Why Your Business Needs a Lead Tracking System

Does your business invest in lead tracking? If not, it's time to modernize your sales process. 

Lead tracking offers a wide range of benefits. It can help you strengthen customer relationships, gather data and increase conversions. It can also empower your team to work faster and smarter. Best of all, modern CRM software makes lead tracking easier and more precise than ever.

You can use this article to learn the basics and benefits of lead tracking.

What Is Lead Tracking?

In a nutshell, lead tracking is a strategy for managing your sales pipeline. "Leads" refer to your pool of current and potential customers. They can come through any channel, whether it's digital or in-person. Qualified leads are more likely to convert, resulting in anything from a sale to a sign-up.

But smart lead tracking requires the right tools. To make the most of lead tracking, your business should invest in CRM software. That's short for "customer relationship management." 

Businesses that don't use CRM software often rely on a mix of ad hoc methods. Some sales teams track prospects in spreadsheets. They use diligent note-taking and past experience to gauge potential outcomes. Others rely on their email inboxes, using labels or folders to track conversations.

But these informal methods have serious shortcomings. An experienced salesperson's intuition is undeniably valuable. But what happens when a less experienced colleague joins the team? Similarly, managing an inbox provides little insight into top-level data. It's far too easy to lose track of conversations, too. These honest mistakes can allow prospects to languish as sales to slip by.

CRM software changes the game. It helps your team identify patterns, track conversations and develop in-depth customer profiles. You can use data to create accurate forecasts, or set reminders to follow up with prospects. The possibilities for using lead tracking to enhance communication are endless.

Over time, lead tracking can help you scale your business, without ever sacrificing a personal touch.

How Lead Tracking Drives Sales

We've already established that lead tracking can be a powerful sales tool. But to fully understand why, consider your sales pipeline from a variety of perspectives.

First, think about sales from your customers' perspective. When customers connect with a sales representative, they want a personalized, thoughtful experience. They want someone to listen to their concerns, respond to their questions and resolve their complaints. 

Lead tracking addresses each of these points. CRM software allows you to create customer profiles that summarize past interactions. At a glance, you can see details of any past issues or ongoing needs. CRM software also makes it easier to identify customers whose engagement has lapsed. The end result? Customers receive far better service.

Second, think about sales from your staff members' perspective. Your team wants to work efficiently, experience less stress and achieve more wins. CRM software provides the tools they need to push your company forward. For example, staff members can automate repetitive tasks, freeing time for other activities. 

Lead tracking delivers a win-win, for everyone who comes in contact with your sales pipeline.

Use Lead Tracking to Identify Sales Pipeline Challenges

If you want to strengthen your sales pipeline, you'll need to pinpoint areas that need improvement. Too often, this is easier said than done. 

But numbers don't lie. Lead tracking reveals overarching patterns that would otherwise be difficult to identify.

For example, let's say your team closes most deals that reach the final stages of the buyer's journey. But your CRM software reveals that only a small percentage of initial outreach leads to a final sale. The solution? Improving early stage interactions can play to your team's strengths. 

Armed with this data, your team can brainstorm solutions. You might focus on refining your inbound marketing to attract more qualified leads. Or you might realize that you need to increase outreach to raise the number of final sales. Either way, you can use CRM software to launch A/B testing of a range of variables.

No matter what challenges you face, lead tracking helps you focus your energy where it counts. With time, you'll see improvement across the entire sales pipeline. 

CRM Software Makes Lead Tracking Seamless

At the end of the day, your lead tracking efforts are only as strong as your CRM software. You'll need a user-friendly interface that's easy for your team to navigate. Your team should be able to generate detailed, real-time reports with a click of a button.

You'll also need features designed to nurture customer relationships. Look for features that help you spot at-risk accounts or frequent customer complaints. Your CRM software can even recommend opportunities to upsell when it would benefit your clients. 

There's no need to stay stuck in guesswork, repetitive tasks and uncertainty. By embracing lead tracking, you can invest directly in your business' long-term growth.

Want to learn how seamless CRM software can be? Download our free eGuide to learn how CRM software can help your small business grow!