Ultimate Guide to Lead Scoring Models: 4 Critical Models

• December 28th, 2021

Lead Scoring Models - Featured Image

Steady Internet utilization among grown-ups has shown an increase of over 5% in the most recent years, as indicated by Pew Research. Furthermore, despite the fact that we cal it a great deal, how individuals shop and purchase truly has changed with time — which means Traditional Marketing isn’t pretty much as powerful as it used to be. 

Marketing has consistently been linked with connecting with your audience in the perfect place and at the perfect time. Today, that statement implies you need to meet them where they are investing their energy: on the Internet – this paved the way for Digital Marketing. A business can’t flourish without Lead Generation, nonetheless, the more Leads you generate, the more selective you must be in your pursuits.

Sales reps don’t have any desire to waste time chasing a huge list of impasse Leads. That time could be spent sustaining more promising Leads. In this article, you will learn about Digital Marketing, Leads, and 4 different Lead Scoring Models. This will help you create a Lead Scoring Model that is the best fit for your company.

Table of Contents

Understanding Digital Marketing

Digital Marketing comprises all Marketing efforts that include an electronic device or the Internet. Organizations are leveraging digital channels, for example, Search Engines, Social Media, Email, and other websites to connect with current clients and prospective customers.

Digital Marketing assists you with reaching a bigger audience than you could through traditional strategies and focus on the potential customers who are well on the way to purchase your product or service. Furthermore, it’s more cost-effective than traditional advertising and empowers you to achieve success consistently.

In the event that you place an advertisement on TV, in a magazine, or on a board, you have restricted control over who sees the promotion- it’s a blind shot in the dark. Digital Marketing, on the other hand, allows you to distinguish and focus on a highly specific audience, and send personalized, high-converting Marketing messages to that audience!

For instance, you may exploit social media’s targeting features to display social media ads to a specific audience based on variables such as age, gender, location, interests, networks, or behaviors. You may also use PPC or SEO strategies to serve ads to users who’ve shown interest in your product or service, or who’ve searched for specific keywords that relate to your industry. 

At last, Digital Marketing enables you to conduct the research necessary to distinguish your purchaser persona, and lets you refine your Marketing strategy over the long run to ensure you’re reaching prospects most liable to purchase.

Understanding Leads

Lead Scoring Model - Understanding Leads

Image Source: Ecallis

In simple terms, a Lead is an individual or organization with an interest in the product/service you are selling. The interest is often expressed by sharing their contact information – Email ID,  phone number, Social Media handle, etc. To work out your Lead Scoring Models, you need to start with the basics so you need to understand the definition of a Lead. Each organization will have its own definition of a good Lead.

There are numerous definitions of a Lead, and there are considerably more definitions of a good Lead. A Lead is a certified prospect that is starting to or might show purchasing behavior. Usually, the Sales and Marketing teams don’t always concur on what constitutes purchasing behavior, which is why it’s important to define a Lead for your organization.

Understanding Lead Scoring

Lead Scoring Model - Understanding Lead Scoring
Image Source: Leadsquared

Lead Scoring is a process that helps Sales and Marketing teams distinguish individuals who are most likely to purchase their product or service and remove unfit Leads. It helps Sales teams focus on the most important opportunities, close more deals, and better understand who they’re drawing in and the types of Leads they should draw in more.

However, with regards to scoring your Leads, how would you separate the good prospects from the bad ones? Experience and gut instinct goes a long way, however, they aren’t sufficient. To consistently discover strong likely customers, Sales representatives need an efficient and reliable Lead Scoring Model.

To score a Lead, you assign numerical values to important information sources from the information that you acquired. For instance, the source or status of a Lead can be a good predictor of the Lead’s probability of turning into a certified Lead. You can then turn these variables into a formula that can be used to calculate a score indicating the value of the Lead.

Understanding Lead Scoring Models

A Lead Scoring Model is a system/model designed for evaluating/scoring Leads. You offer points to a Lead-based on various factors, such as the industry/ company the Lead works in or their degree of interest in your product. Qualities that are associated with past high-esteem Leads can be assigned more points. 

With Lead Scoring Models, you’re ready to rapidly recognize Leads that are the most and least probable for an expected sale.

Factors that Affect Lead Scoring in a Lead Scoring Model

It is important to know about the factors that play a crucial role in most of the Lead Scoring Models. That is because other organizations don’t have similar business models, customers, services, products, or Marketing strategies as you do, so you should define a Lead Scoring Model that accommodates your business. So, let’s look at some of these factors:

1. The Threshold for Lead Score

Lead Scoring Model - Threshold for Lead Score
Image Source: MartechAdvisor

The threshold for Lead Score refers to the score beyond which the Lead is viewed as Sales-ready. At the point when a Lead’s score reaches or exceeds this value, they become a Marketing Qualified Lead(MQL) and are passed from Marketing to Sales. 

Getting your threshold score right is very crucial. On the off chance that the bar for qualifying as a potential customer is too low, the Sales team will have a baffling time trying to convert Leads that aren’t ready to be converted to customers. Even if you set the score threshold too high you end up waiting on important Leads for too long, giving them an opportunity to be grabbed up by a competitor. 

You should decide your threshold partially by looking at historical data which attributes or a mix of attributes mark a Lead as qualified in old data). Whenever you’ve set a threshold, you can set up your CRM to automatically notify you when a Lead reaches that threshold in your Lead Scoring Models.

