Before discussing the ways in which TARGUSinfo continues to enhance and build out our analytic capabilities, I thought I’d take a step back and do a bit of level setting. I was having dinner a few weeks back with a client and they asked me to define Lead Scoring. Apparently the term gets used a lot but there is some confusion as to what exactly it means. So I want to share with you how we at TARGUSinfo define Lead Scoring. Essentially, there are two very important components to a lead score:1 – The predictive part. This is the area that most people focus in on when they think lead scoring because, to a lot of folks, a lead score is the result of running a model. And what you end up with after running a model is a number which usually represents a probability. Whether it’s the probability that a student will enroll, that a consumer will buy life insurance or that someone will be a valuable customer of yours over time, the model is designed to predict a given behavior. Models are traditionally built from actual customer data as the best predictor of future behavior is generally past behavior. This “number” or model score is a great tactical tool. It allows you to prioritize customers in queue, route valuable looking prospects to your best agents, better allocate resources for follow-up marketing efforts, etc. What that number doesn’t do , however, is tell you anything at all about the consumer. So you know what to do with them once they raise their hand, but how do you get them to raise their hand in the first place?2 – This is where the second critical part of a lead score comes into play and that’s the descriptive component. You hear us talk a lot about transparency and this is really what we’re talking about. If you don’t have insight into who your best customers and leads are, how can you expect to find more of them? The descriptive part of the score is how you develop on-going marketing strategies. You can’t market to an “8”, but you can market to a young couple who is just having children, who own their own home and live in the suburbs.So I define a lead score as a tool that is both predictive and descriptive.
We have a financial services client that has a Premiere/Dedicated agent team and an overflow team (sourced at an external call center). They distributed calls based on capacity. If a dedicated agent was available, they got the call. The problem was, really good prospects (Defined as big spenders and long-term customers) ended-up going to overflow agents and conversion on high-value prospects went down by 40%. Likewise, unlikely converters went to the best agents and they converted at the same poor percentage as calls going to the overflow team. (show bar chart by segment). Through real-time scoring, our client is getting the most out of the response they generate. We are helping them to make better decisions, and conversion of high value callers has gone-up by 25%.
Real-Time Identification and Analytics
Real-Time Identification and Analytics<br />Acquire, Retain, and Grow High Value Customers<br />Dorean Kass<br />Director of Consumer Facing Markets<br />TARGUSinfo<br />Dana Allender<br />Vice President, Business Development<br />InfoCision Management Corporation<br />June 15, 2011<br />
Founded in 1982 by Gary Taylor; its name derived from the words “information” and “decision”. <br />Recognized as one of the fastest-growing private companies in America.<br />Expanded from our initial four Agents to more than 4,200 employees today.<br />Generated annual sales of $175 million dollars last year by providing a full spectrum of services designed to guide our clients through every step of their programs from conception, strategy, metric delineation, creative, fulfillment, and analytics.<br />Received numerous industry awards including Customer Interaction Solutions MVP Award each year since award’s inception in 1992; regularly recognized as Best Places to Work in Northeast Ohio.<br />Succeeded by exceeding our clients’ expectations every day in both customer satisfaction and return on each dollar invested.<br />InfoCision Corporate Overview<br />
You utilize an internal or external call center for:<br />Acquisition<br />Customer Service<br />Tech Support<br />Do know anything about your prospects or customers prior to handling that call?<br />Do all your calls get treated the same?<br />Would increasing first call resolution or automating more calls within the IVR impact your business?<br />Do you route calls to the best-matched agent based on likelihood to convert, likelihood to churn, or potential value?<br />What do you do with prospects that call and don’t convert?<br />Objectives – Why are we here?<br />
Identification<br />Customer Service and Tech Support <br />IVR – Most organizations attempt to identify customers within the IVR using a combination of ANI match and account number.<br />Live Agent – Manually capture consumer information<br /> Challenges: <br />How to identify customers who call from a number not linked to their account<br />How to maintain data accuracy/linkages in the CRM<br />Costs associated with needing to route calls to multiple agents<br />Acquisition <br />IVR – Utilized to automate fulfillment<br />Live Agent – Attempts to manually capture consumer information as part of the sales process<br /> Challenges: <br />What about the people who don’t convert and don’t provide all of their information?<br />Costs associated with a consumer zeroing out from the IVR<br />Identification and Qualification<br />
Identification and Qualification<br />Qualification <br />Customer Service and Tech Support:<br /><ul><li>If any type of scoring/prioritization is utilized, it typically takes place at the agent level</li></ul> Challenges:<br /><ul><li>Missed opportunity for skills based routing around cross-sell or retention</li></ul>Acquisition<br /><ul><li>Inbound:Routing calls based upon DNIS, product, media (print, TV, radio), etc.
