What is lead generation (Lead Generation)? - IONOS

Posted by Md Khann on December 4th, 2020

A lead is a record with all personal data and contacts relevant that facilitates the concerned voluntarily. The lead generation forces the active obtaining of these contacts in both B2B and B2C marketing. To do this, it resorts to a series of online and offline methods.

Index

What is lead generation?

The various lead generation methods

Lead generation modalities

Lead generation: advantages and disadvantages

Push versus pull: from dialogue marketing to inbound marketing

What is lead generation?

The so-called lead generation (in English, “lead generation”) comprises the initial phase of the lead management process, in which actions are developed to obtain potentially interested clients. And it all begins by attracting those consumers who show some kind of interest in a product or service, since, before working with the leads, qualify them until they are "sales-ready" and put them in the hands of the sales department, contact has to be made first.

However, the mere obtaining of any type of data is not usually the objective of lead generation, since here quality plays an essential role. These are high-quality contacts, from qualified leads with a high probability of becoming new customers. While, for example, the participants in the sweepstakes provide their contact details without any interest in the offers and services of the company, subscribing to a newsletter is linked to a need for information and specific interests.. This fact makes the difference between what is called "cold leads" and "hot leads". While cold contacts need not have a special interest in the company's products, hot contacts are interested and actively looking for a particular item.

The various lead generation methods

In lead management, there are different approaches and practices that determine the methods and strategies that will be used later. To begin with, it is essential to establish the strategic orientation of the campaign, which sets the tactics of Live transfer leads. The fundamental questions to be clarified in this regard are:

What media and channels are used?

What are the means through which the company communicates with its customers? The focus may be on classical methods such as acquiring customers over the phone or with the help of advertisements in print media, but potential customers could also be found on social media or other online channels.

 Are push or pull marketing strategies followed?

What are the principles on which you want to create the campaign, following push marketing, or pull marketing strategies? How can leads be generated? While in direct marketing you can establish active contact with the customer, in the case of inbound marketing or permission marketing, the tactic is rather to capture their interest to attract them to the company.

 Is quality or number of leads given more importance?

The answer to this question is closely linked to the quality of the products and the offers. While a single quality lead can be of great value for an expensive and complex product, in other business areas a large number of leads are needed for the process to be profitable. Evaluating the quality of leads is the task of lead scoring.

Although marketers are continually coming up with new lead generation methods, there are a number of strategies that have proven to be more effective:

Direct Mail: Users are contacted by mail. With a form and a stamped envelope, they can show their interest in the product and request more information.

 Contests: There are many people willing to share their contact information to enter a contest. If they give their consent, the company may use this information to contact them again.

 Landing pages: with the search engine a potentially interested party can reach the landing page of a company. Here you can leave your details in the case to obtain more information about the offer.

 Newsletter: Another method of generating leads is represented by newsletters, which contain news about the company, as well as about new products and services, and reach potential customers regularly as emails. 

C conversations directly with the prospect: Especially at trade shows and B2B businesses, sales reps can gather customer data using this method.

 Social networks: interested parties can follow companies on their social networks. Through these platforms, companies can establish direct contact with their followers.

Lead generation modalities

There are different ways to generate leads and these differ from each other in terms of the type of communication. Among the basic modalities can be found:

Outdoor: the outdoor lead generation, also known as offline or face to face, comprises the most classic way of attracting interested people, such as attending trade fairs, promotional stands, raffles, or participating in events. The personal contact with the assistants or the participants in the fairs takes place at the hands of the workers of the company or the promoters. This form of lead generation involves work and expenses.

 Print media: leads can also be generated through newspaper and magazine ads. In this sense, you often work with so-called reply advertisements, which contain a telephone number or reply coupon. Likewise, direct mail with responsive elements is also a classic lead generation route in the print media field.

 Telephone: when lead generation is carried out by telephone, you can differentiate between inbound calls and outbound calls. Direct line services and call centers play an essential role in this regard. In this regard, through inbound calls, you can attract people who are interested in specific topics. It is also possible to establish outbound calls, that is, outbound calls, but these are subject to strict legal provisions. If you do not have a valid opt-in with additional information, it is not allowed by law to make any contact for advertising purposes.

 Online: Online lead generation takes place almost on all channels, that is, through email, social networks, your own website or blog, or through banners or advertisements that redirect to special landing pages. A central element is the different types of content format, such as white papers, eBooks, and other tools, which are used as incentives.

Lead generation: advantages and disadvantages

All companies can benefit from generating leads. Those that actively contact the target group have greater possibilities of expanding the client portfolio. However, for smaller companies, this extra effort in marketing and sales can use significant resources needed elsewhere. For this reason, electronic and online lead generation can be of great help: IT has facilitated the processes for lead generation, which can take place passively.

Push versus pull: from dialogue marketing to inbound marketing

When it comes to differentiating between pull marketing and push marketing measures, it could be said that it is about seeing who takes the first step, the company or the customer. In the case of direct or dialogue marketing, it is the company that takes the initiative, for which it goes directly to the potential customer, thus enabling dialogue. In the field of pull marketing (in English "pull" means to attract or pull), marketers trace the reverse path, that is, they invest in high-quality content to win the interest of customers.

Dialogue Marketing: The Classic Lead Generation Approach

Dialog marketing is a form of direct marketing in which workers in a company directly target potential customers with personalized offers. In the past, contact was initiated exclusively by telephone, which is why dialogue marketing is often associated with the work done in call centers. However, dialogue marketing generally comprises all the measures that are taken to engage customers in dialogue, which refers to emails and postal mailings, but also to social networks. Such a response element, ie the return channel, is of decisive importance in this regard.

Unlike classic advertising, the objective of dialogue marketing is to provoke a reaction in the customer to persuade him and to establish a dialogue. If dialogue or direct marketing is applied in the framework of lead generation, the objective is, in this case, that the potential client provides their contact details.

Greater use of inbound marketing and permission marketing

ECommerce is an economic sector that is increasingly important in Spain. Additionally, the trend of opting more and more often for online commerce instead of fixed stores continues to advance. In this way, the eCommerce boom has also influenced lead management and has given way to new opportunities.

Rather than directly and actively targeting potential customers, it is becoming more and more common to win their interest through indirect marketing measures.

In the inbound marketing sector, an attempt is made, above all, to attract the attention of the potential customer through quality content. In this way, interesting content is published on the Internet that provides added value and is guaranteed to be easy to find. If a potential customer is usually looking for information or answers to specific questions, they can get them with the help of eBooks, whitepapers, guides, or videos.

Another important aspect in this regard is to become visible on the Internet and, therefore, to convince potential customers of the company's knowledge and, indirectly, of the quality of its products. A content strategy and a professional search engine optimization strategy are key success factors in the inbound marketing industry. If the strategy works, the first result of business loan leads in the said marketing sector is the presence of a qualified and quality lead.

Apart from the classic “push” channels, permission marketing has also increased in importance. This concept refers to a marketing approach in which the recipient's permission is obtained before offer you advertising, especially considering the inconvenience of contacting customers with unwanted advertising messages. And is that many Internet users have become very sensitive to such advertising. Consequently, the advertising flow in recent years has resulted in the famous banner blindness or blindness banners, ie ignore the fact of intentionally advertising.

To increase the acceptance of your own marketing measures and to reach more customers and attract their attention, it is becoming more and more common to follow the strategy of asking for permission (in English, “permission”). The so-called incentives also play an important role in this sense, and that is that gifts, discounts, free samples, or raffles become tools to get customers to provide their contact details voluntarily. Users should feel that they are benefiting from such contact. If a company achieves this task, the lead generation can be carried out successfully.