If your business hasn’t had the takeoff you were hoping for, and you’re struggling to attract customers and make sales, this is for you. You’ve got the product. You’ve got the website. You’ve invested in marketing. But your inbox is way too quiet. Sounds familiar?
That’s where you need to pay attention to lead generation. So, what is lead generation, exactly? It’s the missing link between having a great offer and actually getting people interested in it.
Without it, even the best businesses stay invisible. But with the right lead generation strategy, you can quickly turn interest into action.
Sounds interesting? Let’s get right into answering the question, What is lead generation and how does it work?
TL;DR
Need a quick rundown?
Before we answer the question, what is lead generation? We first have to understand what or who a lead is.
A person or an organization that shows interest in your product or service is called a lead. These people have interacted with your business through newsletters or by using a resource on your business website.
Leads are potential customers who aren’t ready to buy just yet. So, it’s your duty to guide them through the process and answer all their questions until they become customers. Let’s look at the three types of leads to help you understand them better.
To build an effective sales pipeline, you need to understand ‘what is lead generation.’ But most importantly, you need to know the different types of leads you may encounter. Here are the common types:
These are people who have already tried your products and services and have seen the value. They’ve probably used a free trial, a freemium version, or a physical sample.
Below is an illustration showing the characteristics of a PQL.
Image via ProductLed
A good example would be someone using Spotify’s free version and loving it enough to want to upgrade to premium.
PQLs are important because they already know your product works and have experienced the benefits. Therefore, converting them into customers just requires a small push.
Overall, businesses with PQL-focused strategies report higher conversion rates than traditional leads.
This group comprises people and entities that have interacted with your marketing but aren’t ready to buy.
They’ve probably filled out a form, attended your webinar, or downloaded an eBook from your website.
MQLs are curious but still cautious about committing to any kind of purchase. It’s like they’re still feeling your business out first, as explained below.
Image via Clearbit
Marketing qualified leads provides your business with a chance to nurture relationships. It simply means you have to work a little harder to convince them, unlike PQLs.
The more touchpoints you create with them, the better you can build trust and move them closer to making a purchase.
Sales-qualified leads are often referred to as hot leads. These are people who have requested a demo of your product or service, contacted the sales team, and asked for a quote.
At this stage, they’re deep in the sales funnel as illustrated in the image below, meaning they’re highly interested and ready to make a purchase.
Image via BotPenguin
The best thing you can do for your business is to quickly close the sale before they find an alternative.
These leads are existing customers who have indicated they want to upgrade or purchase additional services.
They may have spoken to a customer success representative or submitted a request through your help desk for more features or a higher-tier plan.
At this point, they’re already your customer and are open to expanding the relationship.
Image via MARKINBLOG
Service-qualified leads offer an excellent opportunity for upselling or cross-selling. You are responsible for matching them with the appropriate solution and ensuring a smooth transition.
Lead generation is the process of identifying and nurturing potential customers on behalf of a business. These potential customers show interest by sharing their contact information, like email addresses or phone numbers.
This B2B and B2C marketing strategy is cost-effective as it ensures companies don’t waste time guessing who might want their product. Instead, it targets people who are most likely to buy.
To fully understand what is lead generation, let’s explore the five main types of lead generation strategies available to businesses.
This lead generation strategy is all about attracting your target audience naturally. Instead of chasing prospects, you draw them in. Here are some common tactics used:
This strategy involves the business actively contacting and engaging with potential customers.
Outbound lead generation is built on conversations with people who have never interacted with your business before.
They help businesses quickly find interested buyers. It is faster and more productive than waiting for someone to discover your business.
Some of the outbound lead generation tactics used include the following:
In this strategy, you tap into the vast audience of the internet. Online lead generation offers the unique advantage of providing measurable results that you can monitor in real-time.
Common tactics you can use to generate leads with this strategy include the following:
Businesses use this type of lead generation to identify and attract other businesses to buy their products and services.
B2B lead generation focuses on connecting with decision-makers in organizations that might benefit from your product.
Examples of B2B lead generation include the following:
The hybrid lead generation combines online and offline lead generation strategies to attract and capture prospective clients.
By leveraging various touchpoints, this approach significantly enhances the likelihood of acquiring customers.
Some effective hybrid lead generation examples include:
Now that we’ve answered the question, what is lead generation? It’s time to highlight why lead generation is important.
Not all leads pan out into real customers, but you can always nurture them over time until they finally make a purchase.
There is more to attracting and retaining leads than just understanding what is lead generation. Here is why your business should take lead generation seriously.
