Which is Better – CRM Software Vs Lead Management Software. It has been observed that most of the people get puzzled between CRM (Customer Relationship Management) software & LMS (Lead Management Software). But both software is different from one another. Customer relationship management is a strategy to organize the business relationship and interaction with potential and current customers. CRM software uses data analysis about the customer’s history with a company to boost business relationships with customers. The primary objective of the CRM system is to strengthen the bonds between the customer and the dealer.
Lead Management Software (LMS) is used to manage the leads. Lead management is the process of capturing leads, tracking activities, qualifying them and giving them constant attention (nurturing) to make them sales-ready. This system is introduced to increase the efficiency of services/products. So here we are sharing the difference between CRM & Lead management software. And also let you know which one is best.
Key Features – Lead Management System
LMS offers many facilities which are necessary to run a business.
Monitoring sales processes – Sometimes customers used excel sheets to maintain their record. At a time, it is tough to manage all the data of leads manually. Hence, LMS is used to organize the data perfectly and also this will help to save time.
Effective lead management – The number of leads that come into the system is high. As the volume of lead is high, to avoid the messiness of the data lead management system helps to filter out the quality of leads. Hence, filtering and managing those leads becomes easier and convenient.
Personalize your customer’s interaction – LMS helps in tracking the activities of leads. This system sets up the score for every lead so that you do interaction with the highest scored lead without any miss. In this way, you also provide customers meaningful offers and this leads to strengthening the bond.
Save valuable & quality time – Without any interruption LMS runs automatically and does its work. This helps you to manage the whole data, capturing the leads, track their activity and many more. This results in saving your automatically avoid any work manually.
Transparency – Lead management software is directly connected with the customers and there is no medium or third party in between them. Hence, there is no chance of any misrepresentation.
Smart Routing – Each company’s work structure is very much different from one another. Some of the companies prefer allocating work to their sales representatives based on their zones, while some prefer allocating tasks to their sales team based on their skill set and specialization. With help of a lead management mobile app or software, you will be able to automatically assign and route tasks to your sales team and instantly notify them. This will keep the task assigned to all your team members equal and increases productivity time.
Scheduling and Tracking Lead Activities – Since your sales team is mostly on the field and busy closing as many deals as they can for your business, it might not be possible for them to have a track of which lead they have worked on. This is when lead management software will come into the picture. With the help of this brilliant system, your sales reps will be able to now keep a track of their activities on the mobile app itself. Other than this, they can also schedule email communication for their contacts and ask for reminders and notifications regarding follow-ups and meetings. With this, you will also be able to always rest assured that you never miss out on your potential prospects.
How is CRM imperative?
CRM software serves your businesses by offering the best and effective services. Here, I would like to highlight the quality of CRM.
Better customer relationships – The trust of the customer is based upon your services of the product, how these are realistic. The more you provide the superior services the deeper the relation of the customer. You have to know about your customer’s history to achieve a deeper relationship. So, CRM has all the records of your customers who are attached to the company profile. It is also alert about potential customers along with current customers.
Boost efficiency in serving customers – CRM has all the data of the customers like what they want, what feedback is given by them, etc. This way, CRM helps to connect with the customers and also provide the best services to them.
Increase the staff satisfaction – CRM provides the best features not only for customers but also for employees in the organization. CRM has complete knowledge about the working employees like how empowered they are and also helps them to solve the problem of the customers.
Cost-saving – Nowadays CRM software is available at an affordable price with advanced features. With the help of the CRM features, many tasks are completed efficiently, the employee is satisfied, and work is scheduled in proper management.
Time-saving – With the support of CRM all the activities are done in the organization. Therefore, it is a way of time-saving to run a business. CRM solves the problems of customers, manages the leads, and builds the relationship with current and potential customers.
Manage the leads as well as the customer’s relation – This not only manages the leads but also manages the relation of customers even if the lead is closed.
How is LMS differing from CRM?
It is a little difficult to differentiate between the LMS and CRM because few features overlap.
- The main evidence is their name itself.
- LMS is a system used to manage all leads, track actions, and gather data from all possible sources in a centralized place. This enables the marketing and sales team to work together on leads. Whereas CRM also does the same work but with this CRM do more things. Both, LMS & CRM manages the customers life cycle, but CRM is also used to retain the customers, cross-sell, up-sell, and manage the feedback.
- The position in the customer acquisition cycle –
- The function of LMS comes to an end with the end of the lead. Whereas, the CRM software does more and helps to manage the customer relationships even after that also.
Which one is the best CRM or LMS?
As the lead management system just manages the leads but the CRM manages the leads and also manages the relationship with the customers by taking the feedback, managing the cross-sell, upsell, and many more. This way, CRM is better than LMS. The LMS can be the part of CRM but CRM cannot be vice-versa. So both software has its own unique features and roles. It totally depends on your goals and needs.
The definition of CRM changes for different business verticals and requirements, just like it does in case of lead management. Our CRM Implementation Expert at SalesBabu has explained this here.
The two differ in:
- Position of both LMS and CRM in the customer acquisition cycle : Essentially, you can say that the function of LMS ends with a lead becoming a customer, whereas a CRM carries on still and helps managing customer relationships even after.
- LMS Or CRM – The kind of businesses that’ll use them : In a business where the interaction with a customer ends with the sale, would go for a pure lead management system, with nothing monitoring the customer lifecycle. However, for businesses where a one-on-one relationship needs to be maintained with the customer, it would go for a CRM system.
Many businesses would choose to use either both lead management and CRM or a single system that’ll take care of both their use cases, something like SalesBabu CRM.
I hope you got some clarity about lead management, its process, the benefits of using it, the different types of systems that’ll be used by businesses based on their requirements, and its difference with a CRM system.