For many businesses, lead generation is the pinnacle of what they wish their marketing to achieve. And, in response, there are many companies offering to provide standalone lead generation, often with guarantees of success!

However, results can vary significantly for businesses, with some hailing lead generation as an enormous success – and others a waste of their marketing budget.

As East Anglia’s leading B2B marketing agency – working with businesses across the UK in manufacturing, engineering, business services, logistics, construction, technology and more – lead generation is something we are frequently asked to comment on and deliver.

So, in this blog, we’re going to take a look at what lead generation is, how it works and how successful it can be.

What is lead generation?

Lead generation is the process of attracting someone so that they indicate interest in your company’s product or service.

What constitutes ‘indicating interest’ can cover a number of actions and outcomes – from simply providing contact details, to actively approaching your business and being ready to buy.

Quality or ‘qualified leads’ are often considered to be those who have purposefully approached your business for what you deliver. The person or business is likely some way along the research process and perhaps ready to buy. All that’s left is to make the sale!

Whilst lead generation is the hoped-for outcome of nearly all marketing activity, it has also become a stand-alone term. And, there are an increasing number of specialist lead generation companies who deliver it.

They either promise to provide qualified leads or – more commonly in B2B (business-to-business) marketing – establish ‘lead magnets’ to help their client capture leads themselves.

How are leads created?

Tactics vary and it is once again worth pointing out that lead generation is a very real and achievable outcome of all marketing. However, we are talking here about the explicit services of those offering stand-alone lead generation.

Today, most leads are generated online. In the past, tactics frequently included telesales (cold calling) or even faxes!

Leads are often created through a ‘lead magnet’ – an incentivised offer to potential leads in exchange for their contact information. Examples might include providing access to an eBook, whitepaper, webinar or free product trial.

Another common tactic is giving away advertising or editorial space in a publication or website in exchange for a business’s supplier information and renewal dates.

The key to a quality lead is that the person or business has expressed a genuine interest or need for what you deliver. Unfortunately, with these tactics, this can be rather tenuous.

A lead generation tactic which works particularly effectively for B2C (business-to-consumer) marketing is capturing people actively searching online for products or services.

For example, by using SEO (Search Engine Optimisation) and PPC (Pay-Per-Click) to dominate search results, lead generation websites can attract those actively looking for insurance, a window cleaner, even shoes – and pass their details on as a lead. This can also be the basis of affiliate marketing.

Within B2B, many digital-only marketing agencies will establish PPC (Google Search) or social media (LinkedIn) advertising campaigns for their clients with specific landing pages to capture leads.

However, success is often dependent on businesses being willing to engage with companies they have little prior knowledge of…

Is lead generation effective for B2B?

Lead generation services are perhaps most effective for B2C services, such as financial advice, insurance, health care or finding a tradesperson. They are less effective for B2C products as consumers tend to prefer to make quick and frequent buying choices.

Within B2B, the effectiveness of lead generation is a little harder to qualify due to the range of products and services offered. However, anecdotally, the experience our clients and other businesses have had with lead generation companies is poor.

We are frequently approached by businesses who have tried lead generation companies (or stand-alone services offered by digital marketing agencies) and been disappointed.

After six months, the lead generation has failed to provide many leads and those it does deliver do not result in a sale. As a result, many lead generation companies appear to experience very high customer turnover.

But, why?

Business-to-business buying behaviour is dependent on trust as businesses prefer to buy from familiar names and to have a close relationship with their suppliers.

B2B lead generation is typically about capturing the details of a business which has an immediate need for what is on offer. However, businesses often make slower and more rational buying decision than consumers and thus like to research their suppliers.

In highly competitive industries (e.g. logistics), there can be a large choice of suppliers, making creating brand awareness much more effective than lead generation tactics alone.

The effectiveness of PPC lead generation campaigns is highly dependent on there being a sufficient quantity of businesses actively searching online for what you deliver. With many B2B services, products or expertise, this is not the case and results reflect this.

In addition, the use of lead magnets which give away content (e.g. information or advice) can be most attractive to smaller businesses or individuals keen to learn, rather than decision-makers who simply want to find a supplier.

How can you make lead generation more effective?

To reiterate, lead generation is the desired outcome of all B2B marketing.

As a full service B2B marketing agency, our aim and purpose is to help our clients benefit from the marketing that will attract businesses directly to them!

Overwhelmingly, this is achieved by choosing a careful mix of marketing which targets your most likely customers, makes them familiar with what you deliver and encourages them to make contact when they have a need.

Pull marketing tactics in particular can help attract the lower hanging fruit of companies ready to buy.

Lead generation often promises quick results but struggles to deliver. Whilst brand awareness and reputation take time to form in the minds of your customers, when they do, the results can be quick, dramatic and sustained!

Get greater results from B2B lead generation

Many businesses are tempted by the promises of lead generation services – and sadly disappointed by the results.

Whilst they can undoubtedly be successful for some, your own intuition is perhaps the best judge. How likely are businesses to buy what you deliver ‘on spec’? Is a relatively small investment in lead generation services alone likely to transform your sales pipeline?

As East Anglia’s leading B2B marketing agency, we work with businesses across the UK – in sectors including manufacturing, engineering, technology, logistics and business services – to help them generate new sales, customers, enquiries and leads from the right mix of proven marketing.

For help with your B2B marketing, contact us here