Once you have successfully implemented your marketing campaigns, you will likely get a number of leads. While some will have the potential to convert into business, others would just be random inquiries. As a small business, you must identify qualified leads and nurture them into potential customers. But without a proper system in place, the chances are high that you might not be able to capitalize on all the leads, losing out on business. A Lead Management System is an efficient way of preventing leads from getting lost, ignored, or not followed up further. This will ensure that you maximize your marketing efforts and increase your conversion rate.
What is a Lead Management System
For every small business that is still establishing itself and hoping to scale up, lead management is a process that must be developed and smartly nurtured to make it an efficient way of identifying qualified leads and converting them into business. A lead management system is an efficient way of doing that. A Lead Management system is a software that automates several tasks within the sales funnel to ensure that potential business is not lost due to a lack of proper identification of leads and timely follow-up. It analyses data such as lead time, conversion rate, and winning loss ratio to give businesses deeper insights into their processes and scope to improve.
Stages of Lead Management Process
Lead Management requires special attention to detail and smart implementation of strategies so that business is not lost. Lead Management Process is implemented in stages, including:
- Lead Generation
The generation of leads is the first stage of lead management. It is the result of the sales and marketing teams working on getting people excited about the products or services of a business and engaging people with the brand. This is the first instance where the importance of a lead management system becomes clear.
Leads generated by the sales team are captured in the shape of basic data that needs to be identified whether they are warm – meaning if they can be converted into a sale. Warm leads are furthered to the sales team, shifting them to the second stage of the lead management process.
- Lead Handling
Once a lead is generated, handling the lead is the second step that involves deciphering them and appointing the right resources for further action. A few things to be ascertained at this stage are the probability of a lead turning into a sale, the sales rep best suitable to handle it, the value of a potential lead, and what is the funnel timeline for a particular lead. Based on all this information, it can be decided how warm the lead is and how quickly it needs to be moved to the next stage.
- Lead Nurturing
Lead nurturing can be loosely described as relationship management where the sales reps take several steps to develop a lead into a valuable relationship instead of pushing it for just a one-off sale. One of the most important parts of lead nurturing is creating engaging, personalized, and direct communication with the lead.
All this is executed based on the data collected from previous steps. The better you collect your data, the higher your chances of creating a long-term relationship with your customers. Depending on the available information, sales reps will decide the kind of content, frequency of communication, etc. to be sent. Emails are the most effective communication methods as they can be personalized, automated, analyzed, and linked to the lead’s pipeline.
- Lead Conversion
This is the final step where all your hard work pays off. If you follow the above steps properly, the lead will convert into a customer doing business with you. Even if it doesn’t happen, an important thing to remember is retaining the relationship built thus far. One of the main aims of lead management software is repeated engagement and building brand loyalty. Maintaining a relationship with your leads gives your business a chance that, in the future, your lead might do business with you. At the least, they will positively review your business and advocate your brand.
Benefits of Lead Management System
Organizations can’t afford to lose out on leads in today’s competitive business space. This is why lead management is imperative. And lead management software does provide a lot of benefits.
- Ensures all leads are captured
A strong lead management software will provide the right information about the leads and help you capture them all at the right time. Important data provided by the software also allows sales reps to form the right communication strategies and nurture them well for business.
- Better filter your leads
Filtering all the leads can be a tiring and time-consuming task. But lead management system comes with several lead filtration tools that can hasten this process while efficiently sifting the potential, warm, and qualified leads.
- Real-time reporting
During the peak of a campaign, you will witness a high volume of leads. Knowing where these leads are generating from in real-time can be a jackpot as you can then concentrate on that source and maximize lead generation.
- Enhance team coordination
Lead management systems provide a heap of data that can be used by both your sales and marketing team and work in tandem to create a better workflow in the future. Depending on the insightful data, better lead generation and nurturing processes can be implemented.
Lead management systems are a real boon in today’s competitive marketplace. Businesses can’t afford to lose out on leads that can potentially be their long-time customers. But with a sophisticated CRM that comes equipped with lead management software, you can bid missing out on leads goodbye forever.