Why Lead Generation is important for a business???

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Why Lead Generation is important for a business???

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Is Lead Generation sales or marketing?

Lead Generation

The marketing process of inspiring and grabbing interest in a product and service for the ambition of establishing a sales funnel describes Lead Generation.

Marketing is executing almost everything in the process of Lead Generation and then forwarding these leads to the sales team. Many digital channels are used for lead generation, and is going through consequential changes. In the past few years after the upsurge of various online and social media techniques.

Sales are choosing among leads and choosing the customers that look most assuring, and decline multiple claiming they are not worthy. Howsoever, marketing and sales both go hand in hand for a sales oriented business.

But nowadays the process has been taken over by the marketing team in most companies and sales team is merely oriented in closing. Talking about traditional marketing lead generation was done by the salesperson and some of them are doing quite well.

Why Lead generation is Important?

Lead generation

In this new Digital and technical world, the purchasing perspective of customers have changed, so marketers need to find new ideas to reach to customers and stand out in a crowd. Marketers are now focusing on being discovered and build trust. Rather than approaching customers with bulk advertisements.

Abundant Information and attention scarcity

In this digital world, more than 5 Exabytes of data is created every 2 days and still growing. So there is abundant data for a user on the internet. In this competitive scenario what information seeks is attention of the customer.  

Due to this buying process of a customer has been transformed. Buyers are exhausted with all the noise. And they are getting better at ignoring the messages they don’t want to hear. searching about what they want to hear and interested.

The Transformed buying process

In the old world, lead generation simply means finding potential customers and pass them on to the sales team. Buyers were getting in a conversation with sales and salesperson has to talk to even those leads who are not qualified. This is all changed now.

But in today’s world customers are searching content on their own and can find a lot of educational knowledge about their queries as there is a lot of abundant data online.

Even marketers are trying to build strategies in such a way that they can reach potential customers, track their buying cycle process and can refine them accordingly.

This is why it is essential for a business to maintain their online presence.

Building a strong strategy is important because it helps build reliability and grab the interest of your customer before they are ready to contact the sales team.

Lead Generation Research

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Many marketing departments are investing more and more in their lead generation approach. In particular inbound marketing spend is increasing as industries need more innovative ways to get to stand out in the crowd and get attention from the customers.

  • Lead generation budgeting trends are apparently increasing in the process by marketers these days. Particularly it refers to social media optimization, website optimization or Search Engine Optimization.
  • Lead Generation priorities of senior-level marketing executives is obtaining and growing measurable Return on Investment (ROI) and optimizing marketing and sales funnel.
  • Even after the top priority of marketing executives in the lead generation process in leads quality, they pin it as the biggest challenge.

They report that the biggest barrier for quality lead generation is a lack of resources like staffing, investment & time or lack of data quality

  • Most effective tactics for a B2B lead generation is its website, email marketing and conferences.

Lead Scoring

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Lead Scoring is a sales and marketing shared approach in which the rectify leads in reference to their sales readiness. Leads are scored on the basis of interest they have shown in your business, their current status in the buying cycle, and then categorizing them accordingly. Lead scoring help you fast track your leads to get converted or develop with lead nurturing. Lead score strengthens your revenue cycle, drive more ROI and coordinate sales and marketing.

Basic Lead Generation Metrics

Lead generation

The top marketing campaigns have intended measurement strategies planned beforehand. That’s why planning of a strategy raises questions like  What to measure? When to measure? And How to measure?

Here are some basic Lead generation metrics which you should always keep in mind. These metrics are most probably adopted by of the marketing companies:-

  • Marketing per cent of contribution to sales pipeline
  • Marketing per cent of share to closed revenue
  • The number of leads qualified by sales
  • Quality of leads qualified by sales
  • Cost per inquiry
  • Cost per lead
  • Marketing Qualified Lead Inquiry
  • Conversion of marketing qualified lead to sales accepted leads
  • Conversion of SAL to SQL
  • Sales qualified leads to potential customer conversion rate

Hope after reading this article you will be able to understand whether lead generation is sales or marketing. And why it is important for a business. Overall both sales and marketing go hand in hand in the process of lead generation. To be fair they both claims each other, if not performing well. But if done in a strong strategic way it will surely help grow a business in an exponential way.

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