Reasons Why You Must Have Lead Scoring Strategy for Your Business

Most companies nowadays use lead scoring to achieve a results-oriented approach which can help them become efficient and earn more profits. Well, you may be thinking how can companies achieve that by adopting a lead scoring model in their customer relationship management framework.

Lead scoring is basically ranking leads by assigning scores to different characteristics or attributes that a lead might have. This helps the sales and marketing team to channel their efforts more towards those leads that are your ideal prospect or are close to becoming that. The consequent results achieved from adopting this lead scoring model is that sales and marketing teams are able to close more deals in less time which is a goal universally shared by all companies.

Today we are going to look at different reasons why lead scoring might be the need of the hour for your business and how you can use it to earn more profits.

1)  Marketing and Sales alignment:

Lead scoring model is developed with insights from both the marketing and sales department. Both departments sit and decide on attributes that they think are common within the leads that convert. By doing so and building a criterion together, both departments can nurture a lead in a more effective way.

When a lead will achieve a certain score, it will become a marketing qualified lead where it will be nurtured aggressively by the marketing department. Once the marketing team determines that lead is ready to be contacted by the sales team it will then be passed to the sales department.

This will increase the chances of converting leads as they will be pre-qualified and the sales team won’t waste their time calling contacts that don’t want to do business with you.

2)  Effective Marketing Campaigns:

Most marketers want their marketing campaigns to bring as many qualified leads as possible within their sales funnel. By employing a lead scoring model within your business, you will be able to see which marketing campaigns bring in the most qualified leads. This can help the marketing team in identifying which marketing campaigns and channels are effective and which are not. They can use this information for future marketing campaigns which will make it effective and efficient.

3)  Increase in revenue:

We all know that in order to increase profits companies need to invest heavily to make their operations efficient. Efficiency for a business means that their employees are able to become more productive i.e. they are able to generate more results in less time.

Lead scoring directly and effectively increases efficiency of the business. When sales and marketing teams are able to focus on qualified leads, they waste less time on leads that aren’t interested in your product or service. This will increase the conversion rate for the business which will lead to increase in revenue and profits.

4)  Engage at right time with right content:

One mistake that most salespeople make is that they sometimes engage leads at the wrong time with right content in which case the lead won’t convert. This is because the lead hasn’t reached that maturity level where it is ready to buy your product or service. In other times, the salesperson might engage the lead at the right time but with the wrong content that might cause the lead to drop the idea of buying your product or service.

The goal for sales people should be to engage with the lead on the right time and with the right content. By employing a lead scoring model, you can exactly know whether the lead is ready to buy or not. For instance, if the lead has visited your landing page then it means it is ready to or close to buy your service or product. But if it visits a blog page then the lead is probably not ready.

Secondly, once the salesperson has determined that the lead has matured it can then track its activity to find its pain points. It can try to engage the lead with information that addresses solutions for the pain points that a lead might have. Consequently, the sales team is able to have a better sales pitch.

5)  Complete control on process:

One of the most important benefits that lead scoring provides to the business is that it develops a very good follow up practice for the business. You’ll have complete control on your leads because every time they will reach a certain score you will know that it is time that you contact them.

By doing so, you will ensure that no lead that is interested in doing business with you slips through the cracks.

For instance, in HubSpot lead scoring, you can assign a certain score when a lead visits your landing page. As soon as the lead visits your landing page, its score will increase. With the Sales automation feature that HubSpot provides you can notify your sales team to contact the person immediately. This way you will never lose a lead because you just lost it within thousands of other leads.

6)  Saves time:

Imagine, going over each lead one by one to decide whether to contact the person or not? Trying to determine whether it is the right time to contact the person or not? It is neither feasible nor effective. This is where lead scoring comes in. It will automatically collect different data points of the leads and assign it scores on the basis of it.

This will save your time and give you more time to invest on tasks that actually matter for the business. 

7)  Effectiveness can be measured:

Lead scoring models can help you identify what type of leads are coming into your funnel. By looking at the quality of leads that you are generating you can better understand what problems you might be facing if leads are not that good.

For instance, if you rank your leads on a scale of 1-100 and most of your leads score less than 10. This means that your leads are not good enough. You can then devise a plan to identify what channels you can use to improve lead quality or what type of content you want to show to prospects to improve lead quality. All of this data can be quantified to identify where exactly the problem is and then it can be fixed.