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LAMP's Introduction to Lead Scoring
 

LAMP's Introduction to Lead Scoring

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Lead scoring is an objective ranking of a sales lead which allows it to be compared to your other sales leads. This allows for your marketing and sales professionals to easily identify where in the ...

Lead scoring is an objective ranking of a sales lead which allows it to be compared to your other sales leads. This allows for your marketing and sales professionals to easily identify where in the buying cycle each prospect is and to prioritize between leads and therefore follow-up and respond appropriately.

Lead scoring facilitates more efficient and effective alignment between your sales and marketing teams. Having the objective ranking, jointly established, allows for an agreed definition of a high quality lead. This creates a basis for the exchange of feedback on the quality of leads being passed to sales. Over time, this will help ensure that your marketing team passes on the best leads which can then be followed-up with by allowing prioritisation by the buyer readiness, interest and revenue potential.

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  • This presentation is an overview of Lead ScoringThis presentation was written by Julian Poulter, CEO LAMP-360.com
  • Lead scoring is an objective ranking of a sales lead which allows it to be compared to your other sales leads. This allows for your marketing and sales professionals to easily identify where in the buying cycle each prospect is and to prioritize between leads and therefore follow-up and respond appropriately.Lead scoring facilitates more efficient and effective alignment between your sales and marketing teams. Having the objective ranking, jointly established, allows for an agreed definition of a high quality lead. This creates a basis for the exchange of feedback on the quality of leads being passed to sales. Over time, this will help ensure that your marketing team passes on the best leads which can then be followed-up with by allowing prioritisation by the buyer readiness, interest and revenue potential.
  • The prevalence and resourcefulness of the internet has meant that prospects are researching companies and products independently and therefore interacting with the marketing team earlier in their awareness cycle. Your marketing team will generate ‘demand’ (leads) however; with earlier interaction more of these leads are not sales-ready. The commonly established method of getting these leads to the sales team is effectively sending a data-dump of a large list of names or perhaps uploading them to a sales database (CRM). After a few calls, the sales team often give up because of the poor quality of the leads. With a lack of success comes the internal conflict between departments.Obviously, this process is highly inefficient and diminishes the returns your revenue-generating teams can provide you. It can put huge strain on your sales productivity - they’re becoming inefficient in their daily tasks and it’s undermining a lean approach to business and it can cause sales and marketing alignment issues. In amongst the data-dump of names there will be many “hot” leads. These excellent sales opportunities are lost and furthermore, those leads which should have been nurtured by the marketing team have already been passed on meaning you’ll have fewer sales opportunities in the future too. Also older leads assigned for “nurturing” can pop up again as warm or hot leads when the prospect eventually stats to get interested in your proposition again. With fewer deals available, in a highly competitive market, your sales team needs every advantage it can get. They need to be able to contact active opportunities now and have ones further back in the awareness cycle nurtured effectively so they can be converted as soon as possible.You can direct the efforts of your sales and marketing teams most effectively by using lead scoring. This allows the teams themselves to prioritise leads based on their individual profile fit for the product and level of interest.The benefits aren’t limited to this though and businesses can use lead scoring to more efficiently manage their entire sales pipeline and therefore their resources.
  • Effectively implementing lead scoring in your organisation allows the sales and marketing teams to work together more efficiently and ultimately increase the number of successful sales. Knowing about lead scoring on a personal level allows you to add more value to this process and your organisation.Lead scoring achieves more than an objective ranking of leads. Because the ranking system should be developed collaboratively by the sales and marketing teams, it provides a set of mutually agreed benchmarks for lead quality, sales follow-up and collaboration. It also gives ownership of the process to both departments, helping to reduce the placing of blame – at least that which is based purely on opinion, and ensure the approach’s sustainability. Lead scoring allows your teams to develop a system for ranking which prioritises quality interactions, which are known to establish high prospect interest over others.Now with a clear, objective definition of what constitutes a priority lead, the marketing team can determine where in the awareness cycle the buyer’s journey has reached. From this they can appropriately follow-up with the lead. For instance, an ‘Interested’ buyer may actually require further nurturing such that they reach the stage of ‘Looking’ before marketing should then pass them over to the sales team. When the leads are sent over to the sales team, they will have an objective and comparative rating and it therefore becomes easier to determine how effective your sales team is at engaging prospects and closing deals.Having an established lead-scoring system implemented in your organisation gives you greater control of your sales pipeline. As you develop a trusted understanding in your ranking system – through continual feedback between your sales and marketing departments – you will understand more about the quality of your leads. This allows you to better predict your pipeline and revenue forecasts. With this level of consistency, it becomes easier to identify weaknesses in your pipelines whether that may be a particular product line or location. Your teams can then react, in a more proactive fashion, to reallocate resources appropriately.
