How do lead generation companies work?
In order to explain how lead generation companies work, it is important to first familiarise ourselves with what lead generation is.
Lead generation is the process of attracting and converting prospects into potential buying customers. Marketing tactics are used to attract customers attention and convert them into leads.
Lead generation companies help businesses become more efficient by delivering warmed up and qualified leads directly to them. Such companies will normally work in partnership with a number of businesses or websites in which they advertise your service.
Lead generation is not easy and requires a lot of work therefore many small businesses are now outsourcing their lead generation to companies who specialize in attracting and converting potential customers into buying ones.
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So what does a lead generation company do?
In the digital age we live in today we only have to enter a few keywords into a search engine to bring up a whole wealth of businesses advertising that yes, they hold the solution to our needs.
We may find these sites by using a search engine or we may see an online ad on a social media platform. We click for more information and land on a site where we more than likely enter our information into it such as an email address.
This contact form is then forwarded to someone who will then verify this information. The leads are then sent onto the relevant company ready for their sales force to close.
Lead generation needs a multiple pronged attack and it does require you to nurture lots of lead sources and with many channels they each need their own individual strategy.
Having a successful small business now a days is even harder with the digital era and many will experience a shortcoming in obtaining a continuous flow of new leads so it isn’t any wonder why many are now turning to lead generation companies to help them.
But the question is, how do the lead generation companies actually work?
A lead generation company aggregates consumer and business information that it can then sell on to a business wishing to purchase new leads.
A lead generation company uses different categories to organize the data so it is relevant to the target market, and some may even organize leads depending on levels of ‘warmth’.
A lead generation company will normally offer a number of services such as;
- Database marketing
- In house marketing teams
- Databases of businesses and professional information
They tend to gather leads by building a website and optimizing and maintaining that site to attract visitors and obtain their information normally via a contact form.
Lead generation companies have the means to target and personalize campaigns for your business and have the reach you probably wouldn’t have had on your own.
A lead generation company will come up with precise targeting campaigns and have inbound programs that will help and produce more opportunities.
They will go on to nurture the leads and use other marketing techniques to obtain the information they need to identify the right leads who fit your businesses buyers persona.
The databases they have will expediate this information which means they can quickly and easily identify the leads who have buying intent.
There is a number of sources they gather information, such as public records, trade references, print, digital and trade publications.
How do lead generation companies get leads?
One way a lead generation company gets leads is by content syndication.
This is where they will push your content to other channels to increase your brand awareness and drive traffic to your site.
This could be via blogs that are relevant to your business or by using RSS feeds.
Email is also used to push content through a large network audience. Each email is then hyper targeted as many will argue this is one of the most effective ways of generating new leads.
Despite it having a somewhat bad reputation; cold calling and emailing may also be used but in B2B marketing they will also use firmographic data to better target leads.
The goal of the companies is to generally set up appointments for potential clients to have conversations with your sales team.
They will use a variety of tactics to gather new leads such as;
- Social media marketing
- Online advertising
- Optimization of landing pages
- Boosting traffic to your site and help gather your own leads.
Lead generation companies will have lead nurturing programs which are inbound programs set up to nurture leads from the top of the sales funnel down towards the bottom ‘buying’ stages.
What should you look for in a lead generation company?
We all know that the best person that knows your business is you, but it can be hard to generate new leads in the digital age that we live in.
You may be considering outsourcing some of your sales process such as lead generation to reputable lead generation companies, but what do you need to look for?
You need to have a strong lead generation strategy in place and use someone that can quickly understand your business aims and target audience to create this.
A good lead generation company will have the right tools in place to help you achieve the maximum impact.
You may wonder why you would spend more money on hiring a lead generation company when you can just buy data.
The problem with this is that you may not get quality data, it could be that you have these details already, they may already be a customer and it could be heavily worked through too.
You need to look for a lead generation company that focuses on quality and not just quantity of leads.
As long as the lead generation company understand and shares the common goal, aims and needs of your business then partnering with a lead generation company could transform the way your business obtains new leads.