Lead Generation Definition
Lead generation is a term which describes how a business generates interest from potential customers (leads). Usually, buyers communicate their interest to a business by providing their contact information in exchange for more information about a product or service.
Online, you might already know that this kind of lead generation most commonly takes place with the consumer providing an email address, often in exchange for an “incentive” of some kind, such as a downloadable exclusive report or other media. This is a powerful way of building a subscriber base for one’s email marketing efforts.
Lead Generation Example
A business wants to get more value out of their website. They decide that not only should their website serve as a valuable resource for existing customers, it should also act as a means of generating new customers. One of the ways the business decides to do so is through lead generation.
The business prepares a written report as a downloadable PDF. The report contains valuable information for their target audience, such as a method of solving a common problem (perhaps utilizing a product or service the business offers), a “how-to” guide, or an introductory primer on a relevant topic. In order to receive the report, visitors must provide their email address to the business.
Why is Lead Generation Important in Strategic Marketing?
- Lead Generation
- In many cases, lead generation is an important part of the buying cycle. Once the contact information for a potential customer has been acquired, businesses can market to them more personally.
- Closing Sales
- Once leads are ushered into a sales pipeline, potential customers are a significant step closer to becoming paying customers. A strategic lead generation system can help to increase conversions and lower the average customer acquisition cost for a business.
