Everything You Need to Know About Lead Scoring

by: Danny Veiga

Marketers know that leads come in all shapes and sizes. Some are already interested in what you have to offer; others need more information before they're ready to buy.

Lead scoring is an important tool for determining which type of lead a company should focus on. It's an effective way to determine which leads are ready to buy and should move on to the next stage of your sales funnel and which leads still need more information before you can sell them anything.

This post will cover everything you need to know about lead scoring so you can make the best decision possible for your business. 

What is lead scoring?

Lead scoring is a lead evaluation based on the actions they take. This can be anything from visiting your website, downloading an e-book, or making a purchase. It's based on the assessment of the lead and is an objective way to sort leads.

Lead scoring is a way for companies to prioritize their marketing efforts towards leads that are ready to buy now while spending less time focusing on those who need more information before they're ready to buy. 

The lead score measures how close prospects are to becoming customers and helps you focus your time and efforts on those that are ready to buy sooner rather than later.

It's a lead generation management tool that analyzes lead actions and orders them from the most interested to least interested leads.

The lead score helps you and your sales team prioritize, which leads to focus on first.

Lead scoring begins with a breakdown of what should be expected from your target customer based on where they are in the sales cycle.

You can use this criterion as part of a scoring system. Once you've established your goals, it's easy to assign points for each step of the sales process.

This will help you create a scalable lead scoring template for your business in no time at all! 

How does Lead Scoring work?

Lead scoring is an extremely valuable tool for lead generation, lead management, and lead nurturing. It's easy to use, provides accurate results, and streamlines the lead pursuit process so everyone can stay focused on high-quality opportunities.

Unlike outdated lead qualification methods that rely solely on gut instinct or some sort of arbitrary system with no proven benefits, lead scoring allows you to track prospects' actions towards becoming loyal customers.      

Lead scoring aims to turn marketing qualified leads (MQLs) into sales-ready leads by managing them more proactively through the buying cycle. This ensures there is always an available sales pipeline.

Lead scoring is a lead evaluation based on lead actions. It's a lead generation management tool to measure lead interest and prioritize lead nurturing efforts.      

The lead score helps you and your sales team determine which leads are the most viable so they can focus on those in higher demand. It also ensures that nobody wastes time following up with uninterested prospects or engages in endless, fruitless debates over whether Lead A is a lead worth pursuing or not.

Lead scoring is simple but very effective. 

The lead scoring process includes the following steps: 

A lead takes an action - such as visiting a website, downloading an e-book, making a purchase, etc.- and that action automatically generates some kind of lead score (i.e., 10,000+). Lead scores are increased when actions are taken which provide insight into lead behavior to help you prioritize your lead nurturing efforts

As a lead takes more and more lead actions, their score increases. The people who show the most interest in your business will have higher lead scores than those less interested.

Lead scoring systems give you an accurate picture of how interested your prospects really are. If someone fills out a contact form on your website, for instance, you know they're at least somewhat interested in what you have to offer. Your goal should be to move that communication away from the self-serve forms and one-way interactions like e-books or informational videos. You want to introduce some dialogue with sales reps to determine whether the person is a true lead or not.

Lead scoring provides a framework for prioritizing your sales efforts by determining which prospects are most interested in what you have to offer.

The higher someone's lead score, the more likely they will become a customer and buy from you.

A high-quality lead has all of these qualities: 

  • Low difficulty: It's easy to sell to them (not many objections)    
  • High receptivity: They say yes quickly when asked if they want information about your product or service    
  • High commitment: They sign up right away when you ask them to do so    
  • High need: Their problem(s) is important enough that they're willing to spend money solving them

A low-quality lead has all of these qualities:

  • Low difficulty - They're not easy to sell to    
  • High receptivity - Sales reps have a hard time getting them to say yes when asked about product information or pricing.    
  • Low commitment - They never sign up for anything and give sales reps the runaround.    
  • Low need - Their problem is not important enough that they will spend money solving it. If your solution doesn't solve their immediate concern, they'll go elsewhere.

Companies have two main goals when it comes to lead scoring: maximizing lead conversions and increasing lead quality.

The lead score is a measure of how likely prospects are to buy, with one being the least likely and 99 the most likely. Once leads are scored, marketers can sort them based on their probability of buying, so they only focus on those most likely to buy.

This saves time while ensuring that salespeople aren't wasting their efforts on low-quality leads.

Increasing lead quality means focusing more attention on higher quality leads so marketers can take their business to the next level by spending more valuable resources on lead generation. 

How Lead Scoring Helps Your Business? 

Lead scoring benefits businesses in many ways. Here are just a few of the most notable advantages: 

1) Leads can be automatically assigned based on actions and behaviors without being biased by human judgment

2) Scoring systems provide a framework for sales reps to prioritize their efforts

3) Lead scoring can save both time and money while ensuring that marketing generates the highest-quality leads possible.

4) Leads are scored automatically based on predefined lead actions, increasing efficiency and reducing human error.  

5) Lead qualification provides a more accurate picture of how interested prospects are in your business, making the lead nurturing easier and more fruitful.   

6) Higher quality leads will result in higher revenue generation with less investment in manpower resources.

