Measuring Lead Quality: Andy Wassmann’s Fifth Treatise

measuring_lead_quality

Okay, so it’s not a treatise (and I don’t have four others), but it will be a few musings on what I perceive to be the most important differences between ‘lead score’ and ‘engagement score’, and how they both relate to measuring lead quality.

About me

I’m an analyst. More precisely, I’m the only analyst here at TrackVia. I’m a PhD dropout and I feed my competitive spirit here in the startup world. My title is only relevant on LinkedIn; everyone here pretty much refers to me as “Mathmagician”— a term coined by our CFO.

About you

You’re in sales or management, maybe both. You’re inquisitive, always looking for efficiencies and improved metrics to understand your team and business. And you’re blowing through your day reading blogs. What firewall?

Measuring lead quality

Now that we’ve gotten to know each other a bit, let’s get to work. The topic here is measuring lead quality. The way I see it, there are two separate needs here. The first is: How will your sales team organize their days and give priority to the highest quality leads? This is lead score. The second is how do you tell your board, investors, senior leadership team, etc. whether or not the leads in aggregate are any good? This is engagement.

A lot of folks tend to use the terms lead score and engagement interchangeably. Please do not do this. Please.

The way I see it, a lead score is tied to a single, individual lead. It should measure the extent to which that individual or organization has independently engaged with your product or service. The indicators here will be specific to your business. But think for example, have they logged on to your website and done something meaningful? Or did they request a quote and then walk out? In short, is this the first person your sales team should call or not?

Ideally, your lead score will be an algorithm that gives varying weights to different actions. For us, we find that turning on the flux capacitor is not as meaningful as actually test driving the Delorean. So we give you one point for turning on the flux capacitor, but two points for the test drive.

Engagement is key to measuring lead quality

Engagement is your aggregate measure when measuring lead quality, and it may include some of the variables that were in your lead score, but it doesn’t need to. What it should shed light on, though, is what percentage of your leads or prospects had the potential to be serious buyers? Were your prospects actually looking for your service? And would they be willing to pay for it if you solved their pain points?

Taking the same example from above, your engagement score might be the percentage of your users who took a test drive AND turned on the flux capacitor. If you were so inclined, you could accomplish this with TrackVia’s new Summary Reporting feature which allows you to display graphically the percentage of people who meet the criteria of your engagement score. What’s a good percentage? I wish I had an answer for you, but if you measure this for a little bit just try to do better than you did last month!

One very important final note on measuring lead quality. Your sales team will know if your lead score is accurate. They will tell you if they talk to someone who has a lead score of 10 but still doesn’t know the name of your company. What you need to pay attention to is if your engagement score correlates with your sales numbers. In other words, do months/quarters where you have high engagement also have high sales? If not, change your engagement score (or maybe your sales team, but that’s a different blog post)!

Now, it’s time for both of us to go back to work. This has been fun, though. Feel free challenge me in the comments or connect on LinkedIn if you’d like to continue this discussion on measuring lead quality.

 

 

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