Research by TSL Marketing found that software as a service (SaaS) companies have difficulty generating quality leads. Our recent SaaS Marketing Survey discovered that more than 50% of SaaS marketing leaders rated their leads as average or below. Only 11% of respondents rated their leads as “excellent.”
To grow, SaaS companies need to focus on generating quality leads that are market and sales qualified, increasing the chance of conversion. Lead scoring is the key to understanding lead quality. By assigning numerical values to potential customers, lead scoring ranks their interest and readiness to purchase SaaS products on a scale of 1 to 100.
With lead scoring, SaaS firms can assess and identify the quality of leads to prioritize and nurture them effectively for a more efficient and successful approach to sales and marketing.
Lead scoring helps sales teams identify the most promising prospects based on the likelihood that they will become a customer. By focusing on leads that are closer to purchase, SaaS companies save time and effort spent chasing unqualified leads. When sales teams engage with high-scoring leads, they close deals more quickly and increase conversion rates.
Scoring leads empowers sales teams to nurture prospects more effectively by better understanding where they are in their buyers journey. The further leads are from purchasing SaaS products, the more follow-up they need from sales reps.
Lead scoring enables marketing teams at SaaS companies to tailor their strategies to attract higher quality leads. By combining lead scoring with lead attribution, marketing teams can understand which marketing tactics and channels are generating the highest quality leads. Based on this information, SaaS companies can maximize their efforts on these channels to generate more Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs).
Lead scoring that follows a firmographic or demographic model, or assesses a lead based on its source, gives SaaS firms information they need to target the right audience with marketing content. If higher scoring leads can be attributed to specific marketing messages and channels, content that conveys this message on preferred platforms has a better chance of engaging ideal prospects and generating quality leads.
Ultimately, the bottom line is the measure of success for any sales and marketing strategy. By scoring leads, SaaS companies can focus on qualified leads to increase their conversion, boosting revenue and return on investment (ROI).
Prioritizing leads allows SaaS firms to reduce their customer acquisition costs by devoting time and effort to nurturing higher value prospects. With lead scoring, SaaS companies can gather information that can be analyzed to forecast revenue and make intelligent decisions about where to invest marketing and venture capital funds.
Lead scoring helps SaaS firms meet challenges they face with lead quality and the ability of the sales team to close leads. Not only can lead scoring increase the quality of leads, but it can give sales reps the information and tools they need to successfully nurture and convert more leads. With lead scoring, SaaS companies can achieve alignment between marketing and sales teams through a shared understanding of the quality of leads entering the pipeline, helping them work toward the same goals.
As a B2B Marketing agency with 25+ years in the industry, TSL Marketing can work with your SaaS company to make lead scoring part of your sales and marketing strategy. We offer lead scoring as part of our SaaS Marketing & Growth Services.
Find out how lead scoring fits into an optimized marketing strategy for your SaaS company. Request a Digital Marketing Assessment for SaaS Companies from TSL Marketing.