Ken Krogue

Inc. Magazine has just become another major publication to note the importance of our research on responding immediately and persistently to inbound leads.

Eric Markowitz is a well known writer for Inc., Vanity Fair, and the Washington Square News and summarizes the research of Dr. James B Oldroyd, a former professor at the Sloan School of Management at the Massachusetts Institute of Technology, and our own CEO, Dave Elkington. His Inc. article on July 6th, 2011, is entitled “How to Best Harness Inbound Marketing Leads.”

Inc. Magazine links to the original downloadable MIT study here. It was originally titled “How Much Time Do You Have Before Web-Generated Leads Go Cold?” and has been quoted now by hundreds of blogs, speakers, and publications around the world.

Original MIT Study by Dr. James Oldroyd & Dave Elkington

Every now and again you discover something that changes the world. This did for us.

At last count we have had nearly 70,000 companies access and / or download this landmark study. A more complete summary of all the research started originally by Dr. James Oldroyd and InsideSales.com is readily available at www.LeadResponseManagement.org.

I travel to several different trade shows, summits, and conferences a year and it is still fun to have someone quote our study back to us.

Has it changed anything? Only for those who are taking advantage of the windfall of immediate and persistent response. We have “secret shopped” nearly 5000 companies over the last four years to find how fast they response and how many times they persist before they give up.

The bar is still very low.

The average company still takes 46 hours to attempt their first callback, and the average sales rep only makes 1.2 call back attempts before they give up and move on. Our continued research shows that only 27% of leads ever get called.

With our technology and the awareness of these principles of immediacy and persistency, we have been able to keep our contacted rate between 85 and 92% for over three years. Our customers who follow our lead also receive this immediate bonus of a 2.5x increase in results based on the most common sense principle, “just call them back, and do it quickly.”

Top 20 Articles on www.KenKrogue.com (with total views)

1. What is Inside Sales? Our Definition of Inside Sales | Ken Krogue – 16,115 Views
2. Inside Sales Best Practices - 1,623 Views
3. Inside Sales Tips by Ken Krogue - 1.026 Views
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15. Inside Sales Training – 214 Views
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17. Inside Sales Tips – Specialize – 174 Views
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19. Leadscon East Vendors Need to Drink their Own Medicine - 137 Views
20. What is Lead Response Management – 137 Views

Five years and four months ago on Monday I officially started working at InsideSales.com. Actually it was called Sales Team Automation at the time. We were still a few weeks away from buying the InsideSales.com domain from a guy who needed money just before Christmas in 2004.

We paid three thousand dollars. Now it is arguably our single greatest asset.

We had the website up by the first week of January, and the first day we generated 8 leads, now we get 50 a day. Back then you typed in “Inside Sales” to Google and you found us and 10,000 companies trying to hire inside sales reps.  There may have been a lot more but I stopped scrolling through the pages to see how many.

Now there is more, much more.

I used to be concerned when I noticed that we have several competitors mimicking our every move and driving adword costs up, then I realized that is the best thing that could be happening; Inside Sales is becoming an industry… it is an industry.

American Association of Inside Sales Professionals

We just became a Member and a major sponsor of the American Association of Inside Sales Professionals, AA-ISP. Industries have associations.

Every morning I have an email that comes to my inbox from Monster.com and CareerBuilder.com of new job listings from companies that are trying to hire Inside Sales jobs.  It keeps getting bigger.

We knew that inside sales would become Inside Sales. What had been a 2nd class department that generated leads for Outside Sales and took all the scraps off the table would one day grow up.

For sixteen years I have watched inside sales evolve.  From my years at Franklin Quest when we had to find our own leads and hand off every large corporate sale we caused that turned into something big (and we caused a LOT of sales.) It wasn’t fun being a second class citizen under the thumb of Field Sales and the Great Generation sales leadership and Baby-Boomer sales management who only know one way to sell. We were the fastest growing department at the 2nd fastest growing company in America.

Just recently our joint research with infoUSA, SKKU, and MIT has shown that Inside Sales is growing at a rate that is 15 times higher than Outside Sales, which really isn’t growing at all (7.5% annually versus .5% annual)

It hasn’t been a revolution like I sometimes hoped it would be. It just became the default way to sell for hi-tech companies who did everything over the web.  All of B2B and the big ticket business to consumer companies that live off of web-based leads like mortgage, insurance, online education, debt consolidation, and even automotive before the crash have all gone to outbound call centers with professional sales reps who sell remotely… That’s Inside Sales. In fact, our definition of Inside Sales is simply remote sales (see “What is Inside Sales? Our Definition of Inside Sales“)

I think much of it came about because of technology: The phone, the fax, the internet, email, WebEx and GoToMeeting. Then hosted CRM, dialer tools, voice messaging, presence detection or “Sales 2.0″ as so many call it took it to a new level. The crash and the down economy has actually accelerated the growth of Inside Sales. Travel costs and savvy buyers who would rather meet by web conference have increased the effect. Companies just aren’t replacing the attrition of Outside Sales, while actively staffing up their Inside Sales teams.

Mostly I just think it is the coming of age of every generation after the Baby-Boomers. They are more comfortable interacting, communicating, and selling remotely.

We have stopped hiring old-timers, they can’t seem to keep up. I’m forty-four, two years shy of being in the Baby-Boomer Generation and I’m the oldest person at InsideSales.com. LinkedIn says our median age is 25 years old. My partner, our CEO, just won Forty under 40, top 40 entrepreneurs under the age of 40 in Utah.  He can keep winning it for 3-4 years. I’m a geezer; the only one with grey hair. Even my son Josh and one of my old Boy Scouts Scott Gardner works here.

Inside Sales isn’t just a department anymore… it’s an industry. And it is the fastest growing industry in all of sales and marketing.

Top 20 Articles on www.KenKrogue.com

1. What is Inside Sales? Our Definition of Inside Sales – 15,262 Views
2. Inside Sales Best Practices - 1,445 Views
3. Inside Sales Tips by Ken Krogue - 923 Views
4. KPI – Key Performance Indicators – 822 Views
5. Inside Sales versus Outside Sales – 489 Views
6. Is Leaving a Voicemail Worthwhile? – 408 Views
7. 6 Reasons Salesforce Users Need Hosted Dialer Technology - 370 Views
8. Behind the Cloud – Ken’s Notes – 305 Views
9. Inside Sales Tips – No Vacations Last Week of the Month – 275 Views
10. Funny Inside Sales Videos – 247 Views
11. Demand Generation Tactics and Strategy – 245 Views
12. Inside Sales Tips – Skip to the Beep – 245 Views
13. Inside Sales Tips – Interest is The Counterfeit of Need – 220 Views
14. Inside Sales is Top Method of Lead Generation – 205 Views
15. Inside Sales Tips – How LinkedIn Gives you 3 Free SEO Backlinks - 189 Views
16. Inside Sales Training – 179 Views
17. Marketing B2B 4 Quick Email Tips – 154 Views
18. Inside Sales Tips – Specialize – 140 Views
19. Leadscon East Vendors Need to Drink their Own Medicine - 133 Views
20. What is Lead Response Management – 127 Views