5 Steps to Achieve Lead Generation ROI

Michael Brenner on May 12, 2010 in Demand Generation

While social media is the hottest topic in B2B marketing these days, we should not lose sight of why we are all here: to help our companies sell stuff.  In this article I will argue for the importance of and the 5 steps to create marketing ROI through demand generation. Social media is hot mainly because it is new news to lots of folks in marketing and across our organizations that “the customer is indeed in charge”. Customers decide when and how to engage with us in the buying journey. Online lead generation is one of the best ways to identify customers early in the journey and produce a solid and predictable return on investment.

Why is this important?

Marketing needs to be the engine to identify qualified leads for sales. This is a foundational activity. Now I could argue that you need a great product to solve a real customer need:  you need some awareness in the marketplace to prove you are “in the game”,  you need a website that acts as a viable “store front” for your business, and of course you need great service and support after the sale to keep customers satisfied. Assuming all of those activities are neatly in place, one of the most powerful ways to justify a marketing budget is through paid online lead generation and the ROI that follows. I will say it here: every B2B marketer should know how to do this. The reason for this is that the basic fundamentals of online lead generation prepare you for everything that follows. And one day soon, you will be asked to justify your budget.

What is the problem?

A recent article from eMarketer.com titled: Is the Click Still King? displayed various studies that show that clicks are the preferred method to measure marketing performance. Why? Because it is an easy metric to obtain. Incremental Sales and ROI are the 4th and 5th most important metric according to Chief Marketer’s April 1, 2010 study.

The article also refers to:

The CMO Council’s “State of Marketing” survey did not ask about click-throughs specifically, but found marketers worldwide were most likely to measure their campaigns through page views, registrations, and the volume and origin of site traffic.

Asked about their online marketing performance measurement ability, the plurality of respondents to that survey (44%) were either working on increasing their capabilities or “struggling” to put a value on their interactive spending.

Many of us are guilty of falling into the trap of activity-based reporting: I ran 10 campaigns last year, I sponsored 3 industry events, etc. We are so focused on tactical execution that we lose focus on the results. And so we have to fall back on metrics that are easy to come by: response rates, clicks, impressions, registrations, attendees. And while these can be important metrics when our upfront goal is awareness or engagement or attendance, these are not the metrics that will help to justify the budget.

The Solution:

Debra Murphy, President of Masterful Marketing recently posted an excellent overview and slide deck titled Lead Generation: What Works Today. Debra summarizes at a high-level the need for integrated online programs and also demonstrates how social media can support these tactics.  In order to provide a practical guide to generating real results, here are my 5 Steps to achieve Lead Generation ROI:

Step 1: Set your objective. The metrics you chose should be quantifiable and aligned to your sales goals.  Think sales, leads, pipeline. Focus on the goal – not the way to get there. Sit down with your Sales VP and ask them what they want. If they want only “Hot Leads” ask how they define that. Create a lead scoring system. Aim to deliver to the right quality and then forecast the quantity.  Your objective should be one Sales has identified and bought into.

Step 2: Create your marketing plan. Use past performance to determine what worked. Reverse-engineer previous tactics that have delivered exactly what your sales peers have asked for. This is a quantifiable science. There are plenty of statistical modeling tools that can help you determine which mix of tactics, topics, and partners will deliver a predictable result.

Step 3: Negotiate with top partners. Do not fall for the latest sales rep deal on ad space. Call those vendors that have delivered targeted prospects that have converted in the past and negotiate on a pay-for-performance basis. Your partners need to share the risk of your investment and they will reap the rewards in renewed sales.

Step 4: Identify or create valuable content and offers. This is the trickiest part. If you have content- test which pieces work best. If you need to create content – research the top trending keywords, article titles, and customer pain points. Ask your partners. Ask your current customers. Whatever you do, do not assume that product brochures, customer case studies, or articles written by your boss will resonate.

Step 5: Optimize. This is where the conversation with sales and the relationship with your vendor partners pay off. If your Sales VP is not getting what she wanted, adjust the plan, and work with your vendors to deliver what is really needed.

