Companies are constantly seeking new ways to streamline their sales processes and boost their bottom line. One powerful tool is that of building and implementing lead-scoring models.
This article will explain what lead process scoring is, how to build a model, and how to use it in your customer relationship management (CRM) system. Keep on reading.
Overview of Lead Scoring
Let’s say you are a business owner with a list of 1000 potential customers. You can’t possibly give equal attention to all of them. So, how do you decide which ones to focus on?
This is where lead scoring comes in handy. It is a way to rank potential customers based on how likely they are to buy from you. Each candidate is given a grade, the higher the grade, the more likely they are to become a customer.
Why is this important? Because it helps you focus your time and energy on the leads that are most likely to convert into sales. This means you can work smarter, not harder, and get better results.
Purpose and Benefits
The main goal of scoring is to identify which leads are most worthy of your time. By doing this, you can:
- Increase your conversion rates.
- Focus only on the most promising leads.
- Improve communication between sales and marketing teams.
- Provide a better experience to potential customers.
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Types of Lead Scoring Models
In general, there are three main types of models:
- Demographic scoring. This looks at who the lead is. It might include things like job title, company size, or location.
- Behavioral scoring. It follows what the lead does. It might include actions like visiting your website, downloading a whitepaper, or attending a webinar.
- Engagement scoring. This model looks at how the lead interacts with your company. It might include things like opening emails, responding to social media posts, or talking to sales reps.
The most effective models use a combination of all three types.
Building a Lead Scoring Model
Now let’s look at how to build a model. There are the main steps in the lead management process:
Step 1: Identify Your Ideal Customer Profile
Before you can score leads, you need to know what your perfect customer looks like. Ask yourself:
- What industry are they in?
- How big is their company?
- What problems do they have that your product can solve?
Write down these characteristics. This will be the foundation of your scoring model.
Step 2: Determine Scoring Criteria
Next, decide what factors you’ll use to score your leads. These should be based on your ideal customer profile. Some examples might be:
- Demographic: Job title, company size, industry.
- Behavioral: Website visits, content downloads, email opens.
- Engagement: Social media interactions, email responses, sales calls.
Step 3: Assign Point Values
Then, give each criterion a point value. More important factors should get more points. For example:
- CEO of a large company: 20 points
- Manager of a small company: 10 points
- Downloaded a whitepaper: 5 points
- Opened an email: 1 point
Step 4: Set Scoring Thresholds
Decide what scores mean a lead is hot, warm, or cold. For instance:
- 50+ points: Hot lead (ready to buy).
- 30-49 points: Warm lead (interested, but needs nurturing).
- 0-29 points: Cold lead (not ready to buy yet).
Step 5: Test and Refine the Model
Your first attempt at the lead management process probably won’t be perfect. And that’s okay! Test your model with real leads and see how it performs. Adjust your criteria and point values as needed.
Practical Examples of Lead Scoring Models
Let’s see how the three main models would look in real life.
1. Demographic Lead Scoring Model
This model focuses on the characteristics of the lead or their company.
Example for a B2B SaaS company:
| Criteria | Points |
| Industry | |
| – Technology | 20 |
| – Finance | 15 |
| – Healthcare | 10 |
| – Other | 5 |
| Company Size | |
| – 500+ employees | 20 |
| – 100-499 | 15 |
| – 10-99 | 10 |
| – 1-9 | 5 |
| Job Title | |
| – C-level | 25 |
| – VP/Director | 20 |
| – Manager | 15 |
| – Other | 5 |
Thresholds:
- 50+ points: Hot lead
- 30-49 points: Warm lead
- 0-29 points: Cold lead
2. Behavioral Lead Scoring Model
This one focuses on the actions taken by the lead.
Example for an eCommerce website:
| Action | Points |
|---|---|
| Visited pricing page | 10 |
| Added item to cart | 15 |
| Abandoned cart | 5 |
| Downloaded product guide | 10 |
| Watched product video | 5 |
| Used comparison tool | 10 |
| Clicked on an email link | 5 |
| Attended webinar | 15 |
Thresholds:
- 40+ points: Hot lead
- 20-39 points: Warm lead
- 0-19 points: Cold lead
3. Engagement Lead Scoring Model
The engagement model focuses on how the lead interacts with your company over time.
