Lead generation is an essential part of any effective sales and marketing plan. No matter what is your business or the nature of our offerings, it can simply not survive without leads. Furthermore, there is no point in getting these leads if you are not able to convert them into customers. This is why the difference between lead generation and lead nurturing is important to understand.
Lead generation and lead nurturing are two important activities on which your organisation must focus.
Marketers emphasise on the importance of lead generation at length and organisations make hefty spending on it.
However, what most people tend to forget is the importance of lead nurturing in boosting your business prospects.
Lead nurturing is as equally important (if not more) than lead generation.
Did you know that not nurturing your leads properly is why 79% of marketing leads are never turned into sales?
What is Lead Generation?
Lead generation is the process of attracting prospective customers who have shown an interest in your brand or company.
This is done through the combination of various marketing strategies. Through lead generation activities, the objective is to attract users and convert them into clients.
How to do lead generation for my business?
To attract new consumers, businesses must engage in a process known as lead generation.
For this, a combination of inbound and outbound marketing strategies is required. Both of these have their own advantages and drawbacks. It is essential that a business invests in both of them for sustainable lead generation activity.
Inbound Marketing :
This is done with the help of techniques like capturing information through a lead form. Through inbound marketing, you come to know about the requirements of your user. This then allows you to offer services or solutions based on their needs.
A lot of marketing techniques are used for ensuring a successful inbound marketing effort. These include content marketing, email marketing, social media marketing, search engine optimisation (SEO), search engine marketing (SEM), and all others.
One benefit of employing inbound marketing strategies is that their efficacy can be monitored in real-time. Basis on this you can understand the effectiveness of your marketing campaign and make necessary changes.
Outbound Marketing :
Outbound marketing is a form of marketing in which the needs of the audience is determined through outreach efforts.
Before devoting a significant portion of your resources to outbound marketing, it is essential to have a solid understanding of your target demographic. This is because outbound marketing has the potential to be intrusive.
It’s possible to conduct outbound marketing in various ways, such as by advertising in broadcast and print media, making cold calls, or even engaging in direct marketing in person. Outbound marketing’s drawbacks include its inability to be measured. Furthermore, there is a possibility of high costs associated with its implementation and a poor return on investment (ROI).
Lead Generation Tactics
1. Content Marketing
To attract your ideal clientele, your company should use content marketing by publishing useful articles, videos, infographics, and other media on its website, blog, and social media pages.
The information here is crafted specifically for the needs of your target audience. It is also search engine optimised (SEO), making it simple for potential customers to find via a web search.
2. Social Media Advertising
Social media advertising is an effective way to reach a new audience, much like social media marketing. Users may see ads placed by your company on Facebook (FB) at random while they are perusing their news feeds.
They may go to Instagram, where you may show them yet another ad, reviving their interest in your company while also reminding them of what you offer.
3. Search Engine Optimisation
Among the many inbound marketing strategies, SEO is a potent tool for bringing in new potential customers.
It’s a form of digital advertising that improves your website’s visibility in major search engines like Google, Bing, Yahoo, and others.
It will boost awareness of your company and its products in search engine results.
4. Social Media Marketing
This strategy aims to increase brand awareness and customer engagement via the company’s social media accounts. You can start a relationship with potential customers and spread information about your brand by posting content that interests them and responding to comments they leave on your accounts.
5. Email Marketing
Simply put, email marketing is sending emails to prospective customers. However, this is more than simply electronic mail. It’s things like articles, discounts, and new versions of a product.
As emails can be quickly adapted to suit different audiences, this is a fantastic method for communicating with smaller subsets of individuals about certain topics.
What is a Lead Nurturing?
The next stage, known as “Lead Nurturing,” deals with converting the leads created through lead generation. This entails contacting the leads you’ve created and building relationships with them. Establishing strong connections with the people who could become your clients is essential to your success. Furthermore, lead nurturing is also important for keeping your existing clients satisfied. Lead nurturing is hence one of the important ways of client retention which can be a more difficult task than bringing a new lead into the system!
The following are some of the many advantages of lead nurturing:
1. Build a name for yourself as a leader in your field that people can trust
With lead nurturing, you can respond to your client’s queries and establish yourself as a thought leader. This will help you in gaining trust and credibility in the market. The more trust you develop, the more you become renowned as a subject matter expert and an industry leader.