  • The goal of lead scoring is to objectively determine whether your lead is the right ‘fit’ (profile or explicit scoring) and/or are showing the right level of interest (behavioural or implicit scoring) for your product. With this information you can follow-up accordingly.Key to effective lead scoring is developing a way of capturing information, scoring it and measuring it. In order to achieve this, you need to address the three areas of technology, people and process. You need software, such as LAMP-360 or other marketing automation technology, to effectively manage the entire process of capturing information, scoring and measuring it and passing leads to the sales team when appropriate. For people, your business will need the involvement of sales and marketing teams as well as a champion to drive the process. Finally, the ‘process’ requires the sales and marketing teams to collaboratively agree a definition for a high quality lead and how leads will be transferred from marketing to sales.The overall focus of lead scoring is to generate high quality, sales-ready leads. Once a lead is qualified it needs to be passed on to tele-marketing (or inside sales) for further qualification. Tele-marketing is used to further determine if a lead has the right budget, authority, need and timing. Effective, automated marketing that uses online content can drastically reduce your telemarketing costs. From this, it is decided whether the lead is sales accepted. Your sales team can then decide if the lead is a sales-qualified opportunity. Lead scoring facilitates this entire process by allowing your teams to score leads objectively and thus compare them with one another.The two scoring dimensions: Profile and BehaviouralLead scoring typically comprises two scoring dimensions which help to more accurately determine the quality and readiness of a lead. One dimension will help, but two is better. Explicit data or Profile: Who the prospect is. This is information such as title, job function, industry, company size and budget.Implicit data or Behavioural: How interested the prospect is. This is indicated by their interactions with you. Are they reading your whitepapers and case studies, frequently visiting your website and clicking through on ‘call to action’ buttons or are they only reading your marketing emails and taking no further action?A high profile score is great, but if there is no interest, it’s not a good lead. High levels of engagement and interest are probably better, but if it’s the wrong type of prospect, this might be a problem. Combining the two, usually works better.
  • This section compares the definition of a Marketing Qualified Lead or “MQL” against that of the lead scoring process. When a lead is first generated, normally as a result of a conversion event on a web site’s landing page or in response so social media or email campaign, it is a lead with very little information known about it. Over time as a result of more information being found out about the prospect and his interests, the lead becomes more qualified. Information or qualification can be obtained from:Human beings speaking (or meeting) the prospect and determining his level of qualificationHis interactions with a system such as a marketing automation system. Lead scoring as we will describe is a common approach hereData values being updated in the prospect record by the software. For instance answering a Profile Survey question on a landing page form, may determine aspects of the prospects data demographic such as his industry or his intention to purchase a solution. Software can then update the contact records and take action as appropriateAs the information and qualification data is built up it becomes possible to qualify the lead to the extent that it can move from marketing to sales, as a lead.The simple idea is that “sales” only deal with prospects and leads that are worthy of their expensive attention. The stage at which this handover occurs is the MQL, before that they are just a lead and remain in the domain of marketing.We propose that there are five generic criteria that determine an MQL, namely:Profile: the prospect is the correct profileNeed: he has a need, a problem or a pain, otherwise he’s unlikely to do anything anyway!Understands our proposition: to the extent he knows he could talk to usAccepts sales contact: a phone call or a meeting Has a reason to move imminently: this could be a timescale defined as within 3-6 months, but depends on your sales cycle. If not, this lead is lead nurture, and should stay with marketing until it becomes a proper MQLEnsuring only MQLs are passed to sales ensures that their time is not wasted, it ensures alignment between sales and marketing and this occurs after discussion about agreeing the exact criteria for the MQL. So the question now is: “How does lead scoring compare or work with MQLs?”