When marketing automation (MA) software first began to take the business world by storm, companies initially adapted the technology so that they could smartly acquire new customers online. As the discipline has matured, companies are now using sophisticated tools within MA software such as lead scoring to get to know their customers better and gain a deeper understanding of what their ideal lead looks like.
Modern marketing automation tools such as Act-On helps you go beyond standard metrics to help you discover deep insights, such as how well you are connecting with your customers, or what type of communication they prefer. By having this data, your marketing team can be armed, knowing which messages to deliver to which customers and the best times to do so. This level of precision marketing is key in today’s customer-centric business environment. It is reshaping how sales teams, marketing teams, account managers, and even executive team view and interact with their prospects and clients.
According to an infographic compiled by Invesp, it costs five times as much to attract a new customer than to keep an existing one.
This proves what marketers have known for a long time: is much more expensive to acquire new customers than it is to keep them and continue selling to them. Customer retention is profitable for businesses. But to have retention, you must first have customer engagement. In order to have successful engagement, you must first know your customer very well.
How well do you know your customer?
To test your knowledge of your customer base, ask yourself these questions:
- Are they fully engaged?
- Are they both loyal to your brand and attached to your company?
- Are they indifferent about your brand: rational, but overall neutral.
- Are they actively disengaged: could they be ready to switch to another product/service or provider at a moment’s notice?
If you aren’t sure, it’s time to start investigating your customer base. Once you know where your customers stand on the spectrum, you’ll able to better assess what traits make a good lead for your business.
Lead scoring helps you value and evaluate where a prospect is in your sales funnel and how likely they are to purchase at a given time. This information is important because it will help you communicate to them in the best way that you can – at their level. Lead scoring gives marketers the ability to get instant feedback from campaigns and content. When executed properly, it allows measurable results from what you are releasing into the market.
Understanding your customer is the first piece of the puzzle. By properly scoring through your platform, you can generate a number of possibilities:
- Track interests and/or prospect characteristics.
- Measure engagement.
- Detail levels of interactions.
- Identify under-engaged customers.
- Identify the top tier of customers.
- Initiate a proactive outreach for dealing with each type of customer.
So now you’re probably wondering…
How Do I Put Lead Scoring To Practical Use?
Here are our top action steps for putting your lead scoring information to good use:
- Build your buyer profiles.
- Know your customer life-cycle.
- Determine what would be the most helpful content you can create by role and life-cycle.
- Test your assumptions through customer interviews and surveys.
- Check your data.
- Design your automated campaigns.
- Create an engagement score matrix.
- Measure your results and adjust accordingly.
You might be tempted to ask: does lead scoring pay off? Consider the following:
According to Gleanster Research’s 2015 report, top performing companies invest the biggest chunk of their budget (30%) on expansion and up-selling activities, and a full 25% of their time. Average performing companies spend the smallest percentage of their budget (20%) and just 15% of their time on these activities. As a direct result of the additional attention top performers give to their customers, they generate revenue equally from established customers and new customers, while average firms generate 70% of revenue from new acquisitions – and only 30% from the established customer base.
Ready to take a deeper dive into lead scoring? CLICK HERE to download our free guide titled: “Do You Really Know Your Customers.”