Glossary
Lead Generation
Lead generation is the process of attracting people who are interested in what you sell and capturing their contact details so you can follow up.
Example
A gym runs a free trial class ad; people who sign up leave their name and phone number. Each signup is a lead.
How to read it
Judge lead generation by cost per customer, not cost per lead.
Why it matters
For service businesses, leads are only the start. The real goal is booked appointments and paying customers, which depends on how fast and how well leads are followed up.
Common mistakes
- Measuring success by lead count instead of sales.
- Slow follow-up, which lets good leads go cold.
- Offers so broad they attract people who were never going to buy.
How to improve Lead generation
- Make one clear offer per campaign.
- Reply to every lead within minutes, not hours.
- Qualify leads with a couple of questions on the form.
- Track leads all the way to the sale so you know which sources are worth paying for.
Related: Lead generation by industry
Related terms
Cost Per Lead (CPL)Cost per lead, or CPL, is how much you spend on ads to get one lead.Speed to LeadSpeed to lead is how quickly your business responds to a new lead after they reach out.Lead NurturingLead nurturing is the follow-up that keeps a lead engaged, through texts, emails and calls, until they are ready to buy.