The topic of Quality vs. Quantity in demand gen has been a constant debate. Whether it's inbound marketing or outbound marketing there are costs associated with a lead, there are costs associated with the time and effort needed to convert that lead to an opportunity, and there are costs tied to the quality of those leads and how that impacts conversion rates.
As David Greenberg, Sr. Director of Marketing at Jive Software shares with us, "With the focus we all have right now on building pipeline that will convert to revenue, quality leads are called for. We just don't have the time to waste managing anything but." In this example, with b2b appointment setting and pay-for-performance vendors, it is a very straightforward study as the costs per appointment are fairly standard and as SiriusDecisions and IDC have discussed, the rates of production and conversion are uniform over time.
Executive Summary: Lead gen programs that manage to Quality metrics provide sales ready leads that result in an overall higher ROI. Whether an internal team or a third party vendor, if the reps are incentivized to produce Quality appointments, the cost per pipeline opportunity can be as high as 14% more effective. In an appointment setting program, this is due primarily to cancel rates, rejection rates, and the overall quality of the meeting. Other costs to consider are the costs to manage the vendor relationship, and the cost to the sales team for attending low quality meetings.
The Numbers: In order to remain somewhat statistic-neutral, we have asked our clients to provide stats based on their experience with other appointment setting vendors and ourselves (ok, so a bit self-promoting, but stick with it). The percentages used were calculated by evaluating 5 clients' stats comprised of 1100 meetings set by Green Leads and over 2000 set by 3 other appointment setting firms. The numbers showed a significant difference in cancel/reject rates as well as pipeline conversion. The percentages used for calculation were:
Quantity Vendor Quality Vendor
Cancel/Rejection Rate 20% 12%
Conversion to Pipeline Rate 31% 36%
Typical Appointment Setting Program Stats:
Quantity Vendor Quality Vendor
Meetings Set 100 80
Canceled/Rejected 20 10
Completed/Billable 80 70
Convert to Pipeline 25 25
Cost ($700 per Meeting) $56,000 $49,000
Cost per Opportunity $2,240 $1,960
The Quality Vendor resulted in a 14% better investment per opportunity.
Your Checklist: Your vendor choice is obviously the most important factor in determining how your program is going to play out, so below are some things you can do to screen your vendors and aid in making a good decision. It's not a litmus test, so look for trends and patterns:
Also look at reputation. When asked formerly for a reference, they will probably send you to their friends. So listen when they mention client names off the cuff during conversations. Then you check them out with your network. It's a small world--find out who you or your colleagues know at those companies (use LinkedIn). Then make some of your own inquiries.
Trish Bertuzzi of The Bridge Group shared, "Mike, what a great checklist for vendor selection. There are literally dozens of vendors in this space both domestically as well as off shore. People need to understand that picking a vendor is picking a PARTNER. We wrote a blog post - "Third Party Vendors for Lead Qualification" - on this very topic. Here are some questions your readers may want to add to their list:
This is just a sample but you get where I am going...you have to ask the vendor as many questions about their business as they should ask you about yours."
Are you paying too much for your contact center software? Are you satisfied with its capabilities, or do you wish it did more? These are questions most businesses don’t take the time to think about, even though contact center software is one of the most important investments that you’ll make. With a little bit of planning, you can end up saving money and still end up with better functionality. more
Video conferencing is quickly becoming one of the most important communication channels for both small and big businesses. As more businesses turn to this technology, expectations about the experience are also rising. It’s not enough to just offer video conferencing as a communication method. You also need to meet minimum audio and visual standards, and there’s even proper etiquette to consider. more