{"id":375,"date":"2020-10-23T13:18:00","date_gmt":"2020-10-23T17:18:00","guid":{"rendered":"https:\/\/opentextbooks.concordia.ca\/digitalmarketingdraft\/chapter\/act-lead-generation-and-lead-nurturing\/"},"modified":"2021-10-27T14:02:11","modified_gmt":"2021-10-27T18:02:11","slug":"act-lead-generation-and-lead-nurturing","status":"publish","type":"chapter","link":"https:\/\/opentextbooks.concordia.ca\/digitalmarketing\/chapter\/act-lead-generation-and-lead-nurturing\/","title":{"raw":"Act: Lead Generation and Lead Nurturing","rendered":"Act: Lead Generation and Lead Nurturing"},"content":{"raw":"

Overview<\/h1>\r\nIn this chapter, we cover the basics of lead generation and lead nurturing activities. We define leads and lead stages, present a few ways to generate leads and different types of opt-ins, explain how to score leads, and discuss email marketing.\r\n
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Learning Objectives<\/p>\r\n\r\n<\/header>\r\n

\r\n\r\nUnderstand what a lead is\u00a0and how to generate, score, and nurture leads.\r\n\r\n<\/div>\r\n<\/div>\r\n

ACT<\/strong><\/h1>\r\nInterAction is about encouraging positive interactions on a website and social media. Positive interactions facilitate the generation of leads, which lead to acquiring customers. The two objectives at the Act stage are thus to (1) encourage positive interactions and (2) generate leads. The kinds of goals we can set up for consumers have to do with these two objectives. To encourage positive interactions, we can set up goals such as spending a certain amount of time on our website or viewing a certain number of pages. When consumers achieve these goals, we can assume we are attaining this first objective. For generating leads, the kinds of goals we can set up for consumers are to register as a member or sign up for a newsletter. Again, when consumers achieve these goals, we end up achieving our objectives (i.e., acquiring leads). The KPIs to measure these goals would then be time spent on site, page views, number of members and newsletter subscribers (increase quarter-over-quarter), cost per lead, and percentage of visitors converted to leads.\r\n

Leads and Lead Generation<\/strong><\/h1>\r\nThe large majority of visitors to your website\u2014some say up to 96%<\/a>\u2014will not buy anything. Given all the resources that go into bringing visitors to your site, from writing content to publishing ads, simply trying to get visitors to a website without having a strategy of what to do once they get there will lead to many missed opportunities.\r\n\r\nTo address this conundrum, digital marketers have turned to lead generation to answer the question: How do we turn a visitor into a potential customer?\r\n\r\nMarketo<\/a> defines lead generation<\/strong> as \u201cthe marketing process of stimulating and capturing interest in a product or service for the purpose of developing sales pipeline.\u201d During lead generation, our goals are to gather visitors\u2019 personal information so that we can start to market to them personally in the future\u2014and to identify whether or not we want to market to them. Not all visitors that we gather information on are worth marketing to.\r\n\r\nA lead<\/strong> is (1) a qualified potential buyer who\u00a0<\/span>(2)<\/span> shows some level of interest in purchasing a firm\u2019s product or service. Note that this definition has two components. First, the visitor who provided their information is a qualified potential buyer. This means that they could eventually purchase our product. For many visitors to a website, this is not the case.<\/span>\r\n\r\nTake, for example, the lead generation activity by Ferrari linked here<\/a>, which is quite common in the automobile industry: a car configurator. During car configuration, visitors are invited to build their own car based on a car model, choosing between options to decide on things such as interior and exterior colors, engine, wheels, and so on. At the end of the configuration, the visitor is asked to create an account or fill out a short form and provide their email address to receive more information about this model or save the configuration. Doing so indicates to the firm that the consumer is potentially interested in this vehicle.\r\n\r\nBut are all visitors who build their own Ferrari potential Ferrari customers? Probably not.\r\n\r\nCar configurators are probably used by many consumers who either have no interest in buying the car and are doing this for fun or, in the case of Ferrari, who have an interest in buying the car but do not correspond to the Ferrari customer (e.g., they lack the financial resources to buy a Ferrari). These visitors are not qualified. <\/em>A qualified lead<\/strong> is a lead that has been deemed likely to become a customer. Firms qualify leads through lead scoring, which we discuss further below.\r\n\r\nSecond, the visitor who provides their email address also needs to be interested in becoming a buyer. Since many lead generation activities provide, for example, hard-to-access information such as market reports or extensive guides on topics, it often happens that visitors will provide their email address without wanting to become a customer. They do so because they want to have access to the gated content or feature of a website. Lead scoring also helps differentiate between these two types of potential leads.\r\n\r\nHence, a lead is a visitor that is interested in a company and that the company is also interested in.\r\n\r\nIn the process of becoming a customer, a visitor will thus go through different stages, from visitor to lead to qualified lead to customer (an alternative to this model that you might come across is lead, prospect, and opportunity). Two types of qualification exist: marketing-qualified lead<\/strong> (MQL) and sales-qualified lead<\/strong> (SQL). MQLs are viable leads that should be marketed to. In other words, they are visitors who gave a firm their email address and who the firm has established could be potential customers. They are visitors that the firm is interested in. An SQL is a lead that is sales-ready. In other words, a lead that is moving close to the purchase stage. This is important because it gives an indication of what kind of marketing activities should be conducted with these leads. As we have seen, we talk differently to consumers depending on whether they\u2019re at the awareness, active evaluation, or purchase stages. Knowing which stage consumers are at is highly useful for creating the right marketing message.\r\n

How Do You Get Leads?<\/h2>\r\nThere are many, many ways to get leads. Generally speaking, any marketing activity that leads consumers to give a firm a piece of personal information qualifies as a lead generation opportunity. Here is a non-exhaustive list:\r\n