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New Research: Lead ResponseManagement – How Much Time DoYou Have Before Web-GeneratedLeads Go Cold?

Dave Elkington, CEOInsideSales.comTuesday, October 16, 2007


2© 2007 MarketingSherpa Inc. This presentation is not for distribution. Thank you.

The Kellogg Survey

Kellogg School of Management LeadResponse Survey

Focused on two questions: When (best time to contact web-generated leads) How (did they get the qualification information and how do

they approach the lead)

How do companies respond to web-generatedleads?

© Copyright InsideSales.com. Proprietary & Confidential



The relationship between speed ofresponse, lead qualification, and close rates

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speed

percentqualified Fitted values

leadtocloserate Fitted values

The speed of response has asignificant negative impact onthe qualification of leads. Foreach level of delayedresponse the percent of leadsqualified drops 4.3% and closerates by about 2%.

Resources allocated to speedappear to be a wise investmentWhen




The relationship between speed of response,lead qualification, and close rates

The number of unproductiveattempts have a significantnegative impact on thequalification of leads. Forevery increase of oneattempt before contact, leadqualification rate drops 5%and close rates by about1.5%.

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attempts

percentqualified Fitted values

leadtocloserate Fitted values

Resources allocated to reducingthe number of attempts is also a

wise investmentWhen




Cumulative Effect

When




CloseQualification

The source of leads, qualification, and closerates

How

Capturing Data

Distributing Data

• Email link +• Toll free phone –• Web form –• Database –

• Skill based lead distribution +• Geography based lead distribution –• Contacting via fax +• Contact via chat +

• Email link +• Web form –• Database –

• Skill based lead distribution +• Email routing of leads +• Phone routing of leads –




CloseQualification

The source of leads, qualification, and closerates

Demand Generation

Offer Types

• Pay per click –• Search engine optimization +• Outbound telemarketing –

• Price quote ~+• Library –• Videocast +

• Pay per click –• Social network marketing +

• Pricequote ~+• eBook +• Podcast +• Click-to-call +

How




Remaining Problems

Individuals can notreadily observe patternsin data to determinewhen the most effectivetime and day to contactleads is:

– Day of the week– Time of the day– Response Time

InsideSales.com and partnershave teamed together to tacklethese specific questions. Theirtechnology has been key tothese studies.

– Their data leads to scientificprocesses around theoptimization of timing and tactics.

– Distinct advantage of testing,analysis, and retesting (scientificmethod in real-time).

– Not limited by the associations inpeople’s heads.




The InsideSales.com/MIT Study

InsideSales.com Lead Response Study

Focused on one question: When should companies call web generated leads?

Data points analyzed Lead created time First dial attempt time First contact time Lead qualification time

Patterns analyzed Day of the week Time of the day Response Time




Day of Week –Which day of the week is best to call alead?

Day of Week

Initial Dials to Leads that become Qualified

2.312.40

2.80

2.50

2.24

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1.00

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Monday Tuesday Wensday Thursday Friday

Day of Week

Contacted Leads that become Qualified

1.96

2.08

2.04

2.18

1.83

1.6

1.7

1.8

1.9

2

2.1

2.2

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Day of Week

Initial Dials to Leads that become Contacted

1.64 1.59

2.262.38

1.98

0

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1

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2

2.5


Wednesday and Thursdayare the best days to call toContact a lead.

Wednesday and Thursdayare the best days to call toQualify a lead.

Thursday is the best dayto contact a lead toQualify that lead.


Wednesday is 24.9%better than Friday

Thursday is 49.7% betterthan Tuesday

Thursday is 19.1% betterthan Friday


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Time of Day


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Time of Day


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7-8 8-9 9-10 10-11 11-12 12-1 1-2 2-3 3-4 4-5 5-6 6-7 7-8

© 2007 MarketingSherpa Inc. This presentation is not for distribution. Thank you.

Time of Day–What time of the day is best to call a lead?

4-5pm is the best time ofday to contact a lead toQualify that lead.

8-9am and 4-5pm are thebest times of day to callto Qualify a lead.

4-6pm is the best time ofday to call to Contact alead.

