Essential Lead Generation Basics Every Sales Pro Should Know

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Lead generation is like turning passersby into customers, starting with attracting attention, engaging them, and converting interest into sales.

This guide explains what lead generation is, types of leads, the process, and tools to get started.

What is lead generation?

Lead Generation / noun / Sales

Lead generation is the process of attracting and capturing the interest of potential customers (leads) for your product or service, with the goal of nurturing them into paying customers.

This process typically involves strategies like content marketing, email campaigns, social media outreach, advertising, and events to spark curiosity and encourage prospects to share their contact information.

Types of lead generation

Inbound lead generation

Attracts leads through content, SEO, social media and lead magnets like ebooks or templates.

Outbound lead generation

Involves proactive outreach such as cold emails, cold calls and LinkedIn prospecting.

Organic lead generation

Generates leads naturally through search traffic, social engagement and referrals.

Referral-based lead generation

Relies on existing customers, partners or affiliates to bring in new leads.

Account-based lead generation

Targets specific high-value accounts with personalised campaigns.

Event-based lead generation

Captures leads through webinars, conferences and workshops.

B2B vs B2C lead generation

Category	B2B Lead Generation	B2C Lead Generation
Target Audience	Businesses and decision makers	Individual consumers
Buying Decision	Logic driven, value focused	Emotion driven
Sales Cycle	Longer	Shorter
Lead Volume	Lower volume, higher value	Higher volume, lower value

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Note: What is data collection and how does it support lead generation?

Data collection is the process of gathering information about potential customers such as demographics, behavior, preferences, and interactions across digital channels. This data can come from website forms, social media engagement, email responses, or CRM systems.

In lead generation, data collection plays a crucial role by helping businesses understand their audience, personalize outreach, and identify high-quality leads. By analyzing collected data, marketers can segment prospects, target them with relevant content, and nurture them effectively through the sales funnel, resulting in better conversions and more efficient marketing expenditure.

Lead generation process

Identify target audience

Define your ideal customers based on demographics, behavior, and needs. A well-defined target audience ensures your marketing efforts are focused and effective.

Attract prospects

Use channels like social media, SEO, ads, or events to draw potential customers toward your brand. The goal is to spark initial interest and get them curious about your offerings.

Engage with value

Offer useful content such as blogs, guides, webinars, or free tools to build trust. This positions your business as a helpful resource rather than just a seller.

Capture information

Encourage prospects to share their details through sign-up forms, gated content, or subscriptions. This data becomes the foundation of your lead database.

Qualify and segment leads

Not all leads are equal, so you evaluate their readiness to buy and group them accordingly. This ensures your sales team spends time on the most promising prospects.

Nurture leads

Build relationships with leads by sending personalized emails, sharing targeted content, and offering timely follow-ups. The aim is to keep your brand top-of-mind until they’re ready to purchase.

Convert leads into customers

Once a lead shows strong intent, your sales team steps in to close the deal. This is where effective communication and addressing final objections matter most.

Analyse and optimise

Track performance metrics to see which strategies are working and where drop-offs occur. Continuous analysis helps refine your process for better results over time.

Lead generation metrics

Lead volume

Total number of leads generated in a given period of time.

Cost per lead

Total campaign expenditure divided by the number of leads generated.

Lead conversion rate

Percentage of visitors or prospects who convert into leads.

Lead quality/lead score

Measures how likely a lead is to convert, based on fit and engagement.

Lead-to-customer conversion rate

Percentage of leads that ultimately become paying customers.

Time to conversion

Average time it takes for a lead to move through the funnel.

How to use A/B testing to improve lead generation?

A/B testing helps you optimize lead generation by comparing two versions of a webpage, ad, form, or email to see which performs better.

How it works:

Choose what to test: Headlines, CTAs, form length, landing page layout or email subject lines
Create two versions: Version A (original) and version B (modified with one change)
Run the test: Split your audience randomly and collect enough data using tools like Google Optimize
Measure results: Track conversion rates, clicks or sign ups
Apply insights and repeat: Implement the winning version and keep testing new elements

For example: Dropbox improved signups by simplifying forms.

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