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Lead generation is an important component of identifying potential customers. However, no marketing and sales professionals want to be a disruptive cold caller with little chance of success.
A lead generation software solution can help you target the right audience with the right message. Instead of getting in touch with random people, lead generation software helps you collect information about people who have shown interest in your services online.
To help you select the right tool for your business, we built this guide covering the typical features of lead generation software, important considerations when choosing a tool, how much lead generation software costs, how small and midsize businesses (SMBs) use these tools, and related FAQs.
Lead generation software helps businesses automate the lead-collecting process. With these tools, you can collect information and segment the data based on your needs and preferences. These tools also allow contact management, form customization, social media marketing, and post-sale follow-up.
Lead management tools enable you to create web forms to capture lead data. You can also integrate these software solutions with your existing CRM and customer service software.
Contact database: Create a centralized database of your organization's customers and clients.
Lead capture: Automatically identify and save the contact information of potential customers.
Data import/export: Import and export information and reports to and from the software.
Landing pages/web forms: Create an online form to capture new lead information.
Lead qualification: Score a lead on their quality or likelihood to buy based on certain behaviors.
Prospecting tools: Identify potential leads based on predefined criteria and add them to your sales pipeline.
Scalability: Lead generation is responsible for boosting sales and, as your sales grow, your business grows. Therefore, your lead management tool must allow you to scale. Many lead generation tools charge on a per-user basis, meaning you can add seats as your sales team expands.
CRM integration: Your lead generation tool should work with your CRM tool or offer its own CRM functionality to help you capitalize on your marketing campaigns and not let qualified leads slip through the cracks.
Reporting and analytics: When you are choosing a lead generation tool for your business, ensure that not only it gathers data but also helps you analyze your target audience and what drives them to your business.
Most lead generation software on the market is priced on a per user, per month basis and can be divided into three pricing tiers based on their starting price.
Price ranges:
$9-$20
$21-$83
$84+
*The pricing included is for the entry-level/lowest-priced offering that was found on vendor websites on April 5, 2022. These ranges correspond to the 25th, 75th, and 100th percentiles of pricing information gathered from vendor websites of sample products.
The above list summarizes pricing for the base plans of most products from the lead generation category. An enterprise or premium version of a lead generation tool that is priced higher may include additional features such as flexible architecture, client license packages, and enterprise integrations.
Lead generation software not only helps engage and convert leads, it also helps nurture them and maintain lead scores. Small and midsize businesses can use lead generation software for:
Workflow automation: While tasks such as content creation, social media marketing, and organizing webinars will always be mostly manual, there are still many tasks within these processes that can be automated such as lead lists creation and management. Specific workflow triggers can be created for these tasks so that marketing and sales professionals can focus more on strategy.
Web form creation: With web forms, you can collect leads’ personal and contact information, which can help you better personalize future communication. These forms can be placed on your website, webinars, social media pages, and other touchpoints with your audience.
Lead segmentation: This helps businesses divide their data into smaller clusters. With lead management software, you can divide data based on demographics, geographical details, behavioral details, etc., to provide personalized customer experiences and solutions.
Going by the Attraction, Interest, Desire, and Action (AIDA) model, lead generation happens at the second stage of marketing. A person who encounters your business via your website, social media, or advertisements and shows interest becomes a lead.
Lead generation software helps you turn such leads into customers. The lead provides their information in return for an offering, such as content, an online course, landing page, template, etc.
These leads are monitored, tracked, and ranked using lead generation metrics such as click through rate (CTR), time to conversion, return on investment (ROI), marketing qualified leads (MQL), and cost for MQL. After filtering and lead qualification, they are passed to your sales team for final action.
Let’s look at the different types of lead generation tools you can use depending on your preferred marketing channels:
On-page lead generation tools: You can drive leads directly from your website through online forms, surveys, social proofs, and notification bars.
Customer relationship management (CRM) tools: Connect with leads present in your sales funnel.
Outbound tools: These tools help you reach out to your target audience via calls, email, social media, etc.
Email marketing: Create engaging campaigns to attract your target audience and help them move to the next stage of your buyer journey.
Advertising tools: These lead generation tools help you secure leads through social media ads and paid ads.
Search marketing tools: Help increase on-site traffic by boosting your organic and paid search ranking.