Lead generation is one of the most effective marketing tools. This phenomenon is interesting to study both in terms of theoretical justification and in terms of practical implementation. However, it is not so simple to answer the question about the essence of such a phenomenon as lead generation. What is a set of effective techniques or a fashionable trend of Western marketing?
General information
What is the meaning of the word “lead generation”? This term came from English, in the original sounds like leads generation.
This is a person or group (usually a small one) of people who are potentially ready to buy something. Lead generation is a tool that allows you to stimulate visitors to become interested in the website of the online store and the product catalogs laid out on it. The more leads there are, the more real buyers. In turn, the conversion of the former to the latter is already a separate science, a specific area of marketing.
Who should be considered a “lead”?
We noted above that a “lead” is a person or people (sometimes, by the way, acting under the same name) who have expressed interest in an online store site. But what are its real manifestations? What are the specific forms of this same interest? Marketers distinguish the following symptoms. Firstly, it can be a full-fledged application for the purchase of goods (the form is filled out, contact details are entered, optionally - the selected product sample is prepaid by card). Secondly, it is permissible to consider the “leader” to be the person who made the preliminary application for the purchase of something. Thirdly, it can be just a request for advice and additional information through an online form, a call back, a message on the forum, downloading the application to a mobile device. All these cases are united by the fact that the "leader" provided personal data (at least the name and method of communication - phone, e-mail or a link to the profile on the social network).
Optimal environment
Lead generation is a phenomenon that is not applicable in all business segments. It is best compatible with online projects, with a virtual mode of operation. The fact is that offline, the expression of interest in a product, as a rule, does not have a fixed form: the buyer, wanting to buy something, simply goes to the cash register and pays for the selected product. He usually does not fill out any forms with contact details.
Not all types of goods are suitable for such a phenomenon as lead generation. Services are also not all compatible with it. It is best combined with products and services of mass segments - inexpensive and often in demand (belonging to the segment of "spontaneous demand"). Lead generation is most effective in highly competitive markets, where many brands are present on an equal footing with a large number of points of sale. In this case, people do not care where to buy goods, but in the process of lead generation, you can lure the consumer to a particular store.
Compatibility with different types of business
According to some experts, there are types of businesses for which the use of lead generation is most justified and effective. First of all, this is insurance (especially in the CASCO and CTP segments). "Leads" appear very actively in the tourism segment (when selection of a tour is required). People willingly leave their contact details, filling out applications for participation in educational programs, courses, and trainings. Lead generation is one of the best tools in the financial segment (when potential clients of credit institutions leave applications for a loan or contribution).
A typical “lead” is a client who has expressed a desire to undergo a test drive at a car dealership. Almost any service company (taxi, courier delivery, Internet access) works with people who have expressed a preliminary interest in services. A kind of reference example of a segment where lead generation is the basis of business processes - e-commerce. Almost all customers of online stores are “leads”. They are also lovers of online games (especially commercial ones), as well as users who download mobile applications. Types of lead generation, as a rule, reflect the segment in which work is carried out (although this classification is not considered universally recognized).
Instruments
What is lead generation in practice? What is it - a set of theoretical developments or a set of real tools in the hands of a marketer? Rather, the second. Among the lead generation tools there are online channels. First of all, it’s search engine marketing (primarily SEO optimization). This channel is characterized by relatively low start-up investments. Secondly, this is online advertising (in social networks, contextual, banner, teaser). Thirdly, it is work with e-mail (e-mail marketing). Fourth, "leads" are excellently generated through marketing on social networks.
There are several offline channels of lead generation. This is, first of all, mailing lists. The classic channel is “cold calls”, which is still effective and, in many cases, indispensable, the main thing is to use it wisely. Other effective offline tools for attracting “leads” are exhibitions, conferences, coffee breaks, promotions and related events. In practice, however, more and more new methods of lead generation appear, combinations of a wide variety of tools are tried.
Features of work
What should a marketer get at his disposal contact information? It all depends on the type of information. Experts identify several types of contact information in question. Firstly, it is a “quick” contact. It has a minimum of information, as a rule, only a name and a cell phone. Secondly, this is a registration contact, where there may not be a phone, but there is the necessary personal data to create an account. Thirdly, there are promotional contacts (they are typical for offline channels of lead generation) - the information in them can be very different, it is difficult to classify them. Fourth, this is an “interested” contact - in which the “lead” clearly made it clear that he wants to buy goods or use the services of the company (he filled out the questionnaire in the most detail, gave comments, indicated when it is convenient to call, etc.).
Depending on the degree of reliability of the information specified in the application, the contacts are divided into verified and unqualified. You can check them in several ways - sending e-mail to the specified address, phone calls, reconciliation with other sources.