Lead generation is a crucial step to finding potential buyers. It connects you with people already interested in what you sell. According to a survey, businesses experience a 20% boost in sales when they focus on generating and nurturing leads.
The more leads you have, the larger the pool of potential customers. Here are some valuable lead generation tips:
One of the biggest advantages of lead generation strategies is how specific they can be.
Unlike traditional advertising, which uses huge budgets to cast a wide net, lead generation can narrow down to specific targets.
This makes it a cost-effective option that doesn’t waste resources on uninterested audiences.
Here are some cost-effective lead generation strategies for targeting customers.
Breaking into new markets is every business’s Holy Grail. Lead generation opens doors to new customer groups by identifying people who are interested in your product. It connects businesses with prospects outside their usual audience.
If you want your business to expand its current comfort zone, try these lead generation tips:
Image via Market.us Scoop
What is lead generation without brand awareness? Lead generation helps people notice your brand without directly interacting with your business.
When businesses capture leads, they create opportunities to build trust through follow-ups. Sharing valuable content with prospects keeps your business top of mind, even if they don’t show interest immediately.
Consistent lead generation puts your business in front of potential customers often. The more they see your business, the more familiar they become with it.
Here are some tips to boost your brand awareness while generating leads.
Staying ahead of your competition is important in building your brand. Lead generation helps businesses attract potential customers, driving growth and staying ahead.
The problem with an open market is that customers have an endless array of choices. If your business isn't grabbing their attention, some other business will.
Lead generation can help you create a consistent flow of interested buyers. Some tips you can use to make this a reality include:
Image via Market.us Scoop
Finally, you need to know if all your lead generation efforts are bearing fruit or are just a waste of time. Every click, form submission, and download tells you who’s interested, and you should be able to track that.
Metrics like cost per lead (CPL) and conversion rates show whether your strategies are effective. This transparency keeps you from guessing, which saves time and resources.
To maintain a tight ship with accurate monitoring, try these tips:
You can use different sources to generate leads, depending on the nature of your business. Here’s a quick breakdown of the top options.
High-quality content and blogs are foundational long-term tools for effective lead generation. Informative blog posts, guides, or case studies attract organic traffic through search engine optimization and social sharing.
They can consistently generate qualified leads when paired with lead magnets like downloadable checklists or newsletter opt-ins.
To get the most out of your strategy, content marketing tools like Surfer can help you identify high-volume, low-competition short and long-tail keywords. You can also audit your content and optimize blog posts for SEO with tools like Ahrefs.
Image via Surfer
Tools like Semrush and Ahrefs can analyze top-ranking pages and give actionable content recommendations to increase content visibility.
To get the best results, create content tailored to your buyer personas and optimize it for search intent. Don’t forget to include CTAs, lead capture forms, or pop-ups to convert readers into leads.
You can use webinars to attract leads by providing them with educational content in real time. Your business can host sessions on specific topics, inviting attendees to learn and engage. These online events often require registration, which collects valuable lead information.
Surfer is an excellent example of a business that uses webinar lead generation. One of the many free resources it offers potential customers is free content writing courses. To enroll, you provide your contact information, which Surfer keeps on record for future reference.
Image via Surfer
To maximize webinar effectiveness, focus on solving a problem your audience cares about. Offer time for Q&A, ensuring active engagement.
After the event, send follow-up emails with a replay link and related resources. This keeps attendees interested while nurturing them toward a purchase.
Another effective way to nab leads is through email marketing, which works by nurturing leads directly in their inbox. You can send subscribers tailored messages like newsletters, product updates, or promotional offers.
A 2024 Unbounce benchmark report found that email has the highest conversion rates for lead generation. It leads with a 19.3% success rate compared to paid searches (10.9%) and paid social (12%).
Image via Unbounce
Consistency is key in email campaigns. Offer valuable insights, like exclusive tips or free resources, to keep readers engaged. Personalizing your email campaigns also helps build trust.
People trust recommendations from friends or family more than ads, making referral programs a reliable lead-generating resource. This could be an online service offering discounts or some money for users who invite friends to sign up.
Wise, the payment platform, uses this tactic effectively, offering users £50 for any successful signup and cash transfers.
Image via Wise
For the best results, make your referral programs easy to join and rewarding. Use clear communication to explain the benefits and offer enticing incentives.
The fastest way to collect essential contacts for your leads is through eBooks. This is an electronic version of a book you can read on tablets and phones.
eBooks attract leads by offering in-depth information on a specific topic. Users typically need to provide their email to download them.