Example of a content marketing agency:
| Engagement | Points |
|---|---|
| Email interaction | |
| – Opens email | 1 |
| – Clicks link in email | 3 |
| – Replies to email | 5 |
| Social media | |
| – Follows company account | 5 |
| – Likes/shares company post | 2 |
| – Comments on company post | 3 |
| Website engagement | |
| – Time on site (per minute) | 1 |
| – Return visit (within 7 days) | 5 |
| – Submits contact form | 10 |
| Content interaction | |
| – Downloads gated content | 10 |
| – Shares blog post | 5 |
| – Comments on blog | 3 |
Thresholds:
- 30+ points: High engagement
- 15-29 points: Medium engagement
- 0-14 points: Low engagement
Keep in mind that points in engagement models often decay over time to reflect recent activity more heavily.
Implementing Lead Scoring in Your CRM
If you are a small business owner, you could keep track of basic lead scoring on a simple spreadsheet. However, things can become more complicated when you have more leads to grade. This is when you might need a CRM with lead-scoring capabilities.
Choosing the Right CRM for Lead Scoring
Not all CRM systems are created equal when it comes to lead scoring. Look for one that:
- Allows custom fields for scoring criteria.
- Can automatically update scores based on lead actions.
- Integrates with your other marketing tools.
Popular options include Salesforce, HubSpot, and Marketo.
Setting Up Lead Scoring Rules in Your CRM
Once you’ve chosen a CRM, you’ll need to set up your scoring rules. This usually involves:
- Creating custom fields for each scoring criterion.
- Setting up point values for each criterion.
- Creating rules that automatically update scores based on lead actions.
Automating Lead Scoring Processes
The power of lead scoring comes from automation. Set up your CRM to:
- Automatically update scores when leads take certain actions.
- Alert sales reps when a lead reaches a certain score.
- Move leads to different lists based on their scores.
Integrating Lead Scoring with Other Marketing Tools
For best results, connect your lead scoring system to your other marketing tools. Such integration allows for more accurate scoring and better insights. This might include:
- Email marketing software.
- Social media management tools.
- Website analytics platforms.
Tips for Lead Scoring
To get the most out of your lead scoring model:
1. Regular Review and Adjustment
Your business and your customers will change over time. Review your lead scoring model regularly (at least every quarter) and adjust as needed.
2. Aligning Sales and Marketing Teams
Lead scoring works best when sales and marketing teams work together. Make sure both teams understand and agree on the scoring criteria.
3. Using Both Explicit and Implicit Scoring Criteria
Explicit criteria are what the lead tells you directly (like job title or company size). Implicit criteria are the ones you infer from their behavior (like website visits or email opens). Use both for a more accurate score.
Measuring the Success of Your Lead Scoring Model
To know if your lead scoring model is working, you need to track some key performance indicators (KPIs). These might include:
- The conversion rate of high-scoring leads vs. low-scoring leads.
- Sales cycle lengths for scored leads vs. unscored leads.
- Revenue is generated from leads at different levels.
Consider doing A/B testing with different scoring models to see which performs best.
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Wrap Up
Building effective lead-scoring models takes time and effort. Start simple, test and refine regularly, and always keep your ideal customer in mind. With patience and persistence, you’ll develop a lead-scoring system that will significantly boost your sales performance.
Team DevriX
This article is crafted by DevriX's seasoned marketing team, boasting over four decades of collective expertise in crafting sophisticated marketing funnels, devising comprehensive content frameworks and pillars, implementing engaging email campaigns, and creating impactful social media content designed for scalability.
Our marketing experts specialize in the complete spectrum of inbound marketing strategies. As an accredited HubSpot Agency Partner and a Semrush Partner, we engage in meticulous research, blending our extensive experience with the unique insights of our highly skilled team.
We set benchmarks in content creation by incorporating cutting-edge marketing trends, leveraging in-depth industry research, and utilizing state-of-the-art AI tools for data segmentation and captivating content hooks. Our proficiency extends across a diverse range of sectors, including working with SMEs, Fortune 1000 companies, global B2B brands, major publishing entities, WooCommerce platforms, business directories, and affiliate networks.
