Are you tired of guessing which leads in your sales pipeline are worth pursuing? Luckily, you have discovered the secret weapon of all sales professionals: lead scoring strategy. It is not a contest where contestants predict which leads will close, but rather a systematic approach.
Don't just take the word for it, look at the numbers. Lead scoring strategies can lead to a 50% increase in conversion rates. So, if you want to work smarter, not harder, it's time to adopt lead-scoring strategies. This blog post will explore the importance of lead scoring and the best strategies for maximizing conversions. Let’s begin.
What is Lead Scoring?
Lead scoring is a popular marketing strategy for ranking and prioritizing leads based on their behavior and level of engagement. It works by assigning points or numerical values based on a variety of criteria, such as demographics, firmographics, and behavioral data. The goal is to determine which leads are most likely to convert into paying customers, and which ones need more nurturing.
The Co-founder of Help Scout, Nick Francis says “A customer-centric approach will help you build a strong company and a successful future”. The lead scoring system considers several factors, including users' behavior on the site, their email engagement, and their online activity.
Importance of Lead Scoring for Your Business
Here are some reasons why lead scoring practices are important for your business:
1. Saves time and resources: By prioritizing leads based on their level of engagement and interest, your sales team can focus their efforts on leads that are most likely to convert. As a result, the team will not waste time and resources on unqualified leads. 77% of companies reported they had significantly reduced their lead qualification process times since implementing lead scoring strategies.
2. Increases conversion rate: A lead scoring strategy helps identify leads that are ready to make a purchasing decision. By prioritizing these high-quality leads, businesses increase the likelihood of conversion and boost their conversion rates. A study by Leadgenerationinstitute found that companies with an effective lead scoring system experienced a 192% improvement over those without one.
3. Improves lead nurturing: Lead scoring also helps businesses identify leads that are not yet ready to make a purchase. To help move these leads towards a purchase decision, they can be placed in a nurturing campaign that provides them with targeted content and communications. Companies with well-defined strategies for lead nurturing generate 50% revenue growth at a 33% cost reduction.
4. Enables personalization: Lead scoring strategy provides businesses with valuable insights into a lead's behavior and interests. A personalized communication can provide leads with tailored content that's more likely to engage them. According to Contentstack, 79% of consumers are only likely to engage with an offer if it has been personalized for them.
5. Facilitates data-driven decisions: With lead scoring, businesses have access to data that can help them make informed decisions. Tracking a lead's behavior and engagement can help businesses learn what works and what doesn't, and adjust their approach accordingly.
Best Lead Scoring Strategies for Maximizing Conversions
Businesses can optimize their sales funnel and drive revenue growth by leveraging a variety of data points and insights. Here are the best lead scoring strategies for maximizing conversions and improving sales.
1. Aligning Sales and Marketing Efforts
One of the best lead scoring strategies for maximizing conversions is to ensure that sales and marketing teams are properly aligned. This means clearly defining each team's roles and responsibilities, as well as establishing clear communication channels between them.
The ultimate goal is to create a seamless customer journey between the two teams, in which they understand how they can support one another in achieving the desired results. This will increase the chances of converting leads into customers by ensuring they are followed up on quickly and effectively.
Hubspot uses a combination of automation tools and CRM software to track customer interactions with their website, assigning points for each action taken. This allows them to gain insight into customer behavior and tailor their messaging accordingly.
2. Establishing Buyer Personas and Customer Profiles
Another key strategy for maximizing conversions is to establish buyer personas and customer profiles. This includes gathering detailed information about your ideal customers through market research, surveys, analytics, etc., to develop detailed profiles of how they identify themselves.
Once these personas have been established, it will be much easier for sales teams to identify qualified leads and target them with personalized content that resonates better with their individual needs.
By using its proprietary customer relationship management (CRM) platform, Salesforce stores customer data from multiple sources, allowing it to create detailed buyer personas and profiles for each customer. This data is used to score sales leads based on criteria such as age, job title, spending habits, etc., so the company can prioritize leads more effectively.
3. Analyze the funnel to identify touchpoints
A successful lead scoring strategy also involves analyzing the customer funnel in order to identify potential touchpoints. These touchpoints represent opportunities for marketers to interact with potential customers at various stages along the customer journey. For example, Marketers can use email campaigns or targeted ad campaigns to remind potential customers of their interest in a particular product or service.
Identifying these touchpoints in the funnel will help marketers determine what types of content are most effective at each stage. For instance, Slack is a popular cloud-based team collaboration tool that has leveraged white papers and other educational materials to help spread awareness of its platform.
They've released documents such as "The State of Work" report, which dives into topics such as team communication and employee productivity. This type of content helps potential customers understand the value of Slack's product without ever having to download or install anything.
4. Setting Lead Scoring Thresholds
It's also important to set lead scoring thresholds to determine which leads should receive further attention from sales personnel. A threshold should be determined by factors such as demographics, industry/vertical experience (e.g., past purchases), behavior (e.g., website visits), and engagement (e.g., response rates on emails).
