When you use a lead ranking system like the one in our Lead Management Automation™ platform, you’ll find that leads are prioritized according to fit and behavior. Lead scoring combines a grade for explicit attributes, which indicates fit, with a score for implicit attributes, which indicates an interest level. While implicit attributes measure digital body language, such as website visits or email click-throughs, explicit attributes rank how well a prospect meets an optimal lead profile.

Grading leads according to fit seems straightforward; each grading category will include easily definable attributes which help determine a good or poor fit. Scoring leads according to interest may also seem simple enough; online body language can be easily captured to show whether there is enough interest to justify pursuit. However, there are usually non-apparent factors which may not show up in a “standard” lead scoring matrix. Here are a few examples of critical information that may not be reflected in a standardized lead scoring matrix, these lead scoring attributes should be included.

Revenues

Annual revenue figures can be easily defined and included in a lead form, but the figures may be misleading. A company representative may either not have that information or be reluctant to select a revenue amount when filling out a form. Usually providing a set of amount ranges to choose from may be effective. For example, $0 to $500K, $500K to $1MM, etc. may be appropriate.

Also, current revenue figures don’t reflect future earnings. A lead that earned $750K last year may not rank highly in your matrix, but if revenues rise to $1MM, its rank may rise accordingly. In this case, it’s important to avoid discarding a lead because of its low current revenues grade. (It may be effective to include a revenue projection category in your lead form.)

Number of employees

Company size is an important determinant to a lead’s fit. But employee numbers only tell a part of the story. The number of employees, like revenue figures, is a dynamic characteristic. For instance, the company may have just completed a downsizing or may have merged with another company. These actions won’t be easily captured in a lead form.

Another factor that isn’t usually reflected in a lead scoring matrix is: what are the possibilities for growth for a lead? Certainly, if a lead employs 500 workers then it may qualify for a high score in your matrix, but where will that lead be in a year or two? Is the industry growing? Are there more competitors entering the space? While it should be easy to collect and score the current company size, potential growth may be a more subjective score to determine.

Website product pages visited

Many lead scoring matrices include negative scores which decrements a lead’s overall rank. One scoring example would be a lack of page views about products. It may be difficult to capture through a standard lead form why a prospect visited your site but viewed no product pages. The reason could be due to a lack of need or incorrect timing. If a contact has only visited certain pages, such as investor relations, careers or about us, the reason for the site visit may not be a product purchase. Some visits to management pages may be part of a company review in anticipation of a purchase; however, visits to those pages should accompany product views if a lead is to be scored high.

For more thoughts on effective lead scoring, connect with our revenue generation blog regularly and learn how Lead Liaison can drive revenue through marketing automation.

Learn how lead scoring makes your sales and marketing department more efficient. Marketing automation has quickly became the hottest trend in B2B sales and marketing due to its ability to produce high quality leads that generate revenue while saving valuable resources like money, time, and energy. Lead scoring is an essential component of the marketing automation process. As leads are gathered and nurtured, lead scoring assesses their potential for conversion using pre-established criteria.

Lead scoring qualifies and quantifies a lead’s individual likelihood of purchasing based on their online profile. Every lead leaves a trail of evidence or insight into their character that can be beneficial to your sales and marketing team. It evaluates and prioritizes leads based on pre-determined demographic and behavioral factors that are unique to purchasing certain products or services. By profile unique to your target customers and then ranking new leads against it, marketing can determine how well each lead matches to the ideal customer profile.

Once leads are ranked, marketing will only passes on sales-ready leads for the sales team to pursue further. This way the sales department is only contacting potential consumers who are seriously interested in making a purchase. That is probably the most obvious way it will make your sales and marketing department more efficient, but it is not the only benefit.

Lead scoring quantifies each lead, plus it acts as an effective barometer to quantify current lead generation methods. For example, if your lead generation method is consistently generating low quality leads that are not ready, then you may be you are focusing on the wrong market segment. It could be that the marketing message that is being sent out is not in line with the products or services that are being offered. It also could be targeting buyers who are still in the initial stages of research. Regardless of the reason, a constant generation of low quality leads is a sign that the lead generation method and overall marketing strategy needs to be reviewed and revamped.

Lead scoring improves efficiency by providing the marketing automation department with a reliable and powerful source of feedback. By giving clear, concise and measurable information, such as what stage the current lead is at, or what are the chances this lead is ready to be converted into a customer, or even what methods of interaction that have been successful so far, lead scoring can be used to enhance lead nurturing efforts and further engage the potential consumer with additional relevant content.

Also, lead scoring works well because it brings in more loyal customers. Customers obtain during the marketing automation process are obtain by developing a strong and meaningful relationship. Leads that convert will feel a connection with the company based on appreciation for educational or helpful content. This increased loyalty will save your marketing department the time and expense of securing new customers when others fail to come back.

