A Guide Into Lead Generation

What is lead generation? More importantly, what does it mean to your business?  Generating leads has become an important part of any business, whether large or small. Lead generation means bringing in leads or potential customers and turning them into sales by following up with them regularly until they finally purchase from you. 
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A Guide Into Lead Generation

What is lead generation? More importantly, what does it mean to your business? 

Generating leads has become an important part of any business, whether large or small. Lead generation means bringing in leads or potential customers and turning them into sales by following up with them regularly until they finally purchase from you. 

In an industry where the average selling cycle can be anywhere from six months to two years, lead generation can be one of your business's most profitable revenue streams if done right. 

However, all leads are not created equal. If you’re trying to start a company in an already saturated market, then you need to be looking into generating leads that will make your business stand out from the crowd.

Here are some of the most important things to know about lead generation.


How Does Lead Generation Work?

Lead generation involves creating leads for your business, in which you find potential customers and provide them with valuable information, usually in exchange for their contact information. When done well, this is a very effective way of generating new leads. Done poorly, this can be highly ineffective and wasteful.

To be successful at lead generation, you must know where your market is located (geographically) and what they're looking for. For example, if you're an interior decorator specializing in a particular type of look or design style, you need to know that area best. 

Maybe you live in New York City, so you should reach out to interior designers in Manhattan. On the other hand, maybe you live in North Carolina, so focus on Raleigh-Durham. The point is: Do your research first.

If you are selling lawnmowers, don't approach people in New York City about buying one. They won't have lawns there. Instead, spend time researching Manhattan neighborhoods with large yards and lots of open space for kids to play outside. 

Once you've identified the location where your target audience lives, you want to find out as much information about them as possible before sending over any information or reaching out via social media channels like Facebook or Twitter. 

If all goes well and they respond to you, now it's time to collect some contact information—including email address, phone number, name & address—through lead capture forms before following up again with more valuable content specific to their needs.


Importance of Lead Generation

Lead generation is a critical aspect of marketing campaigns. It has the potential to grow your business exponentially, as well as help you generate conversions. This practice can be complex and difficult, but it doesn't have to be.

Lead generation is an essential part of any company’s marketing strategy. Without prospects, you can’t hope to acquire customers. 

What does lead generation do? 

It gets potential prospects in front of your sales team so they can sell your product or service.

Lead generation helps a business grow by capitalizing on the curiosity of prospective customers and turning them into customers through cold calls, emails, direct mailers, sponsored content, and more.


Types of Lead Generation

Lead generation is a term that refers to the process of generating new leads for your business. There are various lead generation methods, but they are generally categorized into two types: inbound and outbound. 

Inbound lead generation

Inbound lead generation refers to creating high-quality content on your website and other digital properties that consumers want to share with their network of friends, family members, and acquaintances. 

An inbound approach tends to be more cost-effective because it attracts traffic and does not require marketing spend. It produces qualified leads at a low cost but requires continual optimization.

Outbound lead generation

Outbound lead generation is a more proactive process where you target potential customers by finding them through surveys or paid media like Google Adwords ads or banner ads on other websites.

An outbound strategy might have higher ROI if you have a lot of budgets to allocate towards marketing efforts. It depends on your business type and how much time and money you're willing to invest in generating leads. 

One of the benefits of outbound Marketing is its low barrier to entry, but it has higher costs due to pay-per-click (PPC) fees and the need to generate traffic. In addition, successful campaigns may take months before producing tangible results, so you'll want to plan accordingly. 

Furthermore, as mentioned earlier, there are various types of outbound marketing strategies that you should consider based on your goals. 

For example, some businesses prefer prospecting via trade shows. In contrast, others would rather use social media platforms like Facebook and Twitter to get the word out about their products or services. 

No matter which avenue you choose, keep in mind that building a relationship is just as important as making sales, so make sure your campaign aligns with this philosophy.

