What is Lead Generation and how is it done?
Updated: Jun 28, 2021
What is lead generation?
A lead is a person or company who is interested in your products and services. Lead generation is the process of attracting the interest of these people who may then later go on and purchase from you. However, not everyone is a "lead" which is why the process of lead generation requires targeting particular leads ie people who intend actually purchase from you in the future.
Lead acquisition is one of the most important goals of any business. Large companies have teams of people dedicated to achieving this and ultimately sales. With so many social media tools flooding the market, there are many opportunities to target the right people (high quality leads) for your particular business and industry. A few of the top lead generation strategies include:
Creating unique relevant content & blogs
Social media marketing
Live events and seminars
Well designed landing pages on websites
Coupons & Discounts
What are the benefits of lead generation?
Lead generation is a very natural part of the sales cycle, people are made aware of your product or services and can then decide if it solves their problem or fulfils their needs which is very different to feeling like they are being pushed into something they do not want to purchase. The benefit of lead generation is that the right people are attracted to your products and services and they decide to make the purchase when they are ready. other benefits include:
Improved ROI - By targeting the right companies in the first place, less time and money is wasted on people who are unlikely to purchase.
Building brand awareness - A lot of the techniques used in lead generation go hand in hand with promoting your brand and thereby increasing brand awareness.
Understanding your customers better - Through the process of collecting leads via registration forms and understanding your customers preferences and hobbies, you are able to add better value to your products and services and therefore target them even better.
Why focus on lead quality?
Sales teams often focus on lead quality as they understand that the higher the quality the more likely the lead is to purchase, the better the return on investment, the higher the customer satisfaction.
How do you attract quality leads?
There are several social media platforms that are commonly used to attract leads. For example:
LinkedIn — especially good for B2B
Twitter — good for both B2B & B2C
Facebook — good for both B2B & B2C
By matching the right platform for your industry/product/service you can utilise social media platforms like the above and use them to attract high quality leads as the people on these platforms have very particular interests and networks that you can tap in to.
Post free downloadable articles and ebooks on your website
A free downloadable resource is a great way of capturing details of a potential high quality lead especially if the information you provide is relevant to them. You can further enhance the information you collect on the lead by setting up a few questions on the form which can inform you on where they are in the purchasing journey. For example, you may ask, are you "just exploring", "have narrowed down options" or " ready to make a move". All 3 of these states tell you where the lead is in their purchasing journey and what kind of follow up is required.
Offer incentives for referrals Referrals are great for generating high quality leads, especially if someone has had a positive experience with your brand. You could always incentivise the referral process by offering discounts and coupons for every referral you receive.
There are many affiliate marketing platforms out there that can be used to promote your product though bloggers and content creators who advertise your product or service for you. They are incentivised by a commission for every sale they make for you.
Influencers are people who have a large network of followers on social media platforms. These influencers usually have very loyal followers who purchase products and services they recommend. By reaching out to influencers to promote your product you can end up with very good quality leads that they pass to your website.
Managing your leads
Once you have leads, it is important to qualify them based on their quality you can do this by tracking them on a spreadsheet or other software and then rank them based on their actions. For example, you can rank or score the leads based on their interaction and behavior. You could assign scores for visiting your site, opening your emails, clicking on a particular ad, downloading a resource, becoming a member or starting a free trial. The higher the score, the faster you can reach out to them meanwhile nurturing the lower scored leads in a more relaxed way. this allows you to prioritise and focus your time and efforts.
Ultimately, even a quality lead can be lost if you do not nurture them by building a relationship with them this is just as important as capturing the lead in the first place. After all, they are your future customers.