What is a Lead in Marketing and How Do You Find Them?

Lead generation is the lifeblood of business the world over. Without powerful lead generation strategies that draw in a constant stream of high-quality leads, businesses miss sales opportunities and may even, eventually, fail. That’s why companies spend literally thousands of dollars a month on lead generation and marketing efforts (more than half spending 50% of their whole budgets on the pursuit!). Businesses also invest heavily in targeted ad campaigns across platforms like social media and Google to reach specific audiences and generate leads.

While its importance can’t be overstated, lead generation can be a tricky and confusing topic. Firstly, there’s the terminology (the ‘sales funnel’ and the ‘lead scoring’, the ‘sales qualified leads’ and the ‘marketing qualified leads’). Then, there’s the difficult process of actually building effective lead generation strategies across multiple marketing channels.

It can all be a little overwhelming.

But don’t worry - you’re in the right place. Today, we’re going to answer all your burning marketing lead gen questions, including: ‘What is a lead in marketing?’, ‘what are the different types of leads?’, ‘how do you position them in the sales funnel?’, and ‘what are the best ways for marketers to consistently generate leads?’

So sit tight while we take a rollercoaster tour through all things lead generation!

So what is a lead in marketing?

Put simply: a lead is a potential customer who has shown interest in your company's product or service.

Usually, sales reps will know potential customers have shown interest in your product or service when they complete one of a few desired actions, such as:

• Filling out a form
• Downloading an eBook
• Engaging with content
• Reaching out via email

But what are the different types of leads?

Lead generation gets complicated, however, when we start to look at the different types of leads. That’s right: not all leads are the same, and each type has its own place within the sales funnel and perhaps its own ‘score’ (but more on lead scoring later). A lead scoring system helps marketing teams evaluate and prioritize leads based on their engagement and fit.

In general, there are a few main types of leads to understand:

• Marketing Qualified Leads (MQLs): Leads identified by the marketing team as more likely to become customers based on engagement.
• Sales Qualified Leads (SQLs): Leads vetted by the sales team, indicating that they are ready for direct sales outreach.
• Product Qualified Leads (PQLs): Leads who have interacted with the product, usually in freemium or trial models.
• Cold, Warm, and Hot Leads: Levels of engagement and readiness to purchase.

Qualifying leads involves using frameworks and criteria to determine if a lead is ready for sales engagement or needs further nurturing.

Why are marketing leads so important?

There's a reason that 85% of B2B companies say that lead generation is their number one marketing priority. And it's not just about closing more deals.

Lead generation is pivotal to scaling a business. Marketing efforts can help you increase not only the number of sales, but the size of your deals, too. And as your company size grows, your brand awareness and brand authority (not to mention your company's product or service) should also improve.

Furthermore, healthy lead gen practices help to establish and maintain long-term customer relationships, increasing your rate of return customers.

Different stages of lead generation

So how exactly does a company generate leads?

Unfortunately, it’s not as simple as reaching out and calling it a day. Marketers use a funnel to represent and guide the lead generation process in different stages. Understanding the buyer's journey is essential for guiding leads through each stage of the funnel, from awareness to decision.

Let’s take a look at those stages:

1. Lead generation

The first step is to find and capture lead information (or, ‘convert into prospects’). Sales teams usually achieve this through a combination of channels, such as email marketing, cold calling, scouring databases, researching company directories, or engaging with social media. Marketers often use forms and real-time interactions to capture lead information like contact details.

2. Lead nurturing

Next, sales reps have to gradually guide those new leads through the sales funnel to the point where they’re ready to buy. Naturally, this is the longest stage, and can take months. Reps do this through consistent communication, providing valuable information to build trust.

3. Lead conversion

Now it’s crunch time. The sales team has to persuade leads to make the purchasing decision, converting ‘leads’ into ‘customers’. Having a clear sales process helps move leads efficiently from initial interest to becoming customers.

And remember that earlier we mentioned different kinds of ‘qualified leads’? Well, lead qualification could also be considered a stage. Basically, lead qualification is the process of assessing prospects based on their engagement, demographic fit, and intent. So someone who fits your ICP, wants your solution, and has shown interest would be a ‘qualified lead,’ whereas someone who fits your ICP but isn’t so interested would rank lower.

Find sales qualified leads and marketing qualified leads: proven strategies

There’s no one-size-fits-all when it comes to reaching potential customers and finding marketing leads, as the strategies that work best for you will depend on your industry and business. Businesses can leverage various promotional channels, such as websites and social media, to attract and convert leads.

There are, however, several tried-and-tested lead generation strategies that companies the world over use to start the sales conversation.

1. Content marketing

To generate leads effectively, it's essential to create content that attracts, engages, and nurtures potential customers throughout their journey.

Content marketing is part of what’s called ‘inbound lead generation’; this means that it’s about drawing customers into your business with high-quality, relevant content that speaks to them. That could be a blog post or an eBook, a case study or a video guide - whatever it is, it must attract potential customers’ attention and keep it.

In fact, it’s such a popular lead gen method that 82% of marketing companies invest in it.

