Revnew Blog

Mastering Lead Generation to Sales Cycle In 10 Easy Steps

Written by Anisha Dutta | Nov 22, 2024 5:15:00 AM

Do you want your business to soar? Then, you must indeed have given lead generation some serious thought. After all, it's the base of any successful sales and marketing blueprint.

Now, what is lead generation in sales? It refers to the procedure of piquing the interest of prospective clients to boost future sales. 

But is it enough to generate leads ONLY? NO! 

Instead, you must specifically focus on attracting and converting high-quality leads. Only then will you have a higher chance of converting them into paying customers. 

In fact, it takes an average of 6-8 touches to generate a VIABLE sales lead. 

Yes, it takes effort to attract good leads. Hence, it’s obvious why 61% of marketing pros still consider lead generation one of their top challenges.

Below are some more interesting facts:

So, how can you boost your probability of acquiring quality leads? For starters, understand the multiple stages of the lead generation cycle. 

You can then gauge the various stages involved in the process and make improvements accordingly. However, before going there, let’s explore lead generation in greater detail.

So, first up – 

What Are the Two Types of Lead Generation?

Lead generation can be broadly categorized into two types:

  1. Inbound Lead Generation
  2. Outbound Lead Generation

What Is Inbound Lead Generation?

Inbound lead generation typically involves leveraging digital channels to drive traffic to your website or other online channels. Some of these approaches include – 

  • Advertising
  • Search engine optimization (SEO)
  • Content creation
  • Referrals
  • Events

Once on your website, you can convert visitors into leads by offering them relevant content, such as:

  • eBooks
  • Whitepapers
  • Webinars
  • Resources

– In exchange for their contact information.

Inbound lead generation aims to create a sustainable and scalable source of new leads. 

How? 

By building trust and credibility with your target audience.

What Is Outbound Lead Generation?

Outbound lead generation involves proactively reaching out to potential customers, typically through methods such as:

  • Cold-calling
  • Email marketing
  • Direct mail
  • Advertising

Inbound Vs. Outbound: Which Is the Better Lead Generation Approach?

Both inbound and outbound lead generation are essential for generating profitable prospects. However, outbound approaches are particularly more beneficial than inbound methods. Why? 

  • Targeted Approach: Outbound lead generation allows you to target specific demographics more interested in your product/service. This can save time and resources compared to waiting for leads to come to you.
  • Increased Control: Outbound methods give you more control over the quantity and quality of leads you generate. Based on feedback, you can adjust your approach as needed.
  • Direct Communication: Outbound lead generation enables you to directly communicate and engage with potential clients. As such, you can respond to queries, address concerns, and foster long-term relationships.
  • Increased Sales: Outbound approaches can lead to increased revenue. How? By proactively reaching out to potential customers. Therefore, you can identify their needs and tailor your sales pitch accordingly.
  • Competitive Advantage: By proactively contacting leads before your competitors, you can establish your brand as a leader in your field.
  • Lower Costs: You can implement outbound lead generation with lower expenses. For example, email marketing, cold calling, or direct mail campaigns are cost-effective. Hence, they provide a high return on investment (ROI) if executed correctly.

However, outbound lead generation services can require more resources and effort. You usually require extensive data gathering, prospecting, and lead qualification. However, the potential benefits can make it well worth the investment. 

Next up –

What Is a Lead Generation Funnel?

Defining the lead generation funnel is a crucial aspect of your business. It comprises the steps of building a list of potential customers. In turn, these leads hold the possibility of converting into profitable buyers.

Each step of the lead generation cycle comes with a unique set of:

  • Tools
  • Skills
  • Resources

– to execute effectively. 

As such, comprehending and mastering the lead generation process is essential. Then, you can rest assured that you’ll successfully drive profitable leads to your business.

Today, we’ll explain the four major stages of your lead generation cycle to help you attract the most qualified leads. 

What Are the 4 Primary Steps in a Lead Generation Funnel?

You can divide your lead generation process into four significant steps. Once you implement our approaches in the correct sequence, you can easily and quickly attract profitable clients.

Now, join us for our 4-step tutorial:

Step 1: Identify Your Target Audience

Understanding your target audience lets you design personalized outreach messaging. Such communication resonates with them and leaves a lasting impression. 

