Month: January 2023

Why Lead-Scoring Algorithms Can Increase Conversions By as Much as 20%

Posted on by hiredna

Not all leads are equal. Some are just entering the sales funnel and are at the top in the awareness stage where they’re just getting their bearings and doing preliminary research. Others are a bit further down in the interest or desire stages where they understand your product and are considering making a purchase. And others are at the very bottom in the action stage where they’re right on the verge of converting. One of the best ways to sort through leads and ensure you deliver the right outreach at the right time is with lead-scoring algorithms, which can increase conversions by up to 20%.

Here’s why lead-scoring algorithms are so potent and why they’re worth implementing into your sales operations.

The Rise of Sales Technology

First, let me point out that sales technology in general has seen a sharp rise in recent years. A 2020 LinkedIn study found that nearly half (47%) of sales professionals use technology at least once a day — a number that has presumably risen even more over the past three years. The study also found that “more than 52% of sales professionals said they planned to use more sales technology,” and “74% of those who use an intelligence tool state that it plays a critical role in closing deals.”

In 2023, technology is being used in nearly all aspects of sales, boasting impressive results. And lead-scoring algorithms are no exception. It’s taken a process that formerly had to be done manually and was quite time-consuming and given it a shot in the arm. While I’m not surprised that lead-scoring algorithms can have a positive impact on conversions, I was honestly amazed that it can be as high as 20%!

This shows the potentially game-changing nature of this technology and why it should be on every sales team’s radar, especially if lead management is something you’ve historically struggled with. Now that we have some perspective on exactly what lead-scoring algorithms are capable of, let’s look at two specific reasons why they help sales teams boost conversions.

They Help You Identify High-Value Leads

As I mentioned earlier, there can be a big disparity in where leads are in the sales funnel. Most initially start at the top in the awareness stage and have to be nurtured before they’re sales-ready.

But here’s what’s crazy. “61% of marketers send all of their leads to sales even though only 27% are actually qualified.” Not only is this a huge waste of time where reps reach out to a ton of leads that are unlikely to convert, it can be annoying to leads when what they need is more information rather than a hyper-aggressive sales plug.

Perhaps the biggest benefit of lead-scoring algorithms is that they help you identify high-value leads quickly and reliably. Here’s an example.

By using a points-based lead-scoring model, you can assign each lead a score based on specific actions such as visiting your homepage, clicking on a blog post, visiting your pricing page, or downloading an eBook. Actions like visiting a homepage and clicking on a blog post would show relatively small intent to buy and, consequently, receive fewer points than actions like visiting your pricing page or downloading an eBook, which would assign more points.

How to Create an Informative Lead Scoring System in 6 Steps : LeadFuze

In turn, you can objectively identify a lead’s current value and rank them accordingly. A lead score of 50, for example, would be just a basic lead.

A lead with 75 points would be a marketing qualified lead (MQL).

And a lead with 100 points would be a sales qualified lead (SQL), which would be a high-value lead that your reps would want to prioritize over all others.

The end result would be reaching out to hot leads right when they’re most receptive, thus greatly increasing your chances of converting.

They Streamline Lead Nurturing

The other key purpose of lead-scoring algorithms is that they can enhance lead nurturing so those that aren’t ready for a sales conversation can receive the right information to educate them and build rapport until they are ready.

Say, for instance, a lead received a score of 75 points using the model above are were identified as an MQL. You could put them in an email drip campaign and send them relevant newsletters, videos, and blog posts so they can learn more about your product and get comfortable with your brand. This could be followed by case studies, competition comparisons, testimonials, or free trials, gradually nurturing them until they become high-value leads.

Instead of “going for the jugular” prematurely and squandering employee resources while potentially turning off leads, this would allow you to get the absolute most out of everyone who enters your sales funnel, regardless of the stage they start out at. It’s basically a two-pronged attack where you’re able to quickly identify and reach out to high-value leads and effectively nurture those that aren’t yet sales-ready until they’re eventually prepared for a sales conversation.

All the while, you’re generating accurate, objective data and basing your decisions around sophisticated intelligence rather than “just a hunch.” When you put it all together, it’s easy to see why conversions can increase by as much as 20%. If you want to learn more about lead scoring software and get a comparison of today’s top products, I suggest checking out this resource from G2.

Revving Up Conversions with Lead-Scoring Algorithms

One of the biggest hindrances to reaching full conversion potential is treating all leads the same. As we’ve learned, the majority of leads aren’t initially sales-ready and each lead is at a different stage in the sales funnel.

Lead-scoring algorithms are one of the best tools for sorting out leads so you’ll know which ones to focus on right off the bat and which ones to nurture. That way, you can simultaneously optimize your sales outreach process and get your conversion rate as high as it can possibly be.

