What is lead Generation and Its Method
Lead Generation is an important concept in marketing. Lead Generation is an essential part of Business Success. It is very helpful not only in your career but also in any kind of business or freelancing. Today I will give you very important information about lead generation such as what is lead generation, what are its methods, how to do it?
Read this blog till the end so that you get to know a lot about lead generation.
What Is Lead Generation?
Lead generation in marketing refers to arousing interest in the customer towards the product or service of the business or eager to investigate them, meaning to bring potential buyers. A potential buyer is one who has not purchased your product or service, but the buying process has begun.
So understand the meaning of the potential buyer, like you keep a beautiful packet at the store, and if the customer asks you what that is, that is the customer’s first step towards the product. Chances are that he will buy your product, but currently, he will be the lead for you, this is called lead generation.
How have we done Lead Generation?
Lead generation is done through advertising, or it can also be through organic search results or referrals to existing customers. Potential buyers or customers who meet through lead generation known as Leads.
You can bring leads in many ways like,
- Via a Digital Internet
- Personal Referal
- Telephone Calls
According to a study, the most useful method of lead generation is email marketing, after which the most used method is content marketing, and then search engine or events. When lead generation is through the Internet, it is called online lead generation.
When a lead is found, it is usually handed over to the individual to follow up, like a salesperson, salesperson will review it and see it is Qualified for potential business or not, can the company will get business with that lead, is that an opportunity to bring business. This opportunity has to go through a lot of stages so that the company can turn it into a customer.
It will be a bit difficult for you to understand, let me give an example. If a bank has to sell its home loan, how will it generate leads? They can adopt many ways, but for this example, let’s say they give a form on their website, which users can fill it and tell their interest. The user comes to the website and see “Applying For home loan” submit this form. User fills their name, email address, and phone no. into the form and submit it, then the bank gets an email notification. Some executives will read and understand a lead has been generated.
Now to the lead i.e. who has filled this form, the executive will make a phone call to that potential customer and ask him a lot of things and will give information about the loan. If the customer replies that yes he has to take a loan, then the executive will check if he is eligible for the loan. If according to the information given by the customer, he is eligible, then they will take his request and collect the necessary documents for the loan from the customer. Then the executive will send documents to another department. Then there will be many levels ahead like loans sanction approval, or rejection. If approved, it will be disbursed further and become the customer of the bank. Now he has become a customer for the bank from a potential customer.
So you saw how these stages happen. It is an example of a bank loan, but every product and services have their own stages, some have fewer stages and some have more stages. So lead is normally the contact information of a customer, who is interested in your product and services.
Types of Lead
Leads are of two types.
- Marketing Leads
- Sales Leads
Marketing Leads: Marketing leads are brand-specific leads, which are done to generate a unique advertiser offer. Marketing leads are sold only once. Marketing qualified leads who come through inbound channels such as web search or content marketing and those who have shown interest in the company’s product and service. They are yet to interact with the sales team.
Sales Lead: Sales leads are generated on the basis of demographic criteria such as income, age, location, etc. Sales lead normally follow up by the phone calls via sales executive. A sales lead can be sold to multiple advertisers. Generally, we find it in Mortgage, Insurance, or Financial Industries. Sales qualified leads are those who are screen by a sales-executive, who can check whether it is fulfilling the criteria of follow-up or not such as what their need, interest, budget, etc.
Now I will tell you more interesting things about online lead generation. In Digital Marketing, online lead generation is a significant topic. Let’s come to know the various methods which are used in online lead generation. It is a term of online marketing, which generate through the internet.
Methods Of Lead Generation
- Social Media
- Email Marketing
- Online Advertising
- CPM (Cost Per Thousand)
- CPC (Cost Per Click)
- Cost Per Acquisition
A lot of social networking websites have come in this era, such as Facebook, Instagram, Twitter, Pinterest, Tumbler, Linkedin, and many more. So the company does not want to miss this chance of lead generation. Many companies market their products and services on all these social sites. Create a company profile page on these all social sites and they post their company’s product and services photo, video, features, and many things related to this daily therefore people must be aware of their product and services and run ads on these social sites to reach different people to generate a lead. Also, post about jobs to get new candidates on LinkedIn.
Lead generation is also done through email marketing. Email is still the most widely used method in lead generation. With email marketing, you can send mail to interested people from time to time and make them eager to buy your product and service.
Online advertising is also used to generate leads. There are three types of models in online advertising which marketers can use.
- CPM (cost per mile/thousand): In this, the advertiser is charged for the impression, impression means that every time people see your ad, such as an image is online and people see it. Now the problem is that even if your audience does not click on that ad, you will still be charged.
- CPC (cost per click): CPC solves the charges levied for not clicking on advertisements in CPM. It is charged when viewers click on an advertisement.
- Cost Per Acquisition: It usually has two options, the first is the cost per acquisition and the second is the cost per lead. In Cost per lead, you pay an advertiser for the lead, this means you get the contact information of the person who is interested in your product. You can collect the contact detail of people by using the form. On the other side, in the cost per acquisition, advertisers pay on completion of sales such as when a credit card transaction has been completed.
The precise job of lead generation is that whoever is interested in the product and service get their contact information and convert them from potential buyer to buyer. Many methods available in the market to generate leads for our business such as
- Online Marketing
- Email Marketing
- Social Media
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