2. Take feedback from your clients
Through various inbound marketing channels, you can distribute surveys to leads and customers. This will help you gain insight into the quality of your existing products and services.
3. Identify needs
Understanding your audience’s wants and needs will be much easier if you open lines of communication with them. You may learn whether your target market is missing a product or service
Through your various inbound marketing channels, you can distribute surveys to leads and customers, thereby gaining valuable insight into the quality of your existing products and services.
Lead Nurturing Tactics
Contacts with potential customers should be handled with care and consideration. Use the prospect’s name or location to personalise your communications. This will help you become more relevant to their specific market, industry, and intended uses. Customers on the fence about purchasing from your company can be persuaded to make a purchase when they feel you’ve heard them and care about them.
2. Content Creation
By learning more about your leads, you can better address their concerns. Using this knowledge, you can create content that specifically addresses these needs. Leads will appreciate you sharing ideas and tips if you include links to this content in your communications.
3. Social Media Outreach
The best way to nurture leads is to monitor social media for mentions of your brand and respond appropriately. If you come across a customer who is looking for guidance on how to buy one of your products, you have two options: You can either give them information about your business and the advantages you offer, or you can get in touch with them personally.
Put your marketing tools (like email campaigns and automated workflows) to good use by spreading the word about your business, brand, products, and other relevant information.
Informing potential customers about your company and its offerings helps them decide if your product is the best choice for their needs. They’ll be grateful to you for your information and may even refer their coworkers to your business for similar reasons.
5. Multi-Channel Marketing
Using a multi-channel marketing approach, you can reach out to your audience with a combination of various marketing techniques. For instance, you can create a vibrant social media presence and reach out to your leads with the help of an email marketing campaign. This will help in building positive relationships with your audience and give them the opportunity to build a brand recall for your service or product.
Difference between Lead Generation and Lead Nurturing
Now that you have understood all about what is lead generation and lead nurturing, it is important for you to understand the difference between both of them.
Lead generation and lead nurturing may appear to be the same in a lot of respects. However, they are two different functions and are largely dependent on each other. The below mentioned following pointers will help you understand the difference between both of them in detail:
|Point of difference||Lead Generation||Lead Nurturing|
|Nature||Lead generation is the process of finding and attracting leads or potential customers who are interested in a product or service.||Lead nurturing, on the other hand, is the process of building relationships and converting leads into customers. Lead nurturing is about converting these leads into paying customers and moving them through the sales funnel.|
|Process||Lead generation involves the use of various methods to collect information about potential customers, including name, email, and phone number. You can generate leads through many channels, including advertising, SEO, and social media.||Lead nurturing is the process of developing relationships with qualified leads to guide them through the purchasing process. |
This involves sending relevant and personalised content to prospects at different stages of their journey. Examples include educational articles, case studies, and product demos.
|Reach||Lead generation involves various marketing strategies such as content marketing, email marketing, and social media marketing to bring potential customers to a company’s website.||Lead nurturing, however, involves targeted communication with a small number of qualified leads.|
|Success||The quality and quantity, as well as the rate at which these leads are converted into paying customers, will all determine the success of lead generation.||The success of lead nurturing, on the other hand, depends on the ability of the individuals and the organisation to build a relationship with the existing leads and customers and further retain them for the business.|
|Targeting||Lead generation targets the persona and audience, which is widespread to ensure that the word about the organisation is spread more and more.||Lead nurturing, however, on other hand, is a much more targeted exercise that involves dealing with a very limited user base. |
Personalisation is hence a key factor here.
|Automation||Automation is not necessary for lead generation as all the channels of marketing are required to be involved here.||Automation is an important part of lead nurturing. This is because lead nurturing can be a time-consuming task. Furthermore, timing is an important factor here.|
|Testing||Lead generation requires constant updation, optimisation, and testing to ensure that the quality of the leads is improved.||Lead nurturing, on the other hand, requires quality and consistency, and hence the need for testing and optimisation is much less than compared to lead generation.|
The generation of leads is an important first step, but it’s just half the battle. Leads need to be engaged with and nurtured to maximise the possibility of making a sale. This cannot be accomplished without a specialised sales development team and a lead nurturing plan.
It is always better to have a limited number of sales-qualified leads rather than a big number of leads with little possibility of converting into customers.
You have made the proper choice if you want to raise the percentage of leads that are converted into customers. This holds regardless of whether you bring sales development in-house, work with an outsourced partner, or perform some mix of the two.