What is Lead Scoring?

One of the most significant problems that marketers have daily is finding out what is the quality of their leads. Are they ready to buy, need some more time or are they completely uninterested?

Treating all customers, in the same way, leads both to annoy the customers who aren’t yet ready for purchase and on letting those leads who are sales-ready to slip by. Not to mention, both you and your sales team probably spend way too much time taking care of leads who are not worthy of your time.

How to differentiate leads?

Using lead scoring!

Lead scoring is assigning a number of points to your lead and estimating how likely the lead is to use your service or make a purchase. The final score your lead gets is based on several criteria picked by you. What informations the leads gave to you and any other criteria you deem as important for you.

The ones with the highest score are your “hot” leads (the closest to purchase) and can be sent immediately to the sales reps. And the ones with the lowest score should be first checked are they interested in the company. If they aren’t – they can be removed of the list.

Lead Scoring Benefits

Having set rules for lead scoring gives several benefits for your business:

  • You lose less high-quality leads. With so many leads generated daily, it can be difficult to recognise at a glance which are “hot” (meaning ready to buy) and which are cold (not interested). According to a study made by Gartner, 70% of leads can be lost because of poor follow up. With lead scoring, marketers can quickly find them and follow up on the most valuable leads.
  • You waste less time. Lead scoring can save you and your team countless hours spent on calling people who aren’t even interested in your offer. Thanks to the lead scoring system, neither marketing team nor sales reps have to guess how should they treat the new lead. Sales reps can focus on the “hottest” leads while the marketing team knows which users need more nurturing first.
  • Your reps are more productive. With a smaller number of leads they get daily, and less time spent on calls, sales reps can speed up the sales process. With more time at their hands, they can also focus on more complicated matters and spend more time with each customer.
  • Lead scoring helps with increasing ROI and conversion rates. Companies that use lead scoring systems experience an approximately 77% increase in ROI, as compared to the companies which do not use it. The reason is obvious. With higher quality leads the sales team to get and less time wasted on poor quality leads. Then sales reps productivity is increased and more leads become a customer.

To find the most effective lead scoring formula for your business, you will need to continuously change and improve your criteria. But it’s definitely worth the hassle – you will get better quality leads and be able to increase your revenue.

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