Outbound: Typical approach is to use campaign and recency to prioritize outbound efforts</li></ul> Challenges:<br /><ul><li>All leads are treated the same, regardless of their likelihood to convert, ability to pay, lifetime value, etc
Missed opportunity to leverage best performing agents
Dialer performance, agent morale, and marketing spend are all negatively impacted</li></li></ul><li>The Challenge: LG Electronics takes customer service calls but has no insight into who their customers are.<br />The Solution: Leverage TARGUSinfo’s identification solutions in real time to screen pop information to agents’ desktops.<br />The Result: <br />Significant reduction in call handle time – reducing costs<br />Improved customer experience and agent morale by focusing on the purpose of the call<br />Accurate marketing information collected to drive additional purchases of LG products<br />Case Study: LG Electronics<br />
Quickly remarket to non converting inquires<br />Automate fulfillment within the IVR<br />Capture accurate marketing information<br />Increase Operational Efficiencies<br />Identify a higher percentage of existing customers<br />The Value of Real-Time Identification<br />
What is Lead Scoring?<br />Predictive<br />Descriptive<br />
What is Lead Scoring?<br />Web Form<br />Direct Mail<br />800 Number<br />Print Ad<br />TV Ad<br />
800 Number<br />Direct Mail<br />Web Form<br />Highly Profitable Prospect<br />High Quality Data and Likely to Convert<br />Highly Likely to Stay & Pay<br />More Likely to Buy a Lexus than a Hyundai<br />Buys More When Dealing with the Best Agents<br />Print Ad<br />TV Ad<br />What is Lead Scoring?<br />
Responsive to Up Sell/Cross Sell Offers<br />Higher Lifetime Value<br />Be More Profitable<br />Convert<br />Place Larger Orders<br />The Value of Real-Time Lead Scoring<br />
Will Lead Scoring work in Real Life?<br />The Challenge: Understanding if Lead Scoring has any impact or value on ranking inbound calls/customer prospects from DRTV advertising<br />The Solution:<br />Develop a predictive model based on historical inbound calls and sales<br />Once the model is completed, monitor the Lead Scoring results over an extended period of time<br />
Will Lead Scoring work in Real Life?<br />The Result: <br />Lead Scoring does have the ability to differentiate and impact inbound call conversion rates<br />
Lead Scoring Case Study: InfoCision<br />The Challenge: To become the leader in conversion rate for consumer products among the three call centers (including one in-house center) taking calls for a leading DRTV marketer, thus earning a larger share of the call traffic and increasing client ROI<br />The Solution: The solution is two-fold:<br />Implementing skills-based routing to move beyond next available agent technology <br />The application of real time scoring to further enhance results<br />
Case Study: AccuQuote<br />A leading provider of term life insurance quotes<br />The Challenge<br />Inbound leads needed to be better prioritized for the sales team<br />“We knew that 20% of our leads were unlikely to move through to paid status – the problem was that we didn’t know which leads were which.” <br />- Sean Cheyney, Vice President of Marketing and Business Development <br />
Case Study: AccuQuote<br />The Solution: <br />On-Demand Lead Scoring from TARGUSinfo<br />Leads are ranked on a scale of 1 to 10 based on their propensity to purchase<br />The most likely-to-purchase prospects are then moved to the top of the queue for the outbound dialer<br />The best scoring leads go to the best agents, while leads that are judged to be less likely to convert are contacted through email or passed to trainees<br />
Case Study: AccuQuote<br />The Result<br />4-5% increase in sales conversion<br />Improved ability to predict intent to purchase<br />A boost to sales team productivity — freeing up an extra hour a day per agent to spend on cross-sell and needs analysis<br />“Lead scoring is very intuitive, even to a novice. Our lead scores now touch all areas of our operations, from media buys to the call center to sales management. Lead scoring is a win-win for AccuQuote on both the expense and top line sides.”<br />- Don Loonam, Senior Vice President of Sales, Marketing and Fulfillment<br />
Summary<br />Scoring is only as effective as your ability to identify a consumer/business – the two go hand in hand<br />The benefits are clear:<br />Identification:<br />Improve operational efficiencies<br />Improve customer experience/first call resolution<br />Drive additional remarketing efforts<br />Qualification:<br />Sales and marketing teams more effectively value their best prospects – boosting conversion rates and improving both sales and profits<br />Next step: Get a conversation going <br />