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Looking for ways to attract prospective customers to your online business?
One of the most crucial components of this process is lead generation. But what exactly is digital marketing lead generation?
In this article, we’ll break down the concept of lead generation and show you why it’s so important. Plus, we’ll share seven effective lead generation strategies to help you kickstart your efforts and drive growth for your business.
Let’s get started!
What is lead generation?
Lead generation is the process of attracting and converting strangers and potential customers into leads, or individuals who have expressed interest in your company’s products or services.
Think of it as planting seeds, which you can then nurture until they’re ready to harvest.
In digital marketing, lead generation involves various strategies to capture interest and collect contact information from potential customers.
Why is lead generation important in digital marketing?
Lead generation isn’t just a buzzword—it’s a crucial part of any successful digital marketing strategy.
Here’s why:
- Boosts sales and revenue: By identifying and targeting prospective customers, lead generation helps increase your sales and revenue.
- Improves ROI: Efficient lead generation strategies ensure that marketing and sales efforts are focused on prospects most likely to convert, improving your ROI.
- Enhances customer targeting: With lead generation, you can segment your audience based on their interests and behaviors, allowing for more personalized and effective digital marketing campaigns.
- Builds relationships: It helps establish relationships with potential customers by providing them with valuable content and information, and then nurturing them until they’re ready to make a purchase.
Types of leads
It’s important to understand the different types of leads so you can tailor your digital marketing strategies effectively. Let’s take a look at the main types!
1. Marketing qualified lead
Marketing-qualified leads are contacts who have engaged with your marketing efforts but aren’t ready for a sales call just yet.
They might have downloaded a whitepaper or subscribed to your newsletter, showing interest without committing.
2. Sales qualified lead
Sales-qualified leads are contacts who have taken actions that indicate a readiness to engage with your sales team.
This could be someone who has requested a demo or asked for pricing information.
3. Product qualified lead
Product-qualified leads are contacts who have used your product and taken actions that suggest that they’re interested in becoming a paying customer.
This could be a user who has signed up for a free trial and frequently uses the product.
4. Service qualified lead
Service-qualified leads are people who have shown interest in becoming paying customers through interactions with your service team.
This could be someone who has inquired about upgrading their service package.
7 effective lead generation strategies
Now that we understand what lead generation is and why it’s important, let’s explore some effective lead generation campaigns and strategies.
1. Create lead magnets
Creating enticing lead magnets is one of the most powerful strategies when it comes to lead generation.
Lead magnets are valuable resources or incentives that you offer to potential customers in exchange for their contact information. These can take various forms, like ebooks, whitepapers, or even discounts and coupons.
For ecommerce stores, offering a 10% discount code for first-time buyers in exchange for their email addresses is one of the most popular lead magnets. This not only generates leads but also encourages immediate sales, providing a quick ROI.
Check out this lead generation popup example from Vegetology. They offered a mystery discount on the first order as a lead magnet. This adds an element of excitement and curiosity, prompting visitors to provide their email addresses to uncover their discount.
Here’s another example from The Turmeric Co. promoting a recipe book as a lead magnet. This approach is particularly effective for visitors who are more interested in valuable content or informration rather than immediate discounts.
Both of these strategies can work well, and you might need to use different types of lead magnets for different types of visitors.
For instance, visitors who are browsing your product pages are likely closer to making a purchase decision. Offering a discount code can be just the nudge they need.
Here are some popup templates that you can use to promote your discount:
However, site visitors who browse your blog are probably looking for information and insights. Offering an ebook or a whitepaper can appeal to their interests and encourage them to subscribe to your mailing list.
Try these popup templates to promote an ebook as a lead magnet:
2. Use exit-intent popups
Exit-intent popups are a powerful tool for capturing potential leads who are about to leave your site.
These popups are designed to detect when a user is about to navigate away and then display a compelling offer or piece of content to keep them engaged. This last-minute attempt can turn an exiting visitor into a valuable lead.
Are you wondering why they work?
Well, they leverage the psychology of urgency and the fear of missing out. By presenting an offer just as a visitor is about to leave, you capture their attention at a critical moment, giving them a reason to stay or take action before they go.
Adding a countdown timer to your exit-intent popup can enhance its effectiveness significantly, as the ticking clock can motivate visitors to act quickly. For instance, Obvi found that adding a countdown timer to their popup increased their conversion rate by 7.97%.
If you’d like to get started with exit-intent popups, try these templates:
3. Launch ecommerce quizzes
Creating fun and engaging quizzes related to your products is an interactive way to capture leads.
