Convey.ai Blog

If we asked you, “What would be the one software you would invest in for a sales solution” you might confidently say CRM. Well, you’re not alone; most businesses would agree. CRM is indeed an excellent software, but did you know it is not typically used for lead generation, a critical part of the sales process? Instead, CRM is used for managing existing customers, organizing customer information, and maintaining strong customer relationships. On the other hand, lead management tools are designed to capture, nurture, and convert leads.

Both of these tools are essential for a robust sales strategy. In this article, we will briefly explain what a CRM and a lead management system are, and highlight some of the key differences between them. By the end of the article, you will be well-equipped to know when to use each software to maximize sales.

_{What Is A Lead Management Tool?}

Imagine you are running a tuition center and have a website that lists your tuition services. Adam visits your website and fills out the form to learn about your services. Similarly, Jane visits your website and browses the services that you offer. Both of them are your leads.

The lead management now leverages a scoring system and prioritizes those leads who are more interested in your services. Here, Adam is your high-scoring lead because has engaged more with your brand by filling out the form. After the scoring is done, you send a personalized message to Adam explaining about your services. If he is impressed with it, Adam will call you back. During the call, you discuss the price and close the deal.

This whole process is handled by a lead management tool. It converts an “ individual who has shown interest in your product” to a lead and then into a paying customer. 

Are you looking to streamline your lead generation process? Get Convey.ai - an automated lead management tool automating the sales process.

_{What Is A CRM (Customer Relationship Management) System?}

A CRM tool manages, nurtures, and enhances customer relationships. It stores and organizes information about the customers, and facilitates customer engagement through email, phone, and other channels. Additionally, it provides insights into customer behavior, sales performance, and other business metrics.

_{Key Differences Between A Lead Management System And A CRM System}

_{Usage Of The Software}

In a customer journey, the first phase is acquiring customers and the later phase is managing those customers. The lead management tool plays a critical role in the first phase. 

On the other hand, CRM tools come into the picture at the later stages of the customer journey. When a lead becomes a customer, the lead management process ends and CRM takes over.

_{Purpose And Scope}

Lead management tool plays a smaller role in the entire customer lifecycle. Its goal is to optimize the lead acquisition and conversion process. 

On the other hand, a CRM tool plays a bigger role in the entire customer lifecycle. It not only manages the initial lead and conversion process but also manages the customer relationships, customer interactions, retention, and sales tracking.

_{Functionality}

Lead management functionality is different from CRM functionality. A lead management tool performs the following:

• Lead capture: The tool captures leads who have shown interest in your brand through multiple channels such as web forms, social media, and marketing campaigns.‍
• Lead qualification: The captured leads are then scored based on predefined criteria. These are qualified leads. They are more likely to convert into customers.‍
• Lead conversion: Qualified leads are nurtured through effective, personalized messaging to motivate them to become customers. 

On the other hand, CRM tool functionality focuses on:

• Managing customer data: Collecting and storing detailed information about the customers such as contact details, purchase history, etc.
• ‍Managing sales activities:  Tracking sales, monitoring sales team performance, and forecasting sales.
• ‍Handling Customer Service: Solving customer issues and supporting customer satisfaction.
• ‍Reporting: Providing insights into customer behavior, sales performance, and other business metrics.

_{User Base}

A lead management system is specifically designed for sales reps. The role of a sales rep in a customer journey is to identify and make initial contact with potential customers, assess their needs, build relationships, offer solutions, and close the deal. The lead management tool does exactly that. It captures leads, nurtures, and converts them into customers. Therefore, the tool is a perfect match for sales reps.

In contrast to lead management, CRM tool is used by several departments including sales, marketing, customer service, and so on. Sales use it for tracking sales activities, managing sales pipelines, and closing deals. Marketing uses the tool for managing marketing campaigns, analyzing marketing performance, and tracking customer engagement. And customer service uses the tool for customer support and managing customer service requests.

_Integration

A lead management system integrates only with CRM. Once the lead is captured and converted into a customer, the customer has to be transferred to the CRM for relationship management. Once in the CRM, the customer is supported in various ways such as post-sales support, account management, and long-term relationship building.

On the other hand, CRM integrates with various tools beyond the lead management system. This includes tools such as marketing automation tools, ERP systems, and others. The purpose of integration is to make sure the data flows seamlessly between the two tools. For example, syncing CRM data with marketing automation tools helps in automating personalized marketing content.

_{Benefits Of Using Lead Management Tool}

Here are some of the benefits of using a lead management tool:

• Eliminates Manual Efforts: The lead management tool automates most of the stages of the lead management process, thereby eliminating manual efforts.
• ‍Increases Conversion Rates: The tool allows businesses to personalize messages based on the lead’s interests, thereby increasing the likelihood of leads converting into customers.
• ‍Captures High-Quality Leads: The tool leverages advanced lead capture forms to identify and capture individuals who are interested in your products. It then uses lead-scoring techniques to prioritize high-quality leads. 
• ‍Provides Valuable Insights: The lead management tool provides insights into different aspects of the sales process, giving businesses valuable data points that will be helpful in decision-making.

_{Benefits Of Using CRM Tool}

Here are some of the benefits of using CRM tools:

• Centralized Information: The CRM tool collects customer information from several sources and consolidates the data to provide a holistic view. With centralized information, it becomes easy for the marketing and sales team to access data. 
• ‍Improves Sales Process: The CRM tool automates some of the repetitive tasks such as follow-ups, email reminders, etc., thereby eliminating manual efforts and allowing sales reps to focus on the core aspects of the sales.
• ‍Increased Customer Retention: The CRM tool offers businesses with insights into key metrics like customer engagement, which can be used to develop retention strategies.
• ‍Enhanced Marketing Campaigns: The CRM tool enables businesses to segregate their customers into segments. This will help in delivering targeted messages to each segment, thereby improving the marketing campaign.

_Conclusion

In the context of sales solutions, one prominent software that is widely recognized and mentioned is CRM. It is indeed great software, but there is another software that complements CRM to enhance the sales process even further - The Lead Management System. While both the software share some similarities, they serve distinct purposes and have noticeable differences. This article highlights those differences, providing you with insights on when to use each software.

If you are looking for lead management software that automates the sales process and seamlessly integrates with any CRM system, Convey.ai is exactly what you need. Our tool is designed to streamline and automate each stage of lead management, making it easier to find quality leads, nurturing, and convert them into loyal customers. For more information on our tool and its features, contact us today via phone or email.

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