Lead scoring is an integral part of lead management. It requires businesses to rank the leads in their databases based their sales readiness. The sales readiness of a lead is determined by analyzing the prospect’s current level of interest in your business. Lead scoring also ranks the demographics of a prospect to ensure that the prospect you are targeting actually fits into target customer profile. In this blog we will discuss about the benefits of including lead scoring in the lead management cycle.
Optimum Lead Utilization
Studies show that less than 25% of the acquired leads are utilized by the sales team, whereas the rest get filtered as the sales team may label them as “not sales ready”. Not only is this a huge loss in terms of the effort that was put into acquiring those leads, but it is also a loss of leads that could have been nurtured to be potentially closed at a later stage.
Increased Marketing Effectiveness
Lead scoring ranks and categorizes the leads based on demographic and firmographic attributes such as company size, job title, industry or behavioral attributes such as clicks, keywords, website visits and more. The ranking in turn helps marketing teams identify different categories and build different marketing strategies for targeting different categories. The focused marketing approach helps companies achieve increased marketing effectiveness objective.
Increased Sales Efficiency
Lead Scoring helps identify the leads that are most valuable. The leads that get passed onto the sales team, post lead scoring, are the ones with higher chances of conversion. Not only does working on such leads saves time for the sales team but it also increases their conversion rates, thereby helping the sales team stay motivated.
Aligned Sales and Marketing
Alignment between sales and marketing is important for businesses to increase their marketing ROI, sales productivity and most importantly their topline growth, and lead scoring helps achieve exactly the same. It improves the relationship between the two groups as the high quality leads that marketing provides, boosts the sales team’s productivity. Most importantly a common lead definition and categorization approach, helps sales and marketing simplify processes and drive alignment.
Better Lead Response
Often, there are leads that need immediate attention. If such leads are not attended to on time then the customer may move to a different services or goods provider, depending upon what the customer actually needs. Lead scoring prioritizes such leads over others and sends notification to the Sales team to act upon them first. Also, it has been observed that a company that responded first to a customer’s query bags the deal. It is, therefore, essential for companies to ensure that they have a sound lead scoring process in place to beat the competition.
Lead scoring does not guarantee closures. It is just a tactic that helps you determine the probability of closure of a lead or the relevance of a lead in terms of the target audience you are looking to tap. Therefore, if the lead scoring methodology does not work for you, that does not mean it is not helpful. Maybe you need to refine the lead scoring method to score the leads more appropriately or stay a little patient until you start seeing results.