"Pseudo-Leads"
Among the applications of "leads" there are those that are not significant for business. They can be called false, “pseudo” or “empty” - there is no general definition. They are divided into several types. Firstly, these are unforced “pseudo-leads” when the user made a mistake in writing his phone number, name or address, despite the fact that he wanted to indicate the correct ones. Secondly, a robot program may turn out to be the “leader” (some unscrupulous lead generation agencies achieve results by going to such tricks). Variety - applications left by hired people.
Mass lead generation, by the way, is sometimes replaced by similar tricks. Thirdly, competing firms may leave customer forms on the site (for various purposes, for example, to clarify the specifics of working with potential customers or to identify the names and direct phone numbers of managers who then contact them using the specified contacts).
There are also “lead” jokers who make requests in online stores of unusual subjects in the name of friends so that the manager will then call them and ask where and when to deliver the wagon of chocolates. No matter how visually spectacular such lead generation may be, the contract of the marketing agency with the customer does not provide for the recognition of such a result of work.
Mistakes
Strictly speaking, there is no such thing as incorrect lead generation. Examples when a marketer does something not in accordance with a template and achieves success are found in large numbers. At the same time, the experts tried to highlight several typical shortcomings among experts on attracting “leads”.
Among the most common - neglect of subsequent conversion. Not to call the contact means to make clear the "lead" that he is not interested in the company as a potential client. A related mistake - excessive enthusiasm for lead generation - there may simply not be enough time for quality processing of each application.
Among the shortcomings of marketers is the neglect of personalization of interaction with "leads". Communicating with a client, you can adjust the lead generation policy through feedback, encourage a person to contact the company again. A related mistake is the lack of an attempt to resume communication with the “leader”, which once failed to turn into a client.
The next flaw is the supply of “leads” with information irrelevant to the sold product or service, the provision of insufficiently detailed or poor-quality consultations. Among the most obvious mistakes of lead generation, some experts see copying the mechanisms of attracting "leads" from competing firms. In practice, this may result in the creation of additional traffic just for them. Experts rightly believe that such work is not lead generation at all, that this is a waste of marketing budgets.
Where do the "leads" come from?
Above, we have identified the tools that make up the phenomenon of lead generation. Services and goods can be promoted through several channels. Now we will consider, in fact, the sources of the "lead" traffic - the places from where they most often come to the website of the online store.
Firstly, these are links from search engines. With some probability, they can be issued due to SEO-optimization, but not necessarily. Secondly, these are links tied to advertising banners (now this is usually contextual advertising). Thirdly, these are clicks on ads and messages on social networks. Fourth, from links posted in e-mail messages. Fifth, this can be a direct appeal to the website of the online store due to the interest of the buyer caused by offline lead generation.
The person liked the presentation of the sales manager, and he immediately decided to find out more about the product. Traffic data is usually obtained using analytical tools, many of which are free. This will help optimize the lead generation strategy.
Social network
Social networks are recognized by many experts as one of the most effective channels of lead generation. This is argued by the fact that almost all groups of the population spend their time in them, almost any target audience can be found there . How to turn social media users into "leads"?
Firstly, you need to find among them personalities who may have a potential need for a sold product, and then contact them (directly - by sending messages, or indirectly - through general groups and discussions). Secondly, the marketer should be in constant contact with his customers, not leave them without updated information. Thirdly, data from personal profiles of potential “leads” in social networks can be used for “cold” calls. The future client will be pleasantly surprised if the manager calls him and offers sportswear of the exact brand in which he most likes to be photographed.
Secrets of successful lead generation
The first advice from marketers is to motivate the user to fill out an online form. This can be done by offering discounts in exchange for an application or a guarantee of a free consultation (in this case, you need to specify the default consultation cost). You can post counters showing that the action is about to end. The second expert advice is to expand the contact base. For example, if the manager has only an e-mail, then you need to try to find out the phone number and the address of his page on the social network. This will help to stay in touch and provide potential customers with information through several channels at once. One more advice from marketers is quite logical - to show "lead" friendliness, openness, willingness to solve complex issues. If this does not happen, then lead generation will not be effective. What is it? The simplest action is to maintain basic politeness and respect for the client.
Cost
Pricing in lead generation is a controversial issue. There are not many standards or average market guidelines here. But experts were able to identify several factors that influence not the formation of the price of attracting "lead". Firstly, it all depends on the level of competition in the segment in which the work is carried out. The higher it is, the more expensive the "lead" will cost. Secondly, an important role is played by the competitive advantages of products or services in respect of which lead generation is ongoing. The more know-how they have, the higher the chance to make lead generation cheaper. Thirdly, the price of a single "lead" depends, in fact, on the number of applications required. Fourth, the prices for lead generation are largely determined by the quality of the website of the online store - design, content, promotion, opportunities for traffic analysis. Fifth, an important factor is the geography of lead generation.
It is usually more difficult to make users from Moscow and large cities "lead" than residents of the regions. Each lead-attraction specialist is guided by their own practice, offers cost-determining schemes depending on the client’s tasks: one price model will correspond to a personalized lead-attraction, mass leader generation will be different.