Ecommerce quizzes not only help potential customers find the perfect product but also gather valuable contact information and insights about their preferences.
Many DTC stores use quizzes as a lead generation strategy. Warby Parker, for instance, uses a quiz to help customers find the perfect pair of glasses based on their style and face shape.
Wondering how to use quizzes for your ecommerce business? Here are some ideas:
If you have a skincare brand, you could create a quiz along the lines of “Find Your Perfect Skincare Routine.” Ask questions about skin type, concerns, and preferences to recommend the best products. This approach can help potential customers find solutions tailored to their specific needs.
If you sell wine, you could create a quiz that asks customers about their favorite wine regions and taste preferences. Based on their answers, you can suggest wines that match their tastes, enhancing their shopping experience and increasing the likelihood of a purchase.
4. Create personalized landing pages
Creating personalized landing pages is an effective strategy to enhance the user experience and boost conversion rates. By tailoring your landing pages to match the interests and needs of your visitors, you provide a more relevant and engaging experience.
In the example below, you can see how Obvi matches the landing page headline to their ad copy.
Here’s how to create personalized landing pages:
- Segment your audience: Start by segmenting your audience based on various criteria such as demographics, behavior, location, and purchase history. This will help you understand different user groups and tailor content to their specific needs.
- Dynamic content: Use dynamic content that changes based on the visitor’s characteristics or behaviors. For example, display different headlines, images, or calls-to-action for different segments. (Tip: Try OptiMonk and its Dynamic Content feature for free.)
- Behavioral targeting: Leverage behavioral targeting to show relevant content based on the visitor’s previous interactions with your website. For instance, if a visitor has browsed a particular category, show related products or offers on the landing page.
- Personalized offers: Create unique offers or discounts based on the visitor’s history. For example, if a user frequently purchases a certain type of product, offer a discount on related items.
- Geolocation customization: Use geolocation data to personalize content based on the visitor’s location. This could include displaying local store information, region-specific offers, or content in the visitor’s native language.
- A/B testing: Continuously test different versions of your personalized landing pages to see what works best. A/B testing can help you fine-tune your approach and optimize for higher conversions.
5. Send targeted emails
Email marketing remains one of the most effective tools for reaching out to potential leads and nurturing them. By sending targeted emails with personalized messages and offers, you can significantly boost engagement and conversions.
As an online store, you can send personalized emails recommending products based on your recipient’s browsing history or past purchases.
For example, if a customer recently bought a specific denim brand, you could send them an email featuring the newest arrivals from the same brand, just like Urban Outfitters does in the example below.
6. Focus on SEO
Optimizing your website for search engines through SEO is crucial for attracting organic traffic that’s actively looking for products or services like yours.
SEO is a cost-effective lead generation strategy: unlike paid advertising, it can provide a continuous stream of traffic without ongoing costs.
And high rankings on search engine results pages (SERPs) can drive a significant amount of organic traffic to your website.
But how do you get started?
Start by conducting thorough keyword research to identify the terms and phrases your potential customers are using to search for products or services like yours.
Use tools like SEMrush or Ahrefs to find relevant keywords with high search volumes and manageable competition.
Then, create high-quality, informative, and engaging content that provides value to your visitors. Ensure that your content is original and incorporates your target keywords naturally.
7. Run PPC ads
While it’s more costly than SEO, pay-per-click (PPC) advertising can be a highly effective way to drive targeted website traffic and capture leads. Even better, PPC ads can drive traffic to your website almost instantly (unlike SEO, which can take time to show results).
Also, PPC platforms offer advanced targeting options, allowing you to reach specific demographics or target people with specific interests and behaviors. And you have full control over your ad budget, bidding strategy, and ad creatives, allowing for agile adjustments based on performance.
Just make sure that you select the PPC platforms that best suit your business goals and target audience.
The most popular platforms are:
- Google Ads: Ideal for reaching a broad audience through search ads, display ads, and YouTube ads.
- Facebook Ads: Great for targeting specific demographics and interests with highly visual ads.
- LinkedIn Ads: Perfect for B2B marketing, targeting professionals based on job title, industry, and company size.
A fashion retailer might use Google Search Ads to target keywords like “summer dresses” and “women’s fashion.” They could also use Facebook Ads to showcase their latest collection with eye-catching visuals and retarget visitors who have previously browsed their website.
