Modular Building Institute Grow Your Business: Generating Sales Leads Through Internet Marketing

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Modular Building InstituteGrow Your Business
Generating Sales Leads Through Internet Marketing

• 4-7-08

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About Jeff Hoogendam, Principal, 360MobileOffice

• Work experience
• 18 years experience lead generation, online
  marketing and customer acquisition, venture
  capital, ecommerce
• Roles held entrepreneur, CEO, venture capital
  partner, board member/advisor
• Developed lead generation programs for
  small-medium sized business customers
• Acquired over 200,000 consumer and business
  customers online
• Early user of online marketing techniques
• Search engine optimization and bid adjustment
• CPA and ROI tracking
• A/B server testing
• Well versed in current online marketing tools
• Education
• BS Engineering from Texas AM
• MBA from University of Texas

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About 360MobileOffice

• Lead referral service. Deliver qualified leads
  for
• Modular buildings
• Mobile offices/office trailers
• Storage containers
• Over 400 customers, including 8 of top 10 modular
  building and mobile office/office trailer vendors
• Differentiate ourselves by calling each lead
  before sending it out
• We routinely throw out 35 of leads received
• In 2007, leads represented over 80mm in revenue
• In business since 2005

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Agenda

• Introduction to Online Marketing
• What is a Lead Referral Service
• How to Maximize a Lead Referral Service

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Acquiring New Customers is Always a Challenge
Source Yahoo! Small business survey, 2008
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Traditional Marketing Methods Have Limitations

• Referrals
• Great when you can get them, but often not enough
  to grow
• Yellow pages
• Viable in the past, but fewer and fewer people
  using it
• Print
• Less effective and not easily tracked
• Direct mail
• Whens the last time you responded to one?
• Radio/broadcast
• Very expensive and usually only a fit for mass
  marketing

Internet Advertising Revenues Growing
Significantly
Amount spent on Internet advertising greater than
amount spent on yellow pages and radio combined
(Source PriceWaterhouse Coopers)
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Online Marketing is an Increasingly Important
Channel

• Online marketing channel is large
• 184 million Internet users in the US, more
  internationally
• More purchasers are going online to research and
  purchase
• 68.3 of Internet users utilize search during
  research phase, while
• 95 of purchasing agents use the web to research
  products and services (B2B Magazine Survey)
• 73 of C-Level executives depend on the Internet
  to learn about new products or services
  (Emarketer)
• Interaction is real time
• Can make adjustments to campaigns by the hour if
  necessary
• Easy to track results
• Marketers like knowing which marketing methods
  worked why

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There Are Four Primary Online Marketing Methods
for Modular Buildings

• Search
• Pay per click
• Natural search (sometimes called search engine
  optimization)
• General media (internet banner ads)
• Email marketing
• Other
• Affiliates

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Most Search Web Pages Broken Up Into Two Sections
Pay Per Click and Natural

• Pay per click section. Driven by
• Bid price
• Quality of content

• Natural search (Unpaid) section. Driven by
• Amount of related content on your site
• Number of inbound links to your site
• Other factors (length of time site active, etc.)

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General Media Example Shows 5 Different Types of
Ads on One Page
Small box ad
Thumbnail ads
Large box ad
Skyscraper ad
Classic banner ad
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Email Marketing Example

• Email Marketing Steps
• Define target segment
• Acquire list
• Develop email
• Deliver
• - If small, send internally
• - If large, use ESP (email
• service provider)
• Follow up

Strong call to action
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What is Affiliate Marketing?

• Uses third party sites to drive traffic to your
  site
• Typically pay for performance (leads or
  transactions)
• Fixed commission per event
• Third party managers exist to
• Help manage links payments
• Example
• 360MobileOffice has an affiliate program
• Pays 25 of revenue from out-of-territory or no
  product match leads
• Way to recoup cost on portion of marketing spend

Company A Website Link/Ad to Company B
Company B Website
Commission
Traffic
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Each Online Marketing Vehicle Has Its Pros and
Cons
Customers needs are always changing. The key to
success is always staying ahead of the
competition.
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Successful Firms Using Online Marketing Do the
Following

