The Beginner’s Guide to Lead Scoring and How to Reap Its Benefits?
You don’t always know a good lead when you see one. Too often, it takes hours of conversations and emails to determine that you’re wasting your time. While you don’t want to miss out on a good lead, you also don’t want to spend unnecessary time on leads that will never close.
Turning lists into leads is a complex process that requires effort, attention to detail, and follow up in order to find the most qualified opportunities. To date, this process has largely been done manually, but lead scoring has gradually been shifting it into autopilot.
Let’s look at what lead scoring is and how it’s changing the game in turning warm prospects into paying customers.
What Is Lead Scoring?
Briefly, lead scoring is a system of assigning values to leads based on their likelihood to convert.
Lead scoring takes into account a number of insights from individual users: sales-centric activities like looking for pricing, low-level engagement like reading a blog post, and mid-funnel activities like reviewing your products or solutions. You set parameters on what a good lead looks like and automation takes care of the rest.
Let’s say that two women walk into a beauty store. One woman says she’s just browsing, while the other asks where she can find the shampoo section. Based on behaviors alone, the woman who asked for shampoo would have a higher lead score. She’s in the store for a purpose, while the other has no specific goals.
Lead scoring aggregates factors like browsing behavior and engagement to determine which leads are most likely to convert. Your hottest leads are at the top of your follow-up list. As users move along in your sales funnel, their lead scores adjust accordingly.
Benefits of Lead Scoring
Lead generation can take many forms. Regardless of how you attract prospects, lead scoring provides a common anchor that ties every lead into your sales funnel. Lead generation continues to be a top priority of marketers, with 68% of best-in-class marketers attributing their success to lead scoring.
The benefits make it easy to see why:
Fewer Lost Opportunities
Research shows that as much as 70% of opportunities are lost due to poor follow up. Lead scoring allows you to prioritize leads so that follow up is better executed so no hot leads fall through the cracks.
When follow up is improved and fewer opportunities are lost, higher conversions become a natural by-product. This is also due in part to prioritizing leads you’re most likely to win.
Knowing where your strong leads are prevented you from wasting time on tire kickers and curiosity seekers. You can focus more of your efforts on the right prospects and speed up your sales process.
Better Marketing & Sales Alignment
Sales and marketing must work together to ensure the right leads are coming through the pipeline. Having data-driven proof of lead quality can help marketers to better understand who they’re attracting for the sales team, what the high-scoring leads have in common, and where adjustments need to be made to continue attracting better leads.
When your sales process is efficient, sales teams prioritize the best leads, conversions increase, and marketing and sales are better aligned, it reflects in your ROI. Spending less time on processes and making more money will automatically bring more revenue to your company.
How to Go from Theory to Practice
Lead scoring sounds great in theory, but rest assured it’s every bit as effective when put into practice. Marketing automation software does much of the work for you to remove any guesswork on where your best opportunities lie.
LeadSquared is leading the charge in how you assign values to your leads and identify your most lucrative opportunities. Put it to the test with a free 15-day trial and discover how lead scoring can help your sales team win big!