What is Lead Generation in Digital Marketing and Why is it Important?
Whether you’re a multi-million company or startup or an individual entrepreneur, you would want your product and service to reach as many people as possible. In the current digitalized world, having merely an excellent product or service would not take a business far if the same doesn’t reach the target audience. The growth of your business depends upon your ability to find people who might be interested in what you have to sell and persuade them to buy your company’s offerings as well. This approach of identifying and building a pipeline of potential customers is known as ‘lead generation’ in digital marketing. In this blog, we are about to answer the questions related to leads and discuss the importance of lead generation in digital marketing.
Lead generation lies at the heart of any digital marketing strategy. Gone are the days of cold-emailing, database buying, and time-intensive networking. Today for any business to thrive, it must have a solid lead generation and management strategy in action. As per the study of Marketo, businesses with effective lead generation strategies generate over 133% more revenue than those without sound lead generation practices.
What is lead generation in digital marketing?
Lead generation is a common term for anyone working in digital marketing or a lead generation company. So let us find out what a lead refers to. In simple terms, a lead is anyone (person or an organization) who is interested in what you are selling. A lead expresses their interest in various ways. It could be in the form of signing up for the company newsletter or simply visiting your website. Leads could come through various sources like your website, through a phone call, or word of mouth.
The purpose of lead generation is to guide prospective customers into the sales funnel and guide them until they are ready to make a purchase. The process involves various stages including lead awareness, lead education, lead sampling, and lead conversion. These stages could be categorized across brand awareness, building community relationships, generating high-quality leads, and completing a sale.
Types of Leads
- Sales Qualified Lead
A sales-qualified lead, commonly known as SQL, shows readiness to purchase the product or service that your company sells. These involve high-priority, hot leads who could be converted into committed customers. Generating sales-qualified leads into the funnel brings in revenue.
- Marketing Qualified Lead
A marketing qualified lead (MQL) is someone who expresses a continued interest in the offerings of your business. These leads keep engaging with the activities produced by your marketing team. The MQLs could be pushed further into the sales funnel to convert them into SQLs.
- Information Qualified Lead
An information qualified lead (IQL) refers to a lead who is basically seeking information from your business to resolve their problem. They are otherwise called cold leads and they would be at the entry point of the sales funnel.
How to generate leads?
Today, lead generation companies follow a proactive and tech-savvy approach to generating leads. A funneled lead generation strategy will make it easier for you to grab the attention of those who have the chances of conversion. Lead generation strategies can be broadly categorised into two. It includes:
Outbound marketing refers to when you start to get in touch with people to generate their interest in your product or service. The outbound lead generation in digital marketing would include cold calling, radio, television, billboards, direct emails, and newspaper advertisements.
Inbound Marketing focuses on nurturing leads by creating content that is relevant to them. Simply put, you are pulling people to generate their interest in your company by developing content that aligns with their interests and needs.
Importance of Lead Generation in digital marketing strategy
- Increases Sales
Lead generation is the first step towards increasing your sales. When you generate leads, you have a list of potential customers who are interested in your product or service. By nurturing these leads with relevant content and offers, you can convert them into paying customers. This not only increases your sales but also builds a loyal customer base for your business.
- Saves Time and Money
Lead generation helps you to save time and money by targeting the right audience for your business. By identifying your ideal customer profile, you can focus your marketing efforts on those who are most likely to convert. This saves you from wasting time and resources on people who may not be interested in your product or service.
- Builds Brand Awareness
One of the major benefits of lead generation for businesses is how it enables you to build awareness around your brand. By offering valuable content and engaging with your audience, you can establish your business as an industry expert. This helps to build trust and credibility with your potential customers, which makes it more likely that they will choose your business over your competitors.
- Enables Personalized Marketing
Lead generation allows you to collect valuable information about your potential customers such as their interests, preferences, and buying behaviour. This information can be used to personalize your marketing messages and offers, making them more relevant to the individual. Personalized marketing is more effective in engaging potential customers and converting them into loyal customers.
- Facilitates Long-term Growth
Lead generation is not just about short-term gains, but also about long-term growth. By consistently generating leads, you can build a pipeline of potential customers who are interested in your product or service. This ensures a steady flow of business, even during slow periods. Moreover, by nurturing your leads and converting them into loyal customers, you can create a sustainable business model that will continue to grow over time.
In conclusion, lead generation is a vital aspect of any digital marketing business strategy. It helps to increase sales, saves time and money, builds brand awareness, enables personalized marketing, and facilitates long-term growth. By investing in lead generation, you can ensure the success and sustainability of your business in the long run.
How iBusiness can help your business with lead generation
With the perfect combination of digital interactive solutions, iBusiness Digital through a process-centric approach involving content management, social media management, multi-channel marketing, creative designing, and data analytics, provides value to your business to stay agile, connected, and productive. As your digital marketing partner, iBusiness Digital can help your business ensure greater accuracy of deliverables, higher return on marketing investments along with a stronger brand presence in the market.
IBusiness Digital follows an omni-channel approach to lead generation in digital marketing. Customers like to engage in content when it is not being bombarded in a single place. We create effective digital strategies that generate quality leads for your business. Hence, we would be able to understand the customer journey efficiently by being present across multiple platforms. We could help you resolve the challenges you might encounter during the lead generation process.
Explore services offered by iBusiness Digital!