7) You'll be able to spend more effort on those who have already shown interest in your business instead of cold calling or spamming everyone you know

8) It automatically helps sales reps prioritize their time by analyzing how likely a lead is to buy based on predetermined action triggers.  

9) Lead scoring systems allow marketers to understand which activities most effectively move leads through the sales funnel, making marketing efforts far more efficient.    

10) Sales reps can focus attention on qualified leads that are already interested in their products and services instead of spending time trying to convince leads who aren't sure about buying.   

Lead scoring is important because it helps marketers know which leads to focus on and how much time and effort they should spend. By assigning lead score ranges to each lead, companies can easily see who's hot and close to buying vs. cold and not qualified or ready to buy.

When leads are sorted by scores, the closer they are to a lead score of 1 - the more interested they are in what you have to offer - the higher priority they deserve from sales teams and marketers.

And when lead scoring software is used, lead generation companies save hundreds of hours every month that would otherwise be wasted on low-quality leads.

Marketers know that lead quality is the number one thing you can do to ensure lead generation success.

Lead scoring helps increase lead quality and ensures lead generation success by focusing on high-quality leads rather than low-quality ones. By freeing up time spent on unqualified leads, companies can focus more of their efforts where it matters most: generating sales. 

Salespeople save valuable time knowing they're only dealing with qualified leads already interested in a company's products or services, freeing up more time for closing deals and increasing revenue. That means lead scoring software makes everyone in the organization more successful. 

When marketers focus on lead scoring, they'll notice an increase in lead conversions, an improvement in lead quality, and lead generation success that includes a bigger ROI.

Lead scoring is the first step to lead generation success: increased lead conversions, improved lead quality, and streamlined lead generations efforts.

How to get started with lead scoring?

Getting started with lead scoring is easy. Just follow these steps below:

1) Establish lead score ranges for lead scores

The first thing you need to do is establish lead score ranges. These lead score ranges will determine who is a high-priority lead and who should be passed on to sales or marketing teams.

For example, lead scores from 1-24 would be considered lead generation leads, lead scores from 25-49 would be slightly interested leads, lead scores 50-74 are hot leads and lead scores 75+ are sales-ready.

To maximize their lead conversion rates, sales teams may want to approach these top lead score ranges with a different strategy.

2) Assign lead scores to individual contacts based on lead actions

The next step is to assign lead scores according to lead actions.

When lead scoring software is used, lead generation companies assign lead scores to individual contacts and accounts based on lead actions: how interested they are in a company's products or services.

Come up with lead action criteria that can be easily identified when it comes to specific lead types - such as web page visits, phone calls, and form completions. Just be sure to follow your lead scoring policy for consistency among all lead generations teams.

Make sure you follow your lead scoring software's instructions, as each company has different mathematical equations for lead scoring.

3) Monitor lead scores over time and see which leads are hot vs. cold

Lead companies can then monitor the leads' lead scores over time and watch how their lead score changes from one month or week to another. By tracking these changes, marketers can see which leads are moving towards buying while identifying cold leads that won't buy anything.

This is where lead scoring software saves hundreds of hours every month that would otherwise be wasted on low-quality leads.

4) Filter lead lists and focus lead generation efforts based on lead score ranges

Finally, lead companies can then filter lead lists by lead scores. These lead lists are now ready for lead generation teams to start reaching out with calls, email campaigns, and other marketing activities that will help convert leads into sales.

Using this lead scoring system ensures increased lead conversions, improved lead quality, and streamlined lead generations efforts, all of which means more time spent in generating sales.

Tips for increasing your company's lead score

For lead companies to improve lead generation efforts, lead scoring must be done correctly. The best way lead generation companies can increase their lead scores is by: 

1) Reporting lead score ranges and lead actions in easy-to-understand metrics that can easily be understood by any member of the team.

2) Keeping lead action criteria clear

3) Having a defined lead scoring policy

4) Monitoring lead scores over time

5) Focusing lead generation efforts based on lead scores

6) Using targeted marketing tactics to convert high-priority leads into sales opportunities

7) Identifying sales-ready leads

8) Prioritizing account or contact lists with high lead scores

9) Well managing your pipeline and effectively closing deals

10) Automating repetitive tasks and lead scoring to reduce lead generation lead-time

11) Focusing on lead conversion rates

By following these lead generation lead scoring tips, lead companies can generate more sales leads and maximize their marketing efforts. Lead scoring helps identify hot lead opportunities efficiently while increasing lead quality for better lead nurturing campaigns.

This is why lead scoring software has become an integral part of any successful B2B company's marketing strategy that will surely help both small business owners and enterprise marketers to achieve their goals faster.

Maximize your marketing efforts and drive more leads

Lead scoring is an important tool for determining which type of lead a company should focus on. It's an effective way to determine which leads are ready to buy and should move on to the next stage of your sales funnel and which leads still need more information before you can sell them anything. 

With the information you learned in this article, it's time to put your lead scoring strategy into action and watch your company flourish! 

What are some other ways that you use lead scoring? Share your feedback with us below; we would love to hear from you!

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Danny is a 7-Figure Online Business Growth Expert, one of the Most Successful Entrepreneurs under 40, and a Growth Revenue Strategist who’s helped scale his clients to over $50M worth of sales online.
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