Online marketing
8
min Lesezeit

What is a lead

Table of content
Online marketing
5
min read time

What is a lead

The lead lexicon: Everything you need to know about leads!

What is a lead and what can it actually do? The single lead can't really do anything beforehand. Rather, it says something: A lead is a prospective customer who is interested in your product or service.

The lead comprises various customer information that is decisive for contacting and selling. Contacts can be collected, for example, through e-mail addresses, a telephone number or other personal data.

On lead temperature contact: What are cold, warm and hot leads?

  • Cold leads: As the name suggests, cold leads are the ones who only come with a cold trail. The”cold leads” or even as”unqualified leads” known, basically don't know your product or service. In context, this means that such leads are only less likely to be successful.
  • Warm leads: The warm leads, even under”qualitative leads“Well known, bring a significantly warmer trail. Such leads promise a high probability of selling the product, as there have already been initial points of contact with your product or service.
  • Hot leads: They are called leads or as”Hot leads” known, already know your own problem or reason for buying and think you are the savior in need who can solve the problem.

Sales managers also like to refer to such leads as “order pickers,” because there is very little effort in sales here.

What is lead generation or lead generation?

You've already learned what leads are. Lead generation and lead generation are new word constellations that must first be defined:

Basically, lead generation or lead generation ultimately means attracting interested parties. Every action that causes people to leave their contact details is then summarized under the term lead generation.

In this way, a method can be developed to convert cold leads into warm leads and an important foundation for acquiring new customers can thus be established.

Generate leads: How do you attract leads on board?

You've already learned how to generate leads. But how do you get them on your website? To attract as many leads as possible, you should include various CTA on your website. The content that you offer should offer clear added value and be as attractive as possible for your website visitors. The important thing is that your web content and the added value offered are consistent and that the potential customer really benefits from it. Ways to get leads would be:

  • Guide PDF
  • webinars
  • Sample products
  • E-books to download

Lead qualification: How to turn leads into customers!

Business happens among people when we unromantically get to the bottom of the sale. Conversely, this means that transactions can only be concluded between people.

In other words, the more people enter your store, the higher your sales increase.

But it is not only in entrepreneurship that sales can be generated in this way. Because even in a romantic context, the principle works excellently. Anyone who dates a lot of people, for example, increases their chance of finally finding the right partner.

The funnel principle: The phases of lead qualification

In a subject-specific manner, the entire lead generation process is also understood as Lead nurturing. In a nutshell, however, this process is simply the name for the Customer journey of the potential new customer.

The lead qualification levels show how the potential new customer goes through in order to ultimately be crowned as a happy new customer.

The table below shows you which four phases your prospect will go through to ultimately become your new customer. In addition to the unromantic subject-specific definition, you will also find a romantic case study as an explanatory approach. This is because the principle of lead nurturing can be easily integrated into any engagement process (interaction of potential new customers with your company).

{{table-what-is-a-lead=” /rich-text-components “}}

Lead generation benchmark: What lead generation tools are there?

You have already learned what leads are and how the optimal lead generation processes work. At this point, you already have enough website traffic and really just need to be able to estimate whether you've made progress and how you're doing compared to your market competitors.

In order to track (statistically evaluate) your own marketing campaign, you can therefore decide whether to track your project in homemade Excel spreadsheets or to engage in software programs. There are some innovative software programs that can help you implement your lead marketing campaign & administration, such as:

Sales are integrated into the overall lead generation process from the outset using CRM (customer relationship management) systems.

ROI and lead generation

It should be clear at this point that lead generation is a good thing. After all, anyone who distributes flyers properly also gains recognition and feedback. The English term ROI (return on investment), i.e. the ratio of invested capital and earned profit, gives you clarity at this point. The calculated value acts as a company's large profit figure because it expresses the success rate and expected capital return of an investment. In this way, it is possible to determine whether the profitability of the invested capital is ultimately worthwhile? A rough formula can be used to calculate the ROI:

ROI = (Profit/Turnover) x (Sales/Invested Capital)

Here is a practical example:

Let's assume that company X wants to start generating leads and sets a capital of 50,000 euros. Through this process, company X generates a total of 60,000 euros in turnover. To calculate profit, the following formula must now be used: Sales — Costs = Profit (60,000€ - 50,000€ = 10,000€)

Now he can ROI To be calculated: (10,000/60,000 x 100) x (60,000/50,000) = 2 (20%)

The calculated return on investment therefore shows that a 20 percent increase in turnover can be expected. In the end, a successful conversion and the turnover that has flowed for this interaction can be presented in relation to the measures, and a more detailed analysis of the content is thus clearly formulated.

Is it worth the effort?

Determining the price/performance ratio of spend, traffic, and conversions proves complicated when it comes to lead generation. Among other things, the keywords click rate and cost per lead (CPL) are intended to compare the ratio of financial expenditure for marketing activities to the total number of leads generated.