Ways Lead Generation Can Help a Business

Lead generation is a term for obtaining leads or people who are likely prospects for a product or service. To get new leads, businesses need to use lead generation techniques that attract potential customers and generate interest in their products. 

Lead generation techniques include: sending marketing emails, creating social media posts, setting up Google advertising campaigns, and placing ads on other websites. Whatever technique you choose, you must be using an effective one.

How can lead generation help your business? Let’s look at some ways:

(1) A good way to increase the number of leads your business receives is by focusing on generating new content like blog posts or videos that answer the frequently asked questions prospective customers have about your products and services. 

By providing information upfront, you can reduce the time it takes to persuade them to make a purchase decision.

(2) You should also focus on cultivating relationships with influencers in your industry. These influencers might be bloggers with high follower counts, industry experts, journalists, analysts, or investors. 

The key here is engaging with them, which could involve answering their questions about your company's products and services or attending conferences where they speak rather than just trying to sell them something straight away. 

(3) When deciding what type of lead generation technique will work best for your business, it pays to do some research first, so you know what will make sense based on what type of company you run and what demographic you serve most often. 

For example, if you have an e-commerce store selling home décor items to women aged 30-50, then Facebook and Pinterest Ads would be more useful than sending out sales emails. 

(4) Find ways to turn traffic from other channels into potential leads for your business. 

For example, when someone visits your website after coming from a search engine result page or referral link from another site. Setting up a PPC campaign and calling it a day is not enough; your conversion rates depend on how well your landing pages are optimized. 

Optimizing means finding out what language people use to search for the product or service you offer, changing those keywords throughout the page, adding compelling calls to action at specific points throughout the text and imagery, and making sure that nothing else distracts visitors from seeing these elements.

Lead Generation vs. E-commerce

Lead generation means finding prospective customers who show interest in a company's product or service by requesting more information or contacting the company directly. As a result, lead generation helps businesses generate high-quality sales leads and close more deals. 

Unlike e-commerce, lead generation requires fewer resources and often less capital than traditional marketing channels. In addition, the higher customer acquisition costs associated with e-commerce make it less practical for companies that only need one or two new customers per month, such as those just starting. 

On the other hand, E-commerce refers to business transactions that take place over the internet. E-commerce platforms allow you to sell your products online without owning your website or hosting space. 

Sites like Etsy and eBay are popular e-commerce sites where users can set up shop on their platform and provide various items for sale. 

E-commerce allows individuals to open their stores online with the click of a button. With Shopify, WooCommerce, Big Commerce, Wix Commerce, and others providing easy setup interfaces (no technical knowledge required), you can do this at little expense from anywhere in the world. 

For merchants looking to get into retail with minimal financial investment or upfront costs, this offers a strong advantage over brick-and-mortar store locations that require start-up costs like rent payments and licensing fees not covered by revenues early on in operations.

Lead Generation vs. Demand Generation

Lead generation is the process of locating potential customers to convince them that they need what you are selling. This can include finding phone numbers, email addresses, and even names of companies that would be interested in your product or service. 

Demand generation, on the other hand, is focused on understanding people's problems and offering solutions. 

These are the seven major differences between the two that may help you decide what type of lead generation best suits your needs:

  • Lead generation generates sales leads, whereas demand generation turns visitors into customers. 
  • Demand gen uses content to attract prospects. In comparison, lead gen is when marketers use tactics like press releases and blog posts to draw their audience's attention. 
  • Lead generation can be done with email approaches or phone call, while demand generation usually takes a more drawn-out process with many different components. 
  • In lead generation, there is typically only one goal for each campaign—to generate leads; whereas in demand gen campaigns, it's possible to have multiple goals, including conversions or traffic acquisition. 
  • Lead gen results in an immediate increase in qualified business opportunities, which makes them highly scalable. Demand gen provides an increase in new customers but does not always translate to an immediate increase in qualified business opportunities; furthermore, because demand gen requires ongoing work over time, it is less scalable than lead generation. 
  • Lead gen relies on capturing contact information, while demand gen relies on generating interest through storytelling. 
  • Lead generation typically has higher response rates than demand generation.

