How to Implement Lead Scoring to Predict Conversions

# How to Implement Lead Scoring Models That Predict Conversion

In the world of Australian small-to-medium business, time is your most valuable asset. Lead scoring allows you to stop chasing every enquiry that hits your inbox and start prioritising the prospects most likely to sign a contract, helping your sales team work smarter, not harder.

By assigning numerical values to lead behaviours and demographics, you create a system that automatically identifies 'hot' leads, ensuring your best opportunities never go cold while you're busy with 'tyre-kickers'.

Prerequisites: What You’ll Need

• A CRM Platform: Tools like HubSpot, Salesforce, or Pipedrive are ideal.
• Historical Data: At least 3-6 months of sales data to identify patterns.
• Sales & Marketing Alignment: A 30-minute meeting scheduled between your marketing and sales leads to agree on 'what a good lead looks like'.
• Tracking Tools: Google Analytics 4 (GA4) or a tracking pixel installed on your website.

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Step 1: Define Your Ideal Customer Profile (ICP)

Consider attributes like:

• Industry: Are they in construction, professional services, or retail?
• Company Size: Do they have 5 employees or 50?
• Location: Are they local to Brisbane, or national?
• Decision Maker: Are you talking to the owner or a junior assistant?

Step 2: Distinguish Between Explicit and Implicit Data

• Explicit Data: Information the lead gives you (e.g., via a form). If they provide a valid Australian Business Number (ABN), that might be worth +10 points.
• Implicit Data: Information gathered through their behaviour (e.g., they visited your pricing page three times). This indicates intent.

Step 3: Assign Values to Demographic Attributes

• Example: If your service is Brisbane-only, give +20 points to leads with a 4000-4199 postcode. Give -50 points to leads outside of Australia.
• Example: If you target B2B, a lead using a company email address (name@company.com.au) should score higher (+15) than a generic Gmail address (+2).

Step 4: Map the Customer Journey and Assign Behavioural Scores

• Downloaded an eBook: +5 points
• Visited the Pricing Page: +15 points
• Attended a Webinar: +20 points
• Unsubscribed from newsletter: -100 points (Reset to zero)

Step 5: Implement Negative Scoring

Include negative points for:

• Job Seekers: If they visit your 'Careers' page, subtract 50 points.
• Competitors: If their email domain matches a competitor, subtract 100 points.
• Inactivity: If they haven't opened an email in 30 days, subtract 10 points.

Step 6: Set Your 'Sales Ready' Threshold

A common starting point is 50 or 100 points. Once a lead hits this number, your CRM should automatically notify your sales team or move the lead into a 'High Priority' view.

Step 7: Build the Automation in Your CRM

• Create a property called 'Lead Score'.
• Set up triggers based on the rules you defined in Steps 3, 4, and 5.
• Ensure the score updates in real-time as the lead interacts with your brand.

Step 8: Test with Existing Leads

• Did the winners have high scores?
• Did the losers have low scores?

If the scores are similar, you need to adjust your weighting. Perhaps you are overvaluing email opens and undervaluing demo requests.

Step 9: Establish a Feedback Loop

If Sales complains that 'Hot Leads' aren't ready to buy, you may need to raise your threshold or decrease the points given for top-of-funnel actions like blog views.

Step 10: Account for Lead Decay

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Pro Tips for Success

• Don't overcomplicate it: Start with 5-10 simple rules. You can always add complexity later.
• Use 'Spike' Scoring: If a lead visits your site 5 times in 2 hours, they are likely in a buying cycle. Give them a 'surge' bonus of +20 points.
• Consider the ABN: For Australian B2B, checking if a company is GST-registered can be a great manual or automated verification step for high-value scoring.

Common Mistakes to Avoid

• Scoring everyone: Don't score your existing customers the same way you score new leads. Use a separate model for 'Upsell Scoring'.
• Ignoring 'Junk' data: If a lead enters 'asdfgh' in a form field, your model should automatically disqualify them regardless of other actions.
• Set and Forget: Market conditions change. Review your model at least once a quarter.

Troubleshooting

• Problem: All my leads have the same score.

• Problem: Sales is getting too many notifications.

• Problem: Scores aren't updating.

Next Steps

Need help technicality setting up your CRM or identifying your ICP? The team at Local Marketing Group can help you audit your current data and build a bespoke revenue operations strategy. Contact us today to streamline your sales process.