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Regular vs. Predictive Lead Scoring

Lead scoring helps focus your sales team’s time and efforts. To get started with lead scoring you must first determine which accounts are qualified. It is important to have qualified leads, but what exactly makes a lead qualified or unqualified?

What is a qualified lead?

When you have a potential customer that has shown some kind of interest towards actually making a purchase meet a set of qualifications they are deemed qualified. Once a lead is qualified, you are able to proceed down the sales funnel.  These qualifications that must be met could include the company founding date, number of employees, or type of company.

Why does qualifying a lead matter?

Having a set of qualifications for a lead allows your sales team to maximize their time and effort by focusing on the accounts that are most likely to close.

Wouldn’t life be easier if you just had a list of which leads are best for your company? That’s where lead scoring comes into the picture. Lead scoring is when leads are ranked to determine which are the best fit for your company. The score is given to a qualified lead based on a variety of factors including which stage the account is in the buying process, interest level, and overall compatibility.

Regular vs. Predictive

Predictive Lead Scoring

To get started with predictive lead scoring you utilize a database of all your accounts. Predictive lead scoring takes the commonalities between your successful accounts into consideration as well as what the accounts that did not close have in common. Then an algorithm is developed that will automatically determine which accounts are qualified and which aren’t. From there, a score is assigned to the qualified accounts.

The algorithm then assigns a score based on how well the account fits your company. This score is typically something like a letter grade from A to D. Predictive lead scoring is beneficial because you don’t have to decide on your own what qualifications are important and should be included. The algorithm determines what to include as well as the weight of each factor included in the score.

Regular Lead Scoring

Regular lead scoring works in a similar way as predictive, except that it’s not automated.

In regular lead scoring, your sales team works to identify accounts that meet your designated criteria. You can take factors into consideration and assign a value to each factor to help determine the score of a specific account.

Similar to predictive lead scoring, the score assigned to accounts help your sales team determine which accounts are worth pursuing.

Which is better?

Some drawbacks of regular lead scoring is that it can be overly simplified and not include enough details for the scoring process. If your market is changing quickly, your team will struggle to keep your qualifying and scoring process relevant. Additionally, regular lead scoring makes it harder to compare previous performances because you are working without an algorithm.  

Predictive lead scoring improves efficiency because the process is primarily automated as well as more accurate than regular. Many predictive lead scoring softwares include options to build a profile and rank the qualifications you want an account to have. Being able to do this increases your focus on the accounts that are best for your company. Additionally, customer retention is an added bonus of predictive lead scoring because the algorithm takes into consideration the best accounts for your company, not just the accounts that will end in a sale.

February 9, 2017
Caitlin Glasscock
Data Sales

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