Brands with metrics-based objectives, such as lowering the cost per acquisition, should evaluate lead scoring as a solution to gain marketing efficiency.
By helping optimize media channels, lead providers and lead sources, lead scoring can help marketers increase ROI, establish payment structures tied to lead quality and prioritize lead management based on propensity to convert.
In the past, lead scoring models were expensive and the buildouts were time intensive. Newer scoring systems have reduced the cost and time investment, making lead scoring more accessible to most marketers.
How Does Lead Scoring Work?
Lead scoring is a methodology that ranks prospects against a scale of representative values.
- Leads are evaluated against data points demonstrative of attributes identified to signify lead quality.
- Each lead is assigned and appended with a lead score to indicate the likelihood of that lead reaching the targeted milestone or key performance indicator (KPI) for that campaign.
With the right marketing technology in place, scores can be appended to lead data in real time using an application programming interface (API) call to the scoring model.
What Is the Purpose of Lead Scoring?
Lead scoring allows for the development of efficiency-focused marketing strategies and tactics based on knowing the propensity for each individual lead to convert.
Lead scoring is a flexible, adaptive tool that can support a wide array of marketing strategies, including the evaluation of any prospect or conversion metric. Lead scoring models can even be developed and deployed to evaluate multiple metrics, including longer-term KPIs related to retention or lifetime value.
Specifically, lead scoring can help with lead rejection (by filtering out leads least likely to convert), lead prioritization and routing, tiered pricing, vendor testing, campaign optimization and long-term performance evaluation. Click here to download the whitepaper, “What Scoring Is, Why Scoring Works & How Scoring Can Boost Conversion Rates” to learn more.
Case Study: Targeting Leads with the Highest Propensity to Convert Increased Conversion Rates
A successful brand with an efficient and effective call center believed they could boost their close percentage if they focused their sales efforts on leads with the greatest propensity to convert. But they were not able to identify which leads those were.
DMS Digital Agency built a lead scoring model with the objective of increasing sales conversions. Historical data was reviewed to identify the markers able to predict future success and incoming leads were scored based on these data points. Leads with lower scores (which indicated a lower propensity to convert) were rejected, while leads with the highest scores were prioritized by the sales team.
During the first five months after lead scoring was implemented:
- 15.3% of leads were rejected due to low scores.
- The brand immediately replaced rejected leads with new, higher-scoring leads.
- The conversion rate increased by 12.1%.
Are You Ready to Implement Lead Scoring and Boost Your Lead Generation ROI?
Having the right technology in place is essential for implementing a lead scoring strategy. Sparkroom performance marketing technology, a proprietary technology of Digital Media Solutions that is also licensed by a long list of education marketers, could be your first step in implementing lead scoring as part of your customer acquisition strategy. Click here to request a Sparkroom demo.