What is lead generation?
A lead is an individual who has indicated interest in your company’s products or services in some way, and lead generation is the process of reaching out and capturing their interest in your product or service. Lead generation is for the purpose of developing a sales pipeline by providing prospects with enough information to stimulate interest in your products so they eventually warm up to the brand and want to hear from you.
Why is it important?
All businesses need customers to grow. Traditionally, companies make use of mass media and email to generate leads. However, that is not the most efficient way to grow your business. A recent study by Hinge Research Institute showed that firms generating 60% or more of their leads online are twice more profitable than those generating less than 20% of their leads online.
Here are the benefits of an effective lead generation campaign:
Creates enormous traffic to your website, which results in more sales and higher conversion rates
Helps your business step ahead of your competitors by targeting relevant prospective customers that have a higher chance of converting proactively
Helps you build trust and capture the interest of your buyer
Speeds up the process of converting (comparing to traditional cold calling and lead acquiring)
Enables you to break through the clutter to become a trusted advisor to your prospects by publishing and creating valuable content assets and thought leadership
Results in cost savings in the long run, due to its cost effectiveness.
How lead generation works and why it is so effective
Digital lead generation campaigns contain attractive information that educates users about your product or services. This stimulates customer interest, where they can express their interest in your product by filling out a form and letting you follow up with them. A good digital lead generation campaign should drive immediate results as well as act as a means to nurture decision makers as they evaluate their options.
While businesses acknowledge the importance of lead generation, many tend to neglect it due to the lack of insights, knowledge, data and resources. According to a marketing report by DemandWave, nearly half of marketers consider generating high quality leads their biggest challenge. Even if you are able to acquire a high volume of leads, you simply cannot turn them into customers if they’re not interested, don’t have the budget, or just aren’t ready to take the next step.
Some of the most effective ways to generate leads include:
When you create and distribute valuable content optimised for keywords relevant to your products or services on your website, you are able to attract, acquire and engage a clearly defined and understood target audiences. Thus, Google and other search engines prioritise your website and rank your website higher. This increases the number of visitors who click on your website, driving traffic that converts. SEO is a long-term strategy as these valuable content will continue driving traffic to your site over time.
Facebook Advertising allow companies to created highly targeted ads, with an obvious call to action and copy to encourage customers to convert. This technique can be combined with SEO to multiply the number of views you generate, dramatically increasing your sharing, and ultimately the number of potential customers who see your content.
Lead generation campaigns are highly effective is largely due to their being customised to a highly targeted audience using copies and creatives that resonate with them. Digital platforms such as Google Analytics and Facebook Ads enable us to track statistics and the outcome of each ad. The entire process becomes an ongoing series of experiments which contribute to establishing a clear understanding of what works to drive new leads, while providing insights that enable us to understand and more accurately target our consumers. When we become more aware of our target audiences such as the relationship they are willing to form with our business and the type of information they want to receive, we can tailor our register, lexis and content more appropriately to attract them and to address the criteria they use to make a purchase decision. Thus, we can create ads that convert more efficiently.