Definition
A lead is a person or organisation that expresses interest in a business’s products or services, typically by sharing contact details or engaging with marketing. Leads are the first step in the customer acquisition process and are essential for building a pipeline for sales and revenue opportunities in lead generation.
Why Use
- Enables targeted communication with prospective customers.
- Improves sales efficiency by identifying real opportunities.
- Supports business growth through systematic outreach.
- Helps tailor marketing strategies to specific audiences.
- Facilitates measurement of marketing campaign effectiveness.
Core Concepts
- Lead qualification distinguishes true prospects from casual interest.
- Marketing Qualified Lead (MQL) indicates a high-potential lead.
- Sales Qualified Lead (SQL) is ready for direct sales contact.
- Lead nurturing builds relationships via ongoing engagement.
- Conversion rate measures lead-to-customer transitions.
Examples
Scenario 1: An individual downloads a whitepaper from a company website and fills in their email address.
Scenario 2: A business requests a product demonstration after reading an informational email campaign.
Common Pitfalls
- Confusing leads with customers or sales-qualified prospects.
- Ignoring lead quality and focusing on quantity alone.
- Failing to nurture leads with regular, relevant communication.
See Also
Related terms include lead generation, sales pipeline, marketing qualified lead, sales qualified lead and conversion rate.