Optimizing content for search engines is crucial for increasing visibility and attracting organic traffic. Search Engine Optimization (SEO) is a big part of content marketing. This is how companies make their content rank higher up on Google search engine results pages (SERPS).

Search Engine Optimization involves carefully filling your content with the right keywords in the right volume. There’s an art to SEO, and we can’t go into everything involved here, but head over to Google’s starter guide for more details!

2. Marketing on social media platforms

Social media platforms like Facebook, X, Instagram, and most significantly LinkedIn are ready-made customer hubs. So it makes sense to leverage them as much as possible to generate leads.

And that doesn’t just mean scouring groups for potential customers. Social media marketing involves careful attention to detail and constant engagement. To successfully engage your target audience on social media, you should:

• Perfect your profile
• Make regular social media posts
• Provide valuable content
• Engage with others (through likes, comments, and shares)
• Connect with existing customers
• Post lead magnets

Additionally, interactive content such as quizzes, contests, or giveaways can be used to collect contact details from engaged users, helping you build your marketing list.

3. Email marketing

It’s estimated that email marketing rakes in around $12.3 billion a year worldwide. And it’s no wonder why: it’s quick, relatively cheap, and can be done in bulk.

But it’s not easy. Companies conduct a lot of research into exactly when to send emails, how to write compelling subject lines, and how often to send follow-ups. Be sure to find our other blog posts on these topics for expert insights.

The key factor, though, is that your sales emails should be personalized email campaigns and contain lead magnets like newsletters, gated content, or exclusive offers to hook the recipient. When using lead magnets, make sure to provide relevant information tailored to the recipient's interests and their stage in the funnel. Including helpful information in your email campaigns builds trust, fosters strong relationships, and encourages engagement. When a new lead is added to your email marketing system, segmenting them based on their behaviors and interactions can improve targeting and increase engagement.

4. Pay-per-click advertising (PPC)

Paid advertising is one of the most effective ways to attract website visitors. With PPC, Google Ads, Facebook Ads, and other platforms, you can drive traffic to a dedicated landing page optimized for lead generation, where visitors are encouraged to fill out forms or respond to calls-to-action.

Targeting specific demographics with keywords is crucial if you want to get noticed by your target audience, but avoid spammy words and clickbait titles at all costs!

If you can pull PPC ads off, though, the returns can be incredible: in fact, it’s estimated that the average ROI on PPC is 200%!

5. Networking and referrals

The age of door-to-door sales may be disappearing, but that doesn't mean there aren't opportunities to capture sales-ready leads in person.

Your marketing team should be making the most of trade shows and conferences in your area - not only are they great places to show off your product or service, but they're ideal for making connections and building relationships, too.

Incentivising referrals with a referral program is also a great idea. Put simply: people prefer to buy from someone recommended by a friend than someone who called them. Evidence backs this up, too: B2B organizations with referrals have 71% higher conversion rates than those who don't.

The role of chatbots and live chat in lead generation

In today’s fast-paced digital landscape, chatbots and live chat have become indispensable tools for businesses looking to supercharge their lead generation efforts. By offering instant, real-time communication on your website or social media platforms, these tools allow you to engage with potential customers the moment they show interest—no waiting, no missed opportunities.

Chatbots, powered by AI, can greet website visitors, answer common questions, and guide users to relevant content or products, all while capturing valuable lead information such as names, email addresses, and specific pain points. This immediate interaction not only helps attract potential customers but also ensures that your marketing team is collecting higher quality leads who are actively seeking solutions.

Live chat takes this a step further by connecting potential customers directly with a sales rep or support agent. This personal touch can make all the difference in moving a lead through the sales funnel, as it allows for tailored responses and real-time problem-solving. Whether it’s helping a visitor navigate your product offerings or addressing concerns before a purchase, live chat can turn a casual browser into a qualified lead ready for a sales conversation.

Integrating chatbots and live chat into your marketing efforts also means you’re available 24/7, capturing leads even outside of regular business hours. This always-on approach ensures you never miss a chance to engage with a potential customer, giving your sales team a steady stream of new leads to nurture and convert.

Incorporating these tools into your lead generation strategy is a best practice for modern businesses aiming to stay ahead of the competition. By providing immediate, personalized support, chatbots and live chat not only enhance the customer experience but also drive more leads into your sales pipeline—helping you grow your business and close more deals.

Start your journey with your first sales qualified lead today

Lead generation is no walk in the park. It takes a long time to master the different elements involved in finding marketing qualified leads and turning them into paying customers.

We’ve covered some of the most popular methods, including inbound techniques such as content marketing and SEO and outbound approaches like emailing and PPC. The truth is, though, that every great lead generation strategy integrates a mixture of multiple channels. In other words: don’t put all your eggs in one basket!

See how Leadium can help you build a better pipeline and start engaging with more qualified leads today. Reach out to our team for experienced, expert advice you can action for better sales!

For even more ways to boost your results, check out our additional resources, including downloadable guides and exclusive content, to further enhance your lead generation efforts.