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Marketing Insights for Entrepreneurs

Benefits of Lead Scoring and How to Make it Work

If you are like most entrepreneurs, you will find that sometimes your pitches work really well and other times they fail miserably. You may find that you make twenty sales in five hours one day, but fail to make five sales after working an entire week the next. We’ve all been there.

Before chocking this up to luck, think about why some of your sales are working and others aren’t. You will probably find that many of your unsuccessful days are the result of targeting the wrong customers.

It’s important to take the time to figure out which customers are most likely to buy your products and services (for example, here at Grasshopper, we know that our best customers are small businesses in industries like technology, real estate and construction).

If you develop a successful lead scoring model early, then you can identify your prospects before you start marketing, saving you time and money. This will help ensure that you get better results.

Here are some steps that will help you improve your conversions and increase sales:

1. Collect as much information as you can about your customers.

This will help you track your customers and learn who’s most likely to buy your product or service. Ask your customers for demographic information, build profiles with web analytics, and tap other profiling resources available on the web.

Be as creative as possible to find the information you need — it’s key to helping you make informed selling decisions.

2. Create a detailed profile of your target customers.

After you’ve collected a wealth of customer information, come up with a demographic profile for your customers. Some of the things we’ve learned about our customers are that they’re typically male, 35+ years old, are just starting a business, and most of them don’t have kids.

Like us, you may have more than one customer group so be as descriptive as possible, this way you’ll know exactly who to focus your attention on.

3. Know the behavioral patterns of your buyers.

Knowing who your buyers are won’t be enough. You need to know how they think so that you can sell to them more effectively. Where are they getting information day in and day out? How are they discovering new products? What’s driving their key purchasing decisions?

At Grasshopper, we select our marketing programs based upon the information we’ve gathered about our buyers biggest pain points, where our buyers spend most of their time online and what they do in their free time.  To be sure we aren’t missing any other opportunities, we make sure to run experimental marketing programs too.

4. Create your lead scoring model.

Now you know everything you need to create your plan of attack. Using the information you’ve compiled about your target customers and their behaviors, find the common threads among them. Any leads that share those same commonalities should be given a high score.

Leads that diverge from your customer profiles should be given lower scores and pursued less aggressively.

5. Monitor your leads and update your models accordingly.

No model is perfect. It will need to evolve as your customers change. Make sure you are up to date on all relevant trends with your customers and the industry you operate in.

Fortune never favors the entrepreneur who relies on chance.

You don’t want your marketing campaign to be hit-or-miss. You can increase the success of your sales program if you have a thorough understanding of your customers and how they work. Invest some time in developing a proper lead scoring model and you will be two, five or twenty times more effective than you were in the past.