Always pay attention to the cost per lead (CPL) so you can be sure that your marketing is worthwhile

example:

  • Investment amount pay-per-click campaign: 2000 euros
  • Total leads generated: 20
  • Cost per lead: 100 euros

    (Please note that the costs in this example relate purely to the marketing campaign. In this way, the success of the campaign can be measured. To calculate the profitability of marketing activities, you must include all expenses and expenses of your company)

To calculate the CPL, the value of a lead must be determined in advance. The list of criteria known as BANT offers a possible variant for calculation. It stands for

  • Budget (How much money is a prospective product or service worth?
  • Authority (Who is the responsible decision maker?)
  • Need (Is there an urgent need for the product or service?)
  • Time (When can the need be satisfied?)

Sustainable lead generation for the B2B sector is an ongoing process that includes the following cost factors:

  • Creating a marketing strategy
  • Creating a website or landing page (catch basin for upcoming leads)
  • Configuring marketing automation software
  • Generating traffic to the landing page
  • after exhausting your own reach by purchasing traffic (Google Ads, Facebook Ads, etc.)

Depending on the individual case, costs for a lead can be ten, but also several hundred euros.

The lead management process: With these 5 steps to lead success!

If you follow this process, you are assured of success

Lead generation is one of the most important marketing tools for successful companies worldwide. So that you too can finally get started, you should create an approximate framework for yourself. A lead management process is normally divided into the following phases:

  1. Definition of target group
  2. Lead generation: measures to obtain personal data
  3. Lead nurturing: Using data to address customers individually
  4. Lead scoring: Evaluation of individual leads according to their relevance with regard to purchase intent
  5. Lead reporting: Logging of the entire process from planning to conversion (conversion of interested party into buyer) for future process optimization

Lead generation: These benefits await you

Generating leads online is worthwhile

Lead generation is now one of the most important marketing tools used by companies worldwide

  1. A prospective customer becomes aware of a product or service
  2. He voluntarily provides the provider with his contact details
  3. Individually tailored interaction begins
  4. The interested party becomes a customer
  5. The increased customer base makes it possible to identify customer needs
  6. More new customers are acquired as a result of the adjusted offers

conclusion

The secret of successful companies is measuring success. Because you can only grow your company with figures and measurements. Bill Gates invented the wonderful Windows Excel tool for this purpose.

This laid the groundwork for digitally recording and analyzing data. Now it's your turn to track and evaluate your figures and determine your needs.

In addition to this simple tool, it is an advantage if your marketing and sales teams work closely together so that many qualified leads end up on your sales radar.

Finally, you should regularly test and evaluate your content marketing strategies. This is the only way you can adapt the individual phases of your lead generation to changes in order to generate permanent new leads and increase your sales.

Author
Aleksey Rogalev
Autor
Aleksey Rogalev
Geschäftsführer, SEO & Google Ads Experte
Read more
Show less
Share this article

FAQ

So what is a lead?

A lead is a prospect who is interested in your product or service. The lead comprises various customer information that is decisive for contacting and selling. Contacts can be recorded, for example, through e-mail addresses, telephone numbers or other personal data.

What does lead generation mean?

A potential new customer is interested in a company and its product or service. The visitor leaves important contact details on his own initiative, the advertiser or the company/provider. This is done, for example, to find out more about the corresponding product. The contact details are used to further establish a dialogue with the potential new customer. The aim of lead generation is to generate contact data, to qualify leads with the aim of turning these prospects into desired customers.

What does lead mean in marketing?

A lead is a prospect who is interested in your product or service. In a marketing context, this lead can be obtained through online marketing measures.

Articles & Resources

Webflow
3
min reaD time

Webflow Intellimize: AI-powered website optimization possible soon!

Webflow acquires Intellimize! The new power combination for AI-powered website personalization and optimization.
SEO
12
min reaD time

Google Seo Leak: Anyone can get to number 1!

Discover the secret Google ranking factors! The SEO leak of May 24, 2023 reveals what really counts. Find out how you need to adjust your SEO strategy now!
Online marketing
9
min reaD time

Marketing psychology: Tesla website analysis

Learn how Tesla uses the psychology of its target audience through minimalistic designs, emotional appeal, and intuitive navigation to make its website successful.
Webflow
6
min reaD time

Latest Webflow Features and Updates 2024

There are some exciting new features for Webflow that further improve the platform and expand the options for website builders. Today, we'll take a look at the latest 2024 updates and features, and explain the benefits for Webflow users and agencies.
SEO
5
min reaD time

The 10 most expensive domain names in the world

The most expensive domain names in the world cost millions. Find out which factors influence the value of a domain and what the top 10 most valuable domains are.
SEO
18
min reaD time

