Lead generation is one of the main goals of small business marketing. Whether you invest in content marketing, paid advertising or social media marketing, at the end of the day, it’s all about generating leads.

Leads are critical to success. After all, without leads, there would be no customers or sales. But, here’s the thing — generating leads is just half the battle. The other half is lead management.

What is lead management? Lead management is the process of nurturing and converting leads into customers. It’s a critical part of the sales funnel, and it’s important to get it right if you want to close more sales and grow your business. Here are a few tips to help you do just that.

10 key lead management tips for small businesses

#1. Generate better leads

The first step toward effective lead management is generating higher-quality leads for your business.

Not all leads are made equal, and it’s not the best use of your time to focus on managing low-quality leads who will never convert. Your lead management strategy will be a lot more effective if you start with higher-quality leads.

How do you drive higher-quality leads that are more worth your time and attention? Here are a few of the best options:

• Targeted advertising – You can use targeted advertising to reach potential customers who are more likely to be interested in what you’re selling. This could include using specific keywords, targeting a certain demographic or location, or using retargeting ads.
• Lead magnets – Offer something of value in exchange for contact information, such as an ebook, white paper or checklist. This helps to ensure that the leads you’re generating are actually interested in what you have to offer.
• Content marketing – Use content to attract leads and drive traffic to your website. This could include blog posts, infographics, ebooks, podcasts or even video content.

The more effective your lead generation strategy is at driving high-quality leads to your business, the better your lead management strategy will be at converting them into customers.

#2. Rate your leads

Once you have a lead, it’s important to rate or score that lead based on certain criteria. By doing this, you can prioritize your leads and focus your attention on those that are most likely to convert.

There are a number of factors you can use to rate your lead, but here are a couple of the most important:

• Lead source – How did the lead find you? Was it through a targeted ad, lead magnet, or organic search? Leads that come from targeted campaigns are usually higher quality than those that come from other sources.
• Website interactions – What actions has the lead taken on your website? Have they visited multiple pages, subscribed to your email list or downloaded a lead magnet? The more interactions they’ve had, the more interested they are.

The lead rating process will help you prioritize your leads so that you can focus your attention on those that are most likely to convert.

#3. Qualify your leads

Once you’ve rated your lead, it’s time to qualify them. The lead qualification process is used to determine whether a lead is ready to buy or not.

Again, there are a number of factors you can use to qualify your lead, but here are a few of the most important:

• Need – Does the lead have a need for your product or service? If not, they’re not likely to buy.
• Budget – Do they have the budget to buy your product or service? If not, they may not be a good lead.
• Authority – Do they have the authority to make a purchase? If not, you may be wasting your time.
• Timing – When do they need/want to buy? If it’s not soon, they’re not likely to be a high-priority lead.

The lead qualification process will help you prioritize your leads so that you can focus your attention on those that are most likely to convert.

#4. Build out buyer personas

Buyer personas are fictional representations of your ideal customers. They help you understand your target audience, and they guide your marketing efforts. When you’re clear on who your buyer persona is, it’s easier to generate leads that are a good fit for your business.

Not sure how to build out your buyer personas? Here are a few tips to help you get started:

• Do your research – Use surveys, interviews and social media to gather data about your target audience.
• Create multiple personas – You may have more than one type of ideal customer. Create a persona for each type.
• Keep it real – Base your personas on real data, not assumptions.
• Make them specific – The more specific your personas are, the more helpful they’ll be.
• Update them regularly – As your business grows and changes, so will your ideal customer. Make sure to keep your buyer personas up-to-date.

Creating buyer personas forces you to put yourself into your customers’ shoes and get to know them on a deeper level. The better you understand your target audience, the easier it will be to generate, manage and convert your leads.

#5. Use CRM software to manage your leads

CRM (customer relationship management) software is a lead management tool that helps you track and manage your leads throughout the sales process.

With CRM software, you can:

• Store lead contact information – Keep all of your lead contact information in one place so you can easily access it when you need it.
• Centralize lead data – Make sure that everyone within your organization can access the lead data they need when they need it by centralizing it in your CRM software.
• Set up lead nurturing campaigns – Automatically send lead nurturing emails to your leads to keep them engaged.
• Track lead activity – See which leads are interacting with your emails, website, and other marketing materials.
• Measure lead conversion rates – See how many of your leads are converting into customers.

