Customer journey today follows a non-linear path with countless sources and multiple devices. The only way to exit this endless maze is to adopt a lead scoring model. Lead scoring allows you to rank leads and arrive at a perceived value. As a result, the sales team can prioritize their time for higher-quality leads. Deploying the right lead scoring model can significantly increase your lead-to-opportunity conversion rate.
What is a Lead Scoring Model?
Leading Scoring model allows marketers to assign points to every interaction that the lead has with your brand. The points allocated helps marketers to rank leads and determine their sales readiness. Beyond prioritizing leads for the sales team, the model also identifies leads by buying cycle stage and overall fit for business.
So should your business use a lead scoring model? If your sales team is receiving more leads than they can handle, then you need to prioritize the leads to maximize the effectiveness. Lead scoring is an effective tool when it comes to prioritizing and nurturing leads.
Ask yourself the below questions before you set-up lead scoring:
- Does team have more leads in their list than they can handle?
- Do they find a majority of leads unfit or not qualified for the solution/product?
- Do you a process in place to qualify leads for the sales team?
- Do you have a process in place to nurture leads?
If these are true, then you need a lead scoring model to improve your conversions.
How to Create a Lead Scoring Model?
You can design your lead scoring model based on two factors: Demographics and Interactions.
Demographics Lead Scoring
Demographic scoring is based on the characteristics of the lead. For example, title, designation, company, annual revenue, employee size etc. Demographics are an indicator of lead quality and help you to zero down the ideal lead. Demographics are also referred to as firmographics.
You can use firmographics to create your scoring preference.
Interaction Based Lead Scoring
Interaction based lead scoring is based on the actions the lead takes. Are they showing interest in the content you are publishing? Interactions can be measured using metrics like views, downloads, form submissions, webinars viewed, events attended etc.
Interactions are behavioural lead indicators for all your marketing activities. These interactions are mapped to different channels you are currently using for marketing your product/service.
Leading Scoring Model Best Practices
Single vs Multi-Dimensional Lead Scoring Model
Lead scoring takes into account both implicit and explicit actions. Explicit information includes data usually shared by lead using forms. Explicit information usually includes name, designation, job title, company revenue etc. Implicit information includes behavioural data which we have here referred to as interactions.
Two dimensions lead scoring model is uses both implicit and explicit information rank your prospect and determine the level of fit. For example, in the below chart A, B and C are marketing qualified leads. While D and E will remain in the funnel for nurturing.
Numeric value scoring model uses 100-point system. In the model, you can define threshold post which the lead is sent to the sales team. For example, a lead with minimum 75+ score will be passed on to sales.
48% of lead scoring adopters use two-dimensional lead scoring, while 16% of respondents report benefiting from more than two dimensions while 36% experienced benefits with just one scale in a survey conducted by Kentico.
Both the marketing and sales team should review and refine scoring methodology on a constant basis to make sure that the most qualified leads are moving leads down the funnel.