Lead Generation

Lead generation is essential for growing any business, but I can’t stand those telemarketing calls that interrupt dinner. I cringe every time my phone rings mid-meal, and, let’s face it, those calls never seem to connect with real leads because I’m almost never interested in what they’re selling. I prefer a more strategic, customer-friendly way to reach potential buyers — one that respects personal space and encourages genuine relationships. This is the best way to attract people who are already seeking the solutions you offer and want to learn more before making a decision. In this guide, I’ll show you what lead generation is, why you need it for your business, how to generate qualified leads, and why inbound lead generation is much more effective than simply buying leads. Table of Contents What is a lead? What is lead generation? Why do you need lead generation? How Lead Generation Works The Lead Generation Process in Action The Lead Generation Funnel How to Generate Leads How to Qualify a Lead Lead Generation Strategies Tips for Lead Generation Campaigns Lead Generation Statistics Lead Conversion Statistics Lead Generation Trends & Benchmarks What is a lead? A lead is any person who indicates interest in a company’s product or service. Leads typically hear from a business or organization after opening communication (by submitting personal information for an offer, trial, or subscription) instead of getting a random cold call from someone who purchased their contact information. Let’s say I take an online survey to learn more about how to take care of my car. A day or so later, I receive an email from the auto company that created the survey. This process is far less intrusive than if they’d just called me out of the blue. From a business perspective, the information the auto company collects about me from my survey responses helps them personalize that opening communication to address my existing problems. Leads are part of the lifecycle of transitioning visitors to customers. Not all leads are the same. There are different types of leads based on how they are qualified and what lifecycle stage they’re in. Marketing Qualified Lead (MQL) Marketing-qualified leads are contacts who have engaged with your marketing team’s efforts but aren’t ready to receive a sales call. An example of an MQL is a contact who fills out a landing page form for an offer. Sales Qualified Lead (SQL) Sales-qualified leads are contacts who’ve taken actions that expressly indicate their interest in becoming paying customers. An example of an SQL is a contact who fills out a form to ask a question about your product or service. Product Qualified Lead (PQL) Product-qualified leads are contacts who’ve used your product and taken actions that indicate interest in becoming a paying customer. PQLs typically exist for companies who offer a product trial or a free or limited version of their product with options to upgrade. An example of a PQL is a customer who uses your free version but asks about paid features. Service Qualified Lead Service-qualified leads are contacts or customers who’ve indicated to your service team that they’re interested in becoming paying customers. For example, a customer could tell their customer service representative that they’d like to upgrade their product subscription. At this time, the customer service representative would up-level this customer to the appropriate sales team or representative. These lead generators are just a few examples of lead generation strategies you can use to attract potential customers and guide them toward your offers. Whenever someone outside the marketing world asks me what I do, I can’t simply say, “I create content for lead generation.” I’d get some really confused looks. So, instead, I say, “I work on finding unique ways to attract people to my business. I want to provide them with enough goodies to get them interested in my company so they eventually warm up to the brand and want to hear from us!” That usually resonates better, and that’s exactly what lead generation is: It’s a way of warming up potential customers to your business. This gets them on the path to eventually making a purchase. Why do you need lead generation? When someone shows an organic interest in your business, the transition from stranger to customer is much more natural. You enhance this transition through inbound marketing. Inbound marketing is a methodology to attract loyal customers to your business by aligning with your target audience’s needs. Creating tailored marketing experiences through valuable content is the core of an inbound marketing strategy that helps you drive customer engagement and growth. Lead generation falls within the second stage of the inbound marketing methodology. It occurs after you’ve attracted an audience and are ready to convert those visitors into leads for your sales team. As you can see in the diagram below, generating leads is a fundamental starting point in an individual’s journey to becoming a delighted customer. How Lead Generation Works Lead generation ensures a steady flow of potential customers, which is essential for sustained growth and profitability. Effective lead gen strategies also encourage long-term relationships, enhance brand reputation, and provide valuable insights into customer behavior and preferences. This results in a business that is better positioned to identify opportunities, respond to market demands, and achieve its strategic objectives. The lead generation process involves several key stages: attracting, capturing, nurturing, qualifying, and converting leads. 1. Attracting Potential Leads The first step in lead generation is attracting the right audience, and you typically achieve this by creating and distributing valuable and relevant content that resonates with your target market. You can use various content marketing strategies, such as blog posts, social media updates, videos, webinars, and search engine optimization (SEO), to increase your online visibility and draw in potential customers. For example, if you’re a tech company, publishing insightful articles on the latest industry trends or producing instructional videos showcasing your products is a great way to attract individuals (or other businesses) interested in those topics. 2.