How does lead scoring work?

Lead scoring works by assigning a numerical value, or score, to each lead based on various factors that indicate their likelihood to convert into a customer. The process involves several steps and the use of different types of data depending on the business’s specific requirements.

Once a business has determined the necessary criteria for onboarding a customer – usually assessing factors such as credit score, director and shareholder information and past financial stability in the B2B finance industry – the actual scoring of leads can be performed.

This will involve collecting the relevant data on leads from a range of different sources including Companies House, business credit databases and some self-submitted information. 

This data can then be fed into a scoring algorithm that matches the leads against the criteria set by the business. This algorithm will then assign a numerical value to the lead, with a higher score being assigned based on how closely each lead matches the lender or broker’s criteria.

The leads can then be segmented based on the threshold set by the business. For instance, a business may wish to disregard leads with a score lower than 50, or automatically onboard inbound leads with a score higher than 90. At this stage, the threshold is decided entirely by the business.