Whatever service or good your company offers, finding and cultivating a clientele is essential to its success. While conventional advertising strategies might draw some attention, lead generation enables you to identify the people most likely to become devoted clients. Get professional advice on lead generation tactics in this guide, and learn why CRMs (customer relationship management systems) are particularly useful.

How to generate leads

A company that provides services to customers or other businesses needs to locate its clients someplace. The best way to do that is through lead generation.

According to Goldberg, CEO of investment firm RNMKR, “lead generation is the process of creating and capturing interest in a product or service for the purpose of increasing your client base and revenue.” Lead generation frequently makes use of digital and social media channels, and in recent years, thanks to the emergence of new online and social techniques, it has innovated quickly.

Growing a new business or scaling an existing one would be challenging, if not impossible, without active lead generation efforts. 

According to Goldberg, “you cannot serve clients until you acquire them, and you cannot acquire them without generating the initial lead to convert them from an unidentified person to someone interested in your product or service to an actually paying client.”

While lead generation uses a variety of tools to actively engage potential clients or customers and pique their interest in your business, client acquisition through advertising is a somewhat passive process. 

Lead generation is valuable because people today are so inundated with advertising that they tune it out, according to Rune Hauge, co-founder and CEO of Mentorcam.

He compared conventional advertising to shouting into a passing crowd through a megaphone, describing it as intrusive, costly, and ineffective. “Lead generation is more like going to a book club or meeting someone for coffee: It’s a way to engage people in meaningful conversation. Businesses can do this to forge enduring bonds with customers and win their long-term loyalty.

Why lead generation matters?

A successful small business is built on strong customer relationships, but finding new customers can be difficult.

According to Hauge, “small businesses [can]… gain new clients by engaging leads through relevant content offerings, which establishes trust and creates the possibility of forming a relationship.”  “Customers [who] have chosen to engage with your business and have initiated contact are likely your most loyal ones.”

Lead generation “can make a small business a big business,” as Goldberg put it succinctly.

Before you begin generating leads, Hauge advises thinking about your strategy and business goals. Then, to build your lead generation approach, try asking yourself the following questions:

  • Who could be your future clients?
  • What are they concerned with?
  • How will you assess your progress?

Hauge added, “Understand your audience and how your business can make their lives easier. “Start a thoughtful conversation. Focus on building a relationship, not making a sale.”