What is lead generation?
Now that we’re done with the lead definition, let’s dive deeper into lead
generation meaning and what it entails.
Lead generation is a process of searching for people who may be
potentially interested in your service and getting in contact with them to
communicate further and convert. It coincides with the first step in
the buyer’s journey – the awareness stage.
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Importance of lead generation
The lead-to-customer conversion rate is never 100%. This is why filling
in the sales funnel with quality leads is the main lead generation
purpose. The importance of getting quality leads is obvious. It helps you:
Target the right people. You focus your resources on specific
customers who are more likely to buy your product or service. This
results in saved time and money, streamlining your company’s
processes and growing sales.
Build brand awareness. Lead generation always entails educating
your leads on your company and its product — both when they get
to know about you on their own or when you reach out to them with
the information about your product’s features. Leads can then
spread information about your brand by word of mouth, bringing
you even more clients.
Get valuable data. As a rule, generating leads means collecting
information about your prospective customers, their wants and
needs, and your competitors. This helps you improve your product
or service so that it has a competitive advantage in the market.
Grow revenue. With an effective lead generation strategy, your
company can get 133% more revenue than you’ve planned.
Who should conduct lead generation in my company?
Lead generation is a step-by-step process conducted by two groups: sales
reps and marketers:
The sales group usually focuses on generating cold leads and then
using them for cold calling, cold emailing, and cold marketing campaigns.
They go for quantity first, qualify leads, and then work closely with the
most engaged ones.
The marketing group focuses on generating warm leads. First, they
acquire business leads through different marketing channels, warm them
up with relevant approaches, and then forward hot leads to the sales
department or make the sale right away.
Sales and marketing have different methods and needs, but the goal is
always the same — a client, a deal, a sale.
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Types of the leads generation process
The leads generation process depends on the marketing methodology,
i.e., how customers get to know you: whether they find you (inbound lead
generation) or you find them (outbound lead generation).
Inbound lead generation
The inbound online lead generation process is permission-based,
meaning that your potential customer finds and decides to interact with
you on their own. It consists of the following steps:
1. A potential customer discovers your company by visiting one of your
marketing channels (your website, blog, social media page).
2. They react to your call-to-action (CTA) by clicking on a button or a
link that contains a message encouraging them to take some action.
3. They are sent to your landing page, where they fill out a form in
exchange for a valuable offer (any lead magnet you create), this
way becoming your leads.
Outbound lead generation
Outbound lead generation is interruption-based, meaning you find those
people who are more likely to become your customers. You contact them
directly with the aim of communicating your brand and delivering your
sales pitch. It embraces the following stages:
1. You identify your leads (people who match your ideal customer
profile), determine their needs, and think about how you can help
them.
2. You do research: look for leads’ contact information, collect it, and
keep it organized.
3. You reach out to your leads via cold emails, cold calls, or social
networks.
