Lead Scoring

by Jay Hidalgo, Partner - The Annuitas Group

Chances are, intuitively, your company is already using a lead scoring system.  If marketing or sales personnel have enough knowledge to classify a lead as"Hot", "Warm", or"Cold", then you are using a lead scoring system.   However, this rudimentary"system" does not allow for the kind of lead routing and closed loop tracking needed in today's business environment.   In response, many companies are developing formal numeric lead scoring systems that will allow them to effectively qualify, route and nurture leads.

What is Lead Scoring?

• Score of 91-125 Route Lead to Sales
• Score of 51-90 Send Lead through Lead Nurture Track
• Score of 1-51  Discard Lead from System

Developing a Lead Scoring Model

When getting started, keep two things in mind…

• Keep it simple.  Don't get fixated on having the perfect model.  Determine the 3-5 key criteria, and build your initial model around them.  You can expand your model later on down the road
• Make sure developing the model is a joint effort between marketing and sales.  Rarely does one side see things from the other's perspective.  Developing this model should bring both sides together to arrive at an agreed to model.

  Step #1 – Define and Identify

  The first step is to bring marketing and sales together to define criteria, and definitions.  Questions to ask here might be those related to a prospect's budget, buying timeframe, product needs, etc.  Also, discuss the source of the lead, and its significance (should a lower score be given to a web lead requesting a whitepaper, versus a tradeshow lead asking for a rep to call?). And don't forget to ask"What's the definition of a qualified lead?" Make sure to ask this question of both sales and marketing).

  
  Step #2 – Assign point values to each of the criteria.

  Time should be taken to assign the proper point value to each of the potential criteria.  Higher valued criteria get higher point values; lower criteria get lower point values.   The chart below is a very simple example…
  Number of Employees
  250 or more  80 points
  100 to 250   60 points 
  75 to 100     20 points
  0 to 75    0  points
  Time Frame 
  0-3 months  60 points
  3-12 months     20 points
  12+ months   0 points
  Annual Budget for Widgets
  $100K+      60 points
  $75 -100K  40 points
  $25-75K    20 points
  <$25K       10 points
  The total possible score from this scenario would be 200.

  
  Step #3 – Determine your"buckets"

  With your scorecard in place, determine which"bucket" each lead goes into based on it's score.  To start, create 3 buckets:  Sales, Nurture and Discard.  Any score of"x" and above gets routed to Sales.  Any score between"x" and"y" gets nurtured.  Any with a score below"z" gets discarded. Using our example above…

  • Lead score of 160 or higher – Route to sales
  • Lead score of between 60 and 160 - Nurture
  • Lead score of 60 or lower - Discard.

  Getting the right levels may require some trial and error, and fine tuning.  Create different lead scenarios, and run them through the system.  If necessary, change point totals.  Run the scenarios through again.  Make special provisions for prospects that don't meet the"routing" score level, but have asked to speak to a sales rep.  And don't forget, get feedback from sales.  If sales doesn't agree, it could stall the entire system.

    
  Step #4 – Monitor

  After you develop the system, and put it in place, make sure you keep close tabs on the leads, and how they are being measured with the new system.  Allow sales to provide feedback. Continue to tweak and change until you have it right.  It will take some time, but stick with it.  Eventually, you'll have a system that will take the guess work out of lead routing, and will lead to greater sales productivity.
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