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What is Lead Generation in Digital Marketing? (Simply Explained)

Kalinga Digital Marketing Devision
2022.2.25
lead generation

Lead Generation is one of the main objectives behind many digital marketing campaigns.

I remember when I started my career as a sales executive. We used to do many cold calls to find customers. I bet you also have at least one experience, answering a call from some sales representative. What about door-to-door salespersons.

Do you think door-to-door sales are over? No, not yet. I recently met an NHK TV salesperson.

Sales Emails, cold calls, and door-to-door sales all became annoying sales approaches. But with time as users, we all learned how to ignore these irrelevant sales approaches.

Introduction to lead generation

With the internet, people get used to finding what they want by searching. So the effectiveness of above said sales approaches became effectless. Furthermore, nowadays if customers get annoyed by your cold sales approaches, it could harm your business negatively.

So marketers had to find ways to find customers that shows interest in buying their products. Not only that marketers went further. They found ways to approach users that can be nurtured into customers.

What is the definition of lead generation in digital marketing?

First, we must understand something. Lead is not a sale or a customer.

Lead generation is the digital marketing process that gains the interest of online users for products and services. The intention behind the lead generation process is to nurture them into a sale.

How does lead generation work?

Lead generation starts with having a strong online presence. Because there are mainly three parts to lead generation. And without having a digital presence you cant generate leads.

  • Getting online traffic
  • Getting visitors contact information
  • Identigying andNurturing cold leads, warm leads to hot leads

Establishing your brand online is the key point of lead generation. Having a website is essential in any lead generation campaign. (But some businesses can generate leads without having a website. They use social media to generate leads)

The objective behind having a website is to get the target audience to visit your website and other social media. You will not get any web traffic just because you have a website.

How to get web traffic

Digital Marketers use different tactics to drive potential web traffic. This involves both paid and non-paid marketing campaigns. Followings are a few ways of driving traffic.

SEO Search Engine Optimization
SEO helps to drive web traffic

1) Search Engine Marketing (SEM)

SEM or Paid advertising is using paid advertising campaigns through search engines like Google, Baidu, Yahoo, or Bing to get web traffic.

This is one of the main parts of digital marketing strategy. 93% of all web traffic is generated from search engines. So having your information on the search engine result page (SERP) is necessary for lead generation.

So using SEM will help especially if your website is new or not ranking for the keywords you want. Most companies use SEM with SEO in their marketing strategy.

2) Search Engine Optimization (SEO)

Search engine optimization or SEO is the process of optimizing a website to get organic traffic from search engines.

The first five organic results accounted for more than 67% of all the clicks. Therefore make SEO a priority in your lead generation strategy.

Other than SEM and SEO, businesses can use social media marketing, influencer marketing, referral marketing, etc to drive traffic.

Getting visitor’s Contact information

getting lead contact information to send email

Now you have visitors to your website. These visitors click on your search results or advertisement. Because they show somewhat interest in your products and services.

So the second part of the lead generation process is to get these customers’ contact information. Because we need their contact information so that we can nurture them into the sales funnel.

But how can we get them into sharing their contact information?

Marketers use different strategies and tactics to get customer information. For instance, the most common practice is using an online form. It could be an embedded form to your landing pages or it could be a pop-up form.

But in exchange for contact information, we need to offer value. Because it increases the probability of filling out online forms by visitors. This is identified as “Lead Magnet“.

We can use whitepapers, webinars, E-books, or any other relevant and valuable content to draw visitors’ attention.

After visitors give their contact information they become a lead.

Identifying and Nurturing leads

lead nurturing

There are three types of leads. Which are cold leads warm leads and hot leads.

It is easy to approach hot leads rather than cold leads. Allocating your resources to leads that have the highest possibility of converting sales is more profitable.

So marketing department needs to create a strategy to identify these lead types and nurture them into hot leads. Then pass those leads to the sales department to close the deal.

According to Marketing Sherpa, almost 79% of marketing leads never convert into sales marketing automation plays a huge part in this process. Read our marketing automation guide to know more about it.

What are the Benefits of lead Generation?

Lead generation is the topmost survival weapon that any business has. According to a report published by Hubspot, more than 40% of marketers’ top priority for the next 12 months was to Generate More Leads.

So lead generation can produce various benefits to a company. We listed a few of them

  • Expanding the target market
  • Increase revenue
  • Get more customer feedback
  • More business opportunities
  • Chance to identify and prioritize quality leads
  • Improving the current marketing strategies

Summary

Lead generation is a crucial part of any business. Lead generation can be defined as capturing online users’ interest in products and services

Lead generation is consist of three parts. First getting online traffic. The second is taking users’ contact information. The third is identifying and nurturing different lead types.

Having a lead generation strategy implemented results in many benefits including increasing the overall revenue.

In future articles, we are going to dig deep into lead generation. So fill out the following form and let us know your experience in lead generation.