Lead Management Software

Lead Management Software Guide

While numerous sales force automation (SFA) and customer relationship management (CRM) vendors possess software with the ability to manage leads, some have expertly designed solutions specifically tailored to this need. Lead management software offers companies a way to automatically track leads and help nurture them in hopes of turning these leads into buyers.

Lead management software is a type of software that helps businesses manage their leads, or potential customers. It provides sales and marketing teams with the tools they need to capture, nurture, qualify, and track leads throughout the entire customer journey.

The main goal of lead management software is to help businesses identify and qualify high-value prospects quickly and efficiently. With this software, businesses can easily create targeted campaigns that directly align with their unique demographics and interests for lead generation. This data can then be used to better tailor content to those specific audiences. Additionally, lead scoring capabilities allow companies to prioritize the most qualified leads based on pre-defined criteria such as job title, company size, industry verticals, etc., which allows for more efficient segmentation and targeting.

Lead management software also provides a range of other features including contact/account relationship management (CRM), campaign tracking and analytics, automated lead nurturing and scoring functions, social media integration tools (for example LinkedIn integration), website visitor tracking capabilities, spam protection technology such as CAPTCHAs or honeypot forms, user segmentation functionality etc., designed to provide comprehensive insights into customer behavior so that marketing teams can adapt strategies accordingly.

When combined with powerful automation capabilities such as landing page creation functions or multi-channel digital advertising campaigns, businesses can further optimize their lead generation process by creating personalized experiences at every level of the customer journey. This ensures that each lead receives relevant content tailored specifically around their individual needs while also helping sales teams gauge which prospects are ready for purchase or require further nurturing in order to close deals effectively.

Overall, lead management software provides an array of valuable features that enable marketers to capture more leads from different sources while giving sales teams access to detailed information about potential customers - allowing them to prioritize more qualified leads faster without having to manually compile data from multiple sources. These tools not only save time but also allow for more efficient segmentation when it comes to devising targeted campaigns – ultimately leading to higher levels of productivity and ROI.

What Does Lead Management Software Do?

CRM systems assist companies in gathering and sorting information on potential and existing clients to improve organization, build client bases, and manage relationships. Lead management software takes this concept a step further by automating the tracking and movement of leads from start (acquisition) to finish (conversion). This increases efficiency, qualification, and conversion rates.

CRM lead management involves processes that integrate unqualified contacts and opportunities from a variety of sources such as sales intelligence tools. The outputs of these processes are then sorted, qualified, scored, prioritized, nurtured, and augmented. The results from these outputs then get distributed among indirect, direct, and digital commerce sales channels so additional action can be taken.

Lead Management Software vs. CRM: What Are the Differences?

Lead management software and CRM share a great deal in common. Both help manage current and prospective clients and track any interactions. However, all CRMs are not necessarily lead management systems. They are certainly good tools for lead management, but the majority of CRMs fail to offer a high level of visibility and sales process automation. Although they are technically lead management programs, the majority of CRMs fail to offer sales process automation on par with the top lead management programs. The biggest distinguishing factor between a true lead management program and a CRM solution comes down to pipeline management.

What Is Pipeline Management?

Also known as a sales funnel, the sales pipeline is each stage of the sales process shown in graphical representation. The beginning of the sales pipeline, or the very top of the funnel, will have a large volume of inquiries. Only a portion of these inquiries will qualify to move another step down. As the sales process progresses, each step leads to an increased number of contracts exiting the funnel. When a deal closes -- the very bottom of the funnel -- the client exits the funnel. Pipeline management refers to the process of streamlining and managing this entire process.

In terms of software, true pipeline management is generally a result of CRM integrated with some type of marketing automation. Marketing add-ons may be offered by certain vendors, but most CRMs currently available are nothing more than glorified Rolodexes. This may be suitable for smaller businesses with minimal clients and competition. However, growing companies or larger businesses will want to take advantage of proven, measurable programs that can be repeated to promote the growth of the company.

