Lead generation refers to the process of increasing interest in a company’s products or services through various methods such as cold calling, emailing, and online advertising, aimed at both businesses and individuals. The goal is to acquire potential customers who are likely to make a purchase in the future.

For sales professionals, increasing sales is the main mission, and acquiring new customers is a constant requirement. However, blindly pursuing new leads without a specific target can lead to wasted time and resources, and often does not result in successful transactions.

With the shift towards digital due to recent changes in the social environment, it has become increasingly necessary to devise a strategy that combines both real-world and digital approaches to efficiently generate leads.

For those sales or marketing roles, it’s crucial to have a thorough understanding of lead generation in today’s era. This article explains the concept and methods of lead generation in an easy-to-understand manner for beginners.

What is a Lead?

A lead, in marketing terms, refers to a potential customer. Originally, the English word “lead” means “clue” or “prompt,” and in marketing and sales, it denotes someone who is likely to become a customer in the future.

For a B2B business, a lead might include information such as the company name, contact name, department, phone number, and email address.

However, the definition of a “lead” varies between departments. Particularly, the marketing and sales departments may have different processes for lead generation, and thus, the criteria for a potential customer can differ significantly, categorized into four stages: Inquiry, MQL (Marketing Qualified Lead), SQL (Sales Qualified Lead), and Close.

The difference in leads between marketing and sales lies in the scope of the potential customer. The marketing department defines a broader range of customers, such as those who register for newsletters or make inquiries, while the sales department focuses on those with a high likelihood of placing an order or making a purchase.

Lead in Marketing

In marketing, the leads handled by marketers fall into two categories: “Inquiry” and “MQL (Marketing Qualified Lead).”

Inquiry 

An “Inquiry” refers to a customer at the stage where they have shown interest in a company’s products or services by requesting materials or filling out a contact form.

MQL (Marketing Qualified Lead)

An MQL is a customer who has been engaged through content delivery, newsletter distribution, web ads, seminars, trade shows, etc., after the initial Inquiry stage. These customers are further vetted based on their interest level. Marketers nurture these leads until they are ready to be handed off to the sales team.

Leads in Sales

The leads handled by sales professionals are more refined from the MQL stage, known as “SQL (Sales Qualified Lead),” which includes “SAL (Sales Accepted Lead)” and “SGL (Sales Generated Lead)” based on the method of acquisition.

SQL (Sales Qualified Lead)

An SQL refers to a customer who is in the direct approach phase by sales, including those inherited from the marketing department as SAL and those acquired by sales activities such as cold calling, referred to as SGL.

Close

A “Close” refers to a customer at the stage where negotiations have been successful and a contract has been signed. Due to differences in lead interpretation between departments, it is crucial to understand the distinctions at each process stage and align interdepartmental efforts to facilitate smooth internal coordination.

Lead Acquisition

Lead acquisition, also known as lead generation, refers to the strategies employed to gain potential customers. It’s essential for business expansion and increasing sales to acquire many leads that could potentially lead to purchases.

Leads are categorized based on buying intent into “hot leads, cold leads, and anonymous leads,” with different approaches and strategies implemented for each category.

Hot Lead

A hot lead refers to a highly likely potential customer who has shown significant interest in a company’s products or services, such as through requesting materials or making inquiries, and is close to making a purchase.

Cold Lead

A cold lead refers to a lead with low likelihood, showing low interest despite actions like seminar attendance or material requests, and has not been motivated to purchase, making a transaction unlikely.

For these customers, it’s necessary to implement strategies like inside sales, content delivery through owned media, and newsletter distribution, fitting their buying intent stages into models like AIDMA or AISAS.

Anonymous Lead

An anonymous lead refers to a lead without obtainable personal information, making it impossible to identify the individual. As potential customers, changing a company’s site to a membership-required model to gather information can be effective. With increasing regulations on personal data handling, how this information is utilized becomes a critical point moving forward.