• Build a website with a strong call to action
• Constantly updating content
• Periodic usability testing and refining
• Have a team with specialized training dedicated
  to online marketing
• Typically need a larger marketing budget
• Need to keep up with latest tools and technology,
  which may include
• Bid management
• Web analytics
• Content management

It takes significant investment in resources and
time to be successful with online marketing.
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Agenda

• Introduction to Online Marketing
• What is a Lead Referral Service
• How to Maximize a Lead Referral Service

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Lead Referral Services Offer Another Way to
Market Online

• Third party providers deliver leads based on
  unique product and geographic profile
• Typically pay by the lead
• Usually sell leads to multiple parties
• Firms have deep online marketing expertise
• Highly specialized teams of people
• Managing multiple campaigns and multiple sources
• Staying current in constantly changing online
  marketing
• Third party takes all marketing risk
• Traditional marketing approach put money up
  front for an ad with uncertain results
• Lead service sure you will be getting a lead
• Allows vendors to focus on closing sales
• Returns can be significant
• 360MobileOffice vendors typically see revenue of
  12-20 for every 1 spent on leads (Note not all
  lead source may yield similar results))

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Qualified Lead Arrives within 15-30 Minutes Later
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Lead Referral Service Has Some Advantages and
Disadvantages Over Other Online Marketing Methods

• Advantages
• You only pay for lead you receive
• No up front marketing risk
• Fast, measurable return on investment
• Ability to micro target
• Church buildings in North Carolina
• Offices in California
• Can supplement or replace other online marketing
  efforts
• Little to no marketing staff required

• Disadvantages
• Leads are rarely exclusive
• You will usually be competing with others for
  business
• High variance in the quality of lead referral
  services
• Some screen lead by calling
• Some send out all leads blind and let your sales
  staff do all the screening
• Leads dont guarantee sales

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Any Size Business Can Use a Lead Referral Service

• Small companies use service as primary lead
  source
• No website needed
• No online marketing expertise needed
• Dont have to constantly keep up with latest
  online marketing trends
• No up front marketing dollars at risk
• Medium or larger sized companies use service as
  primary or supplementary source of leads
• Used as primary lead source in many cases
• Used as incremental lead source to fill in gaps
  where more leads are needed
• In specific product niches
• In specific geographies
• Examples
• Small modular firm
• Uses service as exclusive marketing lead source
  in 1 state
• Large modular building firm
• Uses 360MobileOffice for modular leads in 15
  regions, and
• Receives mobile office/office trailer leads in 4
  states

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Agenda

• Introduction to Online Marketing
• What is a Lead Referral Service
• How to Maximize a Lead Referral Service

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What to Look for in a Lead Referral Service

• Find a service that
• Allows you to select your own product types
• Set up profile to cherry pick leads that are a
  strong match for your business
• Why pay for leads for products you dont sell?
• Allows you to select leads in your specific
  geographies
• Down to a county level
• Why pay for leads that arent in your territory?
• Can send leads to multiple sales reps in your
  company
• Get leads directly to your field sales reps based
  on their expertise and territory
• Qualifies leads using people
• Dont want to waste money on unqualified leads
• Dont want to waste valuable salespeoples time
• Will never sell your lead more than four times
• More than 4 times results in significant drop in
  close rate

The 360Partners founders, from 2003-2004, ran
blind tests on a competitive leads service and
found that leads sold 6 times close approximately
1/3 as often as leads sold only 4 times.
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How to Successfully Use a Lead Referral Service

• Get your profile right
• What are you best at?
• Dont take leads that dont match your profile
• Wastes money
• Wastes salespersons time
• Distribute leads directly to a qualified field
  sales representative
• Results in 4 times higher close rate
• 2.5 close rate when sent to a marketing manager
  for distribution
• 10 or higher close rate when sent directly to
  field reps
• Contact leads right away
• First person to frame the buying decision for the
  customer
• Call within 15 minutes

Following these steps typically results in a 10
or higher close rate
Source 360MobileOffice proprietary study may
not be attainable with leads from other sources.
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Questions?
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Working with 360MobileOffice

• Several market opportunities still available
• Modular building, mobile office, and storage
  container leads available in select areas
• Free assessment of how many qualified leads you
  would receive based on your unique profile
• Two weeks of free leads offered to MBI members
• See Michael Covey for more details
• Michael_at_360Partners.com
• 512-342-8800 x335