And if you’re looking to optimize your sales recruiting, check out HireDNA. 92% of recommended candidates through HireDNA climb to the top of the sales force within one year, and it eliminates 96% of hiring mistakes.

2023 Sales Recruiting: What Changes to Expect This Year

Posted on by hiredna

Sales recruiting is always evolving. But you could argue that it’s changing at a faster rate than ever before in the 2020s. And 2023 is no exception. As we settle into the New Year, here are some key changes to expect for 2023 sales recruiting to put you at the top of your industry.

A Heavier Use of Recruiting Automation

Recruiting automation isn’t exactly new, and many companies are already using it in some capacity. For reference, recruiting automation software saw a CAGR of 1.9% from 2015 to 2021. But it’s expected to gain even more momentum in 2023 and beyond. More specifically, “the global market is predicted to surge at a CAGR of 2.7% and record sales worth $660 million by the end of 2032.”

2023 is shaping up to be a pivotal year for the growth and expansion of recruiting automation, where its capabilities will continue to evolve, and more companies across a wide variety of industries will implement it. So if it’s something you’ve considered using but haven’t pulled the trigger on yet, now is the perfect time to do so.

In terms of what you can do with recruiting automation, the applications are far-ranging. With HireDNA, for example, you can use it for everything from pinpointing your ideal candidate and sourcing to screening and interview scheduling.

Not only does this save time, it can dramatically increase productivity and performance, with 80% of executives believing it gets results.

Using Data-Driven Matching to Find Ideal Sales Candidates

In the past, a lot of recruiting was done the “old school” way, often relying on a gut feeling when trying to figure out who the best candidate for the job was. But in recent years, there’s been a big shift to taking a more data-driven approach to things. And 2023 appears to be the official boiling point for this.

While tapping into a wealth of personal experience, especially if you’ve been sales recruiting for years or decades, is certainly helpful, studies have found that data-driven companies are 3X more likely to achieve long-term success and make better decisions than those that don’t leverage data.

So what exactly does data-driven matching look like in 2023?

A prime example is using a matching algorithm to analyze key data points, such as work style, sales process, quota attainment, team environment, and compensation to objectively evaluate sales candidates to see who’s the optimal match for the role you’re looking to fill. HireDNA analyzes over 20 data points to show you the whole picture, which allows you to find the best of the best without having to rely on your intuition.

Besides that, HireDNA offers scienced-based assessments where 21 core selling competencies are evaluated, such as motivation, desire, and coachability to accurately predict success.

Putting this technology to use when many other companies are behind the curb is nearly guaranteed to give you a palpable sales recruiting advantage in 2023.

Focusing More on the Sales Candidate Experience

In mid-2021, I wrote a post about the sales candidate experience, saying it had become more important than it was in the past. To quantify, “59% of candidates abandon a job application due to bugs, issues, or complexity of process,” and “42% of candidates with a negative experience won’t reapply to your company.” On the other hand, “38% of candidates who are satisfied with their experience are more likely to accept a job offer.”

Fast forward to the start of 2023, and the sales candidate experience is even more critical and an area of recruiting that companies are placing a growing emphasis on. Fortunately, creating a great sales candidate experience isn’t rocket science. It just boils down to the following fundamentals, such as:

  • Optimizing your website to prevent bugs and needless complications
  • Not making forms any longer or more complex than they need to be
  • Being transparent with candidates, letting them know what stage they’re at in the recruiting process, where they stand, and so on
  • Keeping interviews simple and straightforward

You can learn more about how to improve the sales candidate experience here.

Using Branding as a Sales Recruiting Strategy

When most people hear the word “branding,” they think about it in a marketing context. And they wouldn’t be wrong. However, in 2023, branding is also starting to be used as a key part of a sales recruiting strategy.

Consider this. 82% of sales candidates now take a potential employer’s reputation into account before applying.

If their research yields positive results where multiple employees — past and present — sing your praises saying you’re an amazing company to work for, it’s going to help you get your foot in the door with elite talent. If, however, your brand reputation isn’t so great, it’s going to have the opposite effect.

That’s why it’s important to 1) recognize the correlation between branding and recruiting and 2) take measures to improve your brand reputation if it’s lacking. Or, if your brand reputation is solid, you should work to reinforce it to further capitalize on the momentum.

A good resource for learning how to win with employer branding and recruiting is this blog post from Recright.

Winning at 2023 Sales Recruiting

Every new year comes with its own unique challenges. But on the flip side, it also comes with distinct opportunities.

2023 sales recruiting looks to be packed with a lot of changes, but I feel the four listed above are some of the most pertinent. Getting on board at the start of the year and capitalizing on recruiting automation, data-driven matching, the sales candidate experience, and branding as a recruiting tool should put you ahead of the game and ensure you have a steady pipeline of qualified talent.

To learn more about how HireDNA works and how it can help, specifically with recruiting automation and data-driven matching, book your live demo today.