What is Led Generation?
Led Generation by mapping leads to their
souLead generation is the process of attracting leads (your potential
customers) into a contact management or marketing software system with the hope
of nurturing them throughout the buying process to help convince them about
your offerings and then convert them into a paying customer
A lead usually is the contact
information and in some cases, demographic information of a customer who is
interested in a specific product or service. There are two types of leads in
the lead generation market: sales leads and marketing leads.
Sales leads are generated on the
basis of demographic criteria such as FICO score (United States), income, age,
household income, psychographic, etc. These leads are resold to multiple
advertisers. Sales leads are typically followed up through phone calls by the
sales force. Sales leads are commonly found in the mortgage, insurance and
finance industries.
Marketing leads are
brand-specific leads generated for a unique advertiser offer. In direct
contrast to sales leads, marketing leads are sold only once. Because
transparency is a necessary requisite for generating marketing leads, marketing
lead campaigns can be oprces.
An investor lead is a type of a
sales lead. An investor lead is the identity of a person or entity potentially
interested in participating in an investment, and represents the first stage of
an investment sales process. Investor leads are considered to have some
disposable income that they can use to participate in appropriate investment
opportunities in exchange for return on investment in the form of interest,
dividend, profit sharing or asset appreciation. Investor lead lists are
normally generated through investment surveys, investor newsletter
subscriptions or through companies raising capital and selling the database of
people who expressed an interest in their opportunity. Investor Lead lists are
commonly used by small businesses looking to fund their venture or simply
needing expansion capital that was not readily available by banks and
traditional lending sources.
Lead Qualification Status
Business leads are often grouped
into segments to the level of qualification present within an organization.
Marketing Qualified Leads (MQLs)
are leads that have typically come through Inbound channels, such as Web Search
or content marketing, and have expressed interest in a company's product or
service. These leads have yet to interact with sales teams.
Sales Qualified Leads (SQLs) are
leads screened by salespeople, oftentimes Sales Development Representatives
(SDRs), for appropriate qualifying criteria to be followed-up with. Qualifying
criteria include need, budget, capacity, time-frame, interest, or authority to
purchase.
Online lead generation
Online lead generation is an
Internet marketing term that refers to the generation of prospective consumer
interest or inquiry into a business' products or services through the Internet.
Leads, also known as contacts, can be generated for a variety of purposes: list
building, e-newsletter list acquisition, building out reward programs, loyalty
programs or for other member acquisition programs.
Social media
With the rise of social
networking websites, social media is used by organizations and individuals to
generate leads or gain business opportunities. Many companies actively
participate on social networks including LinkedIn, Twitter and Facebook to find
talent pools or market their new products and services.[4]
Email Marketing
Email remains one of the main
ways that businesses communicate with clients & vendors. Because of this,
marketers often send messages to users’ inboxes. Many leads are generated every
day with cold email campaigns and warm email campaigns. For the foreseeable
future email campaigns remain a great email marketing tool.
Online advertising
There are three main pricing
models in the online advertising market that marketers can use to buy
advertising and generate leads:
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 problem with CPM advertising is that advertisers are charged
even if the target audience does not click on (or even view) the advertisement.
Cost per click advertising (e.g.
AdWords, Yahoo! Search Marketing) overcomes this problem by charging
advertisers only when the consumer clicks on the advertisement. However, due to
increased competition, search keywords have become very expensive. A 2007
Doubleclick Performics Search trends report shows that there were nearly six
times as many keywords with a cost per click (CPC) of more than $1 in January
2007 than the prior year. The cost per keyword increased by 33% and the cost
per click rose by as much as 55%.
Cost per acquisition advertising
(e.g. TalkLocal, Thumbtack) addresses the risk of CPM and CPC advertising by
charging only by the lead. Like CPC, the price per lead can be bid up by
demand. Also, like CPC, there are ways in which providers can commit fraud by
manufacturing leads or blending one source of lead with another (example:
search-driven leads with co-registration leads) to generate higher profits. For
such marketers looking to pay only for specific actions/acquisition, there are
two options: CPL advertising (or online lead generation) and CPA advertising
(also referred to as affiliate marketing). In CPL campaigns, advertisers pay
for an interested lead — i.e. the contact information of a person interested in
the advertiser's product or service. CPL campaigns are suitable for brand
marketers and direct response marketers looking to engage consumers at multiple
touchpoints — by building a newsletter list, community site, reward program or
member acquisition program. In CPA campaigns, the advertiser typically pays for
a completed sale involving a credit card transaction.
Recently,[when?] there has been a
rapid increase in online lead generation: banner and direct response
advertising that works off a CPL pricing model. In a pay-per-acquisition (PPA)
pricing model, advertisers pay only for qualified leads resulting from those
actions, irrespective of the clicks or impressions that went into generating
the lead. PPA advertising is playing an active role in online lead generation.
PPA pricing models are more
advertiser-friendly as they are less susceptible to fraud and bots. With pay
per click, providers can commit fraud by manufacturing leads or blending one
source of lead with another (example: search-driven leads with co-registration
leads) to generate higher profits for themselves.
A GP Bullhound research report
stated that the online lead generation was growing at 71% YTY[when?] — more
than twice as fast as the online advertising market. The rapid growth is
primarily driven by the advertiser demand for ROI focused marketing, a trend
that is expected to accelerate during a recession.[citation needed]
Common types of opt-in ad units
include:
Co-registration advertising: The
advertiser receives some or all of the standard fields collected by a site
during the site's registration process.
Full page lead generation: The
advertiser's offer appears as a full page ad in an HTML format with relevant
text and graphics. The advertiser receives the standard fields and answers to
as many as twenty custom questions that s/he defines.
Online surveys: Consumers are
asked to complete a survey, including their demographic information and product
and lifestyle interests. This information is used as a sales lead for
advertisers, who purchase the consumer's information if provided. The consumer
may 'opt-in' to receive correspondence from the advertiser and is therefore
considered a qualified lead.
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