Common Features of Lead Management Software

Although features vary among vendors, the following aspects are quite common among the majority of lead management systems:

• Lead capture: This feature helps generate data from leads. These leads are typically captured through forms placed in strategic locations on your company's site. These leads are then scored and nurtured to promote quicker sales.
• Lead storage and distribution: This feature enables businesses to manage captured leads through numerous channels such as web forms and email. The leads get stored in a database to be evaluated. Leads then get distributed according to specific criteria to the appropriate employee.
• Lead nurturing: Nurturing tools allow businesses to keep track of the status of their leads and automate the follow-up process. This strengthens and maintains the professional relationship until the lead makes a purchase.
• Lead scoring: This process grades leads according to specific factors to determine those with the highest potential to end in a sale. This process is facilitated by lead management software by sorting leads according to a variety of attributes such as online behavior, demographic, job title, and more.
• Lead segmentation: The lead segmentation process sorts leads into numerous categories according to geography, job title, qualifications, industry, or other factors. This practice is particularly effective in targeting leads since it sends the right service, product, or message to the appropriate lead.
• Lead analytics and reporting: Making and studying lead reports gives companies a better look at sales and marketing results. This helps generate an understanding of which campaigns have the highest success rates and which leads are being converted at the highest rates.
• Pipeline management: This tool makes it possible for companies to track the status of potential leads or clients. It also helps make the sales process more understandable as well as managing and assessing any sales opportunities during the sales cycle.

Benefits of Lead Management Software

• Streamlined Lead Lifecycle - True lead management systems automate the lead lifecycle. This prevents leads from being accidentally overlooked while also ensuring they are followed up on promptly to boost the possibility of conversion.
• Improved Lead Prioritization - Software that evaluates and scores leads, marketing teams, and sales help boost the efficiency and speed of conversions by pinpointing the leads with the highest chance of a possible sale. By using software to evaluate and score leads, sales and/or marketing teams can increase the speed and efficiency of conversions by highlighting those leads most likely to result in a sale.
• Customer Data Capture - A quality lead management system assists companies in capturing any interactions a lead has ever had with the company. This database of customer info will come in handy for cross sales or additional marketing. Lead data can be analyzed in order to know how a lead became converted to a customer. Lead management software also ensures all data remains uniform, meaning sales reps can easily know what information is readily available.
• Improved Visibility - Lead management software offers improved visibility into your lead funnel so you can understand how well your campaigns are performing, where most leads come from, which activities generate the highest ROI, etc. This visibility helps you better track key performance indicators (KPIs) and quickly adapt strategies when needed.
• Increased Efficiency - By automating many manual tasks, lead management software saves organizations time and money on data entry and other mundane tasks. It also helps reduce wasted efforts on irrelevant leads as you can easily filter out potential customers that don’t meet your criteria.
• Better Targeting - Lead management software allows you to segment potential customers based on certain criteria such as geographical region, demographics, interests, etc. This allows you to better target your marketing campaigns and focus on prospects that have a higher chance of converting into customers.
• Increased Collaboration - A good lead management system provides all members of a team with real-time access to customer data so they can collaborate more effectively and make informed decisions faster than ever before.

Buyers: What Type Are You?

• B2B buyer - B2B buyers are employed by firms that sell their services and products to other businesses, not consumers. Since the sale's lifecycle of these interactions tend to be longer than others, it is essential for B2B buyers to have strong lead scoring and nurturing tools. This ensures the growth of the relationship with prospective clients.
• B2C buyer - Companies that sell directly to consumers tend to benefit from lead tracking software that helps prioritize and organize large amounts of individual consumer data. B2C buyers also require analytic features to identify and understand consumer information.

Who Uses Lead Management Software?

• Sales Professionals: Individuals and teams in sales departments that use lead management software to track leads, nurture prospects, and close deals.
• Marketers: Professionals who work in marketing departments that use lead management software to generate leads through campaigns, track lead activities, segment leads and measure the success of marketing initiatives.
• Customer Service Representatives: Employees who use lead management software to manage customer interactions and respond quickly to inquiries or requests.
• Business Owners: Business owners who need an efficient way to keep track of leads and customers, as well as analyze the performance of their business.
• IT Professionals: Technology experts that rely on lead management software for data integration, automation tasks like email nurture campaigns, user permission settings, etc.
• Consultants: Independent consultants or agencies with multiple clients who need an organized system for managing campaigns and tracking progress across different clients.
• Researchers: Professionals in research departments who need to keep track of leads, collaborate with colleagues, and analyze data quickly and accurately.
• Account Managers: Account managers that use lead management software for organizing customer accounts, monitoring revenue goals, and keeping customers satisfied.
• Recruiters: Human resources professionals who use lead management software to manage recruitment campaigns, track job applications, review resumes and schedule interviews.
  

Lead Management for Small Businesses

Each prospect becomes even more important the smaller a company is. Additionally, since smaller companies generally have smaller budgets, any potential software solutions must be justified by substantial ROI. Given these factors, lead management software that deals with smaller companies is typically customized to the businesses specific use or industry. These programs offer a wide range of functions to specifically accommodate the business.

