What are leads in CRM?

There is no denying the fact that ‘customer is the king’. No enterprise can flourish without customers. Maintaining a long-lasting relationship with clients is the foundation of every business. A company can be stable only if it has regular clients, and can grow only with an ever-expanding client base.

With the availability of excellent customer relationship management software, maintaining a strong bond with your existing clients is not difficult. But, finding new clients in a saturated and competitive marketplace can be challenging. This is where lead generation comes in.

Leads in CRM are individuals or companies who have shown a buying interest in your products but are currently not doing business with you. Lead-generation is the first step to every customer-company relationship. It aids businesses by adding to their capital growth and network.

An indispensable activity for growth strategists, that is lead generation has already gained momentum in the marketing industry. BrightTalk claims that as much as 53% of marketers spend at least half of their budget on it. This figure holds up because lead creation comes with a set of lucrative benefits.

Leads can be converted into accounts, opportunities and contacts. An account is a lead converted to completion. They are entities that are actively involved in doing business with you. A contact-relationship is established between a business and a lead as soon as a two-way communication starts between them. An opportunity is a potential sales deal and the possibility of increased revenue for the company.

Lead Generation

Lead-generation can do wonders for your business in the following ways:

1. Ensuring a steady flow of demand

Lead generation doesn’t just help in analysing demand, but also creating it. Modern lead creation techniques target highly relevant prospects who are already inclined towards your products/services. This increases your brand awareness within a group that has usability for your product, but they may not have realised that yet.

2. Generate revenue for your business

Successful lead generation campaigns can help you increase your sales exponentially. The leads that get converted into opportunities eventually result in the sales deals that bring in revenue for the business. So, along with increasing the conversion rate significantly, it ensures that the prospects go straight to your sales pool after going through the marketing filter.

3. Avoiding wastage of resources

Lead generation are likely to have a positive ROI (Return on Investment). By pursuing only those prospects who have initially shown interest in your business, you can cut down wider promotional costs.

4. Help understand the prospective consumer mindset

The knowledge you acquire while pursuing leads helps you understand the improvements you can make in your product. This allows you to change certain aspects of your product and tailor them to suit the clients’ needs. This can help you achieve higher sales targets in return.

Importance of qualifying leads

According to Marketing Sherpa, only 56% of B2B companies verify leads before sending them to the sales department. This reduces the conversion per lead rate as not all lead contacts are influential enough to make decisions.

Before pursuing a lead, it is crucial to make sure that your point of contact is a decision-maker in their company. You also have to make sure that the prospect has the budget to buy your product, and whether you can deliver as per their geographical and time requirements.

How Corteza, the Open-Source Salesforce Alternative, can help you with Lead-Management

The CRM build in Corteza, the open-source low-code development platform, provides a 360-degree overview of leads. It enables you to see all the relevant data in a single glance. Additionally, you can link leads to campaigns to measure the efficiency and ROI of your marketing actions. Get the free trial to see it for yourself!