The simplest answer is that lead generation is an activity that brings potential customers, or leads, to your business. It can be done in many, many different ways – you can publish lead magnets, do outreach, or create campaigns tailored to specific audiences. Getting potential customers isn’t easy to begin with, but turning them into actual customers is even more challenging.
This article will tell you all you need to know about how lead generation works, what kinds of leads there are, and how you can improve your efforts to achieve better results!
What is a Lead?
Leads are people who are interested in your product or service. That means that they have seen or heard something about you, like a post on social media, for example, and have interacted with it in some way, making you aware of their presence. Once you have their attention, it is up to your sales team to increase their interest until they are ready to make a purchase.
How do We Divide Leads Based on Interest?
- Cold leads
They have very little interest in your product but fit the buyer persona (they seem like someone who might need your service). They are the hardest to convert but are also the most common – so put your best salespeople to the task.
- Warm leads
These are the people who have exhibited an interest in your company. They could be a follower on social media, a regular reader of your content, or even someone who’s heard of you from a friend. Since they’re already familiar with what you are and what you do, they’re much easier to turn into a customer.
- Hot leads
This is someone who has shown active interest through, for example, scheduling a demo or reaching out to you. This means that they are almost ready to make a decision but still need a little push. They require immediate attention and are the rarest but most profitable type of lead.
What is Lead Qualification?
This is another way in which you can sort leads and adapt your conversion efforts. Qualifying leads means that you are evaluating their financial ability, willingness to convert, their need for the product/service, and whether they have the power to make that decision. This is especially important in B2B sales since not everyone in the company has the same authority.
Based on their qualification, we can divide leads into three categories.
- IQLs – Information Qualified Leads
These are the people who have left their contact information in exchange for valuable information (a lead magnet), which is usually an e-book, white paper, checklist, or another kind of document. They are in search of a solution that you can provide, but they don’t know about your company yet. But since your marketing team now has their contact info, they can follow up with materials that will let them know that your company can help them with their problem.
- MQLs – Marketing Qualified Leads
After the IQL has been contacted by the marketing team, they become an MQL. They are now aware of your company and the services you offer. The marketing and sales teams have to work together to find the best way to ‘heat up’ the lead further. This is usually done through offering free demos, consultations, or sample services, in order to get the lead in a meeting with your company representative.
- SQLs – Sales Qualified Leads
This person is now in a meeting with someone from your sales team. The agent’s job is to determine whether the lead is a good fit for your company and how likely they are to convert. They are close to closing the deal but may have some additional questions and doubts, so converting them won’t be too hard if you’ve managed to get them this far.
How to Get the Right Leads?
The first thing to do is to define the ICP, or ideal customer persona. This is an imaginary person that you come up with that best represents your ideal clients. Flesh out their pain points, company size, position in the company, and some personal details. You can find a more detailed guide here. It’s easy to imagine that someone who fits all these criteria would be pretty easy to lead down the pipeline.
And that’s exactly the point – if you find someone who is likely to convert, they’ll simply breeze through the stages we talked about. But how can you achieve that?
Targeting is a practice that involves finding the prospects who are most likely to convert and creating sales processes that cater to them. For example, if you want to sell to CEOs of big tech companies, do research on what their main problems are. Then, address them in the title of your lead magnet or the subject of your message. Offer them a solution directly and immediately – people in high positions don’t have time to read lengthy intros and explanations.
The key to targeting is personalization. If you approach your ICP with a well-crafted message, they’re much more likely to continue the conversation and allow you to lead them down the pipeline. Here’s what that message should include:
- An attention-grabbing subject line. Address their pain points directly.
- A short introduction. Tell them who you are and who you represent.
- A solution to their problems. Tell them what you’re offering.
- A reason to continue. Explain why your company is the best solution for them, but keep it brief to avoid sounding like you’re bragging.
- A clear CTA. Let them know what the next steps are and invite them to take them.
Remember to keep the language you’re using and the overall tone in line with what you’re selling and the person’s interests. Keep it short, professional, and human – people do business with people they can trust, so make that a priority.
Conclusion
Lead generation isn’t really rocket science – but it isn’t easy either. It requires lots of research, experience, and knowledge about the market and your potential customers. The most secure way to approach it is by targeting your prospects based on the criteria that fit your business in a way that fits their needs and interests. This means that there’s a lot of personalization that goes into it.
If you want a professional team to handle this for you, NextPilots is at your disposal! We offer lead generation and outreach services that help you close more deals and boost your revenue. It all starts with a meeting where we can learn everything we can about your business and then tailor our approach to your industry.
Shoot us a line, and we’ll take it from there!