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What Is Lead Generation in Digital Marketing

Arusik Ghambaryan
What Is Lead Generation in Digital Marketing

As business owners, if we want to achieve success in digital marketing, we first need to identify the target audience to be reached. For this purpose, marketers use lead generation tools like email lists, contact databases, etc., to help create a prospects list that the sales department uses to generate leads.

Lead Generation in Digital Marketing

We can define a lead generation in digital marketing as attracting, converting, and retaining customers.

It involves effective communication methodologies to deliver the message effectively, i.e., what you have for customer segmentation strategies with the primary goals of satisfying existing customers and letting them know about products and services introduced by your company.

Digital marketing needs effort at every level, from customer service, product development, and promotion to touchpoint, a closing sale. In digital marketing, lead generation is integral to customer acquisition.

So, what is lead generation?

It is converting anonymous visitors to your website into leads which means qualified forecasts who want to know more about what your business can offer them. The main goal of it is to make appointments and turn them into sales.

Lead Generation Types in Marketing

There are a few different types of lead generation in marketing. Each has its benefits and drawbacks. Here are the most common lead generation types: 

Marketing Qualified Leads

A marketing qualified lead (MQL), also called an inbound lead, is a lead that has fulfilled specific criteria that makes it a good potential fit for your sales team. An MQL must have contact information and detailed demographic information such as job title, company size, location, etc. Most importantly, the MQL has indicated an interest in your product or service by filling out a form on your website or responding to an outreach campaign. 

Once an MQL is identified, your sales team can use the information provided to contact the lead and begin the sales cycle. Examples of MQLs include people requesting demos, filling out a form to download a free resource, or attending a webinar and learning more about your business. 

Marketing-qualified leads are one of the most valuable types for B2B companies because they are more likely to convert into paying customers. In other words, most people who respond to your marketing efforts will be interested in doing business with you.

Sales Qualified Leads

Sales Qualified Leads (SQLs) are individuals who have expressed interest in your products by completing a registration form or calling your company directly. Unlike the MQLs, the SQLs have self-identified as potential customers for your business and initiated contact with your sales team. For example, someone who fills out a web form to request more information from your company is an MQL, while someone who calls your office to schedule a demo would be a SQL. The only difference is that the first is a lead, while the latter is an actual customer actively engaged with your company. As you might expect, SQLs are more valuable than MQLs, as they have already expressed an interest in your products and services, and they're more likely to become customers than MQLs who haven't contacted your sales team yet. That's why it's essential to nurture your MQLs through the sales cycle until they become SQLs.

SQLs are generally easier to close than MQLs because they already have an established relationship with your company. However, it would be great if you still worked hard to get these prospects to do business with you.

Product Qualified Leads

As a business owner, you know that acquiring new customers is essential to your success. But acquiring new customers can be difficult - especially if you don't have the time or resources to spend on advertising. This is where product-qualified leads can help. Product-qualified leads are high-quality leads generated by your product. The leads generated have expressed interest in your business and have clearly expressed an interest in your products or services. And because your product generates the leads, you don't have to worry about spending time and money on advertising. 

Product-qualified leads typically cost less than other types. However, there are some drawbacks to using product-qualified leads. One of the drawbacks is that it can be challenging to determine which leads are high-quality and which are not. It can result in wasted resources and lost time. Another issue with product-qualified leads is that they can be hard to scale. It is especially true if your business does not have a steady stream of leads generated through your product. Despite these limitations, product-qualified leads can be a valuable resource for your business if you know how to use them properly. Here are tips to help you make the most of your product-qualified leads: 

  • Determine who your target audience is
  • What do you want to sell to the audience
  • How much do you want to sell
  • Where are the buyers located?
  • How old are they?
  • Their gender
  • What is their occupation?
  • Etc.

These all are important questions to answer before getting started.

Lead Generation Strategies in Digital Marketing

Lead generation is converting anonymous visitors to your website into leads. The main goal is to lead generation to make sales appointments and turn those appointments into sales. Digital marketing needs effort at every level, from customer service, product development, and promotion to touchpoint, a closing sale. In digital marketing lead generation process forms an integral part of customer acquisition.

Various methods can generate leads in Digital Marketing like Business referrals, social media marketing, email marketing, etc. You can find some of the best lead generation tools below.