CRM software is a valuable tool for lead management because it helps you stay organized and keeps your leads engaged.

#6. Keep your CRM up to date

Think of your CRM software as your lead database. It’s where anyone can go within your business to learn about your leads.

That’s why it’s so important to keep your CRM up-to-date. Every time a lead interacts with your business, make sure to update their record in your CRM software. This includes when they:

• Opt in to your email list
• Download a piece of content
• Attend a webinar or event
• Make a purchase
• Give you feedback
• Have a concern

It’s also important to keep your lead database clean by removing any duplicate leads or leads that are no longer active. This will help you keep your lead data accurate and make it easier to manage your leads.

The more information you have about your leads, the better you’ll be able to nurture them through the sales process. Updating your CRM may seem like a time-consuming task, but it’s worth it in the long run.

Your CRM is only as good as the data that’s in it, so make sure to keep it updated on a regular basis.

#7. Segment your leads

Lead segmentation is the process of dividing your leads into groups based on shared characteristics.

Lead segmentation allows you to:

• Better understand your leads
• More effectively market to your leads
• Improve your conversion rates

There are a number of ways you can segment your leads, but some common lead segments include:

• Lead source (e.g., organic traffic, paid traffic, social media, etc.)
• Lead type (e.g., new lead, existing customer, prospect, etc.)
• Lead status (e.g., engaged, unengaged, qualified, unqualified)
• Geography (e.g., country, state, city, etc.)
• Purchase history (e.g., first-time buyer, repeat customer, etc.)

The more you segment your leads, the better you’ll be able to understand their needs and tailor your marketing campaigns to them. Lead segmentation is a valuable tool for lead management, so make sure to segment your leads whenever possible.

#8. Create lead-nurturing campaigns

Lead nurturing is the process of building relationships with your leads until they’re ready to buy.

The goal of lead nurturing is to:

• Build trust – Earn your leads’ trust by providing them with valuable information that’s relevant to their needs.
• Establish credibility – Position yourself as a credible source of information by providing your leads with helpful resources.
• Engage your leads – Keep your leads engaged by sending them relevant and timely information.

Lead nurturing is an important part of lead management because it helps you build relationships with your leads and keep them engaged.

The best way to nurture your leads is through lead nurturing campaigns. Lead nurturing campaigns are email or content-based campaigns that are designed to provide your leads with the information they need at each stage of the sales process.

For example, you might send a lead nurturing campaign to someone who has just subscribed to your email list. This campaign might include a series of emails that introduce your business and provide helpful resources to get them started.

Lead nurturing campaigns are an effective way to build relationships with your leads and keep them engaged.

#9. Focus on effective communication

Effective communication is essential for lead management.

You need to be able to effectively communicate with your leads in order to:

Build relationships
Nurture your leads
Convert your leads into customers

There are a few things you can do to improve your communication with your leads:

• Be clear – When communicating with your leads, be clear and concise. Get to the point and don’t use industry jargon.
• Be helpful – When you’re sending information to your leads, make sure it’s actually helpful. Your goal should be to provide value, not just sell them on your product or service.
• Be responsive – When your leads have questions or concerns, make sure to respond in a timely manner. The faster you can respond, the better.

Lead management is all about communication, so make sure you’re communicating effectively.

#10. Monitor the performance of your lead management strategy

The only way to really know if your lead management strategy is working is to pay close attention to it and monitor its performance.

You should be monitoring the performance of your lead management strategy on a regular basis in order to:

• Identify areas for improvement
• Measure your progress
• Make changes as needed

There are a few key metrics you should be tracking when monitoring the performance of your lead management strategy:

• Lead conversion rate – This is the percentage of leads that you convert into customers.
• Lead sources – This is where your leads are coming from (e.g., organic traffic, paid traffic, social media, etc.).
• Lead quality – This is the quality of your leads, which you can measure using lead scoring.

Monitoring the performance of your lead management strategy is essential for ensuring its success. By tracking the right metrics, you’ll be able to identify areas for improvement and make changes as needed.

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Lead management is a crucial part of any small business marketing strategy. By following these 10 lead management tips, you can improve your lead management process and generate better results for your business.

Learn how the Marketing 360® platform — including the CRM app, the Nurture app and the Ads app, can help you generate, manage and convert leads for your business. See our plans and pricing.