.If we accept that sales should only be passed leads at the MQL level, are leads scored at this level of quality. Well it depends!Lead scoring as we have seen already, typically scores and ranks the profile of an organisation and the interactions, expressing the prospects interests. The profile of a prospect can obviously be scored and ultimately accepting sales contact is a “yes” or “no” value. The other values can be more subjective but can be implied from either the type of interaction that a prospect exhibits or the content/collateral they consume. In addition Profile Survey questions (as part of progressive profiling) can attempt to specifically answer some of these questions. For instance, a question at the bottom of the form “Shall we contact you” will certainly answer the accepts sales contact criteria. The content that is downloaded can also infer the status of the prospect and scores can be assigned accordingly. However, it may be that a clear match or determination of an MQL is not possible through scoring. In this case the marketing team (or inside sales) may need to take responsibility for contacting the prospect and undertaking the final qualification, determining MQL status, before passing to sales.So the answer to the question is that lead scoring can certainly help determine MQL status, but it will not always be able to clearly do so. However, the high scoring and ranking prospects, are certainly worthy of a call from your organisation to determine MQL status, ahead of low scoring prospects, so can be a valuable tool.
  • Building your lead scoring structure requires you to look at the Profile fit and Behavioural or engagement level individually before combining them.Document the Profile fit scoreDetermine what are the 4-5 explicit data categories that define a sales-ready stage of qualification. These should relate to specific fields in your marketing system.Define how important these categories are in relation to each other and give them appropriate weightings, or simply give each relevant points value from say 1 to 10. Assign corresponding criteria values for each category. This allows you to compare within each category. For instance, you may want to assign points to a company that has <£10m but give the company with larger revenue more ‘points’ Category Ranking Weighting Pain/need identified 1 35%Job Role (seniority / authority) 1 35%Industry 2 15%Revenue / headcount 3 10%Lead source 4 5% 100% Your marketing system now needs to assign points to the contacts where fields have the appropriate values.
  • Determine the implicit data categories (i.e. the behaviour that the prospect displays. Typical examples could include: Item PointsOpening an email 1Click on email 2Register for whitepaper 10Register for seminar 10Attend seminar 20Attend sales meeting 25Visit web pages 3Click on social media link 1 As with profile data you can also show important these categories are in relation to each other and weight them accordinglyAssign values by weighting actions based on their recentness. For example, a prospect that has clicked-through on two emails in the past week to read whitepapers is of higher quality than one that has click-through on two emails to read whitepapers over the past year. A simple way to do this is to “decay” a prospect’s lead score gradually over time.  Ideally our system will also show the individual elements that contributed to the score and also show how the score has changed over time, graphically. It’s also possible to ask questions about the prospect and his need or situation. Remember the MQL criteria:Has prospect agreed to meet with salesDoes he acknowledge he has a problemDoes he understand we have a solutionTimescale for actionSome of these items can be inferred. For instance a person downloading a whitepaper “How to do xzy in the next 3 months” may have some urgency!Finally, create simple broad segments to cover the bands of engagement, something like this: Engagement FitRating>75% A50%-75% B25%-50% C<25% D
  • Now you are able to create a table that maps the profile fit scoring against the prospect’s engagement score. For example, the profile fit has a ranking 1-4 and the engagement level A-D.  1A is the most qualified type of lead whereas 4D is the least qualified. Complete this scoring pair for every prospect.1A is the most qualified type of lead whereas 4D is the least qualified. Complete this scoring pair for every prospect.
  • Now you can build upon your data and get some useful, meaningful actions out of it. Once the scores are calculated and you have assigned ratings to each of the prospects you can follow-up with an appropriate action. For instance, you can now decide to send a prospect to your CRM for your lead nurturing activities or another section of your CRM for priority follow-up, depending on its score.Having a two-dimensional scoring system allows your marketing and sales teams to have more insight into what the score means for the prospect/lead and therefore can choose a more appropriate follow-up actionThe actual treatment plan and actions require careful thought as well as what collateral is required to support these actions and is beyond the scope of this paper.
