Why Predictive Lead Score?
A while back we wrote about Regular Lead Scoring Vs. Predictive Lead Scoring. The post walked us through a few of the ins and out of scoring and rating of leads, but we wanted to dive a little deeper into why you should be fully embracing predictive scoring and ranking.
Lead Scoring is important because it can help you to allocate your marketing and sales resources more effectively and efficiently. Lead scoring can increase ROI by reducing the time spent on finding good fitting accounts and can increase revenue by targeting better accounts which are more likely to be repeat customers. Lead Scoring can also help your organization figure out its Ideal Customer Profile and can provide insight on your company’s culture. You can read more about why it’s important to qualify leads here.
Increasing Lead to Opportunity Conversion
One reason to predictive lead score is because you can increase lead to opportunity conversion rates. Let’s say you have a lead from a cold call—let’s call her Jane—and you have a lead from your predictive scoring software—let’s call him John. You may have to reach out to Jane several more times in order to get her on board with your product because she may not realize the merit as readily as John—who enters the sales funnel already as a good fit for what you’re selling. Because you’re starting your marketing-to-sales funnel with better fit accounts, including scored leads like John, you can move through the pipeline more quickly and increase your lead to opportunity conversion rate.
Improve Win Rates
Because you’re starting your sales procedures with better fit accounts thanks to lead scoring, you have already saved time that can now be spent focusing on these opportunities. Now that you start the pipeline with higher quality accounts, you can reallocate time spent on cold calling, lead generation, and additional marketing and sales procedures because you’ve already jump-started these processes by lead scoring! The time you spend on these opportunities is more effective because you’re focusing on fewer accounts. Further, you have more energy to sell with your tailored content and pitches because you’re no longer spreading your SDR’s thin by having them cast a wide net.
Increase Average Deal Size
Another benefit of predictive lead scoring is that you’re targeting your most interested customers at the offset of marketing and sales procedures. Because of your laser focus on the best fit accounts, your customers are more likely to have a larger deal size or be repeat customers. Accounts with high lead scores are better fits because they’re more aligned on how your products can help them—therefore, they more easily see the value and necessity of the additional offers your company has. You in turn bring on customers with higher Lifetime Values (LTV) and increase those deal sizes. This momentum can help you to ramp up sales efforts to bring in a bigger sale or have the information ready to get them to renew your services.
Multiplicative Effects of Predictive Lead Scoring
When you use predictive scoring, you are improving several aspects of your marketing and sales procedures, thus leading to the major multiplicative benefits of having better alignment and more productivity. These two improvements are the result of the above predictive lead scoring benefits and can seriously boost your business’ overall productivity and revenue!
Better Sales and Marketing Alignment
Because you’re armed with the knowledge of which accounts are the best fit for your company, you can better equip marketing to target certain audiences and eventually give sales stronger leads. Marketing can target your ideal customers with tailored content just for those accounts most likely to become customers. In turn, your SDR’s can reach out to fewer, higher quality leads while using their reserved energy on selling more and more often.
There’s also never a question as to who is doing what and when because both sales and marketing start with the same account selecting process. They’re on the same page from the beginning!
With sales and marketing on the same page, all of their efforts are more streamlined and effective. When you lead score, you start marketing procedures with an idea in mind beforehand as to who you’re trying to reach. Once marketing has reached these accounts, your sales teams can do their work more quickly and with more energy because they’re allocating time to their top tier accounts and engaging lower scored accounts less often. In a nutshell, your business will be more productive because your marketing and sales teams are aligned and better equipped to do their job the best way possible.
Want to learn more about Predictive Account and Lead Scoring? Check out how we do it at Leadtime!