2.  Implicit Score

Implicit Score refers to the score you award to a Lead based on their interactions/ behavior with you. You can utilize your CRM software to track each interaction a customer has with your organization, webpage, etc. Some of these interactions include:

  • Webpage visits
  • Interactions on Social Media
  • Email opens/clicks
  • Subscription to your Newsletter
  • Content usage/downloads
  • Webinar attendees
  • Subscription for Free trials/product demos, etc

3.  Explicit Score

In Explicit Score, you assign scores to a Lead based on the Lead’s attributes. Some of those attributes can be:

  • Lead’s job title.
  • Seniority level of the Lead.
  • Experience of Lead in the industry.
  • Industry of employment.
  • Size of the company the Lead works in.
  • Revenue of the company the Lead works in.
  • Demographics and location of Lead.

Now and then a Lead will chip in the information that you need for Explicit Scoring—for instance, by filling out a poll to download your content from your site or the information might be extracted by research, which could include looking at the Leads’ LinkedIn page or company webpage.

Implicit Scoring is a significant contributor to a Lead’s score than Explicit Scoring because the Explicit Score is only given once for a Lead (eg: work title). In the case of Implicit Scoring, a Lead will be scored each time that they download your content or open an Email.

4. Negative Score

Only a few out of all interactions a Lead has with your organization is a step in the conversion, and your Lead Scoring Model should perceive that. Giving a Negative score is a method of deducting points from a Lead score based on actions or interactions that demonstrate a fading or complete absence of interest in your products, which could include:

  • Leads that unsubscribe from your Emails and promotions.
  • Looking for employment opportunities on your career page.
  • Leads Interested in your content for purely academic reasons.
  • A rival company just researching market competition.
  • Stagnant Leads that don’t progress in the Sales funnel. You bring down a Leads’ score if they haven’t interacted with you for a long timeframe.

5. Consistency & Regular Updates

In order to keep your Lead Scoring Models as precise as possible, persistently update them with the help of the latest customer data. In the event that any colleague makes changes to the model make sure that this change is communicated to both the Sales and, Marketing groups(consistency across all departments). With this correspondence, your Marketing division will identify strong Leads and will refer them to Sales.

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Understanding the Different Types of Lead Scoring Models

By learning about a couple of Lead Scoring Models, you can gain ideas on how to create your Lead Scoring Model:

1. Webpage Visitors Lead Scoring Model

Lead Scoring Model - Webpage Visitors Lead Scoring Model
Image Source: Smartacre

This scoring method is best for E-commerce and other online-based businesses that generally get their Leads through online Marketing efforts and SEO. Here we identify Sales Leads from people who visit your website or content and zero in on what parts of your site they interact with and their general behavior.

Signs that show the Leads are interested in your products may include going through your pricing page, providing contact details, or adding items to the shopping cart, etc. Other signs of interest that should be scored lower include reading your content in a blog post or visiting your about us page. Assign a score to each of the online interactions to calculate the Lead score.

2. Interaction Lead Scoring Model

This method is widely applicable for all domains, so regardless of your industry or business model, this should help you identify profitable Leads. However, in the event that you think a more detailed Lead Scoring Model is necessary, this model may be too simple for you.

In this model, Leads that have a profile that makes them a right fit for the organization and who have interacted heavily with the site are the best candidates for conversion, whereas poor fits who don’t interact with the organization are not great for conversion. 

There’s a range of moderate candidates in between, for example, those who don’t make a great fit in terms of profile but however they show a ton of interest in the site,  those who aren’t interacting much yet fit the organization’s profile, demonstrating they make great secondary targets. An example of how Cyberclick’s Lead Scoring Model may look like:

Lead Scoring Model - Interaction Lead Scoring Model
Image Source: Fool

3. Business to Business Lead Scoring Model

This model is ideal for the Business to Business(B2B) generation of Leads because it’s focused on targeting certain work titles, departments, and business types. This wouldn’t work on the off chance that you are focused on selling to consumers and not businesses. 

When it comes to Sales, the person you connect with inside an organization is everything. A business could be the perfect fit for your products or services, however, if you’re conversing with the wrong representative of that business, the deal can go down. As a result, some companies score Leads based on a person’s work title, department, or role in an organization. You can likewise add scores based on the number of employees an organization has in the event that you sell premium products at enterprise prices. An example of how this model may look like for an IT service provider:

 Business to Business Lead Scoring Model
Image Source: Fool

4. Email Interaction Lead Scoring Model

Organizations that rely heavily on Email Marketing campaigns are best served by this model, yet even on the off chance that you don’t often use Email Marketing, implementing this scoring system will help your team improve your conversion rate.

Emails are great for Lead Scoring because it’s easy to see exactly how people are responding to your Marketing campaigns. With an Email Lead Scoring Model, you will identify hot Leads with high conversion rates, and be able to tailor future Marketing campaigns to increase the number of qualified Leads you generate. You can use a CRM software that monitors the Emails’ open rate, number of click-throughs, number of people who haven’t responded to numerous Emails and therefore most likely aren’t interested, etc.

 A generic Email Lead Scoring Model might look like this:

Email Interaction Lead Scoring Model
Image Source: Fool


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