Purpose of Lead Acquisition

The purpose of lead acquisition is to enable efficient and effective sales activities. The data from leads typically includes information from users already interested in the company’s services or products, such as names, email addresses, company names, departments, and phone numbers. By reaching out to these leads with service offers or appointments, it is easier to generate sales than by broadly advertising to the general public.

Even if immediate purchase actions do not occur, the counterpart is still interested in the company, which can reduce the potential for a negative image from continued sales efforts. Furthermore, acquiring leads can help build a positive trust relationship, turning today’s prospects into tomorrow’s strong customer candidates.

Successful lead acquisition not only contributes to immediate sales but also expands the potential for future revenue.

Steps for Creating a Lead Acquisition

Plan Effective lead acquisition requires clear goal setting. Please set specific targets as follows.

-By when

-Which user demographics

-How many approaches

-How many leads to acquire

Method for Calculating Lead Acquisition Numbers 

Calculating lead acquisition numbers involves the following three stages.

• Setting KGI
• Setting KPI
• Calculating lead acquisition numbers

Setting KGI

KGI stands for Key Goal Indicator. For example, a revenue target could be set to achieve 120% of the previous year’s figures. Please set specific numbers and the ultimate goal.

Setting KPI

KPI means Key Performance Indicator. It represents intermediate metrics within the process leading to the final goal set by the KGI. Calculate what numbers need to be achieved at which stages, working backward from the KGI.

For example, based on the previous KGI, if the revenue target is 120% of the previous year, calculate how much revenue is needed this month to stay on track.

Calculating Lead Acquisition

Numbers Calculate how many leads need to be acquired to meet the target amount set by the KPI.

Once the target number of leads to be acquired is determined, consider what methods would be effective in achieving these goals.

Methods of Lead Acquisition

There are two types of lead acquisition methods: “Outbound,” where the company initiates contact, and “Inbound,” where leads come from the prospective customers’ initiatives.

Outbound aims to acquire a wide range of leads with lower certainty, using methods such as direct mail or newspaper inserts. In contrast, inbound aims to acquire high-certainty leads by regularly providing valuable information through owned media and creating systems that lead to inquiries.

However, since leads (prospective customers) have two attributes—latent and manifest—it is necessary to define the persona of the prospective customer first to determine the target for the approach.

Approaches can be both online and offline, and by combining methods that are likely to reach the set personas, leads can be efficiently acquired.

Offline Methods

• Telephone calls
• Distribution of flyers and pamphlets
• Transit and billboard advertising
• Trade shows

Telephone Calls

This method involves approaching using the telephone, either by purchasing lists from external vendors for new prospecting or by making calls to the company’s existing customer list.

Distribution of Flyers and Pamphlets 

This involves distributing flyers inserted in newspapers or distributing pamphlets through visits. The advantage is being able to reach a large number of people at once, but the disadvantage is that targeting can be challenging.

Transit and Billboard Advertising

This method involves placing advertisements in trains, stations, and other public transit areas. Due to recent changes in work styles, this approach only reaches people who are out and about, which can be a limitation. However, it is an effective strategy for increasing brand awareness among those who are outside.

Trade Shows 

Participating in trade shows is a method that effectively gathers manifest customers. It allows for direct interaction, such as exchanging business cards and engaging in discussions on the spot, which can efficiently lead to acquiring potential customers.

Online Methods 

-Newsletter Distribution 

-Press Releases 

-Advertising: PPC, Display, Video, Social Media 

-Marketing: Content, SEO, Social Media 

-Hosting Webinars and Online Study Sessions

Newsletter Distribution

This method involves actively sending out information about company products, updates, and content to an owned mailing list.

If the information is perceived as valuable by customers, it can lead to regular subscriptions and possibly consider the company’s products or services when issues arise.

Press Releases

This method involves posting press releases on websites that allow them. By including the URL of the company site, it aims to drive traffic from these postings.

Web Advertising: PPC, Display, Video, Social Media 

This involves placing ads on the web to direct traffic to the company website. After directing traffic, it’s crucial to have forms for inquiries or requests for materials to gather customer information.