Time of Day


0.00E+00

5.00E+07

1.00E+08

1.50E+08

2.00E+08

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3.00E+08

3.50E+08

7-8 8-9 9-10 10-11 11-12 12-1 1-2 2-3 3-4 4-5 5-6 6-7 7-8


8-9am is 164% betterthan 1-2pm

4-5pm is 114% better than11-12am

4-5pm is 109% better than11-12


12

Response Time from Creation by Hours


2E+19

4E+171E+16 5E+14 2E+13 9E+11 2E+10 2E+08 2E+06 2E+05

0E+00

2E+18

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6E+18

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1 Hour 2

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Response Time from Creation


10384

1680

664365 275 215 168 78 25 17

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Response Time from Creation by Hours


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299 119 62 32 13 3 1 0

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1 Hour 2 Hours 3 Hours 4 Hours 5 Hours 6 Hours 7 Hours 8 Hours 9 Hours 10

Hours

The odds decrease byover 6x from dial to qualify1 hour.

After 20 hours everyadditional dial actually hurtsyour ability to make contactand qualify.

The odds decrease by over10x from dial to contact in 1hour.

© 2007 MarketingSherpa Inc. This presentation is not for distribution. Thank you.© Copyright InsideSales.com. Proprietary & Confidential

Time to Dial:Calling early is much more likely to result in qualification!

Response Time by Hours –How long should you wait to contact alead?

Note: After 20 hours you become increasingly less likely to qualify a lead.Firms have 20 hours to make contact and qualify.Data indicates to stop calling after 20 hours unless you have nothing else to do.


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Response Time from Creation by 5min


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© 2007 MarketingSherpa Inc. This presentation is not for distribution. Thank you.

Response Time by 5 Min Increments –How long should you wait to contact alead?



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0.00E+00

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The odds of qualifying alead drops 21x in 30minutes

The odds drop even moredramatically whenmeasuring contact toqualify.

The odds of contacting alead drops 100x in 30minutes.

From just 5 to 10 minutesit decreases over 5x.

From just 5 to 10 minutesit decreases over 4x.




Summary of the DataThe Good News: Grouping multiple companies' data demonstrates the following

trends: The best day of the week to call:

For calls to contact is Wednesday and Thursday. For calls to qualify is Wednesday and Thursday. For contacts to qualify is Thursday.

The best time of the day to call: For calls to contact is 8-9am and 4-5pm. For calls to qualify is 8-9am and 4-5pm. For contacts to qualify is 4-5pm.

How long should you wait to contact a lead? After 20 hours you hurt yourself by continuing to dial. Odds to make contact decrease by 100x in 30 minutes Odds to qualify decrease by 21x in 30 minutes

The Bad News: Companies can not manage using general trends. There issignificant variation within each company analyzed, requiring real-timeanalysis and optimization on a company-by-company basis. Historical analysis of general trends inside a company miss opportunities

to invoke real-time optimization plans.




What does this all mean? Kellogg Survey:

Delayed response and unproductive attempts drop leadqualification and close rates.

Both issues together cause a negative synergistic effect. You can’t use intuition to predict patterns.

MIT Study: Use Science Optimization not General Trends! There are significant effects by time of day & day of week, but

they are overshadowed by response time. Clear patterns arise from combining many companies’ data. However, individual company data varies by offers, industry,

website, product, and more. You must study your own companies data, because

optimal response times vary significantly! Why is response time so important?

We don’t know…Yet.




Who is InsideSales.com?InsideSales.com is the expert in Lead Management and the pioneer of LeadResponse Management solutions . Our patent-pending technology of presencecallback is opening up new frontiers in web-marketing, lead generation and sales.

We optimize lead qualification rates to lower company’s cost per prospect.Companies typically see a 2-4x increase in lead qualification rates using theInsideSales.com technology.




Credits/Thank youThe Science of Lead Response

David Elkington CEO InsideSales.com Contact Information:

34 East 1700 South, Provo, UT 84606(801) [email protected]


For a more complete copy of this research paper go to:

http://www.insidesales.com/lead_response_management.php

To participate in the next InsideSales.com study in association with ProfessorOldroyd of MIT, that will analyze response times by offer type and responsemedia register at:

http://www.insidesales.com/response_media_study.php

James Oldroyd PhD Northwestern University, MIT and SKK GSB Contact Information:

238 Main Street, E48-501, Cambridge ,Massachusetts 02142(617) [email protected]

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