Guide To Developing A Lead Scoring Model

WHITEPAPER
Guide to Developing a Lead Scoring Model
The importance of classifying leads according

to a numeric model.
WWW.INVENIOMARKETING.COM
WHITEPAPER
Guide to Developing a Lead Scoring Model
WHY LEAD SCORING?

Companies are notorious for designing lead management systems that classify opportunities
in deceptive categories such as Hot/Warm/Cold based on responses to a few questions asked.
The result of systems such as this includes:
t "OJOBCJMJUZUPSBOLBOEQSJPSJUJ[FDPOUBDUTJOUFSNTPGJNQPSUBODFBOEMJLFMJIPPEPGUVSO-
ing into business.
t "TBMFTPSHBOJ[BUJPODIBOOFMEJTFODIBOUFECZUIFDMBTTJmDBUJPOQSPDFTTPODFUIFZSF-
DFJWFPOFMFBEDMBTTJmFEBTi)PUwUIBUUIFZmOEJTOPUi)PUw UIFZBSFPOUIFPõFOTJWFBCPVU
the system and their likelihood of following up diminishes.
t "OJOBCJMJUZUPFBTJMZBEKVTUCBDLFOEQSPDFTTFTUIBUPDDVSGPMMPXJOHDMBTTJmDBUJPOoJGB
MFBEJTGPSXBSEFEUPTBMFT FUD
"TBSFTVMU NPSFGPSXBSEUIJOLJOHNBSLFUJOHBOETBMFTPSHBOJ[BUJPOTBSFUFBNJOHVQUP
EFWFMPQBTZTUFNUIBUSFNPWFTBNCJHVJUZJODMBTTJmDBUJPOTBOESFQMBDFTJUXJUIBTZTUFNUIBU
grades opportunities numerically.
WHAT IS LEAD SCORING?

8IFODPOTJEFSJOHXIBUEBUBDBQUVSFJTJNQPSUBOUGPSBRVBMJmDBUJPOTZTUFN JUJTOFDFTTBSZ
UPVOEFSTUBOEUIFQVSQPTFPGFBDIEBUBmFME4PNFEBUBmFMETXJMMCFVTFEUPEFUFSNJOFUIF
quality of a lead (qualifying questions) while others are for informational use only (information
questions).
'PSUIFQVSQPTFTPGUIJTHVJEF XFBSFDPODFSOFEXJUIRVBMJGZJOHRVFTUJPOTBOEIPXUPVTFUIF
responses to these questions to score an opportunity. Lead scoring is a method of classifying
a sales opportunity by assigning points to responses from qualifying questions based on the
importance of each criteria (response) in determining a sales opportunity’s overall value (score).
8IFOPQQPSUVOJUZQSPmMFTBSFDPNQMFUFE SFTQPOTFQPJOUTBSFBEEFEUPBDIJFWFBOPWFSBMM
TDPSFGPSUIFPQQPSUVOJUZ UIF-FBE4DPSF
XIJDIJOUVSONJHIU
t %FUFSNJOFXIFUIFSUIFMFBETIPVMECFGPSXBSEFEUP4BMFTPSUPBSFTFMMFS SFUBJOFEGPS
cultivation or discarded
t %FUFSNJOFUIFQSPTQFDUTRVBMJmDBUJPOGPSWBSJPVTPõFST
WHITEPAPER
5IFSFTVMUPGBMFBETDPSJOHTZTUFNJTUIFBCJMJUZUPSBOLBOEQSJPSJUJ[FPQQPSUVOJUJFTVTJOHB
methodology where an opportunity is graded such as:
4DPSF5PUBM1PTTJCMF4DPSF TVDIBTJGBMFBETDPSFTBPVUPGBQPTTJCMF
"TZPVDBOJNBHJOF UIJTTZTUFNDBOCFDPNQMFYBOENBOZRVFTUJPOTNVTUCFBOTXFSFE
JOUFSOBMMZUPFOTVSFUIBUBCVMMFUQSPPGTZTUFNJTEFWFMPQFE4PNFPGUIFUIJOHTUIBUZPVSTZTUFN
must account for include:
t /POTUBOEBSESFTQPOTFToBQSPTQFDUUIBUQSPWJEFTBSFTQPOTFUPBRVBMJGZJOHRVFTUJPO
that is not on the standard list of responses and thus doesn’t inherently have a score as-
sociated with it.
t /PSFTQPOTFTGPSPOFPSNPSFRVBMJGZJOHRVFTUJPOT
t "QSPTQFDUUIBUXBOUTUPTQFBLUPBTBMFTSFQSFTFOUBUJWFCVUEPFTOPUIBWFBTDPSFUIBU
would normally result in sales follow-up
5IFMFBETDPSJOHNFUIPEBMTPBMMPXTGPSBEKVTUNFOUJOUIFPWFSBMMTDPSFUIBUMFBETNVTUBUUBJO
CFGPSFUIFZDBOCFEJTUSJCVUFEUP4BMFT*GUPPNBOZMFBETBSFCFJOHEJTUSJCVUFE UIFTDPSFDBO
CFBEKVTUFEUPMFUPOMZIJHIFSTDPSJOHMFBETUISPVHIUP4BMFT5IFSFWFSTFJTBMTPUSVF
WHEN SHOULD LEAD SCORING BE APPLIED?

