What is a lead?
In marketing, a lead refers to a person who has expressed interest in what a business is selling by submitting their contact information to that business.
If you want a more in-depth understanding of this topic, check out the FAQ section below:
Question #1: What is the difference between a warm lead and a cold lead?
A warm lead is a person (or company if you are doing B2B transactions) who has already displayed interest in what you are selling. A cold lead, on the other hand, is essentially just someone who fits the profile of your target customer but has not yet been in contact with you or shown any interest in your products and/or services.
Needless to say, it is much easier to convert a warm lead into a paying customer than a cold lead. For the latter, you will have to put in more effort and time building and nurturing a relationship before you can make the sale.
Question #3: Why is it important to my business?
It is important to your business because it provides you with a steady stream of people to sell to. At the end of the day, no matter how awesome your product or service is, if you have no one to sell to, then it still will not do your business any good.
In addition to this, however, lead generation also ensures that the people you sell to are actually interested in what you are selling. Unlike traditional advertising that simply broadcasts your message to as many people as possible, lead generation allows you to zero in on your target customers, saving you a lot of time and money in the process.
Question #4: How can I generate leads for my business?
The most popular way of generating it involves the creation of lead magnets. Simply put, a lead magnet is anything of value you can offer to your target customer for free in exchange for their contact information. Examples include:
- Discounts. It does not matter what you are selling, offering a good discount is always a great way to capture the attention of people.
Keep in mind, though, that this approach also attracts cheap customers that may not actually contribute a lot to your bottom line. So, if you want to use it, just make sure that you have other measures in place to help you qualify your leads further.
2. Exclusive perks. It can be something as simple as access to exclusive sections of your website, events, products, or services.
3. Exclusive content. This can be anything from simple members-only versions of your content to additional content that non-members cannot access.
4. Free reports. These are particularly useful if you and your target customers operate in industries where new developments are coming out all the time. They will allow you to not only position yourself as an expert in your field but also instill a sense of indebtedness in your target customers.
5. Free assessments. These are also a great way to generate (and qualify) leads because they require people to not only enter their contact information but also answer questions that would allow you to understand them better.
Question #5: What is the difference between a lead and a prospect?
The main difference between a lead and a prospect is their odds of making a purchase from you.
As we have seen earlier, a lead is someone who has shown interest in your products and/or services by submitting their contact details to you. A prospect, on the other hand, is a lead that has already been qualified and moved into the sales process.
All this ultimately means that a prospect is significantly more likely to buy from you than a lead despite both actually being interested in what you are selling.
Check this useful blog from HubSpot to know more about the difference between lead and prospect.