We all know that lead generation plays a very crucial part in any business’s growth and exposure. Today, we’ll address why lead generation is important for your business.
What is Lead Generation?
Lead Generation is a process where you attract prospects with your products/services and convert them into a customer once they show increased interest in your products/services. It basically involves collecting a visitor’s contact information via the web or other mediums. For business lead generation is important, it helps you with getting leads of your clients, effortlessly.
Types of Lead Generation
|Warm (inbound leads)||Non-Enriched leads||MQL (marketing qualified leads)|
|Cold (outbound leads)||Enriched leads||SQL (sales qualified leads)|
|PQL (product qualified leads)|
Based on Interest
These are the leads that are based or created on interest.
Warm (inbound leads) are the ones who showed interest in your business by themselves. That means your business has reached out to them and they’re eager to know more about it.
Cold (outbound leads) are leads who you’ll have to reach out to by targeting them and letting them know about your business and what it does.
Based on Enrichment
This type is based on the data you have regarding your targeted audiences. You’ll be able to divide them into two subgroups according to the database you have on them.
Non-enriched leads are the leads on whom you don’t have adequate data and you only have a name and an email address or a phone number (one contact method).
Enriched leads are the leads on whom you’ve enough information with additional details such as the ones that you can use for personalization and multi-channel marketing: secondary contact details, company name, location, job position, pain points, etc.
Based on Qualification
These types of leads are defined by their qualifications and where they are ranked in the sales funnel.
MQL (marketing qualified leads) are the ones who’re interested in your business but are not ready to communicate yet. They might leave their contact details on your landing page or lead magnets.
SQL (sales qualified leads) are the ones who are actually interested in your business and also a step closer to converting into a customer as they’re the ones that will leave their contact details to be willingly contacted to know more about your products/services.
PQL (product-qualified leads) are the ones who have already shown interest and are ready to be paying customers. PQLs are typical for companies that provide a free trial (like Leadstal.com). These leads may be using your free trial but are asking you about some of the features available in paid plans only.
Importance of Lead Generation in Your Business
Lead generation is a very fundamental part of a business because it helps a business to grow and flourish. You should keep in mind that your sales funnel should be filled with quality leads as it will help your business to maximize development and revenue. Lead generation is important for your business for a couple of reasons.
The importance of getting quality leads is obvious. It helps you with:
- Target the right people— You focus your resources on specific customers who are more likely to buy your product or service. This results in saved time and money, streamlining your company’s processes and growing sales.
- Build brand awareness— Lead generation always entails educating your leads on your company and its product; both when they get to know about you on their own or when you reach out to them with information about your product’s features. Leads can then spread information about your brand by word of mouth, bringing you even more clients.
- Get valuable data— As a rule, generating leads means collecting information about your prospective customers, their wants and needs, and your competitors. This helps you improve your product or service so that it has a competitive advantage in the market.
- Grow revenue— With an effective lead generation strategy, your company can get 133% more revenue than you’ve planned.
9 Reasons Why Lead Generation is Important for Your Business
Here are the 9 reasons why lead generation is important for your business:
- Expands Your Market
- Grows Your Following
- Gathers More Customer Reviews
- Boosts Your Revenue
- Generates Business Opportunities
- Improves Lead Quality
- Builds Visibility and Awareness
- Eliminates or Reduce Cold Calling (and Emailing)
- Automates Lead Management
Expands Your Market
Lead Generation helps you to expand your area of expertise. Suppose, when you started your business you most likely targeted the audiences which are compatible with your business but imagine if you look out and research you’ll engage those companies and job roles not included in your marketing campaigns.
With lead gen, you’ll see this trend and can add them. Lead gen enables you to learn about your prospects. Now, you have the opportunity to expand into new markets you otherwise wouldn’t have.
Grows Your Following
We all know to what extent content marketing is crucial for a business. Try to be very active on your social media and design attractive and useful content for your followers so that they think you’re a professional in what you do. Captivating content captures prospects.
As it will help build a community of professionals who like and follow your brand. Some will become customers and even more, may turn into brand advocates. So it will help you get the leads and convert them into clients.
Gathers More Customer Reviews
If you’ve sold your product/service to a customer and if they were satisfied then they will recommend your company to others. Their reviews will help you get new clients and will increase the chances of turning a prospect into a client.
This way you’re gaining a new lead from your existing customer through their reviews and references.
Boosts Your Revenue
When done correctly, lead generation can maximize your brand’s ability for reaching target prospects. This requires using the right messaging, offer, and content to generate interest from the targeted audience.
In doing so, you’ll find it easier to capture the attention of qualified leads, which makes it easier for sales to convert them. The revenue growth potential is great, especially when you’re focusing on interests and pain points your audience cares about.
Generates Business Opportunities
Lead Gen helps you to open the gates to new business opportunities. Maybe a non-competing brand in your industry reaches out to host a webinar together. And by teaming up, you gain access to their audience (and vice versa).
It’s a mutually beneficial partnership that can lead to well… more leads.
Improves Lead Quality
You get to understand the content that you’re providing to your users/visitors. You can differentiate between quantity and quality. When you get a clear picture after posting your content and the number of leads you’re generating then you’ll be able to perceive the improvement of your leads.
The better the lead quality, the more leads you’ll be able to generate for your business.
Builds Visibility and Awareness
Let’s take that you’re a new company stepping into the market or you’re an established business that’s operated behind the scenes for years. And now you want to get more eyes (and wallets) focused on your company so you’ll have new and active leads to come your way.
Creating visibility and awareness is vital to turning the tide in your favor. You can do this by creating content your audience cares about and sharing them on the channels they frequent.
Eliminates or Reduce Cold Calling (and Emailing)
Once you’ll have hot leads coming to you by themselves, why would you need to use the old-school method of cold calling/emailing?
You can dedicate that time to something more productive and useful.
Automates Lead Management
We’re living in a modern era and we should use modern technologies to make our life easier. There are now software tools you can use to automate lead generation and management processes. This includes tools like email marketing software, CRMs, customer data platforms (CDP), and Sending Platforms.
By using them in your lead generation strategy, you can make the process simpler and easier and it’ll also save you time. The automated software will do the task of collecting leads, segmenting them, nurturing them, and synchronizing data.
Trending Lead Generation Strategies
- Personalizing all marketing and channels using behavioral lead data and predictive scoring
- Tracking website performance and analytics to identify the source of traffic and leads
- Optimizing your website for conversions by using the right copy and message to resonate with target groups
- Using automation tools to simplify and speed up lead generation and sales
- Implementing interactive content to engage business leads on your website
- Incorporate real-time responses using live chat and chatbots
- Adopt video content in the form of webinars, tutorials, product demos, and animated visuals
We’ve already talked about the reasons why lead generation is important for your business. We hope it was helpful to you. We have similar articles in our blog, please check “How To Get Sales Leads For Free?”
Thank you for reading and being with us.