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The Value of Lead Scoring

Today sales leads are more valuable than they’ve ever been.  Treated as “priceless” they deserve respect.  Understanding and analyzing a lead just makes good business sense and the smart companies implement a lead scoring methodology that fits the dynamics of their sales and marketing organization.
This is done by creating either a numerical score or a Lead Quality Code (LQC) that is universally recognized and understood companywide, especially sales and marketing. For those companies selling through indirect channels, each channel partner should be involved in the lead score and LQC.

Lead scoring classifies a sales opportunity by either assigning points or creating a LQC based on responses from qualifying questions. Since every company is unique in their sales approach and the markets in which they compete, these scores should be customized to provide optimal value.

Why is Lead Scoring So Important?

  1. Lead Scoring determines whether the lead goes to sales, a reseller, retained for cultivation/nurturing, or not pursued at all.
  2. Qualified leads are better prioritized for follow-up.
  3. Decisions regarding the most cost-effective fulfillment approach are smarter.
  4. The LQC helps determine which leads get email responses, CDs, catalog inserts or full-literature packs.
  5. LQC reduces costs while allowing fast response to all inquiries.
  6. Lead scoring lets you track the number of inquiries from a marketing program, the timeframe and revenue potential. Over time, marketing evaluates which activities generate the best leads, need to be expanded, modified or eliminated.
  7. Lead Scoring is straightforward, more sophisticated and effective.
  8. Creating Your Unique Lead Quality Code
Below is one LQC approach basing the Revenue Potential on the estimated number of annual corporate Moves/Adds and Configurations:
                                                  
Decision Timeframe Revenue Potential
A=  0-3  Months   1 = 500+
B=  4-6  Months    2= 350-499
C= 7-12 Months    3= 250-349
   = 13+ Months    4= 100-249
   5= 25-99
   6=  1-24

The LQC here combines two digits, for instance, an A3 or B2, and determines whether to pursue/not pursue the opportunity by identifying it as qualified and ready to distribute to sales. And, the leas score ranges determine whether the lead goes to the company’s field sales inside sales, or reseller/channel partner.

Our Value of Lead Scoring - Part II Blog will cover Recommended Steps to Establish a Lead Score. 

Mark Friedman
©2011
Value of Lead Scoring - Part II: Recommended Steps...
Small Business CRM Intricacies

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