How to use lead scoring to increase sales

In order for a company to maximize sales and profits, the sales team must allocate their time strategically. Lead scoring is one of the most effective ways to allow any salesperson to optimize their time and focus on the leads that are most likely to convert into sales.

Simply put, a lead scoring system allows you to use data to qualify leads, so your marketing and sales teams always know what to do with each lead.

Because not every lead is ready to buy the moment you communicate with them (and some may never be ready to buy), lead scoring helps you determine not only which leads are viable, but also leads down the marketing funnel and match the buyer journey. This way you improve future communication and nurture the right leads from cold to hot prospects.

Establish your definition of a Sales Qualified Lead

There are many sales qualification frameworks that you can use to determine what constitutes a non-viable, viable, marketing-qualified, or sales-qualified lead. Most frameworks are fairly similar with different prioritization of factors that determine qualification.

One of the most popular models is BANT, which stands for Budget, Authority, Need and Timeline. To put the acronym in context, BANT says your hottest sales prospects have a budget make a purchase that authority to make the purchase decision, a need for your product or service and a timeline complete their purchase.

A few other examples of sales qualification frameworks are:

• CHAMPION: challenges, authority, money, prioritization
• CONTAINER: authority, need, urgency, money
• PASS OUT: means, authority, interest, need, timing

Once you’ve decided on a framework, it’s important to stick with it. Integrate your sales and marketing teams so they can work together to define what qualifies leads at each stage, and the process of converting leads into customers becomes faster, easier, and more successful.

Collect data to score leads

For lead scoring to work, you need to collect the right data to confirm prospects are the right ones. The reality is that many people may be interested in what you are selling, but many do not align with what you are currently selling.

In other words, you need to determine if they have all of the BANT factors related to your product or service, or if they may have all of the factors in the near future. To find out, you need to put in place a process to collect demographic, market, and behavioral data consistently and continuously.

demographic data

Demographic data includes information about the company and the person (or people) that your marketing and sales teams communicate with at the company.

For example, demographic data answers questions like: What is their position? Do they have decision-making powers? What are your daily challenges? What’s your biggest problem? What are your goals? What are the company’s problems and goals? Do they have a budget to buy your product or service?

market data

Market data is especially important in the cannabis industry as every state and local market is different. Therefore, the location of the company and the actual use of your products and services are crucial data.

Also, answer questions like Who are the company’s competitors? What operational obstacles are there due to regulations? It’s crucial that you fully understand the market in which each prospect operates, otherwise you won’t be able to determine suitability and interest, let alone properly score each lead.

Positive engagement data

Behavioral data is critical to scoring leads. Think of it this way: if a person has no interest in your company, products, and services, they will not engage with you at all. On the other hand, it’s likely that the more positively engaged they are with your brand, the more interested they will be.

If the demographic and market data you’ve gathered about them shows they’re a right fit, then you have a viable lead that may be marketing or sales qualified. You can collect engagement data by tracking how people interact with your email messages, websites and social media posts.

Negative engagement data

Not all engagement is good, so you need to collect data on negative engagement with your brand as well. This includes behaviors such as marking your email marketing messages as spam, not opening your email messages, unsubscribing from your marketing lists, or making social media posts with negative comments about your brand.

Analyze data to score leads

Once you have a system in place to collect lead qualification data, you need to develop a process for evaluating your leads and a timeline for evaluating them. Consistency is important, so a popular lead scoring method is to use a point system.

For example, you can give a certain number of points to each lead who opens one of your email marketing messages. Each lead that clicks a link in an email marketing message earns a certain number of points. Each lead that unsubscribes loses a certain number of points, and each lead that marks your message as spam loses points. You can apply points to any type of behavior you track and then add the points to determine lead scores.

The next step is to set point thresholds that categorize leads as unprofitable, viable, marketing-qualified, or sales-qualified. When a lead reaches the sales qualification threshold, it’s time for the sales team to begin their in-person outreach efforts, as these are the leads most likely to convert to sales. For example, if you use a 0-100 lead scoring system, you can set thresholds as follows:

• 0-19 points: Not viable
• 20-39 points: Viable
• 40-69 points: Marketing Qualified
• 70-100+ points: Sale qualified

Depending on the tools used and the data available, you can automate much of the lead scoring process. With automation, the ratings are updated in real time and you always know the rating of each lead.

If you can’t automate the process, set a lead scoring schedule and stick to it. For example, you could rate leads once a month, after every five email campaigns you send, and so on. It’s up to you and depends on how much data you can collect and how often you communicate with leads.

Finally, it’s also important to ensure that points don’t live forever. Establish a schedule to remove old issues that don’t necessarily describe current behaviors. Depending on how often you communicate with leads, you may want to remove items that are three or six months old (three months if you communicate often, or six months if you don’t communicate often).

Key insights on lead scoring to increase sales

Lead scoring is very effective, but it can take time to refine your system and schedule. Don’t get discouraged if you find you need to tweak your score or schedule. In fact, adjustments will likely need to be made more than once over time. Start collecting data and build a system and schedule that works for you and your business.

Did you know that you can use the Cannabiz Media License Database to collect demographic, behavioral, market and other data about cannabis and hemp license holders in the US and abroad? You can also use features in the license database for sales targeting and email marketing. Schedule a demo to see how a subscription can help you achieve your sales and marketing goals.