B2B E-commerce Brands, How to Set Up Online Lead Management in 6 Steps
This article originally appeared on TheEcommManager.com.
Whether you run a small business or a large e-commerce operation, having an online lead management process is critical to building sustainable growth.
For e-commerce brands, leads are the virtual version of shoppers browsing through a brick-and-mortar store. They need to come across your display window (an ad, email, or post on social media), walk into your store (enter your website), browse the aisles (check out the sales pages), and either do a self-checkout or buy through a salesperson.
It’s imperative to have a systematic way to attract customers to your website and capture their interest.
I’ve helped B2B e-commerce companies generate thousands of leads and convert them into customers. In this article, I’ll explain the basics of online lead management, how to implement it, what strategies are needed to energize your lead generation efforts, and the tools you’ll need to get started.
What Is Lead Generation?
When someone shows interest in your product or service and provides you with their contact information, they are a lead. The act of attracting these leads — and converting them into paying customers — is called lead generation.
There are two main strategies to obtain leads for your business, each with a multitude of tactics: inbound and outbound lead generation.
Inbound lead generation
Inbound lead generation consists of attracting leads to your website by drawing them in with a hook — aka your marketing offer. It can be a white paper, email newsletter, free trial, etc. They might discover your offer from a Google search or social media.
Once they take the bait — they fill out a form to download a white paper, for example — they become a lead because you now have their contact information and permission to follow up.
Outbound lead generation
Outbound lead generation is when teams directly market their product to their target demographic through paid ads, cold emails, direct mail, targeted social ads, etc.
You can remember outbound as going “out” of your way to capturing your potential leads’ attention, while inbound is where they find you on their own through your demand generation efforts.
An example of outbound marketing is a promoted post on LinkedIn, like this one from Reddit:
Inbound vs. outbound: Which strategy is right for you?
For newer brands that need to increase sales fast, outbound will most likely show results quickly. Inbound takes a longer time to set up, but it can lead to sustainable and predictable leads coming in continuously over time. You can almost set it and forget it. Leads will stop coming in when you stop working on your outbound strategy.
The most successful brands combine inbound and outbound lead generation to maximize marketing goals and KPIs related to brand awareness, lead generation, and revenue.
Depending on the industry, some channels will saturate faster than others. For example, the cost-per-click will increase when several companies bid on the same keyword for Google Search Ads. At some point, running those ads will no longer make financial sense. So, you can’t rely on any one channel.
On top of that, the online landscape and buyer behavior is constantly changing. Suppose you are 100% reliant on Twitter ads, for example. You might end up in hot water if Elon Musk transitions Twitter’s business model from being supported by ads to being a subscription-based business.
To reduce risk, you should consider diversifying your online lead management and lead generation strategies with inbound and outbound tactics spanning multiple channels.
Types of leads
Now that you know the two main ways to get leads, let’s discuss what leads are. When B2B companies attract leads, they generally classify them into one of two categories: “marketing-qualified leads” (MQLs) or “sales-qualified leads” (SQLs).
An MQL is a lead that could potentially develop into a business opportunity because it meets specific intent and demographic criteria. Once a lead becomes a sales opportunity, it is flagged as a SQL. A salesperson will then reach out to the lead, going through a set process of sales activities to convert them into a new customer.
A sales-qualified lead generally:
- Shows interest in the product or service.
- Has the willingness to buy or talk with a sales rep.
- Fits the criteria of your ideal customer. (For example, they are a decision-maker whose company could benefit from your product and have the proper budget.)
MQLs and SQLs are primary metrics for your lead generation strategy, aiming to obtain and convert as many SQLs as possible.
How Does Lead Generation Help Businesses Grow?
Lead generation helps sales teams save time and focus their energies better. It is rare to find a sales professional talented at generating leads (prospecting and appointment setting) and selling (demoing the product, overcoming objections, and closing the deal).
Typically, this is why there are dedicated roles for the two activities: business development rep (BDR), focused on outbound lead generation, and account executive (AE), focused on closing deals.
While sales work on outbound lead generation and selling the product, the marketing team is usually responsible for executing the inbound strategy and enables the BDRs and sales team with assets needed for outbound: ads, email copy, brochures, etc.
When sales, BDRs, and marketing join forces to generate leads, the company can grow faster by shortening the sales cycle and growing the sales pipeline with highly qualified prospective buyers.
Continue reading here, where I explain:
- How online lead management works within your e-commerce branding strategy
- How to get started with online lead management in 6 steps
- Recommended tools for online lead management
