Let’s dive into what lead scoring is, how it works, and the ways it benefits your digital marketing program.
Here, you’ll find:
- What lead scoring is
- Ways it benefits your PPC
- Tips to set up lead scoring
- How it can improve paid search ROI
For most marketing initiatives, it takes a mix of time and multiple steps to achieve real results. But it’s also true that the less time it takes to start seeing success, the better and more quickly you can optimize and improve.
That’s where lead scoring comes in. Essentially, lead scoring is the process of grading leads to gauge their potential value for your business by assigning them scores based on a variety of factors.
For B2B and lead generation search engine marketing (SEM) campaigns in particular, experienced industry pros will tell you it’s crucial to know the value of the leads being generated. Plus, when you’re dealing with a high volume of leads, manually sorting through them can be time-consuming.
How does lead scoring work?
A lead scoring system assigns values to leads and then ranks them against one another. For this process, you can give scores based on various attributes and actions. This allows you to focus on leads that will generate the maximum revenue for your business with the least amount of effort — and in less time.
Scoring leads helps you better understand how certain keywords impact your conversions and, ultimately, the success of your pay-per-click (PPC) campaign overall.
It works by assigning points based on actions a prospect takes, such as requesting a consultation or downloading a piece of content. Once a lead achieves a certain score, they can be considered a “hot lead.” From there, they can be potentially routed to sales to nurture them down the sales funnel.
Simply put by BigCommerce, “the top benefits of companies that use lead scoring are a more measurable return on investment (ROI), an increased conversion rate, and higher sales productivity and effectiveness.”
How do I set up lead scoring?
Getting more than a couple of leads per week? Then it’s probably best to leverage a tool like Google Analytics to help you track keyword conversions. You or your marketing agency can connect this application to your customer relationship management (CRM) tool or Marketing Automation Platform (MAP). This will allow you to begin scoring leads based on behaviors and actions the new contact or prospect has taken.
As Salesforce explains, setting up lead scoring improperly can result in “poor conversion rates and sales funnel dropouts, or customers who stop considering your company for the product or service they want to buy.” That’s why it’s key to be thoughtful about your sales funnel and the actions leads take that qualify them as interested vs. intent to buy.
What factors should be taken into account with lead scoring?
It may be a process of trial and error to figure out the best lead scoring metrics for your business. One best practice many businesses suggest is considering different score thresholds for different products or services, if you offer a variety.
You also may want to add negative score options to easily disqualify people like existing customers or job seekers.
You can also get more granular by weighing different pages and pieces of content differently. For example, a case study, white paper, or service page may be worth more points than a more evergreen guide or your homepage.
How does lead scoring create a more ROI-driven PPC strategy?
An ROI-driven PPC strategy is one that has been developed to produce revenue. By being strategic and iterating based on what’s working and what’s not, you can be poised for seeing serious results.
Along with scoring leads, other important elements of launching an ROI-driven PPC strategy include:
- doing customer research
- writing strong ads
- creating optimized landing pages
- having eye-catching CTAs
- leveraging ad extensions
- targeting revenue-producing keywords
- having consistent messaging from ad copy to landing page
- tracking metrics
Does lead scoring make sense for longer sales cycles?
We know that a longer sales cycle means it can take a longer time to see results. Lead scoring is still important for these campaign types. That’s because you need to understand the value of each lead along the sales cycle.
This falls under the low-hanging fruit theory of easy wins. By scoring leads, you’ll know which prospects are closer to a sale and which are further away. This info will help you better prioritize where to put your efforts as the cycle moves along.
How often should I revisit my lead scoring metrics?
Scoring leads is a great way to ensure your sales and marketing teams are aligned. With that in mind, it’s a good idea for marketing team members to periodically check in with the sales department to see which types of leads are closing most often.
This will ensure that the lead scoring parameters you have in place are as accurate as possible. You want to have enough time to accrue significant data that you can analyze properly, so aiming to do one of these check-ins a few times a year is usually sufficient.
Forget hot leads falling through the cracks or wasting time following up on unqualified or uninterested prospects. Implementing lead scoring can be an effective way to have your sales and marketing teams working together better and more efficiently.
While it may take some tweaking to find the exact right method of lead scoring for your business, the time and investment are sure to be worth it once you see more leads becoming closed deals.
This post has been updated and was originally published in August 2014.