Marketing automation is designed by nature to improve inefficiencies and lead scoring is vital in that process. Generating sales-ready leads, evaluating current lead generation methods, providing useful information for lead nurturing, and developing more loyal consumers are all ways that lead nurturing can improve the efficiency of your sales and marketing department.

Use lead scoring to increase the chance of conversion. Marketing departments are collecting endless leads through demand generation activities such as email list sign-ups, events, and website registrations. Every lead has a unique profile and potential based on how they were obtained. Lead scoring is a powerful tool that can dramatically increase a company’s chance of conversion by ranking and qualifying leads prior to handing them over to the sales department.

Identifies where they are in the buying cycle

Every lead is at a different point in their buying cycle. Lead scoring rates each lead using a pre-determined set of criteria to identify both their potential to purchase and their behavioral triggers. This method allows only leads with a high likelihood of conversion to be given to sales, which will ultimately increase the chances of turning each scored lead into a sale.

Buyers online activity is priceless

Savvy buyers are spending more and more time researching products online prior to purchasing. Their online activity is a clear indicator of their interest and position within the buying process. This information can be priceless, when scored and ranked.

Prioritize based on the ideal lead

Lead scoring starts with a relevant list of criteria that is based on the ideal lead profile. The criteria should determine which leads have the highest potential for conversion and which are still in the infant stages of their buying cycle. By prioritizing leads, a company can redirect leads that are not ready to purchase back to the marketing department for further lead nurturing.

Improve the efficiency of the sales team

This process will improve the efficiency of the sales department, since they will no longer be wasting their time on unqualified or unlikely leads. Lead scoring also provides a more in depth profile of a quality lead’s characteristics, making it easier for sales to relate to specific leads and hopefully convert them into a new stream of revenue.

Quality over quantity

The number of leads given to the sales department will most likely drop significantly, but the odds of converting the leads they do receive will more than make up for it.  Statistics show that lead scoring can increase the chance of conversion by up to 80%.

Increased chance of connecting with a lead

The better a salesperson understands a lead and their behavioral and demographics characteristics, the more likely they will be able to connect with the lead. The new trend in marketing is based on creating meaningful relationships with leads, since consumers are more likely to purchase from a company if they feel a connection has been made.

Lead scoring is based on quality over quantity. It gives the sales department more qualified leads, as well as an inside advantage on the lead’s specific needs which will significantly increase the chance of conversion.

Scoring the quality of leads is not an exact science, but there are ways to determine if a lead is worth nurturing toward a sales engagement. Lead scoring includes metrics that account for buying authority, interest level, budget availability, and purchase timing. In order to accurately qualify a lead’s readiness for a sales engagement, your lead scoring framework should include three criteria: match, activity, and depreciation.

Match as a Criteria for Lead Scoring

The first step in qualifying any lead is to determine if a lead matches an optimal lead profile (OLP). The OLP includes all the attributes which make a lead a solid candidate for a sales engagement. The most qualified leads will fit the profile completely; in some cases, a lead might match some profile criteria but require nurturing in order to determine whether she is a complete match. Your marketing tools should extract enough details about each lead to allow you to determine if a lead is a match.

In order to receive a high score, a lead should possess the appropriate attributes of having buying authority (which can include decision-making influence), a budget that can accommodate the purchase, a need that can be fulfilled with your offering, and an imminent desire to purchase.

A match is primarily scored according to demographics such as industry, company position, revenues, location, company size, and other definable characteristics.

Activity as a Criteria for Lead Scoring

A lead’s behavior should also contribute to scoring his sales-readiness. The activities a lead performs while engaged with your marketing efforts will reveal his propensity to purchase, as well as identify his role in the buying process. A lead that appears to be actively researching available options should score higher within most automated marketing programs than a passive, curious lead.

Scoring should measure more than the type of activity a lead is engaged in. Scores should also reflect how involved he is in the buying process. What interest level is he at? What type of activities has he participated in? How many engagements have taken place? A fully engaged lead will hit several touch points during his research.

The duration of activities, such as website visits, or the frequency of actions, such as content downloads, can indicate the interest level. A lead that spends two minutes viewing a company profile on your website should score lower than one that spends ten minutes reading product descriptions.

Depreciation as a Criteria for Lead Scoring

Lead scoring should also account for gaps in time between marketing responses. The activity dormancy period should be scored according to its duration. How long has it been since a lead has responded to a message or has searched for your site, company or product? If there have been more than a few weeks between engagements, a lead’s score should be reduced. By decrementing a lead’s score to allow for engagement depreciation there is less likelihood of an untimely sales engagement.

Want to learn how Lead Liaison can help your company better qualify leads using lead scoring principles? Fill out the brief form on the top of this page.