Lead Management Software

Lead Management Software Buyer's 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.

A variety of lead tracking softwares exist that offer lead management CRM capabilities. To help sort through the numerous choices, read on for an extensive guide covering the types of buyers that typically evaluate software like this, standard features found in these systems, and important factors to consider prior to making a decision.

What Is Lead Management Software?

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

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.

Expected Benefits

• 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.

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.

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.