What is a Sales Lead? How to Generate Leads in Sales

A sales lead is a potential customer who has shown interest in your business by providing their information. Discover why sales lead generation is important through various sales lead strategies.

December 26, 2023


5 Minutes

Prerna Bhandari

Prerna Bhandari

What is a Sales Lead? How to Generate Leads in Sales


Every business aims to satisfy its customers. To grow, a steady stream of leads is crucial. This is where the sales team steps in. Sales representatives are accountable for converting potential leads into loyal customers. This ensures that the company will sustain itself in the long run. Understanding what a sales lead is and its significance is crucial for businesses looking to drive revenue and sustain growth. These are the leads that the sales team has deemed ready for direct sales engagement based on additional information or criteria.

Sales leads are usually individuals who have shown interest by making an inquiry or by reaching out to your business first. Their probability of converting into a regular client is high, and due to this, the business aims to convert them by connecting with them.

The company attempts to generate sales leads using various marketing methods. After the lead enters the pipeline, the sales team qualifies them based on various criteria. Usually, their goal is to qualify the sales lead on two factors: accuracy and relevance. Let's discover how this entire process is carried out by the companies.

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What is a Sales Lead?

A sales lead is a potential customer who has shown interest in your business by providing their information. To capture sales leads effectively, companies use lead magnets to engage and capture potential customers continuously. However, only some leads become prospects. Note that prospects are more likely to convert into customers, whereas leads may or may not.

Hot, warm and cold are three types of leads businesses use. These leads help the company to identify the customers to whom they will have to pay more attention.

Types of Sales Lead
Image: Types of Sales Lead

This difference helps businesses prioritize their efforts, focusing more on nurturing and converting hot and warm leads while maintaining engagement with cold leads for future opportunities.

Read more about : Mastering Cold Calling in Sales

Why Does Lead Generation Matter?

Sales lead generation is all about nudging the audience into your sales funnel through marketing or sales tactics. This assists in generating brand awareness and increases your traffic. SquadStack's lead prioritization methods assist you in dividing leads based on various parameters. With an integrated omnichannel and CRM system, the lead progresses through various touchpoints.

Lead generation is a time-consuming process, yet the results it yields are essential for business success. Therefore, we have mentioned below in image why it is crucial to have effective lead-generation strategies:

 Effective lead-generation strategies
Image: Effective lead-generation strategies

What is the 5-Step Sales Lead Generation Strategy?

As mentioned earlier, businesses have to employ various strategies to generate sales lead. The sales lead generation strategy is a plan that businesses use to get quality leads filled in their pipeline. The aim of such strategies is to attract and compel users to take a desired action such as filling up their information. With a good lead generation strategy, you can grow a huge customer base within some time.

Below, we've discussed about the comprehensive 5-step sales lead generation strategy.

Discover Your Audience and Chart Goals:

The first and foremost step is to define your audience, gaining a clear understanding of who, what and how. Ask yourself:

  • Who is your audience?
  • What is their profession?
  • How can you grab their attention?

Based on this understanding, outline your goals identify your ideal customers by creating a buyer persona. This is a detailed representation of individuals interested in your products and services and who are likely to invest. Gathering extensive information about them is crucial for figuring out how to capture their attention.

Craft a comprehensive buyer persona after conducting thorough research, pinpoint their challenges and how your product and services can address them.

Following this, establish realistic goals that can be easily measured using metrics and analytics. This strategic approach ensures a clear roadmap for engaging with your audience and achieving measurable success.

Metrics to measure in while sales lead generation
Metrics to measure in while sales lead generation

Craft a Magnetic Value Proposition and Produce Compelling Content

As mentioned earlier, it is crucial to show your audience that your business has the solution to their challenges. This solution comes in the form of benefits they'll receive from your products and services. Identify how you can convince them that your unique value proposition is better.

To convince, your business needs to generate high-value content that deeply connects with your audience. This content should highlight the features of your offerings and showcase the advantages and positive outcomes they can expect.

By creating content that resonates with your audience's needs and aspirations, you establish credibility and reinforce the unique value your business brings to the table.

Optimize Across Digital Channels:

There is a saying "The lead generation process starts by finding out where your target market ‘lives’ on the web." You're missing out on many opportunities if you haven't started using social media platforms. These platforms offer a way to establish your business' presence and give your business a separate identity.

