In this article, we will explain the definition of the word lead and how to acquire leads efficiently. If you are a sales person, you will definitely use the word lead, so take this opportunity to understand it well.
Table of contents
What is a lead?
The three stages of attracting leads
How to acquire leads
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Conclusion: Solve the problem of acquiring leads by introducing SFA/CRM
What is a lead?
A lead is a potential customer. Leads generally show actions such as making inquiries about products or services that they are specifically interested in, or considering purchasing. By effectively utilizing leads, you can increase sales and customer satisfaction, and it can be said that they play an important role in business.
Also, the definition of a lead differs between the sales department and the marketing department.
Let's explain the differences in detail.
Leads in sales
In sales, leads refer to "prospects generated through daily sales activities." Leads are acquired through various sales activities, such as telephone sales, cold calling, referrals from existing customers, and direct inquiries from prospective customers, and sales negotiations are repeated to lead to orders.
However, sales activities such as just visiting or calling are not called leads. It is common for a sales representative to call a lead when they feel a certain degree of enthusiasm and see a concrete path to receiving an order.
Leads in marketing
On the other hand, unlike leads in sales, leads in marketing often refer to "prospects generated through marketing measures," such as email newsletter distribution, seminar attendance, and inquiries from websites.
Usually, leads generated through marketing activities are handed over to sales, but customers who have not yet reached the stage of being handed over to sales and turned into deals are also included in marketing leads. In other words, compared to sales leads, marketing leads are somewhat broader and more numerous.
The specific methods of lead management are explained in detail in the following article.
What is lead management? We explain the benefits, three management methods, and points to note!
Leads
As mentioned above, leads are perceived differently by departments, but by classifying them into the following three categories, differences in perception can be prevented. Recently, it seems that the following classification is increasingly being adopted in SFA/CRM. SFA/CRM helps sales and marketing to digest leads with a common understanding.
Lead generation
Lead generation refers to a series of activities to attract potential customers for your company. It is often used mainly as a marketing measure, and activities such as attracting customers to exhibitions and events, recruiting members for email newsletters, and responding to web inquiries are the main focus. It also includes advertising using web advertising tools.
The information obtained through lead generation is still shallow, and it is necessary to cultivate them into promising prospects.
Lead Nurturing
Lead Nurturing refers to the process of nurturing relatively weakly connected prospects into promising prospects. Based on the information obtained through lead generation, more specific sales actions are taken to increase the probability of an order.
For example, it is a process of gradually preparing the lead so that they can imagine purchasing, such as by informing them of limited events or directing them to a member-only page on the web. At this point, they are not yet considered as sales targets, and it is necessary to narrow them down from here.
Lead Qualification
Lead qualification refers to narrowing down the group of leads nurtured by lead nurturing using certain criteria and handing them over to sales.
The criteria used here are often the "scoring function," which is used by many companies. The scoring function scores (grades) all the target's actions, such as "making an inquiry on the web" or "clicking on a link to a page in an e-mail newsletter," and ranks them. It is used to visualize the probability of an order being made, such as the higher the score, the more likely the lead is to purchase.
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How to acquire leads
So, what are the specific methods for acquiring leads at the lead generation stage? Broadly speaking, there are two types: "outbound" and "inbound".
Outbound
Outbound is a method of acquiring leads by approaching the company. All methods, such as exhibiting at events and exhibitions, telemarketing, direct mail, newspaper, magazine, and web advertising, can be triggered by outbound. Since it is a measure to increase awareness among an unspecified number of people, it is a method suitable for acquiring leads broadly and shallowly.
Outbound is mainly handled by the sales department. Many companies adopt a method in which the marketing department generates leads, then nurtures leads and cultivates potential customers and passes them on to the sales department (lead qualification).
Inbound
Inbound is a method of leading by approaching potential customers. Use owned media and e-mail newsletters to continuously send useful information to potential customers. Unlike outbound, which is approached from the company's side, inbound creates an environment where potential customers can contact the company.
It takes time to acquire leads, but the potential customers are highly enthusiastic, and it is suitable for forming leads that are likely to lead to purchases. In many cases, it is handled by the marketing department rather than the sales department.
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Conclusion: Solve the issue of lead acquisition by introducing SFA/CRM
Each company has a different way of acquiring leads. However, the vector of realizing continuous transactions as customers of the company is the same, and by properly managing them with SFA/CRM, you can manage leads more efficiently.
In order to lead leads to sales, it is necessary to share information across departments using SFA/CRM, etc., and to conduct sales as one. If you are a company that is experiencing issues with acquiring and narrowing down leads, why not take this opportunity to introduce SFA/CRM and unify your awareness and processes?
There are many different CRM/SFA tools available, but the one we particularly recommend for data integration within sales organizations is "UPWARD" provided by UPWARD.
"UPWARD" can automatically standardize, stylize, and quantify salesmen's visits and telephone activities and record them. With easy data entry and easy-to-understand reports, it is an SFA tool that has been very well received by approximately 300 companies, mainly large corporations, who have adopted it.