4 min read
April 8, 2022
Do you know how much revenue your business could be losing because you're not using lead scoring? According to Eloqua, businesses that employ lead scoring are missing out on potential revenues of up to 18%. That's a lot of money! But what is lead scoring exactly and how can it benefit your business? Keep reading to find out.
How do you determine which leads are most valuable to your business?
Lead scoring is a way to rank leads in order to determine which ones are the most valuable to your business. The process entails assigning a numerical value to indicate the lead's probability of converting to a paying customer. The higher the score, the more valuable the lead. There are a number of factors to consider when you score leads, including the source, demographics, interests, and behaviors of the lead.
The source of the lead
Website leads could be sourced through either organic or referral website traffic. Organic traffic refers to traffic that comes to your website without you having to pay for it. This is generally from search engines, social media, or other websites that link to yours. Referral traffic is when someone clicks on a link from another website that takes them to yours. Leads originating from organic search vs paid search, or referral vs direct tend to have higher close rates.
The demographics of the lead
The demographics of a lead (e.g. age, location, gender, etc.) can tell you a lot about who they are and whether or not they're likely to be interested in your product or service.
The interests of the lead
The interests of a lead can give you insight into what they're looking for and how likely they are to be interested in your offering.
The behaviors of the lead
The behaviors of a lead can give you an idea of how engaged they are with your content and whether or not they're likely to convert into a paying customer.
How do you calculate lead score?
You can use a lead scoring model to help you determine the score for each lead. There are a number of different lead scoring models, but they all essentially work by assigning a point value to each factor. The more points a lead has, the higher their score will be. For example, the source of the lead may be worth anywhere from 1 to 10 points. The demographics of the lead may be worth anywhere from 1 to 5 points. And the behaviors of the lead may be worth anywhere from 1 to 20 points.
You'll need to experiment with different point values to see what works best for your business. However, you should always keep in mind that the goal is to score leads so that you can prioritize them based on their value to your business.
How does lead scoring affect company plans?
Lead scoring can have a significant impact on company plans. If you're able to score leads, you'll be able to focus your resources on the most valuable leads, which will ultimately lead to more conversions and sales.
If you're not already using lead scoring, now is the time to start. It's an essential tool for any business that wants to maximize its chances of success.
What are the benefits of using lead scoring?
The benefits of implementing a lead scoring strategy into your customer relationship management includes:
- The ability to qualify and disqualify leads
- Increased sales efficiency and effectiveness
- Increased marketing effectiveness
- Marketing and sales alignment
When you're using lead scoring, you can more easily qualify and disqualify leads. This is because you have a numerical value that indicates the likelihood of a lead converting into a paying customer.
Lead scoring also increases the sales efficiency and effectiveness. This is because you're able to prioritize the most valuable leads, which means you can close more deals and make more sales.
In addition, lead scoring also increases the marketing effectiveness. This is because you're able to target your marketing efforts towards the leads most likely to convert.
Finally, lead scoring can help to align marketing and sales. When these departments are aligned on the definition of a qualified lead, they can work towards the same goal: converting leads into paying customers.
Are there any common mistakes businesses make when implementing lead scoring?
Yes, there are a few common mistakes businesses make when implementing lead scoring:
Not taking into account all of the factors that go into a lead score
A lead score is not just based on one factor. It's important to take into account the source of the lead, the demographics of the lead, the interests of the lead, and the behaviors of the lead.
Failing to update lead scores on a regular basis
Lead scores can change over time, so it's important to update them on a regular basis. This will ensure that you're always focused on the most valuable leads.
Relying too heavily on lead scores
Lead scores are just one tool that you can use to determine which leads are most valuable. It's important to use other methods as well, such as manual reviews and customer segmentation.
If you're looking to implement a lead scoring system, avoid these common mistakes and you'll be on your way to success.
How can businesses improve their lead scoring process?
The following lead scoring strategies can help you improve your lead scoring process:
- Use lead scoring criteria that are aligned with your business goals. Make sure that the criteria you're using to score leads are in line with your business goals. This will ensure that you're focused on the right leads.
- Update your lead scores regularly. Lead scores can change over time, so it's important to update them on a regular basis. This will ensure that you're always focused on the most valuable leads.
- Use multiple lead scoring criteria. Don't just rely on one lead scoring criterion. Use multiple criteria to get a well-rounded view of which leads are most valuable.
Compare lead scores across different channels. If you're generating leads from multiple channels, compare the lead scores across those channels. This will help you to focus your efforts on the most effective lead generation channels.
By following these tips, businesses can improve their lead scoring model.
Lead scoring is an important tool for businesses because it allows you to prioritize which leads to follow up with first. The higher the score, the more valuable the lead. By considering the factors mentioned above, you can more accurately score leads and determine which ones are most valuable to your business.
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