Lead generation: what is it and how does it work?

Leads are potential customers who (may) show interest in your product, service or brand. Recognizing and collecting as many leads as possible is one of the most important tasks of marketing. These leads can then be qualified, which means that their possible interest is converted into actual contact or stimulating touchpoints with your organization. It ensures that you can start nurturing leads with interesting content that generates interest. We call this generating Marketing Qualified Leads (MQLs). As soon as the leads reach an interest profile determined by you, they are transferred to the sales process as a Sales Qualified Lead (SQL). As you just read, many different phases, many marketing terms. We explain in this article.

• What is lead generation?
• What roles do Marketing and Sales have in the lead process?
• What does lead generation mean for Marketing and Sales software?
• What results can be expected of lead generation with CDP/Marketing Automation?
• How to optimize lead generation?
• Our approach to lead generation
• FAQ: Frequently asked questions about lead generation

What is lead generation?

Very simple: all activities aimed at coming into contact with potential customers. The entire lead generation process combines marketing and sales. Lead generation focuses on below-the-line activities. Unlike, for example, Awareness and Branding where mainly display campaigns are used. Instead, it targets as specifically as possible to find, interest, and welcome potential customers.

What roles do Marketing and Sales have in the lead process?

The lead process has an important distinction in objectives between Marketing and Sales. Sales generally works with Sales Qualified Leads (SQLs): these are leads whose data is known and where it has become clear that they have a concrete need, show interest, and your proposition can be offered as a solution. Marketing has to work with assumptions in order to create those leads. So marketing mainly tries to maximize the chance of this happening. For example, by looking at look-a-like target groups, by creating as many relevant touchpoints as possible. A touchpoint is, for example, viewing your website, opening your app, clicking on your e-mail, downloading a brochure or liking a post.

What does lead generation mean for Marketing and Sales software?

The difference in goals during the lead process is reflected in the requirements for capturing and editing lead data and the systems you use. Sales handles concrete SQLs, therefore a CRM is the best solution. All touchpoints and communication with concrete leads are recorded 1-on-1 and followed up automatically or manually.

Because marketing has to fill the CRM creativity is much more important. They do not yet have the data (or only limited) from leads, they need to work with assumptions, with flexible segments, with many test cases or Next-Best-Action models. Therefore, CDP/Marketing Automation software is important, because of the flexibility in working with data, creating hyper segments and adding data sources continuously is important.

For example, our software helps marketers in recognizing anonymous leads and making optimal use of touchpoint and conversion moments. This is the beginning of the customer journey. Good lead generation based on CDP/Marketing Automation software is (automatically) followed up by campaigns that are as relevant as possible to larger groups of leads, which are approached 1-to1. It generates sufficient inflow for new potential customers (SQLs) and direct conversion into purchases, which not only pay for the investment in marketing channels, but also make it visible.

The following marketing tactics are often actively used in lead generation:

• Inbound marketing
• Content marketing
• Event marketing (online and offline)
• Email marketing
• White paper marketing

You can use different forms of content to interact with your target group. Or, more importantly, to attract attention you create a funnel for new customers. Relevant information is offered in every phase. This way, Suspects become Prospects, are enriched to become soft leads (MQL) and qualified into hard leads (SQL). Ultimately, they are converted into customers, after which onboarding, loyalty and retention (also automated) are applied.

What results can be expected of lead generation with CDP/Marketing Automation?

What’s in it for you? Of course we get that question. We would like to get in touch with you to share the results our customers are getting with their data-driven CDP/Marketing Automation. They achieve up to 30% better results and savings on executive marketing tasks related to data and content, allowing them to focus on improving campaigns. An important reason is also to increase customer satisfaction with personalized, and therefore relevant, communication. The communication pressure can also be distributed much better across customers and marketing channels.

• Return On (Marketing) Investment
  On our website you will find a white paper that helps you create the business case for yourself and your internal stakeholders
• Conversion
  Target potential customers with a high willingness to buy or based on their specific segment and profile within your broad target group
• Measurable results
  Keep track of suspects and prospects you convert into MQL and SQL and ultimately into customers
• Short term results
  Unlike above-the-line campaigns, lead generation delivers short-term results

How to optimize lead generation?

You want to optimize lead generation: our software will help you with that. You build your success on four important pillars:

• Building First Party Data
  From strong, owned opt in data you work on increasingly better profiles by combining this data. Do not immediately think of large Data Warehouse or Customer Data Platform projects. You can also start agile with some data sources. In fact, it gives you faster results and direction for the future.
• Intelligent Automation (manually or with A.I. models)
  You don’t have to be Google or Netflix to know which automations will give you the fastest efficiency or results. This way you successfully follow up on every lead.
  
• Creative Content Personalization
  To make lead generation a success, you bring data and content together 1-on-1, with the right content for every prospect at a relevant time.
• Distribution
  Prospects use multiple channels: email, social media, websites, apps, DM, phone/text. Make sure you use each channel at the right time.

Our approach to lead generation

• Central data
  By linking data from transaction systems, landing pages, downloads, website visits and manual input of leads (e.g. recruited at a trade fair), we provide a central 360-degrees approach. This guarantees overview and is an important basis for getting started. We do this in a professionally agile manner, with all data stored in the EU.

• Lead nurturing and qualification
  By qualifying leads based on interactions, behavioral data and customer profiles, you build enriched profiles and a view of the best potential. Our software helps to (re)approach all groups in every phase of their customer journey. By using every touchpoint during the journey, you don’t miss opportunities. You always approach your potential customers at the right time with information they need at the time.

• Lead management
  With better insight into leads and different segments and subgroups, it becomes easier to manage and respond to them. Our software provides overview and insight to attract more new customers.

• Services
  We not only supply the software in Dutch and English, but also the services that make it a success in Dutch and English. This way you get professional software and flexible data connections, as well as professional help from Marketing Automation Specialists in your industry

FAQ: Frequently asked questions about lead generation

• How do I start lead generation?
  The most important condition is an internal believe that your organization can grow faster by building customer profiles and lead nurturing using data-driven marketing. When that is achieved, you can set up your lead generation plan step by step as described in this article and start looking for the software that best supports your organization.

• How does the loss of third party data affect lead generation?
  The disappearance of third party data due to legislation and stricter privacy measures will result in a new role for the marketer. They can no longer blindly rely on the marketing tools of organizations like Google and Facebook, but will have to build lead generation through their own channels. The good news: if you do this in a smart en consistent way, you will build real customer value and satisfaction and a golden database for lead generation in every step of the customer lifetime cycle.

• Is lead generation right for me?
  Our customers use lead generation for B2B and B2C, in commercial and non-commercial organizations. In traditional and modern industries, so there is a good chance that we can help you. In addition, we provide the service that helps you to use the software.