Lead generation tools
OK—you’ve got the strategies, now you need the right lead generation tools! Here are some essential ones:
1. CRM software
A customer relationship management (CRM) system helps you manage and analyze customer interactions and data throughout the customer lifecycle, improving customer relationships and retention.
CRM tools like Salesforce, HubSpot, and Zoho CRM offer features like contact management, sales automation, and customer support, helping you keep track of your leads and customers effectively.
2. Popup builders
These tools help create attention-grabbing popups that capture lead information on your website.
OptiMonk is one of the best popup builders out there, and it has a free plan to help you get started. It offers various templates and customization options to match your brand and engage visitors.
3. Landing page builders
Design and publish landing pages that convert visitors into leads with ease.
Tools like Unbounce, Leadpages, and Instapage provide drag-and-drop functionality, A/B testing, and integrations with other marketing platforms to help you create high-converting landing pages without needing extensive technical skills.
4. Analytics and data tracking
Use tools to track and analyze the behavior of your website visitors, helping you optimize your lead generation strategies. Google Analytics is a comprehensive tool for tracking website traffic and user behavior.
Heatmap tools like Hotjar and Crazy Egg provide visual insights into how visitors interact with your site, allowing you to identify areas for improvement.
5. Automation tools
Automate repetitive tasks like email marketing, social media posting, and lead nurturing to save time and increase efficiency.
Tools like Zapier, HubSpot, and Marketo can help automate various marketing tasks, ensuring that no leads slip through the cracks and allowing you to focus on more strategic activities.
6. Email marketing platforms
Platforms like Mailchimp, Constant Contact, and SendinBlue help you manage your email marketing campaigns and track their effectiveness.
These platforms offer features like email templates, segmentation, automation, and analytics, enabling you to send personalized and targeted emails to your leads.
7. Advertising platforms
Use platforms like Google Ads or Facebook Ads to reach a broader audience and generate leads through targeted advertising. With these platforms, you can create and manage ad campaigns, target specific demographics and interests, and measure the performance of your ads.
LinkedIn Ads is also an excellent option for B2B marketing, providing precise targeting based on professional criteria.
FAQ
Why is digital marketing important?
Digital marketing is essential because it allows businesses to reach a larger audience than they would with traditional marketing channels. You can target specific demographics, measure performance with precision, and adjust strategies in real-time. Digital marketing also offers a more cost-effective solution for small and large businesses alike, enabling them to compete on a more level playing field.
What is digital marketing lead generation?
Digital marketing lead generation involves using online marketing strategies to attract and convert potential customers into leads. It encompasses a range of tactics such as content marketing, SEO, PPC, social media, and email marketing. The goal is to engage with potential customers and encourage them to provide their contact information, which can then be used to nurture them through the sales funnel until they become paying customers.
How to build a lead generation funnel?
Building a lead generation funnel involves several steps that follow the stages of customer awareness and engagement:
- Awareness: Attract potential leads through content marketing, SEO, social media, and paid advertising.
- Interest: Engage visitors with valuable content such as blogs, videos, and webinars to pique their interest.
- Consideration: Nurture leads with targeted email campaigns, case studies, and personalized content.
- Conversion: Convert leads into customers using compelling calls-to-action, optimized landing pages, and special offers.
- Retention: Maintain customer relationships through follow-up emails, loyalty programs, and by consistently delivering value.
How to generate qualified leads?
Generating qualified leads involves targeting the right audience and providing valuable content that addresses their needs. Try using a popup to offer resources like eBooks or webinars in exchange for contact information.
What are some marketing channels that can be used for lead generation?
Several marketing channels can be effective for lead generation, including SEO, PPC advertising, content marketing, social media marketing, email marketing, webinars and live events, and affiliate marketing.
What’s a lead scoring system?
A lead scoring system ranks leads based on their likelihood of converting into customers. It assigns points to leads based on specific criteria such as demographic information, website behavior, email engagement, and interactions with sales. This helps sales and marketing teams prioritize the leads that are most likely to result in a sale, improving efficiency and effectiveness.
Wrapping up
Lead generation is the backbone of any robust digital marketing strategy.
Now that you understand why it’s so important and what the most effective strategies and tools are, you can transform your marketing efforts and drive substantial growth through successful lead generation campaigns.
Remember, it’s not just about capturing leads—it’s about nurturing them and building lasting relationships.
Ready to start planting those seeds? Your future customers are waiting!
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Written by
Nikolett Lorincz
Nikolett is the Head of Content at OptiMonk. She is obsessed with content marketing and loves creating educational content for ecommerce store owners. She truly believes in the importance of quality over quantity.
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