What is Lead Generation?
WHAT IS LEAD GENERATION?
Lead generation is the opportunity to capture a new customer and generate new business. The lead is the customer details and an indication that they have a possible interest in your product or service. Once you have the lead it’s up to you to turn it into a positive sale with effective marketing.
Lead generation can come from many sources including; networking, word of mouth, recommendation, advertising, enquiries and data collection.
Why Does Lead Generation Work?
-
It gives businesses a basis on which to target customers and entice them to a sale.
-
It provides a database of names that can become a business’s target market.
-
The larger the list of leads the higher the percentage will be of potential customers that convert to actual customers.
-
It’s more effective than cold calling as you know the lead already has an interest in your business.
How Does Lead Generation Work?
Lead generation takes you straight to the key people in the business, which will save time and costs. If you’ve got the right contact name and can set up an appointment you’ve got your foot in the door – it’s then up to the sales person to secure the sale.
Once you start to build a database of potential leads you can start to formulate a marketing strategy. Your leads should go through three stages:
-
target as potential customer
-
convert to customer
-
maintain as long term customer
Lead generation should be done methodically so customer contact isn’t repeated. Ever received more than one catalogue in your household from the same company because you’re on their database twice? This is impersonal and can put off a potential customer as we all like to feel needed and not just a number on a computer system (although the reality is that’s all we are to the big businesses!)
Market research is a key factor in lead generation. Businesses should understand their target market, who and where they are and who their competition is. Surveys are invaluable and a great way to obtain potential leads. Use every opportunity to get potential leads to fill in surveys so you can capture their details, find out what led them to you and what they’re looking for.
Collection of information can be sorted by demographic and geographical areas, depending on a business’s target market.
There are companies that can undertake lead generation for businesses. They will provide databases of names and addresses and some will even set up appointments for sales teams. Be cautious about using these companies and check they are reputable as they may just be selling you lists which you could purchase directly and cheaper yourself. Also, they may be supplying exactly the same list to your competitors.