The Difference Between Lead Generation and Sales

Lead generation and sales go hand-in-hand in most sales-based businesses. Many times these two functions are performed by the same sales person or sales team. Other times, lead generation and sales are delegated as two separate tasks. How you structure your company's sales process may be different, depending upon the specifics of your product or service.

What is Lead Generation?

Lead generation is identifying qualified sales leads, which are potential customers for your company's product or services. Some of the most effective methods include face-to-face interactions with the potential target market. These types of interactions build the best rapport with potential customers. However, it may be time consuming and expensive to hire somebody to man a trade show table for several hours hoping that people will complete a form or a survey. Some alternative methods include, web-based and telephone-based methods.

Define Your Target Audience

Your company generates leads by first identifying your target audience. This can be based upon various factors, such as age, gender, career, special interests, or income-level. These defining characteristics of your target demographic depends upon what type of service or product your company offers. Conducting proper market research before generating leads will allow you to choose the best target demographic and the most effective sales process.

Web-Based Lead Generation

There are many ways to generate leads using the Internet. One common method utilizes a website offering information related to your company's product or service. The website guides the customer to fill out an online form or quote request with his or her contact information. The form is then sent via email to your sales team or call center service provider. There are many marketing agencies that specialize in this type of lead generation.

Inbound

When potential customers call into your office or a call center service provider to obtain more information about your company's product or service you should be well prepared to capitalize on this potential lead. Many times an automatic dialer had already called the potential customer and delivered a pre-recorded message, which offered some quick information regarding the service or product. The message will generally give the potential lead the option of obtaining more information by pressing a specified digit on his or her telephone. This automatically forwards the potential lead to a live operator at a contact service provider.

Outbound

Outbound lead generation is a more aggressive form of generating leads. Instead of waiting for the potential lead or customer to fill out a form or respond to an automated message, outbound lead generators initiate the first call to the potential lead. Generally, outbound lead generators work off a list of prospects, which fit your company's target audience. This list may be purchased from a marketing agency. You may also decide to build the list yourself through your own means.

When Does Lead Generation Become Sales Calls?

Although lead generation and sales are generally interconnected business activities, at a certain point a lead generating call can be considered more of a sales call. The difference lies in the purpose of the call. A lead generating call's main purpose is to collect contact information and verify interest in your company's product or service. A sales call is when the caller attempts to convince the potential customer to contract your company's services or buy your product. Many times lead generation and sales occur within the same telephone call. However, it may be more efficient for some companies to separate the two functions into separate actions.

Whether you are looking to generate leads or close sales, you may wish to consider outsourcing to a contact service provider. This option could save you money if you have a large volume of telephone calls to make as a part of your sales process.