Lead scoring works best when there are multiple variables involved in determining the qual-
JUZPGBTBMFTMFBE BOEXIFOEJõFSFOUDPNCJOBUJPOTPGUIPTFWBSJBCMFTBõFDUMFBERVBMJUZ'PS
FYBNQMF BMFBEXJUIUIFBQQSPQSJBUFFOWJSPONFOUmU UFDIOPMPHZJOVTF UZQJDBMQSPKFDUT
VOEFSUBLFO FUD
BUJNFGSBNFPGUPNPOUIT BOEJOUFOUUPQVSDIBTFHSFBUFSUIBOVOJUT
NBZCFBIJHIFSRVBMJUZPQQPSUVOJUZUIBOBMFBEXJUIBUJNFGSBNFPGMFTTUIBONPOUITCVU
JOUFOUUPQVSDIBTFPOMZVOJUT
DEVELOPING YOUR LEAD SCORING MODEL

%FWFMPQJOHBMFBETDPSJOHNPEFMSFRVJSFTSFTFBSDIBOEUFTUJOH5IJTDBOUBLFTPNFUJNF BOEJT
TPNFXIBUUSJBMBOEFSSPS CVUJTOFDFTTBSZUPBWPJEIPMFTJOZPVSNPEFM5IFTUFQTCFMPXPVUMJOF
this process.
DEFINITION
Types of Responses - When determining the criteria to use to determine the quality of an
PQQPSUVOJUZ ZPV BOENPSFTQFDJmDBMMZUIFTBMFTPSHBOJ[BUJPO
NVTUEJõFSFOUJBUFCFUXFFO
qualifying questions used to score a lead and information (or lead routing) questions used
UPQSPWJEFBNPSFJOGPSNBUJWFMFBEQSPmMF'PSJOTUBODF JGUIFFYJTUFODFPGBDSJUFSJPOJTHPPE
WHITEPAPER
JOGPSNBUJPOGPSUIFTBMFTQSPDFTTCVUOPUSFRVJSFEUPTFMMZPVSQSPEVDUoJUJTOPUBRVBMJGZJOH
question.
STEP 1: IDENTIFYING WHAT CRITERIA DETERMINES A LEAD’S QUALITY

5IFmSTUTUFQJTUPEJTDVTTJOEFUBJMXJUIUIFTBMFTPSHBOJ[BUJPOXIBUUIFJSFYQFDUBUJPOTBSFPGUIF
opportunities that are distributed to them. You may want to start by asking the following ques-
UJPOTPGZPVSTFMGBOEUIFTBMFTPSHBOJ[BUJPO
"SFUIFSFTQFDJmDFOWJSPONFOUmUT UFDIOPMPHZJOVTF QSPKFDUTVOEFSUBLFO FUD

SFRVJSFEUPVTF
ZPVSQSPEVDU "SFUIFSFQSFGFSSFEFOWJSPONFOUmUT 8IBUBSFUIFZ *TUIFSFBNJOJNVNOVN-
CFSPGVOJUT TFBUT FUDSFRVJSFEPSSFDPNNFOEFEUPCVZZPVSQSPEVDU 8IBUJTUIFNJOJNVN
What pains would a company be facing that would indicate a need for your product? What
JTUIFMFOHUIPGUIFCVZJOHDZDMF "UXIBUQPJOUJOUIFCVZJOHDZDMFJTJUDSJUJDBMGPSZPVS4BMFT
QFPQMFUPHFUJOWPMWFE"UXIBUQPJOUJOUIFCVZJOHDZDMFJTJUUPPMBUF )PXBSFQVSDIBTFEFDJ-
TJPOTGPSUIJTUZQFPGQSPEVDUUZQJDBMMZNBEF %PDPNQBOJFTQMBOOJOHUPQVSDIBTFUIJTUZQFPG
QSPEVDUHFOFSBMMZBMMPDBUFBTQFDJmDBNPVOUPGCVEHFUUPUIFQVSDIBTFBOEJNQMFNFOUBUJPO
prior to making a decision?
Step 2: Assigning Point Values to Qualification Responses

