How Lead Score Highly Influences Your Lead Nurturing
How can you tell if a lead score is ready for conversion or if they still need further nurturing? Not all of your leads are the same. They behave and react differently. Your sales team might be pursuing the wrong lead if you’re not careful. With lead scoring, it lets you focus and gain information on leads who are far down your sales funnel, and those who are not.
A guess, impression, or your gut feeling is not enough for a lead to easily qualify. Your marketing and sales efforts will be wasted if you keep pursuing the unqualified ones. Creating an effective lead scoring model, with a good set of criteria and guidelines, helps you identify which leads you should pursue and nurture that will lead to a much higher sales and conversion rate.
Here’s what you should know about lead scoring and how to assign scores for an effective lead management
Getting to Know Lead Scoring
Lead scoring – defined as a method of allocating values to leads generated from outreach campaigns made by your business to the general public. This procedure lets your team choose and prioritise, which lead has an increased rate and will convert as your customer, based off of the information they have provided. These values often come in the form of “numerical points”, where the following points perceived will be used against a scale to rank the prospects according to the value they represent in the organisation.
In lead management, there are attributes you need to consider in assigning values, like a lead’s behaviour and engagement to your website and brand across the internet — other attributes like demographics and company information, online behavior, email, and social engagement.
Four Models of Lead Scoring
Every particular attribute of your lead has assigned value to your lead scoring model. Most lead scores start from 0 scaling up until 100, and these scoring models get you the information you need and ensures that each lead is compatible with your product.
Demographic Data of Your Market
Is your brand catering your product to a specific demographic? For instance, your product’s marketed to children, teens, or working professionals – to get valuable information for your lead scoring model, ask your leads demographic questions using forms they have to fill out that requires personal data. This is to see if they’re the compatible fit as target audience.
You can use this information to remove people who don’t fall into your queue. For example, if you only market to a specific area, you can assign negative scores to a lead who’s outside of the area you’re catering to, be it outside the city, state, country, etc. Also, if there are optional fields on your form (like their phone number), then you can add points to prospects who provide such information.
Is your brand a B2B organisation? If so, are you planning on selling your products to the same type of organisation? To another size or type of industry? Or, are you into B2C organisations? You may ask your prospects these type of questions on your fill out forms. See those who strategically fit with your ideal audience, allocate the proper points, while taking away points for those leads who don’t.
Your Leads Online Activity, Behaviour and Social Media Engagement
If you want to keep track of your leads online activity and behaviour, you might consider asking these questions as your benchmark with regards to their level of interest and engagement to your brand:
- How does your lead interact with your site?
- Which pages do they highly interact with? How many pages?
- Which of your offers do they download the most?
- How many promotional offers were downloaded during their visit?
What about the leads who often change their behaviour over time? Possibly, if a lead had stopped visiting your website or taking your offers, chances are they’re no longer interested. The number of leads that interact with your website tells a lot of their interest in buying your product.
Both the analytics of the number and types of forms found on your website is essential. Consider giving a high score to prospects who visit highly-valued pages (like the shop or category pages) or those who fill-out highly-valued forms (for instance a demonstration request form). Likewise, assign bigger points to prospects who spent their time on 35 to 50 pages, in contrast with just two to five pages.
For leads whom you observed to have a change on their behaviours over a certain period of time? If leads have stopped visiting and interacting with your website, are less interested in your offers, they might not be as enthusiastic as before; you might have to lessen their points. How many days? Fifteen days, 25 days, 60 days – totally relies on your regular sales cycle.
Also, how does your lead interact with your tweets and posts on Facebook? Do they retweet and or share the post on their timeline? If so, how many times?
If your market spends most of their time on social media, then consider allocating points to a lead who has a high number count of followers. The level of a lead’s engagement with your brand on social media is also a determining factor of their interest in buying from you.
Provided that a prospect voluntarily fills out your form to receive email updates from your brand, you can never be entirely sure what their level of interest in buying what you’re offering is. Keeping track of their engagement through open and click-through rates will let you grasp their interest level to your brand. That way, your sales representative team will know who just opened your emails or who clicked through the offered promotion emails during your lead management campaign.
