Effective Lead Management Systems

Effectively using a lead management system for maximum results requires more than just buying a software program.

by Lance Raab

Once Upon A Time:
Once upon a time, Lead Management consisted of maintaining leads on index cards. A prospect would call in or walk into the community, and a sales counselor would document the pertinent information on the card: name, family member, phone number, lead source, interests, hot buttons, and other notes related to the conversation. The sales counselor would then schedule a follow-up activity in their personal calendar and file the index card.

When it came time to follow-up with the prospect, the sales counselor would then pull the card from their file, review their notes from prior conversations, make the call, update the card with new information from the conversation, schedule a new follow-up and re-file the card.

Unfortunately, lead cards would periodically “disappear” or get misplaced, follow-up calls would be missed, information could not be quickly retrieved when a prospect unexpectedly called or walked in, and creating any type of sales or marketing activity report for management was tedious and time-consuming.


Enter Computers:
In the mid-80’s automated lead management systems, computerized versions of the old Lead Card system were introduced. Instead of writing notes on a card, sales counselors entered them into the computer. Instead of each sales counselor maintaining their own personal calendar, scheduled follow-ups were recorded in the computer, which would then provide reminder at the appropriate time. Instead of digging through the card box looking for a lead card, a sales counselor could quickly be retrieve prospect information from the system. Instead of spending countless hours trying to provide answers to management’s questions, reports could easily be generated.

Did this make life easier? Did this make lead management more effective? It depended on who you asked, how their lead management system was set up, and how the users were trained.

There is no doubt that the right software program can make for a much more effective lead management system than any manual system. However, a software program alone will not do the job.


Selecting a Lead Management System:
How does a senior living organization implement a truly effective lead management system?

First, it starts with selecting the right system. There are a variety of systems on the market today, including generic and inexpensive contact management systems, sophisticated and costly CRM systems, and lead management systems designed specifically for senior living communities. Some systems are web-based, meaning you only need access to the Internet to run them – no software to purchase or install. Other systems are network-based, meaning you have to install them on your own computers.

Prior to purchasing a software program, time should be invested to identify the needs and requirements of the organization so that the right system can be selected. For example:

- What do sales counselors need to do their jobs?
- What do community, regional and corporate mangers need in the way of system access and reports, and how frequently do they need them?
- Does the organization have the IT resources and infrastructure to host a system, or does it make more sense to utilize the Internet and outsource the hosting of the software to another company?
- How does the system need to integrate with other systems in the organization, such as resident care and billing?
- Are there other stakeholders (such as investors and project sponsors) who will require access or reports?
- Do regional managers need consolidated reporting, providing them with a roll-up view of the communities they are responsible for?
- Does the organization have a particular sales methodology, and will the system be able to accommodate it?
- What is the quantifiable Return on Investment?

The above are just a few questions that need to be addressed. A full needs analysis is a very important first step. Once the needs of the entire organization are identified, including community staff, regionals, corporate personnel, and all other stakeholders, you will then be in a position to evaluate your options and make an informed decision.


Planning for Success:
Once a software program selected, proper planning will be required in order to ensure the system is most effectively utilized. Proper planning should include the following:

- Identify each user of the system, what they need access to and what their experience/comfort level is with a computerized lead management system.
- Establish a training plan so that each user is properly taught how to use the system.
- Define standards that will be used throughout the community (and throughout the organization). For example, segmenting lead by status based on their probability of closing them needs to be defined and consistently used by all members of the sales team.
- Set up reports so that they meet the needs of the various users and stakeholders.
- Convert data from other systems so that it is brought into the new system in a consistent format.
- If your organization consists of multiple communities, plan to pilot test the software at a few before rolling it out company-wide. This will give you an opportunity to work out the kinks before full deployment.

Regardless of how good a software program is, if you cut corners or skip the planning process, you will not maximize the effectiveness of the system, or worse, it could fail altogether.


Train, Train, Train

You have now completed a thorough needs analysis and have selected the best system for your immediate and long-term needs. You have taken the time to plan the implementation of the system, and you are ready to start.

The only way a software program will produce the best results is if the people who have to use it every day, especially those who have to enter the data, are properly trained. By doing your needs analysis and planning up front, you know what data needs to be tracked and what reports need to be produced. This will allow you to effectively teach your users how use the system.

First and foremost, when training sales counselors on how to use the system, the best thing you can do is make sure they understand that this system is for them - it is their tool to help them be more effective at doing their job. If they see “what’s in it for me”, they will embrace the system and use it to it’s fullest. As a byproduct, the data will be entered in properly and the reports the system produces will be accurate and meaningful.

On the other hand, if the sales team can’t see the benefit to them and view the system as “management’s tool”, they will not fully embrace the system, data entry may be incomplete, and reports will not be accurate.

Further, without adequate training, users may try to figure the system out on their own. As a result, different users will use the system in different ways and there will be a lack of consistency. A lead management system is not effective if each sales counselor uses it differently.

Training and periodic refresher training are paramount to an effective lead management system.


Accountability – what gets measured gets done
All too often, systems fall short of their maximum benefit because they are not fully used. By investing the time in the things discussed thus far (needs analysis, software selection, planning and training), the likelihood of maximum benefit is much higher. However, there must be accountability in place for sustained results. It is easy to slip back into old habits, or new habits (good and bad) can be formed at the onset of using a new software program. Expectations on how the system is to be used must be set, and users must be held accountable to meet those expectations. As the saying goes, “what gets measured, gets done”, and the use of computer software is no exception.


In summary, the following will help ensure an effective Lead Management System that will produce the best sustained results and maximize the ROI:

1. Select the right system by engaging in a thorough needs analysis to fully understand your goals and short-term / long-term requirements.
2. Invest the time to plan the implementation and deployment.
3. Train your team and provide periodic refresher training.
4. Hold your team accountable to use the system.


It only takes a few extra leads converted to residents to cover the cost of a system. Take the right steps to ensure success, and an effectively used Lead Management System will produce a phenomenal return on investment.


Lance Raab is founder and president of REPS Software, a Tampa, Florida based software company founded in 1987. REPS Software publishes REPS Suite, an integrated suite of web-based applications designed specifically for the senior living industry.

Lance earned his Bachelors degree in Management Information Systems at the University of South Florida. Prior to founding REPS Software, Lance was a programmer/analyst with Price Waterhouse, and a partner with Progressive Business Solutions, a firm specializing in the implementation of automated accounting and marketing information systems.

Lance and REPS Software are members and regular exhibitors at ALFA and AAHSA. Lance has spoken at several industry conferences, including ALFA, AAHSA, NASLI and NAHB Seniors Housing Council.
Lance can be reached at lraab@repssoftware.com.
www.repssoftware.com