From inception, LoopFuse has maintained a belief in its inevitability of success. I realized recently that there was one thorn in my side, from all the recent press coverage, that I had to address. Overwhelmingly, the media, prospects, and customers took to the message; the immense value we add to internal marketing and sales dynamics. However, one interview, didn’t sit well with me… where an interviewer asked the geniuses at Eloqua for their take on LoopFuse. Being who I am, and never backing down from a fight (that I can easily win), I felt compelled to answer inaccuracies put forward by our competitor.

The article in question, can be found here, and features a rather smarmy rebuttal from Thor Johnson, SVP of Marketing at Eloqua. Now let’s dissect the FUD:

“Still, Johnson said he was unconcerned with LoopFuse, noting that he already has a plethora of smaller rivals.”

The facts show otherwise… our own LoopFuse OneView product shows a “concerned” Eloqua frequently scouring our site for information:

Perhaps its difficult to be concerned, when you’re in a constant state of panic? Considering that our LoopFuse site only has about 20 pages on it, what on earth could they be spending over 11 hours on it for? Did they lose something? Customers, perhaps? Maybe they’re all looking for jobs after the ship sinks? Dunno.

“That pricing compares favorably to Eloqua. Its service starts at $3,000 per month for a team of about five users, but with no limits on e-mail or page views”

This is a joke, right? Is this pricing before or after you nickle-and-dime them to death with hourly support expenses? Is it before or after you up-sell them the following year on multiples over the previous year, because (as we all know) you hold their data hostage. The truth is that we are consistently a fraction of Eloqua’s yearly Total Cost of Ownership, and offer a far broader and easier-to-use product (and you’re free to take your data with you at any time).

Oh, and Thor, thanks for the free press. Next time, remind yourself that the LoopFuse founders used your “product” for 3 years, and will correct you when you feel like spreading the FUD around.

After reading one of Will Prices’ blog posts that touched on the impact of forecasting, it started me thinking about how most companies look at sales forecasting (btw, Will’s blog is a great read in general). Today, most companies use their CRM to forecast their future revenue stream. This is a perfectly acceptable practice and is frankly one of the primary reasons for using a CRM. Actually, when you look closely at CRMs, will see that they are designed more towards providing insight to management than actually helping the sales force close deals (but that is for another blog).

While many of these companies using a CRM are able to produce short term forecasting based off of the immediate sales pipeline, they often have little or no way to forecast beyond it. The main reason for this is that they usually don’t have the data needed and when they do, no way to analyze that data for predictability. I’m going to assume I just lost some people with this last sentence, so let me provide a simplified example.

Let’s say you are a B2B company that sells software primarily online. Most of your sales originate from people that visit your web site (which you know based off the lead source within your CRM). Your average sales cycle is 60 days (i.e. period from lead creation to opportunity closed-won… again, courtesy your trusty CRM). Your close rate is 50%, because are not doing a good job of qualifying leads (shame on you). Finally, your average deal size is $25K. So, in this example, if have 10 new leads created today, can estimate that will have $125K in revenue from them in 2 months time (obviously am over-simplifying this).

Since I know that most of my leads come from my web site, if I see that my web site traffic doubled since last month, I should also be able to safely assume that my revenue will increase as well. The problem is how much?

Now, let’s assume you have the capability to determine that 90% of your sales came from leads that visited your web site at least 4 times within 6 weeks of becoming a lead within your CRM. Given this indicator of sales, you can start predicting sales from web traffic. For example, if know that have 25 companies who have visited your web site more than 4 times within the last 6 weeks, then forecast a revenue of $562.5K in 3.5 months.

There are a number of data points correlating web traffic patterns to sales patterns that can be used to help forecast future sales. The key is to be able to derive these correlations based on historic sales information; otherwise all you are left with is a SWAG. Having a tool that automatically ties web traffic patterns to consequential sales opportunities also helps.

In the last LoopFuse release, we added sale alerts per a customer’s request. This new feature would allow sales persons to be notified via e-mail if any lead they owned visited their web site or opened an e-mail from them (immediately after the event occurred). I admit, I didn’t fully understand why it was so important for the sales person to be notified in real time, but as the saying goes, the customer is always right.

Recently I was on a call with the same customer about some of the other new features we had added. I felt compelled to ask about why it was so important that they know about lead activity as it was happening. He proceeded to tell me about a lead that he been trying to reach for a week. He had left voice mail, sent e-mails, etc. and could never get in touch with his lead. Then a few days later (thinking the lead had gone cold), he got an e-mail alert that his lead was on their web site at that very moment. He immediately called the lead, knowing that the lead was at his desk and thinking about his company. His lead picked up the phone and he was able to engage his lead and start a meaningful conversation about the value his company could provide to the lead.