Lead Generation Through Search Engines

As we know, SEO is a process that generates leads and improves website ranking by increasing visitors to the site, and it becomes essential for business owners. It attracts qualified prospects that can be screened and further passed on to the sales department for making appointments and converting them into sales. Search engines are powerful lead gen tools. Today customers are using the internet at every moment. So search engines like Google, Bing, etc., play an essential role in generating leads. Businesses can get more traffic by promoting their website on search engines.

Lead Generation Through Email

Until recently, most lead generation in digital marketing was done through email blasts or newsletters, mainly with the help of third-party software, which helps manage leads. 

More recently, social media platforms have been used to generate leads for the business. This is helpful for small businesses with insufficient resources to invest money in email marketing tools. Social media networks, i.e., Facebook, Twitter, and LinkedIn, are the most popular for the leading generation through social media.

Lead Generation Through Display Advertising

To reach the audience, advertisers can use rich media ads, including text and video advertisements. When marketing managers coordinate their paid search efforts with their display campaigns, they can achieve a higher success rate in lead generation. They should ensure that messaging and visuals on display match the copy and branding of the landing page experience to avoid negatively impacting conversion rates.

Lead Generation Through Calls

Inbound calls can also make lead generation in digital marketing when they are transferred from the sales team for further qualifying procedures before making appointments or conversions. Telemarketing companies help build relationships through calls with potential customers to attract more leads in digital marketing.

Calls are one of the highest converting marketing channels. The average conversion rate for an outbound phone call is 1-3% compared to email and web form, where the average conversion rate is between 0.1% and 1%.

Goal-Oriented Lead Generation

In digital marketing, goal-oriented goal-oriented lead generation is a technique where the business owners have to decide what they need leads and how to get them. For example, if the business wants to increase its conversions from a website, it would look for more traffic. The business manager should then look into goal-oriented lead generations to increase traffic to the site.

Lead Generation Through Social Media

When marketing managers coordinate their paid search efforts with their display campaigns, they can achieve a higher success rate in lead generation. They should ensure that messaging and visuals on display match the copy and branding of the landing page experience to avoid negatively impacting conversion rates.

Social Media is successful in generating leads for the business. Businesses can get more traffic to their website by promoting them on social media. Social media platforms are the most popular ones for the leading social media generation.

Marketing managers should develop a sound strategy to generate leads on social media because it is necessary for the growth of the business on the online platform.

Lead Generation Tools

Digital marketers use various tools to generate leads, including social media, search engine optimization, email follow-up, etc. All the work by the digital marketer in this stage is centered on achieving maximum visibility for the brand or product through all these channels, which will eventually turn into some demand from the end consumer.

It can be measured by tracking the conversion rate at each step, whether it's about gaining awareness about new products after launching, increasing traffic to a website, or augmenting lead volume. In any case, that infers that your organization must focus on building authentic relationships since only then do they begin to trust you, and more time is spent between customer and company.

Digital marketing is an ever-changing industry that brings new opportunities to companies every day. With changes in technology, it's hard for marketers not to get overwhelmed with the tools available to help them generate leads in digital marketing.

With social media playing a significant role in building brand awareness, it has become necessary for companies to develop their presence on various social networking sites to attract potential customers using these platforms regularly. Digital agencies utilize paid search engine ads targeting consumers when needed so business owners can be closer to potential clients while ensuring that traffic generated through this route converts into leads.

The concept of lead generation continues to evolve with time, so modern strategies have started taking the place of traditional marketing tactics. Digital marketers are using creative ways to generate qualified traffic, increasing lead volume for companies.

Final Words

Making sure that you can generate quality leads is beneficial for your organization and gives digital marketers worldwide a chance to do their part in building better relationships. Once you understand all the details mentioned here, you can start implementing them at your end and create effective campaigns. But don't forget; that every tactic takes time to produce returns, so patience is your best friend during this phase.

Every business owner wants to increase revenue by acquiring fresh leads that convert into sales. That is why lead generation has become one of the most talked-about topics in digital marketing. Creating a blog is the first step towards generating quality leads as it helps establish your business as an expert in its arena, with a lot more. Establishing an authority figure within your niche will help attract more prospects to your brand as they begin to trust you.

Arusik Ghambaryan
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