I have recently started watching a reality show called “Storage Wars” – each episode of “Storage Wars” follows a group of bidders as they get a quick peek inside the units, aided only by the beam of a flashlight. They then must assess on the spot if the unit is worth a bid and how high they will actually go to grasp the gold. The high-stakes fun begins as we see if the resulting buy is full of mostly trash or true treasure. Driven by Dan Dotson, one of the most successful and outrageous auctioneers in the country, the cast of buyers are as colorful and varied as the treasures they uncover.
As the sales industry moves more to automation, lead scoring is leveraged as a method of assigning points to each prospect you come across. Points are assigned based on specific criteria you set: those attributes you’ve identified as being most often associated with serious prospective customers. The higher the score, the more likely they’re the right target prospect who is actively engaged in the buying process, and should be routed to sales.
The most accurate lead scoring models comprise both explicit and implicit information. Explicit scores are based on information provided by or about the prospect, for example – company size, industry segment, job title or geographic location. Implicit scores are derived from monitoring prospect behavior; examples of these include Web-site visits, whitepaper downloads or e-mail opens and clicks.1
If you want to see lead scoring in action watch an episode of Storage Wars, each of the people on the show have their own unique way to “score” a unit and decide if they are going to bid on the storage unit.
Some of the techniques used are as follows:
• How bad do they want a unit.
• How are the boxes packed.
• How big is the unit.
• What type of stuff they can see when the door opens.
• Geographic location of the unit.
• Can they sell the stuff in their stores.
All of these variables and gut instinct determines if they are going to take a chance to bid on a unit. Today’s sales organizations need to apply a scoring system to sales to ensure they are focused on the opportunities that will close. Below are a few stats that I wanted to share that shows how much room for improvement there is for corporations to raise their sales effectiveness metrics:
• 94% of marketing qualified leads will never close (SiriusDecisions)
• 52% of sales reps do not achieve their sales goals (CSO Insights, 2010 SPO Sales Strategy Analysis)
• 45% of sales reps’ time is spent on admin and prep work, not with customers (IDC Sales Advisory Practice)
• 15-year low in terms of sales productivity (Chief Sales Office, Insights Study)