The Who, What, Why, How of Lead Scoring
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Lead scoring is a shared sales and marketing process for identifying the hottest leads for sales-readiness. It is an invaluable tactic that most companies are struggling with. Watch this 30 minute, fast-paced webinar to get the latest and greatest tips on lead scoring whether you are setting up scoring for the first time or you are looking to optimize your current model.
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The Who, What, Why, How of Lead Scoring
- 1. The Who, What, Why, How of Lead Scoring Renaud Bizet Global Marketing Operations Director, Marketo
- 2. • This webinar is being recorded! Slides and recording will be sent to you after the webinar concludes. • Have a question? Chatin the bottom right and I’ll get to your questions after the webinar. • Posting to social?Use our hashtag - #mktgnation Housekeeping
- 3. • WhyLead Scoring matters? • Dive into our Scoring model @ Marketo • How do you builda new Scoring engine? • How do you maintain/optimize aScoring model? • Q&As Agenda
- 4. Why Lead Scoring matters?
- 5. Page 5Marketo Proprietary and Confidential | © Marketo, Inc. 6/6/2016 Improves Conversion Rates
- 6. Page 6Marketo Proprietary and Confidential | © Marketo, Inc. 6/6/2016 Why Alignment is Important
- 7. Why ScoreLeads in the first place?
- 9. Dive Into Scoring Model @Marketo
- 10. Page 10Marketo Proprietary and Confidential | © Marketo, Inc. 6/6/2016 Leverage Scoring to drive Qualification Inbound Leads Target Leads (High Demographic Score) Target Leads (High Behavior Score) Decay / Inactivity Fast Track: Act Now/Call Now
- 11. Page 11Marketo Proprietary and Confidential | © Marketo, Inc. 6/6/2016 Lead Score Formula LEAD SCORE = (Pos Demo Score2 ) - (Neg Demo Score2) + Behavior - Decay Measure of engagement with Marketo content Demographic scores reflect buyer fit
- 12. Page 12Marketo Proprietary and Confidential | © Marketo, Inc. 6/6/2016 Demographic Score • Positive Demo Score • e.g., Marketing Manager title, SFDC/Dynamics customer • Negative Demo Score • e.g., Generic email address, Illegitimate phone number
- 13. Page 13Marketo Proprietary and Confidential | © Marketo, Inc. 6/6/2016 Behavior Activities
- 14. Page 14Marketo Proprietary and Confidential | © Marketo, Inc. 6/6/2016 Behavior/Asset Scoring Matrix
- 15. Page 15Marketo Proprietary and Confidential | © Marketo, Inc. 6/6/2016 Behavior Scoring Matrix
- 16. Page 16Marketo Proprietary and Confidential | © Marketo, Inc. 6/6/2016 Behavior – Decay Rate
- 17. Predictive / Account Scoring Model Historical Data - Win rate - Deal Size - Etc. Firmographic Data - Annual Revenue - Employee Size - Etc. 4K+ Signals - Social Media Activity - Funding - Etc.
- 18. Page 18Marketo Proprietary and Confidential | © Marketo, Inc. 6/6/2016 Leverage Scoring to drive Prioritization SDR CRM Queue Priority Recency Activity Type Engagement Fit/Predictive Qualified Target Recent Meaningful Activities Account Fit
- 19. Page 19Marketo Proprietary and Confidential | © Marketo, Inc. 6/6/2016 Scoring Lenses Product Score Account Score Behavior Score Decay Demographic Score Customer Acquisition Retention Cross/Up Sell Good Target Fit? Purchasing Behavior? Good Account Fit? Recommendation for future products?
- 20. Account Scoring as a Leading Indicator 0 10 20 30 40 50 60 7 8 10 11 20 30 35 45 55 60 65 70 75 80 85 90 95 100 #ofDeals Account Score
- 21. How Do You Build Your Scoring Engine?
