Lead Generation
Lead generation is the process of attracting potential customers and collecting their contact details to initiate communication and guide them towards a purchase. Its effectiveness is determined not only by the number of contacts collected, but also by how often they turn into qualified leads and actual deals.
How Lead Generation Works
The process consists of several consecutive stages: identifying the target audience, preparing an offer, collecting contact details, processing enquiries, and passing potential customers to the sales department.
Offers may take the form of a lead magnet (a free resource, consultation, or trial access) or a direct offer describing the product. Contact details are collected through landing pages, contact forms, chatbots, and other touchpoints. Leads are then qualified, their needs and readiness to buy are assessed, and they are directed to the appropriate stage of the sales funnel.
Main Lead Generation Channels
- Paid advertising: search ads, targeted advertising, and shopping campaigns.
- Content and SEO: articles, knowledge bases, webinars, and newsletters that attract audiences with useful information.
- Chat marketing: communication with potential customers through messengers, chatbots, and automated workflows.
- Partnerships and referrals: attracting customers through partner programmes, reviews, and influencers.
- Cold sales: targeted messages and direct outreach to potential buyers, especially in B2B.
Key lead generation metrics include cost per lead (CPL), conversion to a qualified lead and a deal, lead quality by channel, and enquiry response time.
When evaluating results, it is important to consider not only acquisition costs but also subsequent conversion to sales. Cheap leads are not always cost-effective. If potential customers are not interested in the product, sales managers spend time on unpromising contacts, and the cost of acquiring an actual customer increases.