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Definition: Lead

The lead is defined as the potential customer i.e. someone who has shown interest in buying product or service of an organization.

The leads are identified through a lead generation process which utilizes various channels like referrals of existing customers, trade shows, direct advertising/publicity, emails etc. As per the recent trend, lead generators are extensively using information available on social media like Facebook, Twitter, Google+ etc. to identify a potential consumers and appropriate channel of addressing them. Sometimes an organization takes help of another organization specialized in indentifying leads. Some software tools which can present detail analysis of the leads are also available in the market.

There are mainly two types of leads:

1. Sales Lead:

It is a generic type of lead in which a potential customer expresses his/her interest in a particular type of offer instead of specific company or brand associated with that offer.

e.g.) A person willing to opt for a life insurance policy but needs information on various policies before finalizing one policy is a sales lead for all insurance companies.

2. Marketing Lead:

Here the customer specifically mentions the name of the company or brand in which he/she is interested.

e.g.) A person looking for Reebok retail outlet to buy shoes is a marketing lead for Reebok company and cannot be taken away by Adidas or Nike.

The 3-stage process associated with lead is:

Lead Generators:

All activities related to publicity and marketing of offerings of an organization

Lead Nurturing:

The specific method an organization follows to close sales with a potential customer

Lead Scoring:

The method by which leads are analyzed and graded on the basis of their importance to the organization

Hence, this concludes the definition of Lead along with its overview.

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