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Problem Statement

X Education, an online course provider, faces a low lead conversion rate of 30% despite generating many leads. To improve efficiency, they aim to identify 'Hot Leads' that are more likely to convert into paying customers by assigning lead scores based on historical data. The company has provided a dataset with 9000 entries to help build a model for predicting lead conversion potential, targeting an 80% conversion rate.

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16 views2 pages

Problem Statement

X Education, an online course provider, faces a low lead conversion rate of 30% despite generating many leads. To improve efficiency, they aim to identify 'Hot Leads' that are more likely to convert into paying customers by assigning lead scores based on historical data. The company has provided a dataset with 9000 entries to help build a model for predicting lead conversion potential, targeting an 80% conversion rate.

Uploaded by

jagdishdapke362
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Lead Scoring Case Study

Problem Statement

An education company named X Education sells online courses to industry professionals. On


any given day, many professionals who are interested in the courses land on their website and
browse for courses.

The company markets its courses on several websites and search engines like Google. Once
these people land on the website, they might browse the courses or fill up a form for the course
or watch some videos. When these people fill up a form providing their email address or phone
number, they are classified to be a lead. Moreover, the company also gets leads through past
referrals. Once these leads are acquired, employees from the sales team start making calls,
writing emails, etc. Through this process, some of the leads get converted while most do not.
The typical lead conversion rate at X education is around 30%.

Now, although X Education gets a lot of leads, its lead conversion rate is very poor. For
example, if, say, they acquire 100 leads in a day, only about 30 of them are converted. To make
this process more efficient, the company wishes to identify the most potential leads, also known
as ‘Hot Leads’. If they successfully identify this set of leads, the lead conversion rate should go
up as the sales team will now be focusing more on communicating with the potential leads
rather than making calls to everyone.

There are a lot of leads generated in the initial stage (top) but only a few of them come out as
paying customers from the bottom. In the middle stage, we need to nurture the potential leads
well (i.e. educating the leads about the product, constantly communicating etc. ) in order to get a
higher lead conversion.

X Education has appointed me to help them select the most promising leads, i.e. the leads that
are most likely to convert into paying customers. The company requires me to build a model
wherein I'll need to assign a lead score to each of the leads such that the customers with higher
lead score have a higher conversion chance and the customers with lower lead score have a
lower conversion chance. The CEO, in particular, has given a ballpark of the target lead
conversion rate to be around 80%.

Data
You have been provided with a leads dataset from the past with around 9000 data points. This
dataset consists of various attributes such as Lead Source, Total Time Spent on Website, Total
Visits, Last Activity, etc. which may or may not be useful in ultimately deciding whether a lead
will be converted or not.
The target variable, in this case, is the column ‘Converted’ which tells whether a past lead was
converted or not wherein 1 means it was converted and 0 means it wasn’t converted.

You can find the dataset in .csv format in the attachment.

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