Lead Generation vs. Lead Nurturing

Lead generation and lead nurturing are two important marketing strategies that are often confused with one another. 

The key difference between these two marketing tactics is lead nurturing’s emphasis on building strong relationships with potential customers. In contrast, lead generation prioritizes collecting contact information from as many people as possible.

However, you should understand both methods to maximize your business’s revenue and success.

  • There is usually a cost associated with lead generation tools, while many tools are available for free or at a lower cost for lead nurturing campaigns. 
  • Lead nurturing tends to be longer-term than lead generation. 
  • The messages used in the lead nurturing tend to be less aggressive and more educational than those used in lead generation campaigns. 
  • The main goal of lead nurturing is not necessarily the acquisition of new customers but rather the engagement of current customers through customer service interactions and marketing messages that generate interest in products or services over time. 
  • Lead nurturing leads to higher levels of customer satisfaction. 

Lead Generation Examples

Here are a few examples of lead generation:

1. Facebook: 

What better way to reach potential customers than on a social media platform? With more than 2 billion monthly active users, Facebook is one of the most popular and powerful tools for generating leads and gaining new customers. 

The network allows businesses of all sizes and types to create business pages to share information about their products or services, host contests, announce events, chat with followers in real time, advertise their content on other sites via sponsored posts, and even collect email addresses with lead ads.

2. LinkedIn: 

LinkedIn may be best known as a professional networking site, but it's also an excellent resource for generating leads. Businesses can use LinkedIn to search for and find prospects who are specifically interested in what they have to offer. 

They can also use it to promote their company's brand by sharing blog posts, infographics, event invitations, video clips, etc., that will generate interest from prospects who may want to learn more about them. 

Major Lead Generation Tools

There are a lot of different lead generation tools out there, each with their pricing/offers. As a result, it can be difficult for marketers to know what will work best for them. 

Some of the top tools that produce leads include: 

  • LeadPages
  • OptinMonster
  • LinkedIn Sales Navigator
  • HubSpot
  • Mailchimp
  • Unbounce
  • Marketo
  • Salesforce
  • Zapier
  • Google Ads

These tools perform different functions such as A/B testing, designing images and visuals, as well as creating lead capture forms and landing pages.

Key Lead Generation Goals and KPIs

Lead generation goals typically vary from company to company. There is no universal, perfect goal for every type of business. However, it's important to remember that higher volume isn't always better. Ensure that the leads you're generating aren't low-quality and will be interested in what you offer. 

Some common lead generation KPIs are website conversions, phone call conversions, and email sign-ups. These all depend on your specific business goal and how you want people to learn about your product or service. 

When trying to determine whether or not a certain channel will be beneficial for your business, three things need to be taken into consideration: 

  • First, how much does it cost?
  • Second, what is the conversion rate? 
  • Third, what volume can we expect? 

Volume varies depending on the industry. For example, some industries like retail may get more traffic than others like pharmaceuticals because of the shopping experience. As a result, the conversion rates also differ per industry. 

Take time to understand your industry and know what kind of traffic you'll see and what conversion rates they'll have before jumping into a marketing strategy or campaign.


Final Thoughts

In conclusion, marketing companies need to know how and where to start when it comes to lead generation. The first step is understanding what a lead is and then determining the needs of the market you are targeting. 

If your company has a product or service that can fulfill those needs, there should be no hesitation in getting started. Once the leads have been generated, there are various ways to continue contact with them through email, phone calls, and other forms of media. 

The end goal should always be satisfying customers’ needs by providing answers as quickly as possible while maintaining professionalism. It takes time and patience, but lead generation will yield great rewards if you're willing to put in the work.


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