What's a Lead, Anyway? The Different Types of Leads Explained

If you're a business owner or marketer, you've likely heard the term "lead generation" thrown around as the key to success. But what exactly is a lead, and why does it matter so much?

At its core, a lead is a person who has shown interest in your product or service in some way. They've gone from being a random internet user to a potential customer. But not all leads are created equal. Understanding the different types of leads is the first step to building a powerful sales and marketing strategy, especially for small businesses where every lead counts.

Understanding the Different Types of Leads

Think of a lead's journey as a scale of interest, from a casual browser to someone who is ready to buy.

1. The Information-Gatherer (Marketing Qualified Lead - MQL)

An MQL is a person who has shown more interest than a casual visitor but isn't quite ready to speak with a sales representative. They're in the research phase, trying to solve a problem they have.

Examples of MQL behavior:

• Downloading a free guide or ebook from your website.

• Signing up for your email newsletter.

• Engaging with your content on social media.

• Attending a webinar.
  

This person is a valuable lead because they've willingly provided their contact information. It's now your job to provide them with more valuable content to help them move closer to a purchase decision through lead nurturing.

2. The Ready-to-Buy (Sales Qualified Lead - SQL)

An SQL is a lead who has shown a strong, direct interest in making a purchase. They're often at the bottom of the marketing funnel and are ready to talk specifics.

Examples of SQL behavior:

• Requesting a product demo.

• Asking for a quote or a consultation.

• Filling out a "contact us" form with a specific question about your services.

• Adding an item to their online cart but not completing the purchase.
  

SQLs are the leads you want your sales team to prioritize, as they have the highest potential for a quick conversion.

The Importance of Lead Nurturing for Small Businesses

Simply having leads isn't enough; you need a strategy to engage with them. That's where lead nurturing comes in. This is the process of building relationships with potential customers, regardless of their stage in the sales funnel. For small businesses, this is especially critical because it allows you to stay top-of-mind and build trust without a huge advertising budget.

Examples of lead nurturing:

• Sending a series of automated emails with helpful blog posts after a user downloads a guide.

• Retargeting website visitors with social media ads that offer a product discount.

• Calling a prospect a few weeks after they requested a demo to see if they have any questions.
  

By understanding the different types of leads and implementing a solid lead nurturing strategy, you can turn a list of names into a growing list of loyal customers. It's a fundamental part of a successful lead generation process that pays off in the long run.

Converting Leads Into Customers

Once you have an SQL, you can start moving them down the conversion pipeline into an actual customer. Typically these are handed off to a sales representative (or handled by you personally), with steps taken to ensure that these conversions occur without a hitch. 

Make sure you have complete visibility of their history, such as:

• Pages viewed

• Emails opened

• Content downloaded

• Socials interacted with
  

These elements give you a fuller picture of their interests and help you personalize the conversation to fit their needs and improve your odds of converting them from a lead into a customer. 

Make sure the scheduling is convenient for them. Use one-click links to hop on a call instead of sending long email chains, as they are less likely to follow through if the communication is too long or tedious. Offer low-risk propositions like guarantees, trials, bonuses, or consultations to give them an idea of how you operate, then optimize the checkout flow to ensure their conversion is as smooth for them as it is for you. 

All of these elements culminate in a customer that is dedicated to you for the foreseeable future. Now you can show them that you really mean business and care for them by providing the services they’re looking for, all while continuing to nurture them and show you care. Continue to optimize in the future, and nothing will stop you from growing your business into a powerhouse.