This, in turn, increases the likelihood that they'll be interested in your products or services and ultimately become paying buyers. Additionally, knowing your core demographic can guide you in making more informed decisions. For instance:

  • Where should you allocate your marketing resources? 

Or

  • Is your product a viable solution to a specific client’s problem?

Researching and gathering information about your core demo can be done in various ways. Here are a few effective methods:

  • Conduct Surveys: Use polls to gather feedback directly from your target audience. Create and distribute your survey using tools like SurveyMonkey or Google Forms.
  • Analyze Website Data: Leverage web metrics to gain insights into your audience's behavior. Google Analytics can provide information on demographics, interests, and other valuable metrics.
  • Monitor Social Media Activity: This can help you see what your target audience is saying about your brand or your industry. Social listening tools like Hootsuite or Mention can help you stay on top of the conversation.
  • Conduct Market Research: Study and gather information on industry trends, preferences, and needs. This will help you better understand your target audience's major problems and their respective solutions.

Step 2: Develop a Value Proposition

A value proposition communicates your product/service’s unique benefits to your target audience. 

A strong value proposition sets you apart from your competitors. Plus, it convinces potential customers to choose you over others.

So, how do you develop a robust value proposition? Here are a few tips:

  • Understand Your Audience's Pain Points: Use your research about your target audience to identify significant challenges. Your value proposition should communicate how your product or service can help solve these issues.
  • Highlight Your Unique Selling Proposition (USP): What differentiates your product or service? Is it your price, quality, or features? Be sure to highlight your USP in your value proposition.
  • Keep It Straightforward: Your value proposition should be short, easy, and crisp. Avoid using technical jargon or buzzwords that your core demo may be unfamiliar with.

Here's an example of a strong value proposition from Dropbox:

"Dropbox keeps your files safe, synced, and easy to share. Bring your photos, docs, and videos anywhere and keep your files safe." 

This statement clarifies the unique benefits of using Dropbox, including fire safety, synchronization, and smooth sharing.

Step 3: Create an Irresistible Lead Magnet

A lead magnet is an incentive you offer potential customers in exchange for their contact information. It could be a free e-book, checklist, webinar, or any other valuable content your target audience would find helpful. 

A lead magnet is critical. It can help:

  • Build your email list
  • Establish your brand as a thought leader
  • Lead to more sales

Businesses with a strong lead generation strategy see a 55% increase in leads. This implies the importance of an effective lead magnet, which can help generate more leads. 

6 Advantages of An Effective Lead Magnet

  1. Low cost per lead (CPL)
  2. Increase value to potential customers
  3. Enhance authority, trust, credibility, and expertise
  4. Boost in brand awareness and recognition
  5. Improve engagement and customer relationships
  6. Clear insights into customer needs and interests

Next, how do you design a result-oriented lead magnet that entices potential clients to engage with your brand? Here are a few tips:

  • Make It Valuable: Your lead magnet should be something your target audience would be willing to pay for. It should be high-quality and offer practical tips, advice, or strategies your core demo can implement immediately.
  • Keep It Straightforward: Your lead magnet should be easy to read, watch, and consume quickly. Make it shorter and simple, or avoid losing the attention of your target audience.
  • Make It Appealing: Your lead magnet should be well-designed. Use images, graphics, and colors to make it stand out. Only then it’ll grab the attention of your target audience.

Step 4: Leverage Multi-channel Campaigns for Capturing Leads

Now that you have your lead magnet, the next step is to drive leads from it. Let’s say you own the most valuable lead magnet in the world. But will it be any good if no one sees it? Of course not!

Fortunately, there are numerous ways to drive more visitors to your magnet.

You can use:

  • Social media
  • Email marketing
  • Paid advertising
  • SEO

– and many other methods to reach your target audience. We recommend you utilize a multi-channel approach to drive traffic. 

Why? 

Relying on just one method can limit your reach.

For example, you can promote your lead magnet on Facebook, LinkedIn, Twitter, and Instagram to reach a wider audience. You can also use email marketing to promote it to your existing subscribers. Additionally, you can use paid advertising on Google to target a specific audience based on their:

  • Interests
  • Demographics
  • Behavior

Remember: Your goal is to attract as many potential clients as possible, so don't limit yourself to one channel.

