all
retail sales in 2004 were generated from the
Web a number that is forecasted to grow.
Being able to predict and relevantly interact
with these consumers is paramount.
Most retail organizations employ a form
of lead management system to identify,
manage and track these leads, says Jack
Bowen, chief marketing officer at global
software and lead management consulting
firm Urban Science.
A world-class process begins with lead col-
lection and distribution; continues with lead
scoring, drives differentiated lead treatment;
uses robust data analytics and metrics; and
concludes by tracking retailers adoption of
performance standards. Smart Business
spoke with Bowen about the five parts of
world-class lead management.
You started the lead process with lead col-
lection and distribution. What exactly does
that involve?
At some point, shoppers or buyers will
identify themselves in a retail environment
whether as a result of pro-active Web mar-
keting or simply at point of purchase. That
introduction is accompanied by personal
data, and/or session information. A savvy
marketer will compile all of the various leads
and corresponding information into a single
tool to be used by the retailer.
Typically, the marketing organization is pro-
vided with the information directly through
its Web site or other collection points (call
centers, events). However, secondary indus-
tries have grown to develop, aggregate and
sell what are called third-party leads to retail-
ers and marketers edmunds.com is a well-
known example of an aggregator in the auto
industry. Just aggregating and distributing
leads is a sign of a strong operation. By taking
it one step further, though, a marketer can
add even more value.
How do you know if the lead is going to buy?
Separating shoppers from buyers will give
marketers a considerable edge. We do this
through lead scoring, a process in which the
leads are scored and ranked on their propen-
sity to result in a sale. To get the score, the
lead data is compared to demographic data
and historical owner information. For exam-
ple, clients can benefit from certain data-
mining tools that calibrate close-rate models
for use in real-time online lead scoring.
Marketers and retailers need to under-
stand that lead scoring is not an end, it is a
means. The fact that the marketer knows
the score of a lead doesnt increase its like-
lihood of closing, but the score arms them
with the knowledge to determine how that
lead should be treated.
So if lead scoring doesnt increase the
chance of a lead closing, what does?
Consumers are more likely to buy if
theyre treated according to their expecta-
tions. To determine these treatments,
scored leads are separated into segments
based on their rank. Then we assign a treat-
ment to each segment. If the lead ranks as
a 90 which has a high chance of buying
then we would recommend an aggres-
sive approach. Essentially, the treatment
depends on the score.
Through this treatment determination
process, a marketer prioritizes his re-
sources against the leads with the greatest
likelihood to close. This doesnt mean
leads with lower scores should be ignored;
it means that the marketer must find an
effective way to treat that lead in order to
raise its likelihood of closing.
Once the leads are assigned their treat-
ments, everything is sent on to the retail-
ers, who have the task of following up.
How do you know what impact the system is
having?
The data accrued throughout the lead
management process is a gold mine. It can
be used to further refine and target a com-
panys marketing strategy, but some analy-
sis must be conducted before a marketer
can reap the rewards. The most important
is a status and close rate analysis, in which
a lead is followed throughout the entire
process, ending with whether a purchase
was made.
This data can be analyzed by retailer, by
geography, by a certain chronological peri-
od, by certain demographics; any combina-
tion possible. Then, certain patterns begin
to emerge and the marketer will see which
treatments actually work. Reporting that
information back to the marketing organi-
zation is what keeps everyone on the same
page.
How can you maximize retailer engagement?
Once a marketer begins to understand
what is causing leads to close and which of
his treatments are working, then he should
establish a series of behavioral standards
for his retailers. State-of-the-art standards
management systems can be programmed
to monitor performance data and alert field
staff if local performance is out of toler-
ance.
JACK BOWEN
is chief marketing officer for Urban Science in
Detroit. Reach him at (800) 321-6900.
Turning leads to sales
The five parts of world-class lead management Interviewed by Rachel L. Miller
Insights
Technology
is brought to you by Urban Science
Insights
Technology
Jack Bowen
Chief marketing officer
Urban Science
� 2006 Smart Business Network Inc. Reprinted from the May 2006 issue of Smart Business Detroit.