Episode 2: Types of leads and Ways of lead generation.
What is a lead?
Any person or a company who is ready to buy your products or services is a lead. They may or may not buy depending on various factors like pricing, comfort level, brand, ease of doing business etc. The potential customers who are capable enough to buy your products and are searching for your products or services can be your leads.
Two types of leads
Type 1: When people are actively searching for what you are selling. Imagine you are an AC sales person or a distributor and people are actively looking to buy ACs on the Internet, or other listing services, these can be your leads.
Type 2: People who do not even know your product exists in the market. Imagine you have developed a new kind of an AC, which consumes very less electricity and is much cheaper than the competitive products. Here, you have to educate the customers and make them aware you exist.
This is a different kind of a lead generation. Here you have to determine who is going to be your target audience and you have to reach out to them with the right message, right awareness and the right offer.
You have to reach out and say – “Hey, we exist, this is what we sell and you might want to buy from us.”
Ways of lead generation
Fundamentally, there are two ways of lead generation. Mass lead generation and Personalised/Customised lead generation.
Mass lead generation works where a lot of people and businesses are coming to buy certain products or services. For eg – JustDial, Fiverr, freelancer or Sulekha. A lot of buyers come and search these platforms, looking for particular services and want to be connected to businesses who can offer them. And all those businesses who offer such services come to this platforms and these leads are basically passed on to all of them. Imagine you are one of those AC distributors and somebody is planning to buy an AC. All the AC distributors, along with you will be given a lead and you have to compete with all of them to get business.
Cost per lead is less in the model and this is the biggest pro for this kind of lead generation. The downside is that one has to compete for pricing, delivery and a lot of other factors. So that is why it is good for those kinds of products which have a lower margin and are extremely easy to sell. It is purely a game of numbers here. Buyers are extremely priced sensitive and often overlook the quality.
Personalized lead generation is the second way, and how it works is very simple. Imagine you run your own brand or you are a real estate developer and you have plots, apartments and villas for sale. You have a good number of inventory and want to sell to a certain kind of people.
Now you can generate leads on your own. How do you do that?
You can use platforms like Facebook, Twitter, LinkedIn and Google to run advertisements on your own. You run advertisements on your own under your own brand name and show these advertisements to targeted users. All those who see your advertisements, can leave their phone number and details with you. Now you can make a call, have a discussion, fix an appointment and close the deal.
This is the best form of lead generation because it eliminates competition. There are no negotiations with 10 other vendors at the same time. The customers might be checking various quotes from different vendors, but since you have come through to them directly, it is far easier to sell to these kinds of leads. This kind of lead generation is slightly costlier and it has to be done by you or a lead generation company. It is costlier because it is personalized, it builds your brand and you have to fight off much less competition.
The best part is, prospects here assess the quality of your offer besides the price and you have a chance to distinguish yourself and your company.
Also after you reach a certain level, the brand sells for you. Apple iPhones also run their advertisements, they do not need to push their products really hard. They have built their own brand and it is much easier for them now.
In the upcoming episodes, we will discuss the following topics:
How are leads generated?
Why should I become your lead?
The death of cold calling!
How lead generation can save your life?
What to do, what not to do with leads?
Is your website leaking money?
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