What Does Lead Generation Mean?
Not all people are familiar with the term lead generation. If you are just new to the marketing community, then you may not be familiar with what this term means. Providing the technical definition of lead generation may not put to justice the true meaning behind such words because a simple question as asking the meaning of lead generation entails a much more complicated answer.
Let us first tackle this topic by defining what a lead is. A lead is an entity, either a person or an organization, that demonstrates an interest in a product, service, or brand by doing a range of actions such as clicking through advertisement contents, downloading online guides, availing of free trials, and many more. However, leads do not necessarily take the form of paying customers. Thus, it is more likely that the lead will hear your business or advertisement before you hear from such a lead.
The process of acquiring potential customers by calling them on their phones is also no longer effective. Customers nowadays feel that they are being intruded on during their personal time. Also, they feel that the person calling them is compelling them to take an interest in the products or services being offered. Thus, the introduction of lead generation became an effective way for companies to attract audiences and potential customers by creating effective marketing techniques that lead audiences to take a genuine interest in the product and service being offered.
The following are the four types of leads:
This type of lead is still in the early stages of being a leader. These are the type of audiences that has more potential of becoming customers because they have already been interested in a specific brand, product, or service. In this stage, leads are often hesitant to connect to the sales team but they are engaging through a company’s advertisements by clicking through contents, downloading guides, or doing similar engagements.
This type of leads, just as the term itself, are ready to reach out to the sales team by submitting their contact information or filling up quote requests from the company that they are interested in. An SQL has typically indicated an intention to buy and they are almost ready to be categorized as a customer of an organization.
As the name suggests, product qualified leads are already at the later stages of the marketing lead generation. A PQL means that they have already taken an interest in a company’s product by actually experiencing its value on the first hand by using such product through signing up on a free trial or freemium models. PQLs usually show their interest by inquiring more about the product offering through the sales team. They also have a higher chance of becoming actual paying customers compared to the previous two.
Service qualified leads are different from the rest of the leads because they have already taken an active interest in a company’s product or services. It is almost the same as product qualified leads, however, the main difference between the two is that service qualified leads experienced the value of a product or service by already using and paying for them.
Since they have already used and purchased the product, service qualified leads often take an active interest by upgrading the products or services being offered. Now that we have provided you the definition of a lead and its type, we will now proceed with defining what lead generation is.
What Does Lead Generation Mean?
Technically speaking, lead generation is the process of generating leads through identifying, attracting, and converting them from prospects to actual paying customers of an organization. The process of attracting attention and converting them to actual paying customers are both distinctive methods that employ the use of different marketing tactics to achieve its goal.
Lead generation companies often employ common lead generation channels such as websites, emails, search engines, and social media platforms.
How Does Lead Generation Affect the Digital Marketing Industry?
The lead generation community has thrived in the digital marketing setting since the process of generating leads through traditional means such as cold calling is already outmoded. In fact, lead generation and digital marketing are almost exactly the same things because both utilize the use of the internet to identify, attract, and convert prospects into a company’s customers.
Both also employ the use of successful lead generating strategies such as the following:
This strategy is most effective because it can reach users who take an interest in a product or service by searching for them through search engines such as Bing, Google, and DuckDuckGo. The main goal of search engine optimization is to place a company’s website on the top search results of search engines. Having the priority search results will usually attract more clicks and attention from various internet users.
This strategy is often affiliated with paid ads such as pay per click advertisements or PPC. This is placed second because it offers flexibility in a company’s ad to be placed among different internet platforms such as social media, websites, and search engines. It can also help search engine optimization by making sure that the advertisement accumulates clicks to the point that the website is placed atop search results among its competitors.
A lot of companies utilize social media platforms because of the immense benefits it provides to campaign experts. There are tons of strategies that social media can offer a company. First is the establishment of a page or an account in a social media platform, which usually costs nothing. This is effective for small and start-up enterprises who would want to create a brand online.
Second is the option of paying social media platforms for advertisement placement that would allow a company’s products and services to be featured more aggressively on different platforms. The great thing about social media is it allows you to launch targeted marketing campaigns to garner a following or shares. Another thing is that it creates a more personal relationship with customers by responding to comments and chats that would address their matters of concern.
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