It helps sales reps know which leads are most likely to become customers before investing too much time into pursuing them further. Drift is another great example of lead scoring for b2b to set thresholds for incoming prospects. They use an automation platform to assign scores based on how users interact with Drift's chatbots. These scores are then used to determine who should be contacted first by sales reps, allowing them to identify the most promising leads quickly.
5. Assigning Positive Attributes to Customers
When setting up lead scoring models it's important not to assign positive attributes. This helps determine when a lead isn't worth pursuing any more. Positive attributes usually include things like website visits, open rates of emails sent out by marketing staff, clicking links within emails etc.
Attribute-based lead scoring enables organizations to identify quality leads by focusing on things such as job titles, company size, purchase history or industry expertise. For example, Freshworks' attribute-based lead scoring SaaS assigns points based on factors like industry experience and job roles so that users can prioritize leads with decision-making power within an organization over those without it.
6. Incorporating Negative Attributes into Lead Scoring Models
It's also important not to overlook incorporating negative attributes into your lead scoring models too. This helps you identify when a particular lead isn't worth pursuing any more (for example if they've already purchased from you). Negative attributes typically include things like unsubscribes from newsletters/campaigns or bounce on emails sent out by marketing staff.
LeadLabs is one such tool that specializes in helping businesses incorporate negative attributes into their lead scoring models. By analyzing publicly available information about companies, it can uncover relevant negative indicators such as financial stability or legal troubles, providing marketers with valuable insights about prospects before ever making contact with them.
7. Integrating Automation Platforms and CRM Tools
One of the best strategies for maximizing lead conversions is to integrate automation platforms with customer relationship management (CRM) tools. This enables businesses to automatically qualify leads, assign scores to them according to their interest level, and track their progress throughout the sales cycle.
Automation platforms can help identify promising leads while helping companies save time by automating manual tasks. Pipedrive is another excellent example of a business utilizing lead scoring marketing by integrating automation platforms and CRM tools together into one comprehensive solution.
The software allows users to manage contacts, track deals through the sales cycle stages, set up automated notifications around different events in the buying process — all while being able integrate external data sources such as social media accounts or analytics tools like Google Analytics for a comprehensive picture of each customer journey.
8. Defining Point-Decay Factors
Point-decay factors measure how engaged a lead is in the sales process. it's important to set parameters that accurately reflect what constitutes an active or inactive lead. By doing this, businesses can more effectively target prospects who are likely to convert and focus their efforts on those leads that have a higher chance of success.
Marketo offers a powerful solution to setting point-decay factors for effectively prioritizing leads based on conversion likelihood. The platform allows these factors to be adjusted according to parameters like time since the last interaction or any number of user-defined conditions.
9. Evaluating MQL Conversion Rates
In addition, it's important for businesses to regularly evaluate their marketing qualified lead (MQL) conversion rates to maximize conversions. MQLs are leads that have been identified as being more likely to convert based on certain criteria such as demographic data or past purchase history.
Evaluating these conversion rates helps businesses determine the types of leads that generate high-quality leads and the most profitable campaigns. The Smart Inbox feature of Sprout Social provides businesses with an easy way to evaluate MQL conversion rates by analyzing customer-sales interactions within the emails they exchange.
10. Regularly Updating Lead Scoring Parameters
As consumer behaviors change over time and technologies advance, businesses should adjust scoring parameters to accurately evaluate each lead. Additionally, updating parameters can reveal new insights about customers that may not have previously been apparent. This information can then be used to further optimize future campaigns and generate better results.
Drift's AI assistant bot helps automate this process by integrating real-time updates from across all connected CRM systems whenever new information comes available, making sure scores are always up-to-date without requiring manual intervention.
11. Gathering Feedback from Customers
Finally, gathering feedback from customers is an effective way of improving lead scoring models and maximizing conversions. Customer feedback provides valuable insight into how they interact with brands and products. It enables companies to fine-tune existing scoring models or develop new ones that better reflect customer preferences and behaviors.
Surveys, questionnaires, customer interviews, focus groups and customer service interactions are all great ways of gathering feedback from customers for lead scoring strategy.
Lead scoring strategies are an essential part of any successful marketing and sales strategy. By assigning scores to leads, businesses can prioritize their outreach efforts, target prospects more effectively, and maximize conversions.
This includes identifying key criteria for determining the score of a lead, setting realistic thresholds for further converting a lead into a customer, and continuously tracking the performance of each lead. By leveraging strategies such as these, businesses can successfully implement a lead scoring system that will help them acquire new customers and maximize their ROI.
RevenueHero is a powerful tool for your lead scoring strategy that can give your business a serious competitive advantage. With its automated qualification features, RevenueHero can help boost conversion rates, prioritize leads and optimize results. Book a demo today to see how the software can help them improve lead scoring.