcing sales)
campaigns, etc. – LDR team should be intertwined with marketing continuous
improvement of content & nurturing
• Cons
– Very difficult to build strong institutional knowledge
– Short-term higher cost
– The training of the outsource firm requires a significant investment
– Expanded management and – Nurturing activities are often 1-inch deep and feel scripted
oversight required by
– Lose valuable insights
marketing leadership
– Sales has confidence they can send a lead back for development
and receive it when it’s ready
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7. Assumptions of LDR Role
• Time
– 60% lead nurturing
– 20% managing sales ready leads with the
sales force
– 10% admin time (reports, entering time,
expense reports)
– 10% participate in coaching, team meetings
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8. Assumptions of LDR Role
• Time est. of individual activities
– Engaged – 5 minutes per lead, one-time review –
Includes review of lead, assign nurture path,
updates
– Prospect – 30 minutes per lead, touched once a
week – Includes review, enter missing
information from research, 1:1 nurturing, SFDC
updates
– Sales Ready Lead – 2 hours total to complete
notes into the record, tie additional contacts
together, communicate with sales and follow-up
questions from sales
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9. DGR Role Purpose
• Demand Generation Representative (DGR)
– Responsible for generating inquiries into the top of
the funnel through the use of 1:1 outbound efforts
• Efforts include outbound calls, email, LinkedIn mail, social
media contacts, etc.
– The main role is to generate new inquiries into the
top of the funnel through attendance to a
webinar, agree to accept an offer (white paper), or
set appointments
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10. DGR Role Comparisons
In-house Outsource
• Pros • Pros
– Most cost effective long-term if there is a – Flexible to throttle up/down
regular cadence – Speed to market
• Cons – Lower cost to start-up
– Short-term higher cost, and often long- – Lower risk – Expanded HR issues
term as well associated with employment vs. outsource
– Difficult to load balance throughout the
year
• Cons
– The training of the outsource firm requires
– Expanded management and oversight
a significant investment
required by marketing leadership
– Outbound activities are often 1-inch deep
and feel scripted
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11. DGR Role – Recovering Sales Force
Prospecting Time
• Recover Legacy Prospecting Time from Sales
Force
– For net new logo acquisition, the expensive sales
force prospecting time should be recovered to
fund the DGR capability --- the goal should be to
drive sales prospecting for new logos down to
zero --- with the exception of account
development, opportunistic prospecting and
seeking referrals
– The recovered sales time can be quantified
through a detailed time study survey performed
pre & post
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12. DGR Role – Additional Notes
• Concept of In-house ‘early validation’ Capability
– While it’s recommended that the peak DGR effort be
outsourced, a company should first leverage a small in-
house DGR team to provide an ‘early validation’ capability.
The concept is that a outbound calling DGR can be used to
test messaging and provide real time feedback to
marketing on audience reaction.
• Outsourcing DGR Capability
– The caution in outsourcing is that whatever metric is
selected for success ($ payment) will receive a high
degree of focus by the firm --- the metric selected needs
to be thought through closely.
– SBI can help with best practices to guide outsourcing this
function
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13. Management options
• Option 1 – LDR Supervisor (Player/Coach)
– Hybrid role
• Performs function of LDR (Player)
• Provides leadership (Coach)
– Ideal for starting an LDR team with minimum
overhead
• Option 2 – LDR Manager
– Dedicated role to manage and support the LDRs
– As the team grows, supported by supervisors
• Option 3 – No manager
– Short-term approach where the LDR’s report directly
to a marketing leader
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14. Option 1 – LDR Supervisor
LDR Supervisor Pros/Cons
• Time breakout • Pros
– 30% LDR role as an individual – Low cost of entry
contributor – Proving ground for future
– 40% 1-to-1 LDR coaching manager
– 20% LDR observation (Listen – Role provides a career path for
in, review emails, ‘ride along’) LDR’s
– 10% reporting • Cons
– Administrative and reporting
burdens shift to marketing
leadership
– Thought leadership and strategy
must be driven by marketing
leadership
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15. Option 2 – LDR Manager
LDR Manager Pros/Cons
• Time breakout • Pros
– 50% 1-to-1 LDR coaching – Proactive thought leadership,
administrative and reporting
– 20% LDR observation (Listen in,
review emails, ‘ride along’) – Experienced proactive leadership
reduces risk
– 10% consume thought leadership
(webinars, conf, blogs) • Cons
– 10% administrative (HR, hiring, – Higher start-up cost
reviews, internal meetings, planning)
– Within marketing, the career
– 10% reporting
path is not obvious
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16. LDR Manager Comp Structure –
Example
• Lead Development Manager – focus here is
quality and sharing in sales results.
– Base salary: $80k base
• Proxy used are inside sales/outbound call center managers,
lowest median $73k and highest $82k
– Variable target: $40k – 40% SRLs, 40% revenue
conversion, 20% team effectiveness
• SRLs: X quantity target for SRLs; $5k/quarter; % attainment
reaching
• Revenue conversion: $X Bonus amount for X quantity of
closed deals from Sales Ready Leads
• Team effectiveness: $X Bonus paid on reaching 70% of
ramped LDR’s hitting quarterly quota
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17. Option 3 – No Supervisor/Manager
No Manager/Supervisor Pros/Cons
• Time breakout • Pros
– N/A – Low cost of start-up
– Marketing leadership are very
close to execution
– Ability to leverage SBI coaching
(in scope) to bridge gap
• Cons
– Absorbs marketing leader time
and attention
– Not duplicatable
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18. SBI Supervisor/Manager Ramp
• Hiring and accountability
– Provide job description, scorecard, and screening support
– Interviewing final candidates
– Guidelines on variable compensation
• Training
– LDR training (in scope)
– Observation & coaching
• Accountability
– Scorecard utilization
– Disciplinary action
• Leadership principles and thought leadership
• Ongoing mentor/coaching
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