Leads: What are they and why are they important for Businesses?

Do you know what leads are? How much do they matter? What do they say about your capacity to digitally market your products and services? Let's discuss it all here!

First of all, What is a lead? 

In the online Oxford Learners' Dictionary, there are plenty of entries for the word "lead", including:  A leash. A person or thing that leads. The most important news story. A tip. A clue. The principal part in a play.

However, none of them gives us the exact definition that we are looking for! We need to look for the definition of lead in the digital marketing context. 

What is a lead in the digital marketing context? 

In the context that is relevant for us, that is, in e-marketing, a lead is generated when a prospect (in many cases an internet user) completes each over of the following steps: 

1.     The prospect conducts a search on the internet.

2.     The prospect arrives at a specific webpage.

3.     The prospect fills out and submits an information request form with their contact information.

We can call it a lead once the prospect completes the third step. This is the way in which the potential client actively shows their interest in the services that you are offering. 

What we aim at, at this point, is to gain a new client. With that in mind, we focus and push sales efforts on leads because they have great potential for making the jump from less to official clients (as they have already expressed their interest in the product or service you're offering).

Campaigns run through Facebook Ads, Google AdWords, and Bing Ads are all oriented towards the goal of finding leads. For example, any higher education provider that generates profit via student tuition will want to actively search for or attract leads so they may be converted into potential students.

There are several "sources"to look for leads. They can be captured online through website pages, social media accounts such as Facebook or Instagram, and email.

Difference between a prospect and a lead

All leads are prospects but not all prospects become leads.

If a prospect is responding to your emails and phone calls, this is one of the best indicators that a prospect can convert into a lead. Other prospects that may run into leads are those that have been spoken with on the phone, users that respond to emails, and those who ask questions or seek more information, regarding your products or services, via a website’s chat option through social media.

You should bear in mind that not all prospects have the same quality.

How can we assess the quality of a prospect and, therefore, the chances of a prospect becoming a lead?

In order to determine a prospect's quality, it is essential that you answer the following questions.

1. How much does the prospect know about the product or service that you offer?

2. How many times has a prospect visited your website?

3. Has the prospect expressed interest?

4. Does the prospect seem to accept the proposed cost?

5. Is the prospect using a competitor’s product or service?

6. Would the prospect like to receive a sales proposal?

Is it important to determine a prospect’s quality? Definitely! But why?

As we all know, resources, like time and money, are limited. For that reason, it's important that we spend them wisely! It's not about quantity, that is to say, it is not about advertising to as many people as possible. What really counts is advertising to the key demographics that fit the bill of a quality prospect.

Next step after a prospect becomes a lead: Active follow-up! 

What does this mean? This means persistently making clear efforts to close the sale of your product or service with the lead.

Active follow-up is key towards achieving the ultimate end goal of capturing prospects that turn into leads: Closing a sale of your product or service.