What does lead generation mean in sales

Leads and lead generation simply explained: definition, forms & FAQ

You can find out everything about the topic below Leads and Lead generation in marketing. Definition, functionality, meaning and how the topic of lead generation relates to marketing automation and content marketing.

 

Table of Contents

What is a lead? What are leads?

A Lead (Plural Leads ) is a term from sales / marketing and describes a contact initiation and / or specification of contact information by a potential prospect. One speaks of a "Qualified Lead" when a potential customer confirms his interest (in accordance with a non-binding purchase intention).

Leads are e.g. Email address, onePhone numbers, the name of contact personCompany name, Position title, Further Company data etc.

The qualitative lead is one of the main goals in B2B marketing. In the B2C area, leads are often just a kind of micro-conversion in which the quantity of leads is important, which is subordinate to other main goals.

The term "Lead“Has different meanings depending on the context. For example, it is used in marketing, music, sports, journalism or pharmaceutical research. However, this article is limited to the importance of leads in a sales and marketing context.

The term lead is a Interested partywho became aware of a company's product or service. He voluntarily leaves his Customer data and makes them available.

What types of leads are there?

Companies have numerous opportunities to generate leads. Among the most famous to shape count e.g. B. the classic Registration of potential customers or registering for a Newsletter.

A lead can take different forms, depending on the lead definition:

  • a specific contact request
  • registration for a newsletter
  • Submission of contact details as part of a download
  • leaving a business card, e.g. at a trade fair stand
  • filling out a form with contact details as part of a competition

 

What does lead generation mean?

The Lead generation or Lead generation (Acquisition of prospects), is a method from marketing and deals with the generation of interactions qualified Interested persons (Leads).

Lead generation can be done as part of Dialogue marketing, Permission Marketing and or Inbound marketing come into use.

The to generate of high quality leads, is a fundamental task of the Acquisition of new customers. Any activity that leads the potential new customer to his contact details are then summarized under the term lead generation.

Lead generation is a crucial driver for that growth of a business. What about opening up new ones Sales potential with existing customers.

 

Lead generation as part of lead management

Lead generation is a sub-task of lead management, which is divided into the areas of marketing automation, lead generation, web controlling, lead nurturing, lead scoring and lead routing.

 

Overview of lead management, source: https://www.onlinemarketing-praxis.de/glossar/lead-management

 

Which channels or instruments can be used for lead generation?

Lead generation can be carried out through various channels:

  • In personal contact e.g. at trade fairs, via promotion stands, offline raffles ...
  • Through cooperation with event organizers or through your own Events
  • Via Outbound phone calls (Cold Calls) and Emails
  • Online via your own website, e.g. via Contact forms, Newsletter registration forms Etc.
  • over Content highlights such as. Webinars, Downloads (Advice, whitepaper, checklists, etc.)
  • Via Social media
  • Print-Lead generation: Print advertisements with reply letters or advertising mailings

Lead generation can be carried out through various channels:

  • In personal contact E.g. at trade fairs, via promotion stands, offline raffles ...
  • Through cooperation with event organizers or through your own Events
  • Via Outbound phone calls (Cold Calls) and Emails
  • Online via your own website, e.g. via Contact forms, Newsletter registration forms Etc.
  • over Content highlights such as. Webinars, Downloads (Advice, whitepaper, checklists, etc.)
  • Via Social media
  • Print-Lead generation: Print advertisements with reply letters or advertising mailings

Greade the outbound methods mentioned are subject to strict legal regulations and are often very inefficient. This is why content marketing has established itself as an efficient method for generating leads. The pleasant pull effect that is generated by the provision of free user-oriented content makes this form of lead generation so pleasant for both parties. The content is used as an incentive in return for providing the contact information.

The potential customer decides for himself whether he wants to interact or not. On the other hand, the company can use the thematic context to determine which topics the prospect is currently dealing with and even which phase of the customer journey they are currently in.

Discount codes, free tickets, vouchers and product samples can also be used as incentives. the prospect of profits ... be used.

 

Why is lead generation important?

The Lead generation helps the company to keep expanding its customer base. This method is also extremely important for a company in order to continuously improve the product or service. Lead generation is, among other things, an essential step in acquiring new customers. It forms the basic building block in the targeted search for new customers.

The company learns precise information about customer needs through high-quality leads. The chance that the lead will become a customer increases.

QualifiedLeads, have a greater interest in a service or a product. A campaign can thus be played out in a more targeted manner with the content that is important for the customer. The chance increases that the customer will become an existing customer.

Generating Leads has the potential to increase sales considerably. The sales figures increase and can be planned.

 

What exactly can B2B lead generation achieve?

The B2B (Business to business) Lead generation makes it possible to establish qualified customer contacts. New contacts are based on an existing first interested persons based on a product or service. The leaving data are made available in this way.

Become qualified leads generated.

Business relevantcontacts, are contacted at the right time and with the right approach. For a company and its sales force, this means new customers and more sales.

With an optimal Landing page interested parties for a product or service can be enthusiastic and convinced.

In the long run, a B2B lead generation a diverse one Sales and marketing measure. Potential prospects become satisfied existing customers and sales are increased.

 

What do MQL, SAL and SQL mean and what is the difference?