Web advertising includes PPC ads that target users with high purchase intent and display ads that broadly reach potential customers. Additionally, placing ads in YouTube videos or distributing ads on platforms like Instagram and Facebook has become increasingly common. Choosing social networks that are heavily used by the target demographic and broadcasting information that captures their interest is effective.

Marketing: Content, SEO, Social Media 

This involves providing users with the information they truly seek, such as answers to their questions, interests, and solutions to their problems. Methods include publishing articles, using social media platforms like Facebook, Twitter, Instagram, and deploying videos on YouTube.

Simultaneously, enhancing the SEO (Search Engine Optimization) of owned media to appear higher in search results can effectively drive traffic.

For instance, in cosmetics marketing, creating an article with a theme like “Top 10 New Cosmetics” and incorporating links to an e-commerce site to increase inquiries can be a successful strategy.

Hosting Webinars and Online Study Sessions

There are ways of hosting webinars and online study sessions. This method is effective for attracting potential customers by delivering your company’s expertise and engaging content in a seminar format. It helps participants realize their “needs and interests” that they may not have been aware of before, thereby increasing their interest and engagement.

If attendees already have an interest in your company’s services or products, the likelihood of progressing to a business discussion increase.

Lead Acquisition Steps

The lead acquisition process includes “lead generation, lead nurturing, and lead qualification.”

Lead Generation

Lead generation refers to a series of marketing activities aimed at acquiring leads, both offline and online, by engaging potential customers. A key aspect is attracting a large number of potential customers. Here are some methods.

-SEO

-Exchanging business cards at trade shows 

-Seminar registrations 

-Acquiring web inquiries

Especially when hosting seminars, it is crucial to focus on providing valuable information to potential customers rather than solely promoting your products or services. At this stage, as it’s primarily about raising awareness of your products or services, leads need to be nurtured in the subsequent lead nurturing phase.

Lead Nurturing

Lead nurturing involves regularly providing valuable information to leads identified during the lead generation phase, thereby increasing their interest and inclination towards making a purchase. Some methods include the following.

-Invitations to members-only events

-Sharing success stories

-Providing updates about your products or services

-DM

When nurturing leads, focus on the following four points.

-Customer journey

-Manage leads through the process

-Decide the information to provide at each stage

-Determine the medium for information delivery

For B2B companies, multiple approvals are often required before a purchase decision is made, so it’s necessary to analyze and score specific events like document downloads or seminar attendance and provide relevant information through appropriate media at each stage.

Lead Qualification

Lead qualification involves using data analysis to identify leads with a high likelihood of making a purchase or closing a deal and narrowing down the leads to be handed over to sales.

A typical method is scoring, where leads are scored based on their attributes, interests, and behaviors to determine their purchasing intent.

Setting Goals for Lead Acquisition

Now that we’ve explained the concept and methods of lead acquisition, let’s discuss how to set targets.

Set KGI (Key Goal Indicator)

The Key Goal Indicator refers to the final goal set with specific numerical targets.

Set KPI (Key Performance Indicator)

The Key Performance Indicator refers to intermediate metrics that help achieve the goal. KPIs can be calculated by working backward from the KGI, setting monthly sales targets or order volumes.

Calculate the Number of Leads Needed

Based on the KPI, calculate the number of leads needed. 

For example, if the KGI is set to achieve sales 120% of the same month last year, set the necessary KPIs (monthly orders, sales, etc.) and determine the required number of leads from past conversion rates.

Recommended Methods to Increase Lead Inflows

After setting the KPI, you need to implement lead acquisition strategies to achieve the target. Before that, increasing the “number of visits” to your site is essential.

SEO (Search Engine Optimization) is a vital strategy for lead acquisition as it aims to rank higher on search engines.

For example, if your service is “iPhone buyback,” when users search for “iPhone buyback” online, appearing first in search results can bring in many inquiries and lead acquisitions.

Recent studies have shown that SEO was the most cost-effective online lead generation method in 2021 due to its ability to reach potential customers effectively, given Google’s status as one of the most trusted brands worldwide.