With the use of the right marketing automation, like Infusionsoft in Singapore, you and your sales team may concentrate on leads who are more engaged than others. Also, you might consider giving a high score to a lead that clicks through your highly-valued mails, for instance, demo offers.
Calculating Lead Scores Based on Customer Data
Here’s how to calculate your lead’s score manually.
Calculating the conversion rate from lead-to-customer.
The total new customers divided by the total number of prospects generated is your lead-to-customer conversion rate. This formula is your way to measure and track the percentage of your leads converting to customers.
Knowing what to pick and choose different attributes with quality leads.
There’s a particular way of choosing which quality or attribute should be included in your scoring model. It may be the qualities based on the discussion with your sales rep team, or the data in your analytics, etc. – but generally, it’s a tough judgment call for your part. For instance, you can have four different people with different backgrounds do the same activity, yet they can still create four different models.
They may be chosen because they fit one of the attributes you’re looking for, like, a lead may have requested a free trial, or they are customers in the finance industry. As long as the data you’re using is valid, then there’s nothing to worry about your scoring model.
Calculating each close rates of each chosen qualifications individually.
To figure out how many leads are qualified (and can ultimately convert as your customer) can be based on the behaviour and actions they execute or how close their relationship is to your ‘ideal customer’. Calculating the rate of each activity a lead takes on your site, or what type of person takes that kind of action, will rule what action you’re going to take next in response.
Comparing the close rates of each quality with your general close rate and assigning point values consequently.
First off, observe the qualities with close rates, which is higher than the general close rate. Next, choose which of the conditions you’ll assign to and allocate the points correctly. You can take reference to the values of each quality from the extent of each individual rates.
Try to be as objective as possible, even if the point values will be completely arbitrary. For instance, your general close rate is 2%, and your “promotional offer” rate is 60%, observe that the close rate “promotional offer” attribute is 30X higher than your general close rate – thus, you can allocate 30 points to prospects who fit and qualify those attributes.
Knowing What Matters Most
How will you know which data matters the most? There’s plenty of data for you to analyse and weed through. Should you talk with it to your team of sales representatives? Chat with your customers? Run reports based off of your analytics?
In all fairness, it’s ideal to get the perspective of all three. Your customers, sales reps, and analytics reports let you think outside of the box and focus what content is essential for converting leads into customers, which you will assign specific points to particular offers, promotional tools, etc.
Reaching out to your sales representative team.
Your sales representatives are whom the leads communicate to directly, who then converts as your customers and those who don’t. Base from their experience on the ground, they pretty much have a good grasp of which pieces of content that can help encourage conversion.
Talking with your representatives may lead you to find some valuable information that may inflate your sales and conversion rate, also allocate proper points consequently.
Interviewing your customers.
Although your sales reps might have an idea which marketing materials best converts your leads as customers, it may be different to the people who undergo through the sales process; they might carry a different opinion. That’s fine, but you might want to hear it from those who are actually spending.
One way to learn what your customers think when they decide to buy your product is to have a small chat with them. Get to learn from the diverse perspectives of your customers, who experienced sales cycles, on what they think was the drive to buy from you.
Turn to the analytics.
While getting the perspective of your sales representative team and your customers is good, you should integrate this in-depth research and data from your marketing analytics. Running analytics reports from your marketing automation, like Infusionsoft in Singapore, can make you understand the quantitative data your leads are giving you.
The creation of a lead scoring model helps in aligning your marketing and sales effort to the right lead. Even more so if you’re using a marketing automation software, like Infusionsoft from Singapore, where it’s an essential tool for businesses, you can focus on closing the right deals with the use of the right marketing automation software and the right CRM software like in Singapore. There will be growth in your sales, conversion and team productivity with the right lead scoring model. Get to know more about lead scoring and its best practices and how a CRM software like in Singapore, ensures your business has a steady stream of revenue now!