  • Gather a core group of individuals from both sales and marketing teams to define the criteria for the scoring systemKeep it simple and don’t score on too many criteria otherwise it will be unclear what is defining the scoreDefine what actions will be taken based on the matrix ratings 1A through to 4DDecide on appropriate follow up times for the various lead scores. Ideally, you want to be able to contact your best leads (1A & 2A) within 24-hours and other leads 3A, B1-3 within 48 hours. Larger organisations sometimes set up service-level agreements but, at least at the start of your business, you may be the only individual working on sales and marketing. Therefore, you just need to take into account that these timings will give you the best resultsProvide sales with options for further follow-up if the sale is not closed. For instance, returning the lead to lead nurturingMeasure the impact the lead scoring system is having on your sales. Undertake an analysis on your converted leads to determine your conversion rates and discover various insights that can be fed back into the system to improve. Ultimately, you want the system’s success to be repeatableConsider how lead scoring might affect compensation. Whilst it might improve sales team commission due to an increased provision of high quality leads it may impact marketing if they are normally measured on net-new prospects in the database. Changing the focus to obtaining more qualified leads may hinder their attempts to reach previously set goalsContinuously re-evaluate and iterate your lead scoring system every couple of months using direct feedback from the key stakeholders until you reach an optimum set up. As you become more comfortable with the system, you can look to incorporate more best practice and advanced featuresLook at the score over timeDecay the score if no interaction happens recently. A simple point(s) reduction per time period may suffice
  • The information covered so far will help you develop a lead scoring system and increase sales. It’s important for you to continually improve your processes and we’ve identified these other measures that lead scoring can cover.Increasing awareness of prospect influences: It is clear now that prospects can receive information through many channels. Social media is increasingly important as businesses are exposed to information not only through email and telemarketing but also Facebook, Twitter and Google+. An awareness of how an individual discovered a message e.g. mobile or desktop, email or social media, along with where and from whom will feature more and more prominently in the lead-scoring and lead-nurturing routines of leading companies.Content-type scoring: Regularly reviewing and refining your lead scoring model allows you to notice patterns and opportunities. You may be able to identify a link between lead quality and the type of content accessed during the buyer’s journey through the awareness cycle. You should consider scoring models based on content type – like whitepapers and user case studies – rather than just the generic download activity itself. On top of this, an organisation may be able to see groups of prospects developing that respond better to certain types of content. Their lead nurturing programmes can then be redeveloped to accommodate this new understanding.Account-level scoring: We market to individuals but sell to companies. Your company needs to be able to identify trends within a particular prospect’s activity. For instance, in the future you’ll be able to pinpoint when a certain job role is appearing in a company’s awareness cycle and adjust your strategy accordingly. Parts of the organisation reviewing price lists and attending webinars may indicate that other low scoring leads in the same account should be given higher priority.Customer scoring: If you have multiple products, you should try to keep track of their activity and continue to nurture and interact with them. This has two benefits. Firstly, it helps reduce customer churn rates and secondly, allows you to identify whether there is the potential for up-selling or cross selling to the customer.Predicting changes: Your lead-scoring model needs to be closely aligned with your sales and marketing processes – this is why you got the teams to develop the system in the first place – even as they evolve. With predictive-modelling tools, you’ll be able to constantly monitors prospects’ behaviour and adapt the system.
  • Inbound marketing is an increasingly powerful tool for almost any sales and marketing team. It offers a wealth of low-cost, high-return opportunities and the arguments in favour of it are compelling. If approached correctly inbound marketing can form an extremely powerful part of the marketing mix and overall strategy.
