What Is a Lead?

A lead is any person who shows interest in the product/service of your business in some way, shape, or form.

Leads typically hear from a business after opening communication (e.g. by submitting personal information for an offer, trial, or subscription).

That being said, leads are, thus, generated through data collection. This data collection could come as the result of a job seeker showing interest in a position by completing an application, a shopper sharing contact information in exchange for a coupon, or a person filling out a form to download an educational piece of content.

Types of leads

It should be noted that not all leads are the same. There are different types of leads based on how they are qualified and what lifecycle stage they’re in.

There are three main types of leads in marketing:

Information qualified lead (IQL) – leads that are at the beginning of the buyer’s journey. In this stage, your business should offer helpful information about a topic relevant to the person’s query in exchange for personal data like their name, email address, location, etc. This type of marketing lead is also called a “cold lead.”

Marketing qualified lead (MQL) – leads that are in the middle of the sales funnel. They continue to express interest in your business. This type of lead is also called a “warm lead.”

Sales qualified lead (SQL) – leads that are at the bottom of the funnel. They express their willingness to make a purchase. It is also called a “hot lead.”

Leads are yet to be converted strangers into prospects and, later, into paying customers. Sales representatives use the lead’s contact information to send sales-pitch emails, and direct marketing materials and to make outbound sales calls.

There are several elements that determine the quality of the leads, such as whether the level of incentive to offer contact information, the accuracy of the data provided and, consequently, the validity of the lead.

A lead’s validity depends on whether the targeted person was aware of the sales opportunity when they responded.

How to generate leads

Leads can be generated through:

• Advertising
• Networking
• Direct mail or e-mail campaigns
• Websites
• Search engine optimization
• Buying a sales lead list
• An inquiry becomes a qualified lead when it meets the following criteria:
• Fits the ideal customer profile and target account demographics.
• Has interest from the right decision-maker contact.
• Has a clear problem or defined need that we can solve.
• Plans to evaluate the solution in three months.
• Plans to make a purchase decision in six months or less.
• Is ready to speak/meet with sales representatives within 2 weeks.