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Lead Management Software vs CRM - What should I choose?

Lead Management Software and CRM Software are often confused with one another. Choosing the right software to support your sales team can be difficult. Find out why your sales team would be better off with lead management software than a CRM.

Lead Management Software vs CRM - What should I choose?

Evidently, CRM Software and Lead Management Software are two different things. However, they are frequently mentioned interchangeably to describe a software that manages leads and customers. This could be because many of the features are similar in both in terms of what they do. But upon closer look, you’ll see why they are so different and why this difference really should matter to your business and sales activities.

A Lead Management Software is a system that stores all your leads, from the various sources it was captured in one place. It allows you to track all leads in the sales tracker so that no lead ever goes missing and all information about every interaction at each touch-point is stored right from capture to conversion.

CRM Software is an all-in-one system that can do the same things as Lead Management Software, but beyond as well. It really depends on your business type, needs, and objective to really consider a CRM Software.

But what if a Lead Management Software existed that could go just as beyond as a CRM Software at fraction of a cost and be loved by your sales team? Wouldn't that be the real deal? Let’s find out.

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How can they benefit your Sales Process & Business Goals

Lead Management Software, as the name suggests comes right at the beginning of your sales process. The leads are captured as they make contact, they are assessed and qualified, and they are distributed to the right sales rep to help that lead progress and evolve to maximize their chances of converting into sales.

One might argue that CRM software could do the same, but no. CRM Software in fact is the next step to this and comes to the very end of the sales process. As the name suggests, customer relationship management helps with guiding and encouraging customers so that they don’t choose your competitor over you. It also pushes them to make repeated purchases and return to your business and increase customer life-time-value.

It is quite clear that Lead Management Software specializes in prioritizing leads and turning leads into customers. Therefore it would be more useful to salespeople for managing their sales process.

What are the main differences between the two?

A Lead Management Software can:

  • Capture and Manage leads from various sources
  • Assign a value to leads
  • Filter leads and passes them to the right sales reps
  • Track lead progress
  • Prioritise leads
  • Apply automated workflows to nurture leads through the sales process
  • Allow agents to contact the lead at the click of a button

A CRM Software on the other hand can:

  • Offer a typical company/employee type hierarchy
  • Focus on long-term sales
  • Are typically used beyond the initial sale for customer retention and contact & provide ongoing customer service

As you can clearly see once again, lead management software comes earlier in the sales process and is designed for salespeople. On the other hand, a CRM Software comes in the latter part of the sales process, often after a deal is won. Imposing a CRM on your sales team will only hamper their productivity because salespeople see it as a tool that they need to keep updating in case senior management asks for it. They think it’s nothing more than a digitalized way of reporting to the hierarchy. This means they are already against the idea of using one on a daily basis. Being forced to enter administrative data for a prospect that might never convert is a time-consuming activity that could be better spent cold calling prospects.

Also, imposing a CRM could result in vital information going missing if the CRM isn’t filled correctly. And even when they are updated with the right information, they consume too much of a salesperson’s time. Having the wrong information is even worse than having none at all.

On the contrary, if you adopt a dedicated lead management software, it is going to help you raise revenues. Salespeople need a system they can use with minimum fuss so they can focus on what is most important: Converting leads.

However, if your focus is on support and operations, choose a CRM. But if sales is the core of your business operations, a lead management software is your best solution.

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Think of sales lead management software as a pre-CRM. The salesperson can use it for lead capturing and closing deals before moving customers over to the CRM.

For salespeople, using a CRM is a bit like trying to swat a fly with a hammer. It’s massively over-engineered with features that they do not really need. Place yourself in a rep’s shoes: All you want to do is convert the lead into a customer as quickly as possible. The best lead management software is driven by prospects and sales reps having the next action for a lead or opportunity, such as letting you know when a call needs to be made, what time your meeting is, and if you should send a demo. It also allows managers to easily track the process as their reps move through the pipeline and step in if needed. As there is always a ‘next step’, both sales reps and managers have complete visibility over the process.

Moving your lead through the pipeline needs to be recorded with minimal effort. It should allow the salesperson to get on with their job. Entering tons of unnecessary data doesn’t aid the process; it only slows it down.

Track and Prioritize Leads Effectively with’s customized and specialized lead management software can help make the lead management process easier, which, in turn, helps your sales team focus their efforts on the best possible leads to track and follow.

As a salesperson, you want to know what your next step is and when you have to do it. Filling out information in software should be a simple part of your job.. From a sales perspective, a CRM doesn’t allow you to streamline the process.

Do you focus on managing all aspects of a customer or do you want to concentrate on closing more deals? If remaining sales-focused is your business objective you’re in the right place.

Why not start with a trial and see what you’ve been missing?

Lead Management Software; CRM Software Lead Management Software vs CRM
Author: simon Simon
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