Lead Scoring for SaaS Companies
Lead scoring is a crucial process for SaaS (Software as a Service) product organizations to prioritize and qualify potential customers based on their likelihood to convert and become paying users. There are common lead scoring techniques used across all industries, but in this article, we focus on lead scoring concepts that are particularly relevant to SaaS product organizations. In our experience consulting for many SaaS organizations, there are unique attributes and engagement behaviors that are especially important and unique for SaaS.
User Engagement Scoring
Perhaps the most important measure is how the potential customer is actually engaging with your product or service. Some important attributes include:
- Measure user interactions with your product, such as logins, feature usage, and session duration.
- Assign scores based on the depth and frequency of engagement, frequent flyers are more likely to purchase your product.
- Prioritize leads who actively use and explore your product over those who are less engaged.
Trial Usage Behavior
There are certain usage statistics that can indicate a high probability of a product purchase. In a recent study, researchers found that the likelihood of a trial consumer making a purchase can be measured based on a few key numbers. While the exact numbers may vary depending on factors such as the product, target market, and pricing model, here are some general indicators of a higher probability of purchase:
- Frequency: If a trial user engages with a product or service regularly, it is a strong indication that they see value in it and are more likely to make a purchase.
- Duration: The longer a trial user spends using a product or service, the higher the likelihood that they will become a paying customer. It shows genuine interest and the potential for long-term satisfaction.
- Depth: When a trial user explores different features or aspects of a product, it suggests a higher level of engagement, which often leads to a purchase decision.
Keep in mind that these numbers are not set in stone and can vary depending on different factors. However, understanding these general indicators can help businesses assess the potential conversion rates of trial users and refine their marketing strategies accordingly.
Some key metrics that we typically use as a guide are:
- Number of logins: More than 5 logins during the trial period
- Number of active users: More than 3 active days during the trial period
- Time spent in the product: More than 30 minutes per session
- Number of features used: More than 5 different features were used during the trial period
Customer Fit and Product Fit
Customer fit is all about making sure that a product or service perfectly aligns with the needs of a particular customer segment. It's like finding the perfect puzzle piece that fits perfectly into a bigger picture, ensuring maximum satisfaction for both the customer and the company.
On the other hand, product fit focuses on meeting the unique needs of individual customers. It's about going beyond a one-size-fits-all approach and customizing the product or service to meet their specific requirements.
This element is dynamic and evolves over time. In essence, it is reviewing the initial ideal customer profile, making adjustments based on interactions that are similar to the ones that profiled customers have had with your product or service, and refining the original target criteria accordingly.
Some characteristics to consider:
- Develop a lead scoring system that evaluates how well a lead's needs align with your product's capabilities.
- Leads who require features your product offers should receive higher scores.
- Use lead nurturing to educate leads about the fit between their needs and your solution.
In summary, the above additions to lead scoring programs should be considered for SaaS products to ensure that the leads with the highest potential are prioritized and are converted faster.
Regularly review and refinement of your lead scoring model based on the performance and conversion data of your leads. This iterative approach ensures that your lead scoring techniques remain effective and aligned with your SaaS product organization's goals.
* * *