A thriving business needs an effective lead management process. Tracking the customer’s buying behaviour is an essential part of the business. Because when a sale happens with unqualified leads, there is a chance of losing the potential customer and revenue.
When a customer experiences poor customer experience with the brand, there is a high chance, such as 67% of customers turning to your competitors. It might sound fearful; however, that is the truth.
Well, who would want to lose customers? What is the solution, then?
It is essential to generate quality leads and also work tactically to maintain and convert the lead into potential customers. Finally, creating a robust Lead Management Process helps the business accomplish that.
Table of Contents
1. What is Lead Management Process
2. Why do we need Lead Management Process
3. How to create a Lead Management Process that works
3.1. Lead Generation
3.2. Lead Capture
3.3. Lead Scoring
3.4. Lead Nurturing
3.5. Lead Conversion
3.6. Lead Tracking
3.7. Lead Management Optimization
4. Best practices for the lead management process to be successful
5. Conclusion
1. What is Lead Management Process
The process of acquiring, qualifying, analyzing, and nurturing leads until they purchase a product or service is called Lead Management Process. The process starts with searching from various sources for potential customers, collecting their information and storing them in your database, and grouping them on their likeliness of purchasing.
Also, you can put in extra effort through your marketing team, connect with them, and turn them into potential leads.
For example, a potential lead is checking out your E-store, selecting the products, and adding them to the cart. However, leave the website without buying them. So, collecting those leads and sending them emails or even popping up ads on their social media would be necessary as their interest will keep them excited.
They remember your product and also the service, and it would be easy to convince them to buy the product. So, right from when the visitor visits your website until they become your loyal customer, this Process works.
According to the opinions of 47% of prospective purchasers, they are more likely to purchase from a vendor who is aware of their requirements.
2. Why do we need Lead Management Process?
A company’s best method for lead generation and maintenance can be identified through the lead management process. Sales teams can better use their time and resources through effective processes, which helps them zero in on prospects genuinely interested in buying your product or service.
This process makes it possible to classify and score leads according to geographical location, media source, user characteristics, and length of interaction. This data is invaluable to sales teams as it allows them to keep in touch with prospects and pass them along to those more qualified to close the deal.
3. How to create a Lead Management Process that works
There are a total of 7 steps in the Lead Management process.
3.1. Lead Generation
The first and foremost step of the Process is Lead Generation. This step is essential for the success of the other steps. It is important to identify your potential buyers to plan your sales process in that you can understand where these buyers stand.
The marketing team needs to determine the buyer’s types and their personas. This finding can help you identify a proper lead plan for the service or product. So, how can this persona be found?
• Geographical area: Where do most of your ideal clients live? The organization that they work for is what size? In which sector of the market do they operate? What are the challenges they face? What are they looking for?
• Behaviour: How do they find the information they need? Do they read blogs and white papers or use Google?
• Lead Source: Where do most of your high-quality leads come from? Where did they hear about you? Did they see one of your tweets, visit your website, or read an article that mentioned you?
You must delve further and put yourself in your ideal customer’s shoes. Is this person the CEO, a vice president, or the head nerd? Find out where they live, what they read, and how they stumbled upon your site.
3.2. Lead Capture
The lead generation process is over. Now, the next step is Lead Capture. It is crucial to capture the information about the lead and store it in your database. Also, persuading them to move through the funnel is essential.
The lead generation process is executed where numerous leads are generated. So, it is mandatory to automate the database creation. Otherwise, it would be a mess.
The information from the leads can be collected through web forms and should also be fed into your CRM software. When the data is fed into CRM, the leads are noticed and can be managed effectively.
91% of companies with 10+ employees use customer relationship management software to improve customer relationships and centralize data. With a customer relationship management system, businesses can gain a great deal of potential revenue.
3.3. Lead Scoring
Lead scoring is the process of checking a list of attributes for a lead to be qualified. The sales representatives start with an introductory call to all the leads and get a crux about the lead. This call would be a golden opportunity to analyze whether the lead has to be pursued to buy the product.
The leads are given a number on a scale of 1-10 based on the list of attributes they check in the box. The attributes might be based on geographical location, information about the company, website engagement or customer behaviour, or customer interest in the product.
Leads with a high lead quality score are considered sales-ready and should be pursued quickly.