Below is an example requiring users to fill out a form first before the platform generates a download link.
Image via Route1Print
To stand out, focus on quality and relevance. Use clear visuals and actionable tips to keep visitors engaged.
You can even promote your eBook through email marketing campaigns and social media ads. This broadens its reach and attracts more potential customers.
This lead generation process works by connecting your business with audiences on Instagram, Facebook, LinkedIn, and more. You can share valuable content, run contests, or use targeted ads to capture attention.
An excellent example of how valuable posts gain traction is the Instagram post below, which shares storytelling tips relevant to content creators. It resonated with its audience and earned over 730 likes, showing the power of offering real value.
Image via Instagram
Regular posting keeps your brand visible, while analytics tools like Facebook Insights track performance.
Therefore, experiment with different formats, such as videos or carousel ads, to find what resonates most. Additionally, you can customize a contact form for your social media lead generation pages to collect contacts.
Image via Jotform
This is one of the most effective lead generation tools that requires users to sign up for a webinar, whitepaper, or toolkit to access it.
Cymatics, a sample pack download site, usually offers free resources for music producers. However, to download them, you must sign up for an account to gain access to a library of free packs.
Image via Cymatics
This tactic provides exclusivity, which increases perceived value and makes it more attractive. For the best results, deliver high-quality content and promote it through multiple channels.
What is lead generation, and how can you go about it?
When generating leads, there is a laid-out process that you must follow for the best results. Here are the key steps you should follow:
Analyzing and planning help businesses define their target audience and identify their needs.
Furthermore, this step ensures you know who your ideal customers are, where they hang out, and what they want.
Are your potential customers scrolling on Instagram, or are they hunting for solutions on Google? Picking the wrong platform is like yelling into a void.
There’s no business undertaking that can be successfully executed without market research. The same rules apply to lead generation.
First, you need to understand the sources of your best leads and how to generate more. Notice patterns and identify customer pain points to position your products as solutions.
Below is an illustration of a market research report highlighting key market size segments and trends.
Image via Appinio
Researching your market also drives better ROI. Ensure your lead generation strategies align with customer needs.
Less wastage means you’ll have more funds for other important areas of your business.
The right message communicates to potential leads what your business offers and how it solves their existing problems. You will lose potential leads if the message is unclear or irrelevant.
We’ve discussed what is lead generation, and now it's time to learn how to develop a message that works.
Start by using the data you pulled from your market research because that’s what tells you everything you need to know about your audience.
With that, create messages that address what they care about. Be specific about how your product or service can help. Avoid being too generic in your messaging if you want to make an impact.
Websites serve many purposes; they are digital representations of your business. However, you’ll need more than just a pretty domain to successfully generate valuable leads.
You need to create and optimize landing pages to capture details of potential customers interacting with your web pages.
Present your visitors with a clear offer, like signing up for a newsletter or downloading a free ebook. They then have to complete a form with their names and email addresses to receive the free resource.
Here’s an example of a popup on Cygnett’s landing page asking visitors to sign up to receive free shipping on their first order.
Image via Cygnett
A good landing page shouldn’t have distractions — present limited options to visitors that direct them toward the desired action.
Most importantly, always add a call to action.
The next step is lead nurturing. It is the process of building relationships with prospective customers until they make their first purchase.
Once a lead shows interest in a business, they need to be guided through the sales funnel. This involves engaging with them at different stages to maintain their interest.
Regular communication through emails, phone calls, or content helps nurture the relationship. The goal is to stay on their radar without suffocating them until they’re ready to make a purchase.
Businesses can use these tips to improve lead nurturing:
After you've nurtured the leads, it’s time to subtly nudge the prospective customer into making a purchase. This is called conversion optimization, which is all about improving the chances that your leads will take action.
Once you capture the lead’s attention, the next step is to guide them to purchase or commit to a service. This could be in the form of signing up for a subscription.
Conversion optimization works by making adjustments based on user behavior. For example, you can monitor your website analytics to see where they frequently drop off. Are they leaving at the checkout page? Is the form too long?
With this data, businesses can implement quick adjustments, making converting leads easier.
Identifying leads who are likely to buy and those who won't is called scoring leads. Businesses use lead scoring to rank prospects based on their likelihood to convert.
Each lead gets a score based on factors like how they engage with content or their level of interest. For example, downloading an ebook might earn a higher score than just visiting a website. Here’s an example of a lead scoring model:
Image via Creatio
The leads are then transferred to the sales team for further engagement. A high-scoring lead may be ready to talk to a salesperson, while a low-scoring lead might still need nurturing.