In Japan, Google holds about 70% of the search engine market share, and Yahoo! uses Google’s technology, making SEO essentially a strategy for Google.

People trust Google because it consistently provides satisfactory search results, making frequent use of Google search by your target audience. 

Therefore, ranking high in Google search results can significantly increase lead acquisition.

Direct Lead Acquisition Through SEO 

At a basic level, the goal of SEO is to guide new visitors to your website via Google and convert them into leads through your website’s content. To achieve this, you need to do the following.

Direct lead acquisition via SEO involves ranking high in transactional queries. Understanding search intent and providing high-quality content that meets users’ needs is crucial.

Transactional queries are queries filled with purchase intent, such as service applications, and successfully ranking in these searches can directly result in lead acquisition.

Indirect Lead Acquisition Through SEO Content

SEO not only directly acquires leads but also uses the content created for SEO to indirectly acquire leads through other marketing channels. Here’s how SEO content synergizes with other marketing channels.

SEO Strategies for Lead Acquisition 

Specific strategies include internal measures (optimizing site content) and external measures (acquiring backlinks), content creation, and optimizing page experience. Here are three key strategies.

Increase Website Load Speed 

The load speed of your site is crucial. Even if there is no issue with the network conditions on smartphones or PCs, slow page loading can be seen as inconvenient by users, negatively impacting your SEO rating.

You can analyze your website’s load speed using the following tools.

• Google PageSpeed Insights
• Google Analytics

Set Appropriate Keywords and Page Titles 

First, understand your persona’s customer journey, then anticipate appropriate keywords. Use tools to analyze search volume and user intent, then set page titles to drive site visits, such as

• Google Keyword Planner
• Google Trends

When setting up, it’s important to place the keyword towards the beginning of the title to make it clear to users, within 35 characters in the website’s <title> tag. 

Also, setting the page’s benefits in the meta description can more effectively guide site visits.

Example: If the keyword is “SEO strategies,” a potential title could be as follows.

Quality Content Creation

Provide valuable content that contains the information users want to learn, aimed at enhancing recognition of your company’s products or services.

Here’s a workflow for creating high-quality content.

• Analyze 3Cs (Customer, Company, Competitor)
• Select keywords
• Create article structures
• Write articles (ensuring credibility, expertise, uniqueness, shareability)
• Maintain articles (rewrite as needed)

Moreover, content articles remain as assets on your site even as search engine algorithms change, and good compatibility with social media means that effective articles can reach a wide audience. For more on content SEO, please refer to this article.

Efficient Methods for Lead Acquisition

To streamline the entire process of lead acquisition, consider using MA. 

MA stands for Marketing Automation. With MA, you can automate the flow of marketing activities from lead acquisition through lead nurturing to lead qualification, handling vast amounts of data across multiple stages. Automating these processes increases the accuracy and efficiency of marketing activities, simplifies data management, and eases collaboration with sales departments.

To enhance lead acquisition accuracy and boost sales, it is crucial to continuously experiment and adjust strategies using the PDCA cycle. Implementing MA can help you maximize efficiency and quickly turn a profit with this system.

MA vs. SFA 

You might also come across the term SFA, which stands for Sales Force Automation, a system used to streamline sales activities. While MA enhances marketing and helps acquire high-quality leads, SFA supports converting those high-quality leads from MA into customers.

Whether to prioritize the introduction of MA or SFA depends on the company’s policy and challenges. Strengthen marketing with MA and sales with SFA as needed.

Summary

Lead acquisition refers to strategies for gaining prospective customers, a critical step for business expansion and increasing sales. It’s essential to attract a large number of leads and convert them into purchases, but initially, increasing site traffic is crucial. We introduced “SEO strategies” as an example. The challenge with SEO is “continuity.” Needs and trends change daily, as do the keywords people search for. Therefore, it’s essential to continuously check trends and make improvements. Given the extensive work involved in internal and external measures, content creation, and optimizing page experiences, building a stable system capable of consistent response is essential. Consider outsourcing some tasks to a specialized SEO partner.