The Transition From Lead Generation to Sales Cycle 

The four steps of your lead generation cycle funnel focus on your marketing team’s efforts to convert a stranger into a lead. So, let’s assume that an acquisition has been made. 

Next, your sales team is responsible for turning a lead's interest into action. 

How? 

By providing a satisfactory experience that encourages long-term loyalty. This is where the sales process begins, which again comprises multiple stages. 

So, let’s explore the steps involved at the end of the sales process, which are handled by your SDRs (Sales Development Representatives).

What Is a Sales Cycle?

A sales cycle involves turning a qualified lead into a paying customer. And your SDRs must master this process in depth. 

The sales cycle typically consists of several stages – similar to the lead generation process.

During each stage, you'll need to understand your prospect's deeply:

  • Needs
  • Pain points
  • Motivations

– and tailor your approach accordingly. 

By effectively guiding your prospect through each stage of the sales cycle, you can:

  • Build trust and credibility
  • Establish a relationship
  • Close the deal

What Are the 6 Stages of the Sales Cycle?

Before starting, here’s something to note. The length and complexity of your sales cycle can vary widely depending on your:

  • Industry
  • Product or service
  • Target audience

You can successfully navigate the sales cycle and drive revenue for your business by:

  • Staying organized
  • Utilizing effective communication and relationship-building skills
  • Adapting to the specific needs of each prospect

Step 1: Prospect 

First, identify your potential prospects from your lead generation list. Your SDRs can contact the marketing team (via calls/emails) to get more details about the collected leads.

Focus on those who can be converted into profitable customers. Note that during the prospecting stage, it's critical to have a solid understanding of the product/service you intend to sell. 

Next, think about how your offering will benefit your clients. You can identify potential customers by answering key questions such as:

  • What does your product do that no one else's product does?
  • What problem or issue does your product overcome or solve?
  • What is your customer’s timeline for deciding/implementing a solution?
  • Who are the key decision-makers in your targeted companies?
  • What solutions have your clients tried in the past to address their challenges?

After gathering this information and tracking your interactions, you can easily pinpoint your ideal prospects. Remember, prospecting is an essential step because it lays the foundation for the rest of your sales process.

Step 2: Contact and Qualify Potential Customers

To contact potential customers:

Depending on the type of prospect and business, you may choose to contact them via:

  • A phone call
  • An email
  • A traditional sales letter

You aim to establish a connection during this initial contact and set up a more formal meeting. You should not give your entire sales pitch at this stage.

To qualify your customers:

This stage involves vetting the client as much as possible. Note that most qualifying occurs during the first sales meeting.

Qualifying leads can help save you time and resources. How? You only want to pitch to qualified leads. However, you'll need to determine if:

  • Your contact person is a decision-maker 

And

  • Whether they're interested in purchasing your product or service

If your prospect is not able to make decisions or purchases, you can politely ask to include a manager or superior in the meeting.

Step 3: Nurture Your Leads With Email Marketing

Email marketing is a cost-effective way to reach and relate to your audience. It’s one of the most popular channels for nurturing leads. Research shows that 81% of businesses use email to drive customer acquisition.

To create an effective email marketing campaign, start by segmenting your email list based on factors such as:

  • Demographics
  • Interests
  • Behaviors

This allows you to send more targeted and relevant content to each group. Next:

  • Craft compelling subject lines and personalized messages that speak directly to your audience's pain points and needs. 
  • Incorporate a persuasive call to action (CTA) to encourage your audience to take action.

An example of effective email marketing is a welcome email sequence. For instance, let’s assume someone signs up for your email list or downloads your lead magnet. You can set up a series of automated emails that introduce them to your brand. 

You can also provide valuable content and encourage them to take the next step in the sales process. These emails can help build trust and establish your brand as an authority in your industry. The result? It’ll lead to more conversions and sales.

Step 4: Present Your Solution

Now, it's time to present your product or service. This is the most critical stage in the sales cycle and requires careful preparation. Remember, your goal is to present your offering as a solution to the customer's problem.