MQL stands for Marketing Qualified Lead. The term SAL For Sales Accepted Lead andSQL For Sales Qualified Lead. But where is the difference?

In short, with one Marketing Qualified Lead it is a lead that was generated through marketing measures. A typical MQL here is contact information that was generated via a newsletter subscription.

The MQL can be used for further marketing measures along the customer journey until it becomes a sales accepted lead, i.e. a lead ready to buy. At this point, in the B2B area, sales typically take on the further measures.

This process of measures across the individual lead qualification levels is also known as lead nurturing.

Lead nurturing can be carried out in every phase of the sales funnel or customer journey. For example, when acquiring new customers, customer loyalty, customer recovery or reactivation of former or inactive customers.

The art is to accompany this contact in the customer journey with further marketing measures until it becomes an SQL or not.

Customer journey model by Aufgesang

 

An SQL is a lead that is ready for sales to contact.

Modern marketing automation tools can support this process and beyond.

 

What lead generation tools are there?

With regard to lead generation, marketing automation solutions in particular have established themselves as efficient and effective. Modern tools for marketing automation automate and support the process of lead generation, lead qualification and lead nurturing.

There are a variety of other tools on the market such as Marketo, Pardot, Hubspot ...

B2B networks such as LinkedIn (LinkedIn Sales Navigator) also offer tools for lead generation.

Aufgesang is a premium partner for the marketing automation software Salesmanago. If you want to find out more about lead generation and how we can support you with marketing automation, just ask for a free initial consultation now.

 

For more information on marketing automation, read on here .

What costs do I have to expect for lead generation?

This question can not be answered generally. Depending on Business model, Acquisition or. Usage costs for the offer and the customer lifetime value, the maximum Cost per lead in english Cost per lead (CPL) be different.

Before starting lead generation measures, it should be clear how much a lead is worth. In addition to the order value already mentioned, this also depends on the order completion rate, i.e. how many of the leads become an order on average.

Here's an example:

With an estimated average turnover per order of 50,000 euros per new customer, the return on sales is 20%. So there is a profit of 10,000 euros left over from the order, which can theoretically be used to generate the lead without incurring a loss.

Evaluations have shown that an average of 20 leads are needed to get an order.

To calculate the maximum cost per lead you can then calculate:

10,000 euros / 20 leads = 500 euros maximum cost per lead

This is of course very theoretical, but I think it makes clear how you can determine the maximum cost per lead.

 

What problems can I encounter with lead generation?

When it comes to lead generation, there should be a specific rhythm of Lead campaigns get noticed. An approach that is legal, but common Mailings exists can have opposite effects and annoy interested parties.

Leads are often bought too. This approach is justlegally allowed, if the interested persons have clearly given their consent to the use of third-party data. Negative effects on the company's image are to be expected here. If z. B. Users receive newsletters for which they have not originally registered directly.

The lead generation has its limits with certain forms. Sweepstakes, for example, can generate lots of leads. But perhaps only a large number of users took part because they wanted to win the attractive skin price. But otherwise not interested in the company, its products or its services. For this reason, prices for lead generation with competitions should be as relevant to the topic as possible for the offer of the respective company.

 

When it comes to lead generation, all types of Trigger mailings how automatedFollow ups, Interval or Transactional mailings, under the concept of Promotional email.

The consent of Recipient is required under three legal aspects:

  • In terms of data protection law, the recipient's data may only be saved, processed and used for the purpose of "sending advertising e-mails" if the recipient has given their prior consent.
  • Under civil law, the recipient must give his consent so that he cannot directly warn the sender himself in accordance with Sections 823, 1004 of the German Civil Code (BGB) for violating another law.
  • In terms of competition law, express and prior consent is required so that the sender cannot be warned by competitors, the competition center, warning associations etc. for violating Section 7 (2) of the Unfair Competition Act (UWG).

In summary: Frequently asked questions about leads & lead generation

How does lead generation work?

A potential new customer is interested in a company and its product or service. The visitor leaves important contact details for the advertiser or the company / provider on their own initiative. This is done, for example, to find out more about the product in question. The contact details are used to establish a further dialogue with the potential new customer. The aim of lead generation is the generation of contact data, the qualification of leads with the aim of turning these interested parties into desired customers.

Which channels or instruments can be used for lead generation?

Lead generation can be carried out via various channels: In personal contact, for example at trade fairs, via promotion stands, offline raffles ... Via cooperation with event organizers or via your own events Via outbound telephone calls (cold calls) and emails online via your own Website eg via contact forms, newsletter registration forms etc. Via content highlights such as webinars, downloads (advice, whitepaper, checklists etc.) Via social media Print lead generation: Print advertisements with reply letters or advertising mailings

Why is lead generation important?

The lead generation helps the company to keep expanding its customer base. This method is also extremely important for a company in order to continuously improve the product or service. Lead generation is, among other things, an essential step in acquiring new customers. It forms the basic building block in the targeted search for new customers. The company learns precise information about customer needs through high-quality leads. The chance that the lead will become a customer increases. Qualified leads have a greater interest in a service or product. A campaign can thus be played out in a more targeted manner with the content that is important for the customer. The chance increases that the customer will become an existing customer. Generating leads has the potential to significantly increase sales. The sales figures increase and can be planned.

 

 

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