A financial services client used logistic regression based lead scoring to improve closure rates.
The financial services client was running an always on campaign to reach out to people in need of loans. They wanted to build a solution that would help them identify prospects who are most likely to respond positively to the loan product offerings. They also wanted to identify the right segment of customers to target, and prioritize leads for better conversions. They were looking to integrate channel recommendation as a part of the solution.
Rank prospects against a scale
Predictive lead scoring assigns a higher score to prospects that are more committed and interested compared to those that show minimal interest.
- 2.1x increased conversion of qualified leads to opportunities
- 23% improved return on investment (RoI) on lead generation campaigns
- Prospect segmentation with better understanding of buyer clusters
The client tested the lead scoring model with a team of 10 people. The number of conversions doubled with an increased loan disbursement of USD 6 Mn.
High lead volume. Low lead quality
The client was using additive lead scoring methodology to score prospects. They would assign specific points for each milestone in the sales process. The leads with highest score were considered most engaged and receptive to the loan offers. However, with the increase in the scale of operations and the volume of leads coming in, the process soon became complicated.
The biggest problem for the client was that there was no awareness of the target prospects and why the conversion was higher for certain clusters. The explicit attributes were largely known, but there was little understanding of the implicit and negative attributes for the commitment behaviour. They were looking for a more advanced and accurate solution for lead scoring, and predictive lead scoring satisfied all their requirements.
An indicator of purchase readiness
Predictive lead scoring allows the client to identify prospects most likely to convert and those on the edge of buying.
With logistic regression based lead scoring, the client was able to generate multiple benefits, including:
a. A more accurate & scientific process of scoring prospects
b. Understanding of implicit & negative factors impacting lead scores
c. Better understanding of target groups by combining the 1st party and 3rd party data
Predictive lead scoring allows our client to decide the prospects that have higher level of interest and align to the loan product portfolio.