If you follow these 5 steps, you will produce leads and revenue for your company, build a better relationship with sales, and improve your engagement with your customers. Now go out and become a demand generation rock star and come back to tell us about your success.

Michael Brenner
Michael Brenner
Michael Brenner is a globally-recognized keynote speaker, author of The Content Formula and the CEO of Marketing Insider Group. He has worked in leadership positions in sales and marketing for global brands like SAP and Nielsen, as well as for thriving startups. Today, Michael shares his passion on leadership and marketing strategies that deliver customer value and business impact. He is recognized by the Huffington Post as a Top Business Keynote Speaker and a top CMO influencer by Forbes. Please follow him on LinkedIn, Twitter, or Facebook and Subscribe here for regular updates.
Showing 14 comments
  • Debra Murphy

    Michael,

    First, thank you for the reference in your awesome blog post! To be included as the base information for your practical guide to generating real results is an honor.

    The 5 steps to Lead Generation ROI is a perfect companion for those responsible for generating leads that produce results. I especially like your advice about using past performance to determine what worked and what should be part of the plan. Too many business owners have no patience and want to keep trying the next big thing, abandoning other activities before they have a chance to work.

    Cheers!
    Debra

    • Michael Brenner

      Thanks Debra. You make a great point. Sometimes we forget the science of marketing to focus on the art. Good programs need both.

  • Jan Carroza

    KD Paine talked about P&G requiring payment based on ENGAGEMENT in her speech at New Comm Forum, “Defining Social Media ROI.”

    @social_dynamics
    https://www.socialmediadynamics.com/blog
    https://bit.ly/_FanPage

    • Michael Brenner

      Totally agree on engagement as the right objective. Challenge lies in how to measure it.

  • Kelly

    Michael,

    I had fun reading your post. Keep it up.

    • Michael Brenner

      Thanks Kelly. I am so happy you enjoyed the post.

  • Barb

    Social media is definitely the hot topic right now, like you said. It is nice and refreshing to find an informative post on a different B2B marketing topic, and I thank you for that. “There are plenty of statistical modeling tools that can help you determine which mix of tactics, topics, and partners will deliver a predictable result.” One specific tool that would be useful is a ROI calculator https://bit.ly/aLJhhX .

    But thanks again Michael for your constant great posts!

    Have a great day,
    Barb

    • Michael Brenner

      Barb, thanks for your comment and for the guidance on tools. There are so many great ones out there that there is just no excuse for skpping this step. Best, Michael

  • Gale Sheridan

    Super great read! Truely.

    • Michael Brenner

      Gale, thanks for your comment. Really means a lot 😉

  • Carlos Hidalgo

    Michael:

    I enjoy your posts and like the list for lead generation success, but would submit that shifting from lead generation to lead management is what is key for success. We view lead generation as top of the funnel activity while lead management manages every phase of the relationship i.e. engagement. To do this you need to develop a process based approach to your marketing and sales.

    Curious as to your thoughts on this?

    • Michael Brenner

      Hi Carlos, I don’t disagree at all. The focus of the post was on Lead Generation ROI and the tremendous waste that often occurs in spending campaign dollars inefficiently in this area. Lead management and nurturing are certainly important to ensure there is proper conversion down the funnel. One important factor to consider here: what does sales call a lead and what do they want? Answering this question is key and then defining the best process to get them those leads can help in the lead management process.

  • Carlos Hidalgo

    Michael:

    Thanks for the post. I would submit to really get the most from any lead generation you need to develop a lead management process. This is the pipeline that you speak of in the post. I see a lot of companies that look to conduct lead generation i.e. top of the funnel activities but do not develop a holistic lead management process and see these leads decay or leak out of the funnel leading to potentially lost revenue.

    Developing a lead management process that takes into account:
    -data
    -lead planning (as mentioned above)
    -lead routing
    -lead qualification
    -lead nurturing
    -metrics

    Will allow organizations to see a vast improvement on ROI

    • Michael Brenner

      Carlos, your point is so important. Many companies focus on Marketing automation or CRM systems before they have defined this process. The process is so muchy more important than the campaigns or the tools. Thanks for your comment.