Original Post: https://ducttapemarketing.com/behavior-scoring/
Why Behavior Scoring is the Missing Ingredient in Your Marketing Approach written by John Jantsch read more at Duct Tape Marketing
With inbound marketing becoming ever more popular in recent years, a marketer might be tempted to think broad when it comes to their approach. After all, when anyone can happen upon your brand, it means that anyone’s a potential customer, right?
That’s not quite true. In fact, the number of leads that actually become customers is only around 10 percent. So that means you should really be focused on creating highly targeted marketing messages that are likely to appeal to that small sliver of the population, rather than trying to please everyone.
But how do you find those people? And once you’ve found them, what can you do to make sure you’re speaking to them in a way that really resonates?
That’s where behavior scoring comes in. When you understand the behaviors that are most often exhibited by your customers, you can begin to identify your most promising leads and refine your marketing messaging so that it speaks directly to them.
What is Behavior Scoring?
Behavior scoring, sometimes called lead scoring, is assigning a numerical score or grade to prospects based on certain behaviors they exhibit. You start by analyzing the behaviors of your best existing customers. Are there ways they interact with your brand that consistently result in conversions? Is there a certain page on your website they visit, social media platform they follow, or email newsletter they sign up for?
When you understand the behaviors of your existing clients, you can then create a “composite sketch” of your ideal customer. Those customers who do X, Y, and Z convert a high percentage of the time, so your prospects who do those same things are given a high behavior score. They’re the people you want to focus your marketing time and effort on.
People visit sites or interact with brands for all sorts of reasons. Let’s say you own a tree care company. You may show up in search results for an apartment-dweller looking for advice on tending to her indoor potted tree, a student thinking about starting a lawn care business who’s doing research on pricing in similar industries, and new homeowner in the area who wants to replace some of the older trees on their property. Only one of these people has the potential to become a legitimate client, and since you don’t get full biographical information on those who visit your website, tracking behaviors can indicate their level of seriousness.
The woman in the apartment might watch a short video on plant care your site and then disappear. The student might beeline to the pricing page. But the homeowner looks at several pages outlining services and pricing, plus checks out your testimonials. If this is activity you’ve seen from past customers, then you know this is a lead worth spending some time on.
Lower Your Customer Acquisition Costs and Increase Customer Lifetime Value
Customer Acquisition Costs (CAC) and Customer Lifetime Value (CLV) are two critical metrics to track for your business. When you understand how much it costs to acquire your customers and how much value they produce once you have them, you can tweak your sales approach and pricing models to ensure your acquisition costs are covered and you’re still able to make a profit.
However, the reverse is also true: When you understand the behaviors that make someone a promising lead, you can lower CAC and increase CLV. By only marketing to those prospects exhibiting desirable behaviors, you stop wasting time on prospects who will never convert. This means that you’ll get more marketing bang for your buck overall, since you won’t spend dollars chasing those who would never become customers anyway.
Plus, as you begin to develop a more and more nuanced understanding of your customers’ behaviors, you can continue to refine your marketing approach to get even greater results and drive existing customers towards purchasing bigger and better products. All of this leads to an increase in overall CLV.
Understand What Resonates with Your Promising Leads
When you understand the actions of your ideal customer, you can create marketing campaigns that drive prospects to take those actions. Experimenting with website layout, calls to action, and your messaging and tone can all help to drive people who are interested in your business to take the steps that are likely to lead to conversion.
A/B testing is a particularly effective way to further refine your approach. Try running different variations of your web pages to see which gains the greatest traction.
Showing half of your hot leads one option and the other a variant of the same page allows you to understand the messaging and layout that works best. If there’s a significant difference in response to the two variations, that tells you something.
You then can do the work of analyzing the differences, identifying the aspects that made the one page so successful, and replicating that approach across other pages, platforms, and channels.
Further Refine Your Outbound Approach
Once you understand what resonates with your hot leads, you can move beyond inbound tactics and create advertising that’s highly targeted to those leads.
Facebook’s advertising platform offers business owners a number of ways to identify and target hot leads. With the Facebook Pixel installed on your website, you’re able to track visitor behavior—a key part of the scoring process. On the Facebook advertising platform itself, you can create lookalike audiences, groups with attributes that mirror those of your existing customer base, allowing you to target them with advertising.
All of this becomes a positive feedback loop. As your marketing approach is refined, you continue to attract more qualified leads. These leads in turn give you an even more nuanced picture of what your ideal prospect looks like, which allows you to further tailor your marketing approach. Over time, you generate greater and greater results.
Pass on the Leads that Will Never Convert
The fact of the matter is that there are plenty of leads who will never convert, no matter what you do. If you spend your time and energy reaching out to every person, the majority of your energy is being dedicated to people who will never convert.
That’s why a critical part of behavior scoring is not just assigning positive points to those leads who exhibit certain behaviors that often lead to conversion, but also taking away points from those who exhibit less-than-promising behaviors.
Leads who consistently delete your emails without reading, have only been to your website once or twice, or are in a location that your business doesn’t service are ones that you should not spend time pursuing.
Inbound marketing can sometimes make you feel like you need to be everything to everyone. In reality, the most effective marketing strategies—inbound and outbound—are those that speak directly to the small percentage of the population that actually need the solution your business offers. When you use behavior scoring to better understand the actions of your best customers, you can create messaging that resonates with the leads who have the best shot at conversion. All of this saves you time and money, and it makes your customers happier, because they know they’ve found a business that really gets them.