What Is Lead Generation? Lead Generation is a process that encompasses stimulating and capturing the interest of potential customers or clients in a product or service. It is a marketing gimmick aimed at developing sales.
With evolving times, the buying process has seen a natural progression to greater and more effective ways of reaching buyers. lead generation allows for companies and sellers to be less intrusive through unsolicited phone calls or blasting customers with mails by adopting more practical and consumer friendly ways. Lead generation is used to naturally attract and convert strangers and prospects into customers or clients by providing them with relevant goodies so that they take interest in the company and secure their needs through it.
As opposed to representing the company and finding customers, marketers represent the customers. They target them based on behavioral criteria, instead of using massive general advertising towards demographics. The marketing technique uses specifics rather than general content to approach customers, who’ve expressed interest in one shape or form. This transformation has come about with the growth of the internet and has rendered everyone with abundant opportunities. There’s no longer a scarcity of information but rather data exists in abundance now. This can be corroborated by the stark difference in the amount of data collected in 2003 (as reported by Google Eric Schmidt) and the amount of data that is collected in this day and age. Between the dawn of civilization and up to 2003 only 5 Exabytes of data was generated. At present, such amount of data is generated in only two days and yet continues to increase at a rapid pace.
Marketers are now focused on building relationships with customers that have shown interest in their products or services based on the data generated. The marketing strategies based on lead generation differ between companies. Marketers employ these strategies in ways which best help them determine how to qualify customers as leads.
Essentially, data is used to seal a deal. The information collected comes as a result of various customer activities, for example, when a job seeker completes an application, a shopper subscribing to a company in exchange for a coupon, or a person fills out college or university applications.
Marketers no longer hunt down customers and pass them on to sales. In fact, now buyers can do their own research online and find a variety of options suited to their needs. Search engines for educational resources, jobs, shopping, legal services and much more all serve as channels to facilitate customers. These content resources enable buyers to learn a great deal about products/services without having to speak to a sales person. This is why a business’s digital presence has become ever so necessary. Customers find you instead of you finding them.
Lead generation increases the conversion of lead rate, it drives more revenue and shortens and simplifies the sales processes. Getting leads ensure the companies get the right buyers at the right time. According to MarketingSherpa’s Lead Generation benchmark report, companies who have adopted lead generation tend to see a 45% rise compared to the companies that do not use this process.