What is Lead Generation?
Lead generation in digital marketing means initiation of consumer interest into the business services and products. This process is all about making potential customers into loyal customer by making them inquire about the products and services offered by the company. This type of process basically falls under advertising and may also include non-paid sources such as organic search result or referrals from the loyal customers.
Leads may come from various sources such as telemarketing, social media marketing and even through telephone marketing, but a study in 2015 cited that 89% of respondents come from email marketing.
What are Leads?
A lead is usually is the contact information or in some cases, demographic information of about a customer who is particular in a specific product or service.
There are two types of leads
1. Sales leads: It is generated through study of income, age, household, etc. these leads are later sold to various advertisers. Sales leads are typically followed by a phone call (basically by offline mean), these are mostly found in the field of mortgage, insurance, and finance industries advertisement
2. Marketing leads: These types of leads are brand specific and are done only once, because transparency is necessary for generating marketing leads. Marketing lead campaigns can be optimized.
Online Lead Generation
Lead generation done online through various online platform is known as online lead generation. These leads can be also generated through e-newsletter, maintaining list and other customer reward programs. the various online tools which help in online lead generation are :-
1.Social media: With the growth of social networking platforms , social media is being utilized by companies and individuals to create leads or business opportunities. Several businesses, like LinkedIn, Twitter and Facebook, are heavily involved in finding talent pools or selling their new products and services on social networks.
2. Email marketing: Email is one of the key forms that companies can connect with consumers and vendors. As a result , marketers also send messages to the inboxes of consumers. A lot of leads are produced every day with cold email campaigns and hot email campaigns. In the foreseeable future, email campaigns remain a great tool for email marketing.
3. Online Advertisement
- Cost per thousand (e.g. CPM Group, Advertising.com), also known as cost per mille (CPM), uses pricing models that charge advertisers for impressions — i.e. the number of times people view an advertisement. Display advertising is commonly sold on a CPM pricing model. The issue with CPM advertisements is that marketers are paid even though the intended group will not press (or even view) the commercial.
- Cost per click advertising (e.g. AdWords, Yahoo! Web Marketing) overcomes this issue by paying marketers only when the user clicks on the ads. Nonetheless, because of increased competition, search keywords have become very costly. 2007 Doubleclick Performics The search patterns study reveals that there were almost six times as many keywords with a cost per click ( CPC) of more than $1 in January 2007 than in the previous year. The cost per keyword increased by 33 per cent and the cost per click increased by as much as 55 per cent.
- Cost per Acquisition: Promotional expenses mitigate the possibility of CPM and CPC ads by paying only for the lead. Like CPC, the price per lead can be increased through the demand. However, like CPC, there are cases in which providers may commit fraud by generating leads by mixing one source of lead with another to higher income. There are two choices for these advertisers willing to compensate only for particular actions / acquisitions: CPL ads (or web lead generation) and CPA ads. Through CPL promotions, marketers pay for the connection they are interested in — i.e. contact details.
Lead nurturing is the practice of messaging the prospective purchaser regularly to refresh the details and develop the customer’s experience during the purchasing the service. All the lead information becomes useless as time passes. In order to keep the information up to date, the Project Manager needs to contact the Lead Manager regularly to update the information, and to expand the knowledge, which is often divided into divisions at the level of qualification present within the organization.
Why Do You Need Lead Generation?
When a stranger initiates a relationship with you by showing an organic interest in your business, the transition from stranger to customer is much more natural.
Lead generation falls within the second stage of the inbound marketing methodology. This comes after you have gained an audience and are ready to turn certain guests into sales team leaders (namely sales-qualified leads).
Next, a viewer can discover your company through one of your marketing channels, such as your website, blog or social media page.
This viewer then clicks on your call-to – action (CTA)—an image, button, or message that encourages website visitors to take some kind of action.
That CTA takes your visitor to the final page, which is a web page designed to lead information in exchange for an offer.
Note: The offer is the content or something of value that is “offered” on the landing page, such as an e-book, a course, or a template. The offer must have enough perceived value for the visitor to provide them with their personal information in exchange for access to it.)