Local SEO: The ultimate tips to attract local customers

Have you ever caught yourself searching on Google for things like “hairdresser nearby” or “best bakery in Berlin”? If yes, then you've already taken a first step towards local SEO.
Webdesign
8
min reaD time

The power of color psychology in marketing and branding

Learn how color psychology in marketing and branding awakens emotions, influences buying decisions and strengthens your brand.
Online marketing
5
min reaD time

Tesla's 2024 entry into paid advertising: First visible steps revealed

Discover Tesla's new 2024 marketing strategy, which is based on efficient content production. A profound insight into the future of automotive advertising from marketer UX.
Webflow
10
min reaD time

Webflow vs WordPress 2024: The ultimate comparison

Webflow or WordPress? Our detailed guide compares features, SEO, usability, and pricing so you can make the right decision!
Online marketing
5
min reaD time

Tesla's new marketing strategy 2023

Since the founding of Tesla Inc., the company has never invested a single cent in paid advertising. It was announced this year that this would now change. In this article, we'll look at what we as an online marketing agency can learn from this.
Webflow
11
min reaD time

Website development and planning the budget correctly

Learn how to correctly calculate the budget for your new website. An essential guide for every entrepreneur.
SEO
3
min reaD time

Chat GPT Revolution - How do you use it correctly?

What is Chat GPT from OpenAI and how do you use it correctly in a company. What dangers can you avoid and why will you no longer be able to avoid this language model in the future.
Online marketing
6
min reaD time

Advertising on the Internet - Boost Your Business Potential Online

Find out how you can attract new customers and more applicants to your company and increase your business potential online with targeted advertising measures on the Internet.
SEO
15
min reaD time

SEO consulting - 2 keys that matter

SEO consulting for SMEs. Goal-oriented advice directly from experienced experts and to fill the best positions at Google.
Fallstudie
6
min reaD time

How Klaus Hübner boosts his company's growth with online marketing

Klaus Hübner is a successful expert in subsidy management and talks about his experiences with online marketing and its impact on his company. Learn how he recognized online marketing as a key strategy for growing his business and what vision he has for the future of online marketing in his industry.
Webflow
7
min reaD time

Top 10 Webflow features we've loved as an agency for 6 Years

Have you had enough of cumbersome or outdated website builders? We've been working with Webflow for over 6 years and want to share our 10 favorite features with you that help us every day — these features are a real game changer for us.
Online marketing
12
min reaD time

Online marketing strategy: Achieving your goal in 6 steps

Digitalize your marketing? Find out more tips for creating an online marketing strategy/marketing plan in this article!
Finance
17
min reaD time

Marketing law firm: How to attract clients

In 4 steps to successful law firm marketing: automated client acquisition, expert status & recognition!
Online marketing
8
min reaD time

What is a lead

What exactly was a lead again? Translated from English, “lead” means something like clue, or clue. In marketing, we talk about leads, lead acquisition or lead generation. With this article, we are shedding some light on the darkness.
Sales
17
min reaD time

Learn how to sell

Are you self-employed and would like to know how to sell your service (s)? Are you planning to set up a company and would like to find out the easiest way to sell your products? Then you've come to the right place!
Online marketing
19
min reaD time

Customer journey - The journey of your customers

How to use the Customer Value Journey to turn foreign prospects into enthusiastic regular customers. Find out everything about this topic here!
Online marketing
9
min reaD time

B2B online marketing - That's how it works in business!

Most likely, you ended up on this page because you want to know what options and strategies there are in online marketing for the B2B sector? Find out the right answer here!
Webflow
12
min reaD time

Redesign of the company website

With these 11 tips, you'll get a top website! This is how the redesign of your corporate website will be a success!
Online marketing
11
min reaD time

Winning customers in the digital age

Every company needs customers. A sentence that is easy to say. In fact, it only scratches the surface. What companies really need to flourish is satisfied, loyal customers in steadily growing numbers. Regardless of whether your business is just getting started or wants to continue to grow: Acquiring more or new customers is a principle that you should always follow!
Webflow
12
min reaD time

Webflow — a comprehensive CMS and website builder

Webflow is “the modern way to build for the web,” says the Webflow marketing team. There is no question that Webflow shines with modernity: The system makes website construction child's play for almost everyone - the only requirement is a few basic programming language skills. Webflow is therefore one of the strongest tools for visual design, but at the same time also a CMS and hosting platform of the modern era. In this guide, we're not looking at the sunny side of Webflow — we're more interested in the question of whether all the fun is actually worthwhile and which projects are generally best suited to working with Webflow?

Make a joint appointment for your website project now

For over 6 years, we have been moving companies forward in the digital space. With over 200 successful projects, we are proud to always think outside the box and discover new things. For us, it's not just about ticking off tasks, but about delivering real results. Rely on our expertise and let us help your company achieve a digital breakthrough together!

Visit us on social networks