- 22. 1. Define objectives (volume, quality, etc.) 2. Identify stakeholders 3. Set definitions 4. Persona exercise 5. Set your revenue modeler 5 Steps to establish your scoring framework
- 23. Which problems are you trying to solve? • MQL Volume Issue • MQL Velocity Issue • MQL to SQL/Pipe Conversion Issue What is currently working well/need improvements? Step #1: Define ScoringObjectives
- 24. Marketing: • CMO • Demand Gen • Marketing Operations Sales: • VP Sales • SDR/AE Management Team Step #2: Identify Key Stakeholders
- 25. • We create an MQL based on: • A lead score of 100+, which is a combination of: • Demographic“Fit Score” • Engagementscore • Buyingintent • Can bea MQL onceevery6 months Step #3: Set Definitions What is a MarketingQualifiedLead (MQL)?
- 26. • A leadthat hasbeen accepted byan Account Executive • Demonstrated BANT • Budget • Authority • Need • Time Step #3: Set Definitions What Is A Sales QualifiedLead (SQL)?
- 27. • Identify a set of key personas with Sales • Run through a scoring exercise for each persona • Demographic • Behavior • Develop your scoring matrix Step #4: Run PersonaExercise Downloadour Definitive Guideto LeadScoring http://www.marketo.com/definitive-guides/lead-scoring/
- 28. Name Awareness Friend Engaged TargetTOFU MOFU Opportunity Customer Lead Sales Lead Nurturing Database BOFU Step #5: Define Your Revenue Funnel
- 29. How Do You Optimize Your Scoring Engine?
- 30. • Feedback loop mechanism with Sales • Sync up meetings with Sales • Email alias to report any inconsistency • Measure scoring performance • MQLdistribution • Leading indicator (MQL/Opty) • Add/Remove newsignals • A/B Test • Business objectives changes ScoringOptimization
- 31. Plan Together, SucceedTogether 31%increase in MQL acceptance 63%improvement in Marketing’s contribution to total revenue
- 32. 1. Be inclusive, transparent and over communicate 2. Identify Key Strategic Objectives and set targets 3. Create SLA with Sales to help drive prioritization 4. Define demographic, firmographic and behavioral inputs to model 5. Optimize over time with input from Sales 6. Get more sophisticated: introduce product and account scoring Lead Scoring Key Takeaways
- 33. Thank You!
Editor's Notes
- So all of that is great, but how do you actually go about achieving alignment? So now we’re getting into the meat of the presentation. So let me give you some actionable tips and share with you how we do it at Marketo
- Lead Scoring is the corner stone for your Sales/Mktg alignment. It drives pretty much everything, it is the official hand off between MKtg and Sales and affects your pipeline contribution, the velocity of your sales cycle to conversion rates and pipe forecast. So if your definitions are off and Sales does not trust your scoring model you are going to struggle with aligning your efforts and affecting positive change,
- 1/3rd of New Leads are Sales-Ready In fact, if all they wanted was names, our job as marketers would be pretty easy. We’d just hand them a phone book.
- Lead scoring might sound like a daunting process, but there are extremely important to get YOU the right leads at the right time, and not waste your time and marketing’s $$$.
- Effective scoring model means improved efficiency for your sales team, they will be focusing their efforts on leads that matter and drive conversion, which will affect pipeline. On the Mktg side your scoring model and your MQL target will drive your Marketing budget allocation and every week you will be looking into fine tuning your programs to make sure you have optimized with your mix to ensure best fund allocation (lead/pipe cost ratio) to drive a strong pipeline contribution.
- So all of that is great, but how do you actually go about achieving alignment? So now we’re getting into the meat of the presentation. So let me give you some actionable tips and share with you how we do it at Marketo
- First and foremost, the sort score is DYNAMIC. It is always changing based on the lead activity and what demographic information we have on the lead. We have a bunch of campaigns in the background that are always checking for the latest lead activity and demographic info. In the next two slides I will go over Lead Score and Demographic Score in more detail. This slide is just a reminder that sort score is dynamic. Score decay is integral to keeping sort score “fresh.” Lead Score is used for prioritization so leads with the highest sort score bubble up in the SDRs’ views. Decay is used to drop leads that haven’t had much activity with us lately.