1PJOUWBMVFTTIPVMECFBTTJHOFEBDDPSEJOHUPUIFJNQPSUBODF
of the response. Responses that indicate a more highly quali-
mFEMFBEXPVMESFDFJWFBIJHIFSQPJOUWBMVFUIBOSFTQPOTFT
that meet the minimum requirements. The recommended
BQQSPBDIJTUPBTTJHOQPJOUWBMVFTJOUPQPJOUJODSF-
NFOUT NBLJOHJUFBTJFSUPNBLFBEKVTUNFOUTBTZPVUFTUZPVS
scoring model.
'PSFYBNQMF BTTVNFZPVIBWFUISFFDSJUFSJBUIBURVBMJGZB
MFBEUJNFGSBNF CVEHFU BOETJ[FPGPQQPSUVOJUZ MFUTDBMM
UIFNVOJUT
5IFmSTUTUFQJTMBZJOHPVUFBDIDSJUFSJBBOE
possible response in a marketing automation system similar
to the following:
5IFO MPPLBUFBDIDSJUFSJPOBOEEFUFSNJOFJGPOFJTNPSF
important than the others or if they all are of the same
importance.
WHITEPAPER
*OUIFFYBNQMF MFUTBTTVNFUIBUUJNFGSBNFJTUIFNPTUJNQPSUBOUDSJUFSJB$POUJOVJOHXJUIUIJT
NBSLFUJOHBVUPNBUJPOTZTUFNXFXJMMBTTJHOQPJOUWBMVFTUPFBDISFTQPOTFoHJWJOHIJHIFS
points for timeframe responses.
The total possible score from this example would be 140 (60+40+40).
STEP 3: DEFINING THE MINIMUM REQUIREMENTS SCORE FOR QSOS

/FYU UIFNJOJNVNSFRVJSFNFOUTGPSB2VBMJmFE4BMFT0QQPSUVOJUZTIPVMECFEFmOFE5PEP
UIJT EFUFSNJOFXIBU4BMFTJTXJMMJOHUPBDDFQUBOEGPMMPXVQ5IFCFTUXBZUPBDDPNQMJTIUIJTJT
UPHJWFBTBNQMJOHPGUIFQPTTJCMFBOTXFSDPNCJOBUJPOTBOEIBWFUIFTBMFTPSHBOJ[BUJPOSFWJFX
it with you. More sophisticated systems will populate a marketing automation system with all
possible combinations to make this process easier. This sampling might look like:
"TZPVDBOJNBHJOF UIJTNJHIUSFRVJSFTPNFUSJBMBOEFSSPS'PSJOTUBODF ZPVSTBMFTPSHBOJ[BUJPO

NJHIUMPPLBUUIFBCPWFTBNQMJOHBOEUIBU&YBNQMFTIPVMETDPSFIJHIFSUIBO&YBNQMF5IJT
DPVMECFBDDPNQMJTIFECZJODSFBTJOHUIFQPJOUWBMVFGPSi/POF #VU$BO(FUwUP*UTDFSUBJOMZ
CFTUUPXPSLUISPVHIUIFTFTDFOBSJPTBMPOFUPNBLFUIFNPTUPCWJPVTBEKVTUNFOUTCFGPSF
convening a room full of sales representatives.
/FYU EFUFSNJOFUIFNJOJNVNTDPSFBMFBENVTUBUUBJOUPCFEJTUSJCVUFEUP4BMFT*OUIF
FYBNQMFBCPWF UIFTBMFTPSHBOJ[BUJPONBZDIPPTFUPSFDFJWFBMMMFBETUIBUTDPSFPSBCPWF
*OBNPSFDPNQMFYTFMMJOHFOWJSPONFOUZPVNJHIUDIPPTFUPIBWFHPUPBOJOTJEFTBMFT
PSHBOJ[BUJPOPSDIBOOFMBOEUIFSFNBJOJOHHPUPUIFPVUTJEFTBMFTPSHBOJ[BUJPOEJSFDUMZ.PSF
sophisticated marketers are choosing to retain leads that score lower for further harvesting and
funneling the rest to their sales channels.
/PUF*GBQSPTQFDUEPFTOPUNFFUZPVSDSJUFSJBCVUJTJOUFSFTUFEJOTQFBLJOHXJUIBTBMFTQFSTPO
XPVMEZPVDPOTJEFSUIBUBWBMJEMFBE *GTPEPOUHJWFBCJHTDPSFUPUIBUDSJUFSJBoSBUIFSTDPSF
UIFMFBEBTZPVBMXBZTXPVMECVUQMBDFBOiJwBGUFSUIFTDPSF'PSJOTUBODFJ5IJTUFMMTZPVS
TBMFTPSHBOJ[BUJPOUIBUUIFPQQPSUVOJUZIBTCFFOTFOUGPSJOGPSNBUJPOBMQVSQPTFT
WHITEPAPER
STEP 4: DEFINING LEAD CLASSIFICATIONS BASED ON TOTAL SCORES

