What is Lead Generation?
Lead generation is a discipline within marketing and sales, meaning the collection of contact information on a potential customer (called a lead) who has shown some form of interest.
Lead generation definition
Lead generation: collecting contact information, for further marketing or sales, on potential customers who have shown interest.
This can happen, for example, when a potential customer signs up for a newsletter, wishes to be contacted by a salesperson, or requests that materials be sent to them — thereby providing their contact details and becoming a lead. A lead has thus been generated.
What information do you have about your leads?
What contact information you have on a lead depends on the individual case: business type, purpose, customer, CTA, etc. However, at a minimum you are typically looking for the person's email address, in order to send personalised one-to-one marketing via that channel. It may also include phone number, company name, company size, etc., which will be used by a salesperson or sales department.
When should you use lead generation in your marketing?
Lead generation is typically used within B2B companies, but it can also be part of a marketing strategy for B2C companies and e-commerce.
You can and should use lead generation in your marketing when the purpose is any of the following:
6 reasons to use lead generation
- You want to create awareness and establish contact with potential customers before reaching out to them directly or before a specific point in time (for example, leading up to Black Friday, before the "launch" of a product, materials, or similar).
- You want warmer, more sales-ready leads (e.g. to spend less time on cold canvassing, achieve a higher sales conversion rate, etc.).
- Your customer journey and decision-making process is long (and it therefore makes sense to obtain contact details and use email marketing rather than pure paid advertising, etc).
- You want time and space to carry out specific actions before a potential sale (which you can do in a targeted and precise way through email marketing).
- Your product/service requires in-depth knowledge (which can be achieved through direct contact (with sales, for example) or email marketing).
- You want to be more targeted and personal in your marketing (which you can be when you know who you are marketing to)
Lead Generation: How? 3 simple tips for generating leads
Lead generation is typically an exchange: the customer provides their contact information and receives something in return. Otherwise there is no incentive for the customer to share their details and become a lead.
This is typically what is known as a lead magnet — something that attracts your potential customers and converts them into customers.
Step 1: How do you obtain the contact details?
The first step is therefore to figure out how to get your target audience to provide their contact information:
This could include the following:
- White papers
- Checklists
- Tools
- E-books
- Templates
- Competition/raffle entry
- And much more.
It is about finding something that attracts the right target audience and converts them into customers.
You can read more about lead magnets and how to use them here.
Step 2: Where do you capture the lead?
The distribution of this lead magnet can take place on social media via Lead Ads, on the website through forms, pop-ups, organically on social media, and more.
It is about choosing the right channel relative to your customers and your digital strategy. The typical channels for lead generation are:
- The website (via pop-ups, gated content, widgets, etc.)
- LinkedIn (especially B2B)
Step 3: What happens once the lead is captured?
Once the lead has been captured, the strategy is typically to convert that lead into a buying (and later: loyal) customer. This will often be done through the following:
- Email marketing
- Marketing automation
- Personal sales
What is your next step towards more leads?
Lead generation is an extremely effective tool — especially within B2B, where it can be the cornerstone of an inbound marketing strategy, but also as a powerful supplement to a B2C or e-commerce marketing strategy. It is simply a matter of doing it right.
Would you like sparring on how you can use lead generation as an effective tool in your marketing and sales strategy? Call us on 30 12 42 72 and have a no-obligation chat!
