What is Predictive Lead Scoring? A Simple Explanation

Your mind stumbles upon a variety of tasks in the office. There is so much that needs to be done. Your list is endless. And when you are into sales, you have a calendar that is overbrimming with meetings, follow-ups, emails, etc. Every day you reach office in your highest spirits, and you put your honest efforts into completing most of them. Despite that, your sales numbers are dismal. If you can relate, you are in the right place. Predictive lead scoring is what you need in your sales process. Based on that you can prioritize your tasks and achieve the numbers, which are, clearly, the deciding factors in sales.

But first, give yourself a pat on the back as you have found a solution to make the most of your efforts.

Predictive Lead Scoring

Fundamentally, in sales, not every lead carries the same weight. For example, a prospect who is continually browsing your website, or reading different articles will be warmer than one who is inactive. Also, a decision-maker will be a more important lead than a manager in the same company.

To help with prioritization in such cases is where lead scoring comes into the picture. It is a process where you assign a score to each lead/account to quantify its value. The score is derived from many behavioral characteristics (like opening an email, visiting a website page, attending a demo, etc.)

What is Predictive Lead Scoring?

Predictive Lead Scoring is a framework that uses an algorithm to analyze historical data within your CRM and tells you which accounts/leads are most likely to convert. Important attributes are automatically chosen based on common factors derived from deals that were both won & lost. It basically identifies trends and patterns from the past and generates a prediction for the future.

Here is the difference between predictive lead scoring and the traditional one.

Comparing Predictive Lead Scoring and Traditional Lead Scoring

How does Predictive Lead Scoring help?

Even the most experienced sales and marketing teams are perplexed with identifying the factors that helped in closing a deal. Undoubtedly, they can summarize the events that led to the closure. But naming every element that contributed towards attracting prospect’s interest is a tough job. When done manually, it just elevates the possibility of manual error.

So what if you don’t identify the parameters? The sale is already done, right?

Well, if you are going forth with a hit and trial approach, it’s fine. But if you want to implement a conversion-centric sales process, evaluating these parameters is crucial.

Predictive lead scoring will help you name these parameters by scrutinizing past deals. Since the entire process is automatic, you can ensure both reliability and accuracy. It will not only help you build a targeted approach but will also enable you to use customer intelligence to your benefit.

Another major area of an upgrade from the traditional lead scoring model is the alignment between teams and the improvement inefficiency.

Since there is no need to assign scores to different actions individually, your marketing team does not have to undergo a trial & error process. Buckets of qualified leads are made available, with a solid judgment of why one lead is more likely to convert than another. These buckets of qualified opportunities always pique the interest of every salesperson, enabling them to close deals much faster.

Essentials in Predictive Lead Scoring

While it can work wonders after implementation, the process requires a huge chunk of data to be able to make a proper analysis. A small sample set wouldn’t do much justice and hence, businesses that have just started or those which don’t have a huge database may not benefit from this.

One more pre-requisite would be to clearly mark accounts with certain tags (won/lost or customer/prospect etc.) so that the algorithm can effectively analyze all kinds of data and in turn provide the optimum results to produce more sales-ready opportunities for your team.

To sum up, predictive lead scoring when implemented with a CRM Software enables you to visualize which prospects have a higher probability of conversion. It enables you to reach potential customers first. As a result, you can gain more out of your efforts and aim to surpass your sales targets.

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