Definition
Lead generation is the process of attracting and capturing interest in a product or service to build a pipeline of potential customers. It focuses on identifying prospects who have shown intent or engagement, with the goal of nurturing them into paying customers.
For example, a B2B software company may generate leads by offering a free whitepaper in exchange for a visitor’s contact details.
Advanced
Lead generation strategies combine inbound and outbound methods. Inbound includes SEO, content marketing, and social media campaigns, while outbound covers cold outreach, paid ads, and events. Modern lead generation uses automation tools and CRM systems to track, score, and qualify leads based on behaviour and demographics.
Advanced practices involve account based marketing, AI powered chatbots, and predictive analytics to prioritise high value prospects. Integration with email automation and sales pipelines ensures efficient handoff from marketing to sales teams. Data enrichment and segmentation also improve targeting precision.
Why it matters
- Provides a steady flow of prospects for sales teams.
- Improves marketing ROI by targeting qualified audiences.
- Aligns marketing and sales efforts for revenue growth.
- Supports long term customer acquisition strategies.
Use cases
- Offering free trials or demos for SaaS products.
- Running PPC ads to capture leads through landing pages.
- Hosting webinars or virtual events with registration forms.
- Using content marketing to generate organic inbound leads.
Metrics
- Number of leads captured per campaign.
- Cost per lead acquisition.
- Lead to customer conversion rate.
- Lead quality score based on engagement.
Issues
- Low quality leads wasting sales resources.
- High acquisition costs in competitive industries.
- Poor alignment between marketing and sales.
- Compliance risks with data collection practices.
Example
A financial services firm generates leads through a retirement savings calculator. Visitors who complete the tool submit contact information, allowing the firm’s sales team to follow up with tailored advice.