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Building Successful Lead Scoring Models

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Lead Scoring, the term, is thrown around a lot by marketing ‘gurus’ and experts, lead generation bloggers and strategists, and of course, software companies who offer Lead Scoring tools in their platforms. However, beyond the high level concepts, how is Lead Scoring actually done within the context of how your business works?

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Building Successful Lead Scoring Models

  1. 1. Lead Scoring Best Practices Prioritize Your Leads Accelerate Closed Business
  2. 2. What is Lead Scoring? lead scoring Lead scoring is a shared sales and marketing methodology for ranking leads in order to determine their sales-readiness.
  3. 3. Why Use Lead Scoring? Marketing Personalization - - Understand where a lead is in the evaluation process - - Drive relevant content to lead to accelerate decision to buy and deliver more MQLs
  4. 4. Why Use Lead Scoring? Sales Prioritization - Waste less time calling lower qualified leads - - Close deals faster by focusing on higher quality leads who are ready to buy now
  5. 5. Proven Effectiveness “. . .those using lead scoring had a 77% boost in lead generation ROI over those not using scoring.” – Marketing Sherpa study “70% of leads are lost from poor follow-up . . . Lead Scoring improves the quality of sales follow up and thus wins more leads.” – Gartner study
  6. 6. Case Study done by Eloqua Metrics Before Lead Scoring After Lead Scoring Delta Opportunities (qualified leads) 1,372 1,058* - 23% Closed Deals 430 (31%) 433 (41%) 10% Revenue Per Client $16,842,950 $19,843,545 18% Revenue Per Deal $39,149 $45,863 17% 10 customer scoring programs analyzed *Note: at time of this study, most of the sales cycles for the lead scoring deals had not yet completed. It is expected the total number of opportunities will increase.
  7. 7. Don’t ConfuseLead Stages with Lead Scoring Highest Lead Score ≠ MQL
  8. 8. Lead Stages and Lead Scores $$ - Closed Revenue -$$ Nurture Marketing Qualified Lead Sales Accepted Lead (SAL) Prospect Sales Qualified Lead Customer’s Buying Process New Customer Onboarding Raving Fan100 Leads 25 A1 Leads 30 B1 Leads 15 A4 Leads 30 C1 Leads Disqualified
  9. 9. Building a Lead Scoring Model
  10. 10. Types of Lead Scoring Single Number All Scoring Criteria adds up (or subtracts down) a numerical score, usually based on a total of 100 or 1000 points Example (1000 point scale): Title = VP: 200 Company Revenue = $1 Billion+ : 200 points Downloaded whitepaper yesterday: 300 points Lead Score: 700 points = Hot Lead Use of Single Number scores is on the outs in favor of Co-Dynamic
  11. 11. Types of Lead Scoring Co-Dynamic Engagement and Profile scores are separated into a 2 character alphanumeric code, such as: A1, A2 . . B1, B2, etc. where the first character represents the Profile score and the second character represents the Engagement score
  12. 12. Split the Score Score Description Marketing Action A4 The right prospect but no interest. Needs more nurturing before becoming MQL. B1 Good fit and very interested. MQL. Send to sales for follow-up. C1 Not the ideal prospect but very interested. May be a good fit later, or a lead into someone else at the account. Continue to nurture. D4 Wrong Fit. No interest. Fulfill request and segment out.
  13. 13. ExplicitAttribute: Demographic Fit Demographic Fit Known, identifiable information about the contact (title, company, location, annual revenue, etc.). This information tells us if this contact is the right person to do business with or not.
  14. 14. ImplicitAttribute: Engagement Engagement High value responses or behaviors that show advancement through the buying process. This information tells us if the contact is thinking of purchasing, and how close to a purchase decision they are getting.
  15. 15. Profile Fit Scoring Matrix
  16. 16. Engagement Fit Scoring Matrix
  17. 17. Multi-Brand/Product Do you Need Multiple Lead Scores? Do you have more than 1 brand? Are your products significantly different? Do you sell to different market segments differently?
  18. 18. Co-Dynamic Scoring - Final Matrix Profile Fit Rating > 75% A 50 – 75% B 25 – 50% C < 25% D Level of Engagement Rating > 75% 1 50 – 75% 2 25 – 50% 3 < 25% 4
  19. 19. OverTime – Scoring as a Threshold A1 A2 A3 A4 B1 B2 B3 B4 C1 C2 C3 C4 D1 D2 D3 D4 All go to sales A1 A2 A3 A4 B1 B2 B3 B4 C1 C2 C3 C4 D1 D2 D3 D4 C2 – A1 go to sales only A1 A2 A3 A4 B1 B2 B3 B4 C1 C2 C3 C4 D1 D2 D3 D4 A1 – A3, B1 – B2, C1 go to sales only
  20. 20. W1 W2 W3 W4 End of third Month End of 6th Month Lead Scoring ImplementationTimeline Planning and Spec Formula Workshop (1 day) Produce Spec document and obtain sign off Build Lead Scoring Formula Build Scoring Formula into martech stack QA and Handoff QA testing, and training session for your staff on LS model Optimization Workshop #1 Review data, tweak scoring formula (if needed) suppress lower scores from going to sales Optimization Workshop #1 Review data, tweak scoring formula (if needed) suppress middle scores from going to sales
  21. 21. Thank You! Otto Warner Vice President, Demand Gen otto.warner@edynamic.net

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