Lead generation and lead nurturing go hand in hand both have their own significance when it comes to the sales engagement process.
Sales generation brings value to an organization whereas lead nurturing converts the potential prospect of a client or a customer.
It’s easy to understand the difference between the two but a confusion can arise as the process of generating leads and nurturing the relationship with the client is similar.
So, where does the difference lie?
The differentiating factor between lead generating process and lead nurturing process is in relation to the customers position in their sales funnel.
To understand the process between lead generation and lead nurturing, let me give you a brief about these lead generation and lead nurturing.
- What is lead generation?
- Different ways to generate leads
- What is lead nurturing?
- How to nurture leads?
- How is lead generation and lead nurturing connected?
- Difference between lead generation and lead nurturing?
What is lead generation?
Lead generation is a process of increasing product awareness amongst the targeted audience with the
ultimate goal of bringing them into the sales pipeline.
Lead generation helps bring new business to the organization which helps in the expansion of the organization.
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Different ways to generate leads
When a sales reps wants to generate leads the first thing is to know the target audience.
As that gives the sales rep a head start. Knowing your target audiences increases the result of the effort.
91% of marketers consider that lead generation is their most important goal. Let’s see how sales reps reach out to the leads.
There are two types of lead Inbound leads and Outbound leads.
Inbound leads: Inbound leads are leads that come to you through multiple channels like social media, while visiting websites, reading your blogs, newsletter. Inbound leads are more qualified leads as they are generated via channels that have content for a target audience.
Outbound leads: Outbound leads are leads who are approached by the sales rep via cold call, cold email or at any event. Sales rep target their leads by making prospect persona which acts as a reference as to whom they should approach and how to approach them.
When approaching the leads your engagement resources should consist of content related to your brand or product awareness and the solution the product provides considering the pain points of the leads.
The successful execution of the lead generation strategy can lead to an inflow of leads which will lead to increase in revenue generation. Automation can optimize this process by making the outreach more personalized and time saving.
According to the sources, marketers can drive up to 451% more leads with automation in comparison to marketers who do not opt for automation.
Send Buzz is one such sale engagement platform that accelerates your lead generation by:
- Automating the lead scoring process helps the sales rep to qualify leads as close to the ideal customer profiles. This makes the conversion of the prospect easier.
- Handle multi- channel outreach on a single screen this helps to keep track of the prospect and reach out to them where they are available.
- Make calls with the prospect in a single click and the administrative task of data entry will be done by the software.
What is lead nurturing?
Lead nurturing is the process of cultivating the leads which are not yet ready to make a purchase.
Nurturing leads hold a significant role in cultivating latent demand, the utilization of this demand brings value to the organization and keeps the sales pipeline.
Now, you might be thinking that how is it different from lead generation?
The core difference lies in the fact that lead nursing is about engaging with the leads on different engagement platforms and keeping the lead on loop whereas in lead generation the main goal is to expand your outreach i.e finding new leads.
How to nurture leads?
There are various ways which engagement with the leads can move them into the sales pipeline. Simply put, lead nurturing is the process of building relationships with the leads to establish credibility and loyalty.
From the above flow chart you can get an idea about the different stages of lead nurturing.
First stage is when you educate your lead in detail about the solution you provide that can address their current pain point. This cannot be done in a single engagement, sales rep needs to increase the involvement of the lead by multiple follow up.
When you reach near to 2nd and 3rd follow up your goal should be to convert the lead into a prospect and move them into the sales pipeline and increase their lifetime value.
How is lead generation and lead nurturing connected ?
Both lead generation and lead nurturing are the part of the sales engagement cycle which contribute to the successful conversion of lead into a client.
The purpose of lead generation is to bring in new customers for the organization and the purpose of lead nurturing is retention of the leads and effective engagement so that they add value to the organization.
Here are the key differences between lead generation and lead nurturing:
|Function||Lead generation||Lead nurturing|
|Stage in sales engagement process||It is the most initial stage of engagement with the customer. This stage is concerned with awareness.||It is the next step after the lead generation is approached once. Here customer retention, product knowledge is the priority.|
|Significance||Lead generation is important for the expansion of the business, creating new revenue sources and bringing market qualified lead into the sales pipeline.||Lead nurturing deals with customer needs, addressing the pain points of the customer, personalizing the approach, building relationships with the customer.|
|Approach towards engagement with leads||The approach of engagement is via cold call, cold email, website, marketing events.||The approach towards engagement with the leads is via interest, newsletters, personalized emails so that sales reps can build a relationship with the prospect.|
|End goal||Maintain consistent inflow of leads.||Build trust and credibility amongst the leads.|
Find out what kind of marketing activity will suit your organization and select that to grow your revenue.