Lead generation refers to the process by which a business collects and records the contact information of prospective customers who have shown interest in their product offerings.
A prospect becomes a lead only when such a person gives details through which he/she can be reached with further information. The usual details that are collected are names, email addresses, phone numbers and mailing address.
No business can grow without new customers. That’s a fact. So the question is NOT: Do we need new customers? It is: How do we get new customers? Lead generation is one way of getting those customers. Moreover, it is a very beneficial customer acquisition technique for the following reasons…
1. Qualified Leads Mean You Take On Less Risks
You really have to be doing a lot of things wrong for you NOT to convert a very good percentage of qualified leads that are sent to you.
They already need what you have and just need you to close the sale. The risk involved is much less than when you have to place adverts that first attract prospects. Here’s an example to clarify things…
Who would be easier to sell if your business sells fresh juice?
- Group 1: A crowd
- Group 2: A thirsty crowd
A crowd may have many or few thirsty people. However, a thirsty crowd is made up of thirsty people. The only question would be: Can you convince them they’ll have their thirst quenched with your fresh juice?
2. Prequalified Prospects Are Easier To Follow Up With
Leads are usually qualified before they are “captured”. For example, if you are getting leads via a squeeze page, you have to make an offer that interests visitors enough for them to give you their details. What attracts one set of leads might be different from what attracts another set.
A good marketing department will tailor follow up messages that build on features or benefits that attracted these people in the first place. It makes your job a lot easier and more likely to produce results.
3. Higher Conversion Rates Because You Can Easily Presell Them
It is easier to make a sale if your prospects have already been warmed up to you. This is achieved through preselling. Working with leads gives you a very good opportunity of showing them why it’s in their best interest to do business with you.
You can easily send them a series of messages that will build up to the product or service you intend to sell. Done right, this can explode your conversion rates. This means more profit per advertising dollar.
4. Predictability Makes It Easier To Grow A Business
The more correctly your business can project its profits, the easier it is to grow. Investors like patterns they can trust. Working with qualified leads from a good lead generation service makes it easier to calculate more accurately the percentage of sales you’ll make. If you can make accurate predictions, you can plan better for the future.
Believe it or NOT, the future is for those who can see ahead. Yes, seeing ahead has a lot to do with bringing in innovations but it also has a lot to do with knowing how much you can easily invest without disrupting cash flow.
How many workers would you need in a particular department in a year’s time? Would you need to expand your facility or get more cutting edge technology? What amount can you take as a loan without the fear of losing your business? Sustained predictable growth can help you answer these kinds of questions more easily.
Now you know that lead generation is great for your business, what’s next?
You can do it yourself if you know how to go about it. But get it wrong and you will end up wasting precious dollars. You can invest some time and money to develop the necessary skill set.
Better still, you can get a good lead generation service to handle this for you while you focus on improving your product or service.