Take realtors for example. In many cases, they are the sole person responsible for obtaining and managing leads, showing houses, filing paperwork, and many other tasks. Often, realtors rely almost entirely on their websites to do the majority of their prospecting work. However, this method lacks the ability to track leads and referrals once they are captured. Many CRM programs that are created specifically for realtors are an excellent example of lead management software. These programs provide pipeline management and a variety of robust marketing tools.

Lead Management Programs for Enterprises

Lead management programs for large scale businesses are similar in design to those created for smaller companies. CRM programs specified for larger companies generally include more functionality. Systems focused on small businesses tend to focus on the breadth of functionality whereas large scale businesses rely more on depth. Rather than a small business program that has an all-in-one focus on things like pipeline management, marketing automation, document management, and more, enterprise scale operations include a central hub that keeps track of leads from any source. Properly establishing a campaign and integrating the tools can take time, but it is worth it.

Marketo and Pardot are good examples of lead management programs suited to enterprise level operations. These programs take a far deeper approach to channel management and lead tracking than other small business programs. Many larger companies use a lead management program or marketing automation as the main base for tracking potential clients, following up on leads, website interactions, monitoring email activity, and more.

How Much Does Lead Management Software Cost?

The cost of lead management software can vary widely depending on the features and capabilities. Generally speaking, most solutions range anywhere from $9 to $150 per user, per month (or a one-time fee of up to $3,000). It is important to note that while some providers offer a low-cost basic plan, other vendors offer more comprehensive packages that come with additional features at higher prices.

For example, if you require robust customer relationship management (CRM) functionality with detailed analytics about your leads and customer data, you might opt for a more expensive package. On the other hand, if all you need are basic lead capture and contact management tools, then an inexpensive plan could be just right for you. Many services also offer custom pricing options based on your needs.

Ultimately, the cost of lead management software will depend on what type of business you’re running and how much support you need from the vendor in order to get the most out of their product. As such, it is important to do your research and compare different solutions before making a decision in order to find the best fit for your budget and business goals.

What Integrates With Lead Management Software?

Lead management software can integrate with a variety of different types of software. This includes customer relationship management (CRM) software, marketing automation software, email marketing software, analytics and reporting tools, and other third party applications. CRM integration allows the user to keep track of all the leads they have received from various sources and nurture them throughout the sales cycle. Marketing automation enables users to automate lead nurturing processes, such as sending follow-up emails or setting up automated campaigns based on user behaviour. Email marketing integration allows users to send personalized emails to their leads in order to increase engagement. Analytics and reporting tools allow users to measure their lead performance and analyze trends over time. Additionally, many other third party applications can be integrated into lead management software in order to provide more features or expand upon existing capabilities.

Lead Management Software Trends

1. Automation of Lead Management: Lead management software is increasingly being used to automate the lead management process. This automation helps companies capture leads more quickly and accurately, as well as better tracking and analyzing leads.
2. Artificial Intelligence Integration: AI is being increasingly integrated into lead management software to make it more effective and efficient. AI can be used to analyze large amounts of data quickly, and to suggest the most effective strategies for reaching out to potential customers.
3. Segmentation: Lead management software is allowing companies to segment their leads based on various criteria, such as geography, industry, or buying behavior. This helps companies target their marketing efforts more effectively, increasing the chances of conversions.
4. Mobile Optimization: As more people are accessing websites through their mobile devices, lead management software is also becoming more optimized for mobile use. This ensures that users can access the software from any device with ease and convenience.
5. Social Media Integration: Lead management software is increasingly being integrated with social media platforms such as Facebook and Twitter to take advantage of the vast reach this type of platform has. This makes it easier to capture leads from social media networks and track their progress through the sales funnel.

How to Choose the Right Lead Management Software

1. Research: Research a variety of lead management software to get an idea of their features, costs, and customer reviews.
2. Determine Needs: Make a list of your company’s needs for lead management software. This should include specific features you need as well as the number of users required and any integration capabilities with other software or services.
3. Compare Solutions: Compare the different solutions you have researched according to the criteria on your list. Make sure each solution meets all of your requirements before making a decision. Compare lead management software using the tools on this page and filter by user reviews, pricing, features, integrations, operating system, and more.
4. Test Before Purchase: Most lead management systems offer a trial period or demo version so test out each solution before making a purchase to make sure it is the right fit for your business needs.
5. Select Solution & Implement: Once you have chosen the lead management system that best suits your needs, take time to thoroughly implement into your organization by setting up user accounts, installing any required plugins and integrating with other services if necessary.