Lead generation basics explained.
For sure you heard the saying: ‘The money is in the list!’ many times before… And no matter which sector or niche, this is still true. Learning the lead generation basics will tackle just that!Although the online world has changed a lot since this saying, it always comes down to the same. You need customers, these days many people prefer to call them followers, to earn money, and to grow your business.
Here a good and effective lead generation strategy is something you absolutely need. With the right strategy, you attract potential customers, draw important traffic to your site and build awareness.
Every entrepreneur will tell you that a decent lead generation is part of the fundamentals of any business and you can leave this up to faith. A constant stream of fresh leads and a healthy pipeline is priceless for a profitable business.
So, let’s dive a bit deeper into the term ‘lead generation..
What is a lead in the lead generation world?
To be able to understand the lead generation basics, of course, you need to know what a lead exactly is.
A lead is another word for a potential customer in your target audience or also known as a prospect. Sounds easy, no?
But there is something you need to keep in mind. For some companies, any sales contact will be accepted as a lead, while others will ask for leads identified as having a higher likelihood of converting.
Knowing this, you’ll understand that it is really important that you define the term lead for your own company so you can analyze your success in gathering new potential customers and avoid discussion among stakeholders.
How to know the type of lead you have by using these 4 accepted definitions:
Marketing Qualified Lead or MQL
In this category is spoken of an MQL lead when the contact details are required thru any kind of marketing campaign. This can be organic or paid traffic, social media marketing, or content marketing. The contacts in this list have filled in a survey, signed up for an email list, or any other action which required giving their details. This way, they’ve expressed interest in your business, but they did not take further actions yet.
Sales Qualified Leads or SQL
SQL leads are also called sales accepted leads often. This category contains contacts who have been vetted by you or your sales team. They meet specific minimum criteria that qualify them as more likely to become a client.
Service Qualified Lead or SQL
Contacts who have shown interest in a specific service, like lead generation done by you for example, and are willing to speak to you or your sales team to become a paying customer are defined as SQL leads.
Now you understand what leads are and how to specify them, the answer to the following question is pretty obvious…
What is lead generation?
Lead generation is the way you attract people to your business to show them what you offer and why they should buy from you. A lead is generated when a person takes inquiries or shows any interest in your product, service, or business.
The first contact with a potential customer mainly goes thru one of your marketing strategies such as social media marketing, content marketing, or digital advertising. But even though a lot of the advertising is done online these days, traditional marketing like networking or cold calling can also be an important part of your lead generation strategy.
Never forget that people buy from people!
The difference between customer acquisition and lead generation
The best tip I can give you when diving into lead generation is to not see this separate from customer acquisition. Although there is a slight difference between these two terms, they are strongly connected to each other….
Lead generation is the very first step into building a client base by driving traffic to your site, using all kinds of marketing tools, and turning anonymous visitors into known leads. In this scenario, customer acquisition is what’s used to motivate identified leads to become clients.
Customer acquisition is the process used to understand your potential customer. Learn what they want, what they expect or need so you can offer them the right solution for their problem or needs. The most important topics to gather information on so you can define your leads are Interest, Need, Budget, Timing, and Decision Making Authority.
So, if you were curious to know what all the fuss is about lead generation, I think this should be helpful to let you understand the basics of this term.
But actually, I hope I succeeded in raising your interest in this interesting part of the process of building your own online business. If this is the case, please keep an eye out for my next blog where I will go a step deeper into the subject of lead generation.
Meanwhile, feel free to have a look around at our website, you can get some useful free guides there.
Also, check out our cool lead generation software Leads 2 Shine!