What is a Lead?
Let’s start with the basics. A lead is a person who has indicated interest in your company’s product or service in some way, shape, or form.
In other words, instead of getting a random cold call from someone who purchased your contact information, you’d hear from a business or organization you’ve already opened communication with.
For example, maybe you took an online survey to learn more about how to take care of your car. If you got an email from the auto company that hosted the survey on their website about how they could help you take care of your car, it’d be far less intrusive and irrelevant than if they’d just called you out of the blue with no knowledge of whether you even care about car maintenance … right?
And from a business perspective, the information the auto company collected about you from your survey responses would help them personalize that opening communication to meet the existing needs of the potential client.
What Is Lead Generation?
Lead generation is the process of attracting and converting strangers and prospects into those leads we just talked about.
Why Do You Need Lead Generation?
By showing an organic interest in your business, it’s those strangers and prospects that are initiating the relationship with you — versus you, the business, initiating the relationship with them. This makes it easier and more natural for them to want to buy from you somewhere down the line.
Within the larger inbound marketing methodology, lead generation falls in the second stage. It occurs after you’ve attracted an audience and are ready to actually convert those visitors into leads for your sales team. As you can see in the diagram below, generating leads is a fundamental point in an individual’s journey to becoming a delighted customer of your business.