The method by which salespeople handle the cold call is crucial, whether they use the natural conversation, which is often subjective, to gauge its success or use a sales script with a set of qualification questions to ascertain the recipient’s goals and tailor subsequent interactions.
3.4. Lead Nurturing
Most of the time, leads are doubtful about the product and are not ready to invest. It is because they need to be informed about your credibility. Lead Nurturing the prospects based on their mindset and position in the buying process through custom marketing strategies will make your brand their priority.
This will make them more likely to approach you when they are geared to buy, and it will also strengthen loyalty before them deciding on a purchase.
How to go with the Lead Nurturing Campaign?
• Identify different types of leads, and tailor your approach to each one.
• Maintain consistent, person-to-person communication across all social media channels to deepen your connection with your lead.
• Always make sure to include high-quality calls to action in your content.
• Keep them interested and involved until they’re ready to purchase.
Prospects can make better-informed purchases with the help of lead nurturing, which also speeds up the sales process. It persistently addresses relevant problems, which gradually convinces potential customers to buy.
3.5. Lead Conversion
The term “lead conversion” refers to turning sales-qualified leads into actual customers. When potential customers who have shown interest in your company take the next step and make a purchase, your sales team has converted a lead.
The formula for Lead Conversion is
Lead Conversion Rate = (Total number of conversions/Total number of leads) X 100.
It is vital to track the Lead Conversion Rate of the business. It will be extremely useful. But how? Here is the proof:
• LCR helps in optimizing the usage of business resources that decides the ROI. This factor aids sales and marketing teams.
• Provides insight to the marketing and sales departments regarding the type of campaign, lead source, or sales approach that yields the highest conversion rates.
• It’s a valuable tool for analysing and enhancing various advertising initiatives.
• Teaches you the steps your customers take to make a purchase, information that can be used to advance leads in the sales pipeline.
• It gives you an early warning of lead leaks so you can take corrective action.
3.6. Lead Tracking
Keeping a close eye on a potential buyer’s actions can yield invaluable insights. A lead’s origin can be determined through lead tracking, and the lead’s journey through your sales pipeline can be recorded for future adjustments.
Furthermore, by following the buyer’s journey, inbound and outbound leads can be distinguished easily. You can tailor your efforts towards organic growth, campaign success, or a mix.
The key to unlocking many opportunities is bringing in just one good lead. Therefore, lead tracking enables your marketing and sales teams to track what is most effective with your target audience. Is it an ad you’ve paid for or one of your social media posts? This step can help your sales and marketing staff better position your company to attract new customers.
In addition, lead tracking provides information that sales teams can use to craft a persuasive sales presentation. The result could be a meteoric rise in sales.
3.7. Lead Management Optimization
Creating a lead management procedure is a significant first step, but will it pay off if you don’t keep an eye on it and adjust it as needed? No way, no how! Look at the friction point where leads are dropping off, why they might be dropping off, how far you’ve come each month, etc., for the best results.
Once you learn how to maximize your lead process, your profits can soar. Reasons why
• You will see that if the sales cycle and lead management process are complete.
• Opportunity to improve lead conversion by focusing on the areas of the sales funnel exhibiting the greatest leakage.
• Facilitates evaluation of how effectively you reach out to cold, warm, and hot prospects.
• Allows your sales team to check if leads are being properly sorted into sales process stages.
• It helps you avoid losing money for a more extended period due to a problem with the process.
4. Best practices for the lead management process to be successful
• Marketing process & Sales process in sync
Most of the company’s marketing team is responsible for generating leads. The sales and the marketing team should work together to achieve an effective Lead Management Process.
• Communication between sales team/sales representatives
It is essential to have clear communication between the sales team and the sales representatives to avoid lead duplication. Proper communication would result in an effective Lead Management Process.
• Tracking your Lead Generation efforts
Tracking the leads and checking each lead’s Return On Investment is essential. This enhances the Lead Management Process.
5. Conclusion
All stages of the lead management process, from generation to distribution to closing, can benefit from careful attention to detail. More people will buy from you, and you’ll make more money.
An effective Lead Management Process includes nurturing a lead, communicating within the teams, and tracking the ROI. The process has to be streamlined at every stage, and your business will be able to convert leads into loyal and paying customers.