  • Be ready to demonstrate how using your product will improve day-to-day operations for the customer.
  • Also, highlight how your company does it better than anyone else. 

NOTE

During the presentation, you're also selling yourself. Your body language, mannerisms, and appearance can all influence a sale. 90% of the meetings are held virtually over video-conferencing tools like Zoom. So, it’s wise to be equipped with some intelligent video-calling etiquette, such as –

  • Dressing appropriately and professionally
  • Choosing a quiet and well-lit location
  • Testing your audio and video before the call
  • Being punctual and ready to start the call on time
  • Avoiding multitasking and focusing on the conversation

Step 5: Address Objections and Book Appointments

Next, you must manage and overcome any objections your potential customer may have. Even the most interested prospects will have concerns or hesitations. These may include:

  • The price being too high
  • The contract being too limiting
  • The terms not being favorable

— and so on

Hence, ask for context to their objections. Then, understand the root cause of their concerns. 

  • Are they carrying over reservations from a previous business deal that has gone bad?
  • Have they had negative experiences with similar products or services in the past? 

Listen carefully to their concerns. Next, let them know that you understand where they are coming from. Then, adjust your pitch to address and overcome those concerns.

It's time to book an appointment once you’re ready with your pitch. Usually, your AEs (Account Executives) will schedule appointments with targeted decision-makers responsible for closing deals.

Now, before moving on, let’s help you with some tried-and-tested appointment setting techniques:

  • Prepare an agenda to ensure your meeting stays on track and is productive
  • Use a clear and concise message to grab your prospect’s attention
  • Emphasize the value and benefits of your product or service
  • Offer specific date and time options for the appointment
  • Send a calendar invitation and confirmation email

Step 6: Close the Sale With Effective Sales Techniques

Great job in getting this far! Now it's time for the ultimate step - closing the deal. This is the point where all your efforts coincide. After all, you've spent time:

  • Prospecting and qualifying customers
  • Nurturing your prospects
  • Offering a great solution
  • Handling tough objections

After all, this is critical to your bottom line. It’s the end goal of your entire lead generation sales cycle. But, 35% of salespeople say closing is the most critical part of the sales process.

So, what’s the solution? Get equipped with effective sales techniques. You ought to anticipate any objections that may arise. You MUST have strategies in place to overcome them.

You also need to provide social proof, such as testimonials from satisfied customers. Why? To show potential clients the value of your product or service. Here are some techniques that can help AEs close the sale:

Using these tips helps move your potential clients further down the sales funnel and toward a purchase.

Bonus! Retain Customers and Encourage Referrals

Why should you retain customers? You can then encourage them to refer others to your brand. This extra stage is crucial to long-term success. After all,

  • Repeat customers spend 67% more on average than new customers. 
  • Plus, referred customers have a 37% higher retention rate than those acquired through other means.

To retain customers:

  • Provide excellent customer service and personalized experiences. 
  • Continue to offer value after the initial sale. You can do this through ongoing communication, loyalty programs, and exclusive offers.

Encouraging referrals is also an effective way to grow your customer base. Word-of-mouth referrals are the most trusted form of advertising. 92% of consumers trust recommendations from people they know. 

Consider offering incentives to encourage referrals. These can include discounts or freebies for both the referrer and the new customer.

Here are some tips for retaining customers and encouraging referrals:

  • Provide excellent customer service and personalized experiences
  • Continue to offer value after the initial sale through ongoing communication, loyalty programs, and exclusive offers
  • Implement a referral program with incentives for both the referrer and new customer
  • Monitor customer satisfaction and address any issues promptly
  • Maintain a positive online reputation through reviews and social media engagement.

Wrapping It Up

A well-designed and executed lead generation to the sales cycle is crucial for the success of any business. By following our 10-step process, you can create a system that:

  • Brings in high-quality leads
  • Nurtures them into customers
  • Keeps them coming back for more

Remember that the process takes time and effort. But the rewards are worth it. Using our clever tips, you can gain a competitive advantage and grow your business.

Now, if you want to streamline your lead generation process and get more results, consider Revnew your go-to place. We offer a suite of tools and services that can help you optimize your sales funnel and convert more leads into customers.