The final step is evaluating the results and making detailed reports to improve the subsequent lead generation efforts.
Businesses need to track their success. This means measuring how many leads they generate, the quality of those leads, and how effectively they convert into sales.
SEO reports can provide a snapshot of these metrics and help businesses understand what’s working and what isn’t. Without proper evaluation, it’s difficult to know if your lead generation efforts deliver results.
Key performance indicators (KPIs) necessary for evaluation and reporting include conversion rates, cost per lead, lead source performance, and more.
You’re probably wondering if buying leads is better than going through the tedious process of courting and retaining customers. Well, buying leads isn’t all bad, and it makes economic sense to some extent.
Buying leads can save you time. Instead of spending days searching for potential customers who may still turn you down, a purchased list is easier. You gain access to a pool of verified prospects interested in your product or service.
Another benefit of buying leads is targeted outreach. Lead vendors categorize contacts based on interests, buying behaviors, and demographics. This allows you to tailor your pitches for each separate group.
However, buying leads comes with challenges. Even users on Reddit have expressed their concerns.
Image via Reddit
Here are some disadvantages of buying leads:
So what’s the verdict?
Buying leads depends on your specific business goals and the resources you have at hand. Measure the pros and cons and decide if it’s worth the risk.
There are always challenges to overcome. Lead generation has its ups and downs, and below are some of the notable challenges you may face.
Getting quality leads is not an easy task. Some may show interest, but they aren’t ready to buy. The challenge is figuring out who is genuinely interested and just browsing. Use a scoring system to separate serious leads from the rest.
Every business is trying to grab the attention of potential customers. This makes it tough to stand out because competing businesses are vying for the same pool of leads. Businesses need to focus on creating unique and valuable offers and providing unrivaled customer service.
Much user data is involved in the lead generation process; protecting it is critical. Laws like GDPR and CCPA set strict rules on how businesses collect and store personal data. Violating these laws can lead to hefty fines, so you need to stay updated to be compliant at all times.
Generating leads isn’t even the most challenging part; maintaining them is the real work. Many leads lose interest if they don’t hear from the business for a while. Maintain regular communication through email, social media, or even personalized content to keep them engaged until they convert.
While tools like Google Analytics do a decent job of capturing consumer movements, they may not be enough at times. Accurate performance measurement saves businesses time and resources.
Sometimes, customers’ needs and expectations change too fast for the business to keep up with. What worked last month might not work today. Therefore, businesses need to stay flexible and continually analyze customer behavior to adjust their strategies in real-time.
Q1. What software do you use for lead generation?
A. You can use different lead generation software depending on the nature and goals of your business. Examples include HubSpot for customer relationship management and MailChimp for email marketing campaigns.
You can also use ZoomInfo to manage lead contacts or consider ActiveCampaign to automate and organize the lead generation process.
Q2. How do you generate leads?
A. You generate leads through various strategies. Notable ones include social media ads, videos, and blog posts, which attract leads organically. Other options include forms for gathering contacts or useful downloads like eBooks and templates.
Email marketing campaigns can also bring in leads by targeting specific groups with personalized messages. Networking at events or webinars is another way to meet potential customers directly.
Q3. How long does it take to generate leads?
A. The time it takes to generate leads depends on the methods you use and the target audience. Methods like online ads can give you results within days or weeks, while organic options like search engine optimization can take months.
Cold outreach options, such as calls and emails, depend on the target audience's response time. External factors that influence lead generation speed include audience size and the nature of the industry.
Q4. Are lead generators worth it?
A. Yes. Lead generators are worth it if executed effectively. They can save you time and money when aligned with your business goals. Lead generation helps businesses with limited marketing teams, which can help scale outreach efforts.
Q5. How do I generate leads fast?
A. You can generate leads quickly by using paid advertising options like Facebook or Google ads. Another quick option is email marketing if you already have an existing list. Collaborating with marketing influencers also helps accelerate your lead-capture ability.
This post has answered the question ‘What is lead generation?’ in detail and provided tips on what it takes to generate leads.
As discussed, successful lead generation requires strategy, time, and consistency. From email marketing and gated content to webinars, there are plenty of tactics to choose from. However, aligning your efforts with your specific business goals for the best results is key.
As you refine your approach, consider leveraging specialized expertise when needed. With the right support, you can attract high-quality leads and convert them into long-term customers.
Ready to take your lead generation to the next level? Explore our expert lead generation services to attract high-quality leads and grow your business.
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