Finding leads in a small business can be quite difficult. Most people might not know what your company does and that can make it difficult for customers to buy into your service or product. In the case where you are struggling to find good, quality leads you need to look into lead generation tools.
A lead generation tool is software you can use to turn random strangers into your customers. The software helps you draw customers into your sales funnel through their contact details (e-mail address or phone number).
You need to generate high-quality leads in order to make proper sales. Leveraging a lead generation tool will enable you to differentiate your brand, connect with potential buyers and help them through their purchasing journey.
In this article, we look at how lead generation tools work and which ones are the best for small to medium-sized enterprises (SMEs).
Different Types of Leads
A lead is a potential customer who must be qualified to become a prospect. A prospect means they (customers) are a good fit for your business and will want to do business with you in the future.
When it comes to leads, there are four different types of leads, mainly:
1. Marketing Qualified Leads
These are leads that have shown interest through marketing efforts such as downloading a whitepaper, attending a webinar or filling out a contact form. These leads are more likely to become customers than general contacts.
2. Sales-Qualified Leads
These leads are vetted by the sales team and considered ready for direct sales engagement. The sales-qualified leads typically demonstrate a stronger intent to purchase and often have the characteristics of an ideal customer.
3. Product Qualified Leads
Product-qualified leads are the people who have used the product typically through a free trial or free version. These potential customers show behaviours such as frequent usage or engaging with premium features indicating their readiness to convert to paying customers.
4. Service Qualified Leads
These are leads that express an interest in a company’s service offerings. Typically, the interest is expressed after initial consultation or requests for additional information.
These are the types of leads that are most common. Once you have a good understanding of your ideal customer, you will be able to know what type of leads you need to look for. Once you know what leads you want, you can start leveraging lead generation tools.
How Do Lead Generation Tools Work?
Lead generation tools are a single software, meaning they have a range of features and functions within one system. Despite being a single software, the tools have a few things involved on the backend, including:
Lead Capturing
Lead generation tools employ clever methods such as web forms, landing pages and chatbots, to capture the attention of potential prospects. The software uses a collection of virtual tools that know how to entice people to share their contact information.
With the prevalence of artificial intelligence (AI), chatbots are becoming increasingly popular. Most companies use them to engage website visitors in conversation as a means to capture their information.
Lead Nurturing and Management
Lead generation tools also work to build connections and keep potential customers engaged. The software can create automated e-mail campaigns that are tailored for the relevant leads. Additionally, the tool can keep track of all interactions and follow up with leads.
Analysis and Reports
Lead generation tools also offer insights and analytics for well-informed decision-making. The software can report on which leads are more likely to become actual paying customers, and which ones need more convincing.
The tool can also measure conversion rates to better distinguish areas where the lead nurturing process needs to be adjusted. Lastly, the tool can provide campaign performance metrics such as click rates, open rates and engagement levels.
The right generation tool should be full-service. Ensure you have a good budget for the right tools and pick tools that support the scalability of your business.
Lead Generation Tools to Explore
The following platforms offer lead generation solutions within South Africa.
Zoho CRM: Zoho CRM is a tool that offers features for sales, marketing and customer support. Included is a lead generation tool.
Salesforce: Salesforce has a B2B marketing automation tool which can also help you find leads.
HubSpot: HubSpot has a free lead generation and marketing tool.
Social Media Platforms: Social media platforms have features for lead generation. These are typically forms that you can send to prospects directly on social media.
Explore platforms such as LinkedIn, TikTok and Facebook to find out more.
These are just a few platforms that offer lead-generation solutions. You can also look into Google’s lead generation solution through Google Ads. You just need to know what kind of leads you are looking for and that will help you determine the right lead-generation tool for your business.
For more information on business leads, read our article that explains what a business lead is.
