What is lead generation? The basic definition of lead generation is that it’s the process of obtaining contact information from people who are likely to buy your product or service. Once you have their contact information, you can market to them directly and try to turn them into actual customers. Here’s more on what lead generation involves and how it can help you get more customers!
Lead Generation Definition
What Is Lead Generation? In digital marketing, lead generation is a process used to capture contact information for potential customers or clients. This can be done through email, social media, paid advertising, and other channels. The results of lead generation are often called leads because these contacts are leads waiting to be further converted into paying customers or clients.
The Different Ways of Generating Leads
When it comes to lead generation, there are a variety of different ways you can go about generating leads for your business. The most common is through online marketing and pay-per-click advertising platforms like Google AdWords. Some businesses choose instead to generate their leads by participating in events or partnering with other businesses. For example, if you’re in software as a service (SaaS), it may be beneficial for you to speak at a conference or attend an event where you can meet potential clients face-to-face and answer questions they may have. Whatever route you decide to take, make sure that once you start generating leads, you don’t stop! Follow up and follow through. This will greatly increase your chances of actually getting sales from those who come into contact with your brand or company.
What is B2B Leads?
In B2B, potential customers are looking for a company with whom they can establish a relationship—with whom they can do business. This is much more than just buying and selling products or services. It’s building relationships and finding partners who will help them meet their goals.
A lead generation service focuses on identifying potential clients at all stages of your sales cycle. They start with top-of-the-funnel leads, such as name and contact information, then move down through middle-of-the-funnel leads that have shown some interest in your company but still need more information before deciding on purchasing from you. The bottom of funnel leads is very qualified prospects who have already expressed an interest in your company and its products or services.
Skilled lead generation companies collect (or source) lists of targeted individuals based on buyer personas. Then they reach out to those people via email, telephone, social media (such as LinkedIn), direct mail, and other communication channels, including referrals from current customers. To convert these interested parties into paying customers takes nurturing via drip marketing campaigns: automated emails followed by phone calls; one-touch gives way to the next touch until eventually your sales team steps in to close a deal.
The Importance of Traffic
Traffic is critical when it comes to lead generation. Whether you’re selling your products or promoting another company, if you don’t have a steady stream of traffic coming in, then you won’t be able to generate leads. Without leads, there won’t be much opportunity for conversions. And without conversions, there will be no sales... and nobody making money. Just because someone clicks on an ad doesn't mean they're interested in buying anything from your business; that's why lead generation is so important.
Once you've got them clicking through ads to your website, you can use specific strategies to warm up these new visitors into qualified prospects who want to do business with you. Why Traffic Matters Even More Than Leads: Traffic affects more than just conversion rates; overall traffic also affects how many potential customers are even aware of your brand. Let's say 100 people visit two different websites about digital marketing tools each month—Site A gets 500 visitors, while Site B only gets 50. Site A also happens to get 10 customers every single month, while B only attracts one customer every six months... despite getting less traffic each month! In other words, not all traffic is created equal—some businesses simply aren't in people's minds as often as others are. This shows us just how powerful branding can be, which again illustrates why lead generation should never take a backseat in any business plan or marketing strategy... no matter what industry you're in.
How Much Is a Quality Lead Worth
There are many different ways of calculating an ROI or return on investment. Generally speaking, it’s how much money you make back versus what you spend to make that profit. As for lead generation ROI, there are a few metrics worth looking at Revenue per visitor; Revenue per lead; and the Lifetime Value of a customer.
For example, if your goal is 500 leads a month from one marketing channel—let’s say social media—you can calculate revenue per visitor and compare it with other digital marketing channels. If only 25 percent of those visitors sign up for your newsletter (and 10 percent become clients), then you need 25 new visitors each day just to get 500 leads (assuming you don’t have multiple traffic sources). And if only half of those leads convert into customers, then they will bring $1 million in annual sales. So ultimately, if you spent $5,000 in Facebook ads and received 100 new visitors each day but just 1 percent signed up for your newsletter, that would translate into 10 new clients at $100,000 each a year. That is a pretty amazing return on your advertising dollar!
Using these three metrics together—revenue per visitor, revenue per lead, and lifetime value of a customer—will give you a good idea of what campaigns are working for you and which ones aren’t, allowing you to tweak accordingly.
And always remember...the costliest lead might not be your best lead: Pay-per-click campaigns like Google AdWords enable marketers to place bids on keyword phrases related to their target audience. The higher your bid is above other advertisers, the more likely potential customers who click through will visit your site.
Hope this article was helpful. If you are searching for the best Digital Marketing and Lead Generation agency, do contact Social Croww. Want to learn more? Connect-with-us. We will be happy to answer your queries.
We offer all kinds of digital marketing and lead generation services that will give your brand the boost it requires. Send your questions and requirements to us and we will be happy to help!