Effective lead scoring is essential in high-growth companies, e.g. Vendors of Software-as-a-Services or other providers of professional services. The quality of a lead – i. e. its prospect of becoming a customer – is typically assessed on the basis of pre-defined criterias. But conventional methods of lead scoring often remain too simple. We would like to provide a new way to classify your leads according to product related added values.
Weaknesses of traditional lead scoring
There are several methods you can use to score leads. Two of the most common are a stepped scoring system or a matrix with two planes. In the first case, you give the contact defined point values based on certain properties and its behaviour. For example, if he looks at a product video, it could be worth 5 points. If he holds a leading position, there are 3 points – and so on. The alternative matrix tries to capture the behaviour of the contact on an axis (for example, from 1 to 4). And on the other hand, consistency with the target group profile (for example, from A to D). Classifications from A1 “very suitable, great interest” to D4 “inappropriate, no interest” would result.
Both methods for lead scoring have two major weaknesses: They are very short term and they usually attach too much importance to the behaviour of a contact. This can lead to annoying misjudgements. Because the behavior actually says a lot about the quality of a lead, but only detailed hard facts about the company and possibly about the concrete person put this behavior into a meaningful context!
Score leads more successfully
In order to ensure that lead scoring is truly successful, the behaviour should therefore continue to fade into the background in favor of hard facts about potential customers. Why is this so little done so far? Quite simply: Because behaviour can be measured more easily. Up to now, you have often only been able to gain information about a contact by having it disclosed voluntarily. But it is not only their willingness to do so that is usually very low. It also automatically causes you to receive superficial data. It is actually information such as growth, internal restructuring or new product launches that says a lot about the quality of a lead. Less what can be queried in a standard online form.
Use external company data
If you succeed in including such in-depth data on a contact in lead scoring, you can not only evaluate the presence of your leads. But also their future. Implisense Pro helps you do this. The dynamic database combines external data on all companies registered in the German commercial register. So you no longer have to rely on collecting information from your contact over a long period of time. The company name alone gives you access to hundreds of relevant data points. The challenge for your lead scoring is now only to determine which characteristics are really decisive for the quality of your leads and to evaluate this assessment on a regular basis. Using a real-life example, we would like to show you how such a target customer profile can look like.
A major client from the financial industry asked Implisense’s Data Scientists to generate a target customer profile for better lead scorings. A target customer profile was generated by analyzing 50 existing buyers for a specific financial service. The profile uses only external data about companies to distinguish the group of buyers from other companies in the entire corporate landscape provided by Implisense. As a side note: This also makes it easier to determine the Total Addressable Market (TAM)! In the concrete case, however, the evaluation of individual leads by means of improved scoring was in the foreground. The real target customer profile is shown below.
The shown target customer profile has approx. 110 statistically significant company characteristics. They are organized in seven groups and include hard facts such as the number of employees, the industry, the share capital and turnover. But even more informative for the customer were terms and topics describing the businesses from the buyers. They came from a evaluation of job advertisements and company websites. Interestingly, those sources show references to certain countries in which the sample customers seem to be active. 17 out of 33 customers are active in the USA, which is 51% in the example group, while the expected value in the corporate landscape is only 14% for the USA. 14 customers are active in Australia, 13 in Korea and 10 in Vietnam. These values are also above average. A brief summary of the target customer profile thus shows: medium-sized companies from the manufacturing industry and wholesalers operating in countries such as the USA, Australia, Korea and Vietnam.
The Data Scientists presented the generated target customer profile to the product managers responsible for financial services. They were surprised that the product managers were able not only to understand the results but to explain them immediately. The specific financial service provides customers with protection against exchange rate fluctuations.
Lead scoring + insights = increase sales success
How can Implisense’s target customer profile improve lead scoring? After generating the target customer profile out of existing buyers, each new lead can be evaluated automatically to determine whether there are any indications of countries with exchange rate fluctuations. This insight can then be used not only in the sales conversation, but also in all automated marketing campaigns for the lead. Why not address the country with the respective currency fluctuations in a mailing to increase the conversion rate?
Improved lead scoring should help the lead to better understand the benefit provided by the vendor. Implisense provides a possibility to test scoring yourself with the software Implisense Pro. Use Implisense Pro to examine a list of existing customers (the target customer profile can be found in the list detail overview). Our experts from the Enterprise Team will help you with more complex lead scorings and integrations in marketing automation systems.
Increase your sales efficiency by including truly relevant company data in your lead scoring! For a more successful evaluation and a more targeted approach to your potential customers.