What is Lead Generation & Why is it Important?

Generating new business is the main goal for any company; but in order to generate new business, your organization needs to acquire leads. Generating leads can take up a lot of resources so many companies struggle with this (especially smaller companies with a more rigid budget). However, this doesn’t need to be the case...

Many companies use the quantity or quality approach when it comes to lead generation (Startups, I’m looking at you!). While this approach still works for generating leads, it isn’t the most efficient method.

So what should you do instead?

The reality is, if your prospects are not ready to buy your product or service, it’ll be hard to close a deal. You can combat this by focusing your efforts on quality leads. What this means is leads that have a need for your product or service and are looking to make a purchase. We recently wrote a blog about what makes a qualified lead, check it out here for more info.

But first, what is lead generation?

Before we dive too deep, let’s talk about what lead generation is. Lead generation can be defined as: the action or process of identifying and cultivating potential customers for a business's products or services.

There are several different lead generation strategies you could use, such as:

• Social media marketing
• Content marketing (creating blogs, eBooks, whitepapers, or videos)
• Email marketing
• Webinars
• Paid advertising
• Event marketing (conferences, trade shows, or seminars)
• Outbound marketing
• SEO
• Social selling with lead generation software
  

The above are just a few strategies that are commonly used and work well for attracting potential new customers to your business. Keep in mind that not all of these may work for you, and that you don’t need to do all of them just to ensure you acquire leads. For example, a paid advertising strategy will not work great for those with smaller budgets whereas a blogging strategy could be more viable.

With that being said, many businesses make the mistake of marketing to everyone when they should focus on people that are actually interested in, and have a need for, what you’re selling.

Why is lead generation important?

Lead generation is important because without it, it would be very unlikely that customers would be able to find your business. With lead generation, you can find people that actually have a need and interest in what you’re selling, and not waste your efforts on people that will never convert into a sale. And finding those quality leads with a high buyer intent means directly impacts your bottom line.

Other reasons lead generation is important because:

• It ensures the right people are matched with your company.
• You can save time and resources focusing on quality leads.
• You can build brand awareness and increase buzz surrounding your products or services.
• You can gather valuable insights about your target market to further tailor your lead generation efforts (such as pain points, needs, and how to better sell to these individuals).
• It can be cost-effective, especially when using some of the tactics mentioned above, such as social media marketing, content marketing and SEO.
• It helps build a tighter relationship between sales and marketing teams.
• It translates directly back into revenue for the company.

In summary...

Lead generation is all about quality over quantity. Don’t focus all your efforts trying to reach as many people as possible, but instead spend it finding the right customers. Without lead generation, your organization could be missing out on huge potential revenue, and people who need your product or service won’t hear about you.

If you’re looking to add LinkedIn to your lead generation strategy, drop us a line! We’re here and happy to help.