  • LAMP stands for Lead Automated Marketing Process and is an integrated lead generation, nurturing and sales process, managed by cloud software designed specifically for SMEs.Generating leads and revenue is conceptually simple: just attract, educate and convert customers through multiple channels such as email and social media. But even if the processes required are easy to understand, the reality of execution in the fast changing world of web 2.0 is somewhat different.Attracting, generating and nurturing leads is relatively complex and costly for SMEs, requiring multiple tools, processes, resources and services. Each brings its own overheads, subscriptions, support, training and technical issues. This makes it challenging for SMEs to market and sell effectively. Marketing needs to demonstrate the link between a click 2 years ago and business generated today.LAMP’s main applications are lead generation and lead nurturing and other customer and prospect facing processes. LAMP unifies the functionality of CRM & marketing automation along with content using email and social media, to tackle sales and marketing challenges. The key USPs of LAMP are:Unified functionality of CRM and emerging technologies like marketing automation, data management, content marketing and social media publishingLAMP is processes (not just a tool) for lead generation and nurturing, aimed at SMEs, which reduces complexity, the cost of operation and administration and increases efficiency and revenueCost effective single subscription with low risk pricing model (pay per lead) compared to the competition that have higher prices and require multiple subscriptionsUnique features (targeted at niche markets) allowing multiple relationships with contacts with different personas, no data duplication, managing the buying cycles as well as the sales cycleThe LAMP software is provided on a monthly subscription or pay per lead basis and is hosted in the cloud which makes it easy for companies to adopt and to budget for.  
  • Any questions?

LAMP's Introduction to Lead Scoring LAMP's Introduction to Lead Scoring Presentation Transcript

  • July 2013 Julian Poulter, CEO www.lamp-360.com 1 Introduction to Lead Scoring Working with your best leads
  • Introduction What is lead scoring? An objective ranking: Rank best leads / prioritize Sales efficiency www.lamp-360.com 2
  • Why is lead scoring relevant now Buyers engage earlier in buying cycle Sales don’t follow up poor leads “Nurtures” can last 2 years www.lamp-360.com 3
  • Why lead score in your business 4 www.lamp-360.com Depends on the volume Align sales and marketing Better definition of priority leads Better understanding of leads Handle lead nurtures effectively
  • Two dimensions – Profile – Behavioural High profile is good High engagement better Profile Surveys Lead scoring fundamentals 5 www.lamp-360.com
  • Lead scoring vs. Marketing Qualified Leads (MQLs) LAMP-360’s MQL definition: • Profile: the prospect is the correct profile • Need: he has a need, a problem or a pain, otherwise he’s unlikely to do anything anyway! • Understands our proposition: to the extent he knows he could talk to us • Accepts sales contact: a phone call or a meeting • Has a reason to move imminently • Lead scoring may define an MQL www.lamp-360.com 6
  • Defining the lead scoring structure 7 www.lamp-360.com Define 4-5 explicit categories – Pain / job role / industry / headcount / lead source Rank for importance Assign (%) score
  • Document the engagement score Define the categories –Opened email –Click on email –Register whitepaper –Attend seminar –Visit web page etc Score bands A-D – Weight & decay www.lamp-360.com 9
  • www.lamp-360.com Determine overall ratings 10 Profile/ Action D C B A 1 Good Fit Good fit / nurture Priority follow up 2 3 Segment out/suppress Remove from database Qualify & nurture 4 Poor fit Behaviour D Low engagement C B A High engagement 1A is the most qualified type of lead whereas 4D is the least qualified. Complete this scoring pair for every prospect.
  • Map rating to action www.lamp-360.com 11 Profile/Action D C B A 1 Good Fit Good fit / nurture Priority follow up 2 3 Segment out/suppress Remove from database Qualify & nurture 4 Poor fit Behaviour D Low engagement C B A High engagement
  • Best Practice in Lead Scoring Team from S&M to build L/S strategy Score over time, & decay Score affects compensation? SLA for f/u times Options for f/u if not closed www.lamp-360.com 13
  • Future developments in Lead Scoring 14 Increasing awareness of prospect influences Content-type scoring Account level scoring Customer scoring Predicting changes
  • Summary Needs careful planning Relevant with volume of leads Assists alignment of S & M Spend time on better leads – Better conversion – Bigger deals www.lamp-360.com 17
  • About LAMP-360 Out of the box Processes to scale your business Customer and relationship processes Any size company Cost effective Cloud based www.lamp-360.com www.lamp-360.com 19
  • Questions and contact info Thank you julian.poulter@lamp-360.com www.lamp-360.com UK +44 (0)20 3397 0725 15 www.lamp-360.com