Lead Scoring And How To Use It For Your Business
When it comes to leads, they are not all equal. You may have a list of 100 leads but that does not mean they lie in the same stage of the buying process as some may be closer to making a purchase while some could be just collecting information for future use. If you had the opportunity to score these leads and determine which ones are the best to put your efforts in, wouldn’t that make your job much easier?
This is where Lead Scoring can help you.
Each lead that you generate has a certain “score” depending on their past interactions with you and what actions they will likely take in the future. It helps you separate the good leads from the slow ones.
What is Lead Scoring?
A huge part of the lead generation process, lead scoring can help companies in allotting a value to each lead they are working on. This could be a numeric value, simple ABCD, or terms like ‘hot’, ‘warm’ and ‘cold’ to determine how far they are from making a purchase.
The lead scoring process is beneficial for sales reps as it helps them weed through, looking for high-quality leads and prioritise them over low-quality ones, increasing your closing rate. The lead scoring process is beneficial for companies because it is directly related to your company’s revenue cycle.
- Helps reps focus on the right leads and prioritise their work.
- Gives you much more insight into how likely a lead is going to close.
- Focusing on lead quality increases the number of closed deals.
- Better co-operation between marketing and sales teams.
- Makes the lead follow-up process much simpler and straight forward.
Models to use in Lead Scoring
Lead scoring can be done through a number of models, which are all very beneficial for small and large businesses. They vary based on which factors you choose to measure and score.
Lead scoring isn’t a one size fits all solution and needs to be customised as per each company’s needs. Every company scores their leads differently depending on their specific buyer personas, so we’ve listed out a couple of lead scoring models that are necessary for almost all businesses.
Customer demographics are some of the most important factors for lead scoring, but it doesn’t just stop at getting their name and email address. You need to find out more about them before you can score them appropriately. You can find out explicit information about leads by adding forms to your website and answer the one important question that matters – is the lead a good or bad fit for your company?
Forms can be used on your website by customers to get access to newsletters, white papers, downloadable e-books, and other value adding content. Prompt them to fill in certain details by asking them relevant demographic related questions such as their phone number and location, apart from just their name and email id.
For instance, when you find out the location of leads, the ones that fall in your territory automatically score higher than ones that don’t. Leads based on this can be scored easily as you can separate them based on whether they are in your region, or other demographic requirements.
- Business information
This information is especially useful for companies selling B2B products. Use forms to ask essential company related questions such as the size of the company, the number of employees they have or what industry they are in. Companies selling to individuals don’t particularly need this, but make sure if you are B2B company you are asking the relevant questions to add value to your lead scoring system.
- Engagement with your company on social media
Any engagement on social media is a good determiner of how interested a lead is in your company. Notice what posts they interact with, how much they like, share or comment on posts. By understanding their interactions and reactions to the content you are sharing, you can easily see their eagerness to buy and often also find out just what they want to hear to make the purchase!
- Behaviour on your website
Measuring any lead’s behaviour on your website is a critical factor in understanding their buyer journey. Before analysing the data of new leads, you can also check back and see what has worked for your leads in the past.
Look at details such as how the customer reached your website – was it a Facebook advertisement or an email newsletter? What were the most visited pages on your website and how long did leads stay there? What downloadable content did they give their details for? Gauging this information as well as using these factors for your lead scoring system can help you close the deal with new leads by pushing them in the right direction.
- Communication through emails
With the average person receiving numerous emails each day, if yours is opened by a lead it must mean they are interested. Tracking the open and click through rates of the emails you send will help you pick out leads who not just open your emails but also click on the link inside the email.
- Missing or inaccurate details
Leads that leave wrong or incomplete information in the forms they submit automatically go into the pool of low-quality leads as they were probably just interested in the information you were offering and not really interested in purchasing from you. Look for errant entries that suggest spam accounts or people who aren’t serious and put them away so you can focus on more important leads for the time being.
How to successfully implement a Lead Scoring system
While how you implement your lead scoring strategy depends on each company and their requirements, there are certain best industry practices you can follow when doing so.
- Specify the characteristics of your target customer base
Look at the broad characteristics shared by your customer base and try to group them together to get a better understanding of people who are interested in your brand, have previously interacted with you, or shopped from you. Figure out what segment of the market will benefit the most from your services and base your decision on factors like these.
- Specify the characteristics of your ideal customer
Define the characteristics of leads that fall in your ‘ideal customer’ buyer persona. Start with demographics such as age, location, and contact details to characterise them, which helps you in defining whether the lead is a good fit for your company or not.
After that, look at their behavioural pattern with your company. How many phone calls have they made to your customer services or interactions with live chat, activity on your website, email click through and open rates, communication on social media, and other such characteristics will further help you define them.
Don’t forget to also note the negative criteria that would lead to a lower score. These could be factors such as long periods of inactivity on your website and social media platforms, low email open rates, and so on.
- Build your own scoring system with points
Once you have defined the characteristics of your leads, it will be easier to score them accordingly based on factors that apply to your business. Assign values to each characteristic based on levels of engagement. For instance, opening an email is a low level of engagement so you can assign it 5 points, but attending a webinar by you is a higher level of engagement and can be scored at 20 points.
Create a point system that suits you and score your leads. The ones that score highest are the ones closer to making a purchase and you should prioritise them.
Lead scoring is the bread and butter of companies trying to create more sales and increase profits. It can benefit companies of every size and help understand your customers and eventually sell to them better.
Creating a lead scoring system and collaborating with various team members over emails and calls can be difficult. Use a Customer Relationship Management software to help make lead scoring easier and also make it possible for everyone on the sales and marketing teams to stay on the same page.
If you are looking for such a solution, make sure to get in touch with FIVE CRM and know the benefits of automating the process!