What is Lead Generation and Why is it Important?

Lead generation is the process of identifying and cultivating potential customers for a company's products or services. It is an essential activity for B2B sales and marketing teams, as it helps to generate consumer interest in a product or service with the aim of converting that interest into a sale. In online marketing, this generally involves collecting a visitor's contact information (called a “lead”) through a web form. Lead generation is increasingly important for companies not only to generate new leads, but also to develop and foster relationships with them. It is also important for e-commerce and other businesses, as email marketing remains one of the most effective channels for online marketing, and collecting a prospect's contact information allows the company to market it later, even if it doesn't make a purchase right away.

A lead generator is any marketing-related activity aimed at publicizing the availability of a supplier's product or service. Lead generators can be as simple as print advertising in a specialized newspaper or magazine, or as formidable as an industry showcase. Potential customers with a clear intention to purchase your product, have the finances and means to do so, and meet the parameters set by you are considered quality leads. The common wisdom is that it takes seven touches to turn a prospect into a sale. You may need to modify the score and criteria until you find the formula that works, but once you do, it will transform your lead generation into customer generation.

Constantly update the page with engaging content and ensure there is a clear call to action for potential customers. The goal of all these tasks is for the B2B leader to agree to attend a product demonstration, which is conducted by a BDM. This is done for one simple reason: you pay money for traffic and you want your business prospects to be as focused and enriched as possible right from the start. Typically, this involves identifying key buyers and creating content that is engaging and useful for generating quality leads. If a company focuses on the quality of leads, the chances of converting a prospect into a customer increase dramatically. But looking only at the first or last touch to determine how your overall strategy works won't give you the full picture.

The more you modify and test each step of your inbound lead generation process, the more the quality of leads will improve and revenue will increase. Now that we've covered why lead generation is important, it's essential to explain why generating inbound leads, versus generating outgoing leads, is the best approach for your business, no matter your industry. While you won't generate leads from this channel right away, social media can help you reach people (rather than your competitors) who will become qualified leads. With the introduction of modern marketing tools, software, and social media platforms, marketers can hone their skills to acquire high-quality leads.

Jenifer Dockter
Jenifer Dockter

Devoted pop culture maven. Friendly tv practitioner. Award-winning pop culture aficionado. Amateur travel junkie. General twitter ninja.