What is Lead Scoring and Why It Matters
Lead scoring is a technique used by tech companies to predict the likelihood that a prospective customer will convert into a paying customer.
Developing a Lead Scoring System
Software and tech companies can use firmographic and historical behavioral data from their existing customers to develop an ideal customer profile (ICP) and understand how engagement with various touchpoints in the customer journey impacts the likelihood of a sale.
Armed with this knowledge, the company can establish a lead scoring system that awards points to each lead based on how well they fit established ICPs and their history of engagement with customer touchpoints that historically correlate with sales outcomes.
SnapApp’s lead scoring system, for example, leveraged behavioral indicators across five marketing channels to predict a lead’s readiness to purchase. This system gave more weight to behaviors that correlated more strongly with revenue outcomes, and even included negative behavioral indicators that reduced the prospect’s lead score.
Why Does Lead Scoring Matter?
Lead scoring enables marketing teams to readily identify the qualified leads that are most likely to convert and ready for the next stage in the customer journey – often a conversation with a member of the sales team.
Lead scoring results in two outcomes that are important for overall SaaS growth success: quality and efficiency.
By identifying the most promising leads in the marketing funnel and designating them as MQLs, marketers ensure that only the highest-quality leads are forwarded to the sales team for contact and follow-up.
As a result, the sales team can operate much more efficiently. Instead of sifting through piles of low-quality leads, the sales team can focus exclusively on engaging with high-quality MQLs that have been vetted by the marketing team and are the most likely to convert.
With the sales team operating at peak efficiency and allocating time and resources to qualified MQLs, SaaS companies can shorten the sales cycle, accelerate revenue generation, and reach profitably more quickly than their competitors.