- Target= we have your company name + email and your job title is less -3
- So all of that is great, but how do you actually go about achieving alignment? So now we’re getting into the meat of the presentation. So let me give you some actionable tips and share with you how we do it at Marketo
- You don’t make these decisions in isolation. Several teams need to come together and define these terms – Marketing, Sales, Sales Development (Inside Sales), Marketing and Sales Ops.
- You don’t make these decisions in isolation. Several teams need to come together and define these terms – Marketing, Sales, Sales Development (Inside Sales), Marketing and Sales Ops.
- You don’t make these decisions in isolation. Several teams need to come together and define these terms – Marketing, Sales, Sales Development (Inside Sales), Marketing and Sales Ops.
- At Marketo, an MQL is a combination of “fit score” / Target, which says how well the lead matches the ideal target, “engagement score”, a metric that scores the lead’s level of interaction with content, and “buying intent”, which tracks purchase indicators. Another important consideration is the length of your buying or revenue cycle for your business, which would influence the decision on how often can your prospect achieve an MQL stage. Marketing has monthly, quarterly goals around MQLs and reports on these weekly
- Sales Qualified Lead: Marketing passes MQLs on to a section of the sales department, sales development reps), that will determine which leads should be given to an account executive to close the deal. In general, an SQL is a lead that has high potential to actually purchase the product. Once a lead is passed to Sales, an AE has 1 week to determine if an opportunity exists and start an active sales cycle.
- Define a set of key personas with Sales: CMO at a technology startup, Marketing practitioner at a B2B finance company, or an IT project manager at a manufacturing company and you are downloading definitive guides, attending thought leadership webinars, attending Summit, etc. Which activities and timeline will it take for those personas to MQL. Helps assess scoring levels for each activities and demo. What is the % demo score compared to behavior. Should be less than 80%
- Now we can take these terms and apply them to the revenue funnel 1) This is the revenue cycle we use at Marketo; it’s broken into 3 buckets, starting with TOFU, where leads enter the funnel, MOFU is middle of funnel, where the focus is on marketing getting leads ready to have a conversation with sales, and BOFU is bottom of funnel, once sales is engaged. This is central to everything we do at Marketo. In fact, defining these stages rigorously in alignment with sales was the #1 most important thing we did in building our revenue process at Marketo. We’ll walk through each of these stages in a bit more detail, as it’s foundational for much of what I’ll cover in today’s presentation. You may have different stages for your business, and that’s okay…the important thing is that you define them, marketing and sales sits down and agrees what they mean, what are the definitions for moving from one to another, and what are the business process and rules for responding at each stage.
- So all of that is great, but how do you actually go about achieving alignment? So now we’re getting into the meat of the presentation. So let me give you some actionable tips and share with you how we do it at Marketo
- We use lead scoring for demographics fit (a VP of mktg. is scored higher than a marketing coordinator) For Asset scoring, we look at whether it’s an early stage or late stage asset and the level of engagement that’s required to consume it (for example, an infographic is just 1 point, but a 100+ page Definitive guide is 10 points) Behavior scoring: again, this is different depending on the early-mid-late stage of content and whether the behavior represents buying intent or not. E.g. visit to a pricing page +10, visit careers pages – minus 10 And of course, you need Marketing Automation software to activate the lead scoring and use it for all your campaigns.
- http://www.marketo.com/reports/2013-sales-and-marketing-alignment-study/ In a joint mathmarketing /marketo study, we surveyed 500 companies and found out that companies that had a shared Sales & marketing process an additional 31% uptick in MQL acceptance and a visible 63% improvement in Marketing’s contribution to total revenue Key to Success: Communication amongst teams and consistent training
- HANDS ON - Ability to focus on day to day support activities INTEGRITY - Take a data driven approach to monitor performance EVANGELIST - Ongoing conversations with partners to further drive education RISK TAKER – Experiment/Pilot new ideas/concepts