Leads sent to sales using this methodology should be presented as:
4DPSF5PUBM1PTTJCMF4DPSF TVDIBTJGBMFBETDPSFTBPVUPGBQPTTJCMF

5IJTNFUIPEJTQSFGFSBCMFUPDBMMJOHBMFBEi)PUw FUDCFDBVTFJUCFUUFSEFTDSJCFTUIFPQQPSUV-
OJUZBTXFLOPXJU"OBMUFSOBUJWFJTDMBTTJGZJOHBMFBE )PU 8BSN $PME" # $
GPSSFQPSUJOH
QVSQPTFTBOEGPSUIFMFBEQSPmMF CVUJODMVEJOHUIFTDPSFPOUIFMFBEQSPmMFBTXFMM
STEP 5: IS IT WORKING?
5IFmOBMTUFQJOUIJTQSPDFTTJTHBUIFSJOHGFFECBDLGSPNUIF4BMFT0SHBOJ[BUJPOPSDIBOOFMUP
VOEFSTUBOEJGUIFTDPSJOHTZTUFNJTXPSLJOHBOENBLJOHBOZOFDFTTBSZBEKVTUNFOUTCBTFEPO
UIFJSGFFECBDL5IFCFTUQBSUBCPVUUIJTTZTUFNJTUIBUJUBMMPXTGPSFBTZBEKVTUNFOUUPUIFDVUPõ
TDPSF TDPSFUIBUTFOETBMFBEUPUIFTBMFTPSHBOJ[BUJPO
BOEBMTPQSPWJEFTBOFõFDUJWFNFBOT
GPSBEKVTUJOHUIFJNQPSUBODFPGLFZDSJUFSJBBTZPVSCVTJOFTTHSPXT
ABOUT INVENIO MARKETING SOLUTIONS

*OWFOJP.BSLFUJOH4PMVUJPOTJTBGVMMTFSWJDFNBSLFUJOHDPNQBOZGPDVTFEPOUIFMFBEEFWFM-
PQNFOUBOESFWFOVFHSPXUIPGCVTJOFTTUPCVTJOFTTBOEOPOQSPmUPSHBOJ[BUJPOT'PSNFE
UISPVHIUIFTUSBUFHJDBDRVJTJUJPOPGNVMUJQMF GPSXBSEUIJOLJOH MFBEGPDVTFECVTJOFTTFT *OWFOJP
JTBDVUUJOHFEHF NBSLFUJOHTPMVUJPOTQPXFSIPVTFXJUIBOFYQFSJFODFEUFBN TUSPOHWJTJPO
EJWFSTFTLJMMTFUBOEQSPWFOUSBDLSFDPSEPGTVDDFTT5IFDPNQBOZJTIFBERVBSUFSFEJO"VTUJO
5FYBTBOEIBTPöDFTJO8JODIFTUFS 7" -BT$PMJOBT 59 4BNNBNJTI 8" BOE-PT"OHFMFT $"
'PSNPSFJOGPSNBUJPO WJTJUXXXJOWFOJPNBSLFUJOHDPN
CONTACT INVENIO
",SBNFS-BOF
4VJUF
"VTUJO 5FYBT
1IPOF
&NBJM*OGP!JOWFOJPNBSLFUJOHDPN
888*/7&/*0."3,&5*/($0.
ª*OWFOJP.BSLFUJOH4PMVUJPOT"MMSJHIUTSFTFSWFE

Guide To Developing A Lead Scoring Model

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Guide To Developing A Lead Scoring Model

Uploaded by

Copyright:

Available Formats

WHITEPAPER