You must leverage search engine optimization (SEO) strategies to enhance visibility on these platforms. Utilize SEO techniques to optimize your content, as it helps your account reach a larger audience.

Here's how you can reach your audience using ads and digital platforms:

Social Media:

It allows you to create and share strategic content through various funnel stages. You must use a variety of TOFU, MOFU and BOFU content.

Leadgenera mentioned that 89% of B2B marketers use LinkedIn for Lead Generation. This means opportunities are everywhere; we just need a keen eye to grab them.

Email Marketing:

It is crucial to harness the power of email marketing to craft personalized messages. Send emails offering discounts, introducing new products, and providing valuable content such as newsletters, industry insights, promotions, and updates.

“80% of buyers say they prefer to be contacted by sellers via email.”

Paid Advertising:

Create targeted ads on platforms like Facebook, Instagram, Google, etc. Running paid campaigns is crucial for reaching an audience interested in your products and services through such platforms. This strategy helps you get users who could become your sales leads.

"Facebook is still one of the most used platforms, with over 2.9 million monthly active users. "

Optimize Various Platforms For Sales Lead Generation

Deploy Effective Lead Capture Tactics

Lead magnets are a powerful way to persuade your target customers to share their information. This small interaction allows businesses to reach out to interested leads by offering valuable and ungated resources. Lead magnets are free yet useful offerings that give customers a glimpse of what your business has to offer.

For instance, an eBook can attract those seeking in-depth information, a free demo is for those wanting to experience the product, an online guide gives instructions to users on product usage, and webinars help showcase expertise.

“video and written content are the most popular formats among respondents as lead magnets, chosen by 47% of them.”

For sales lead generation, there are various categorizations of leads.

However, what if a prospect is already interested in your products or services? This is where opt-in forms come into play. These forms are strategically placed on websites, so interested individuals can voluntarily give their information by filling them out. Put these forms wherever you think your customer might be visiting. Be it landing pages, homepage, demo page, etc.
Doing so lets you get their contact details and easily reach out to them later. Opt-in forms serve as a direct way to connect with potential leads who have expressed interest in your business offerings.

Analyze, Enhance, and Iterate:

When aiming for sales leads, keeping track of all interactions with your leads is crucial. Customer Relationship Management (CRM) software is a centralized tool to manage customer data and 47% of sales leaders track CRM usage as a productivity metric. It helps streamline tasks related to lead management, from recording information provided during sign-ups to ongoing engagements and follow-ups. By ensuring proper data management, it provides efficiency in handling customer interactions.

In capturing sales leads, understanding what works and what doesn't is essential. Performance metrics and analytics play a crucial role in tracking your efforts. This data allows you to assess your strategies and make informed decisions. It ensures that futile attempts do not compromise your performance.

Regularly analyzing metrics helps you identify areas for improvement and when to revamp your strategies. Even Google has mentioned in its report that 95% of marketers agree that KPIs should be measured to achieve business goals.

Yet, it's not just numbers; maintaining continuous feedback is crucial.

To boost your sales lead generation, gather customer feedback through surveys, emails, chats, etc. Relying only on metrics won't provide insights into customer experience.

This continuous feedback loop lets you regularly iterate and optimize your products and services.

Conversion Strategies for Generated Sales Leads

It’s time to discuss some conversion strategies for sales lead generation. Below are some proven strategies mentioned:

Marketing Methods:

Marketing is a powerful tool for communicating with a lot of people. It uses different ways like ads, campaigns, and generating awareness about your business among people. No matter how you do it, the main goal is to make people remember your business. To effectively market, it is vital to determine priorities, understand customer needs, and craft strategies that create brand awareness while upholding a positive reputation.

“80% of sales require five follow-up calls after the meeting. 44% of sales reps give up after one follow-up.”

Test And Apply:

In business, you always have to keep testing one thing or another. Continuous testing, through random trials and A/B methods, helps you to identify the website's strengths using different variables. This approach boosts conversions and enhances retention rates while mitigating bounce rates.


With the advent of AI technology, we must pay attention to the importance of chatbots and live chat facilities. Customers are always looking for quick solutions. You must integrate chatbots into your system to expedite the response time. This intrigues and engages them, thus becoming another effective strategy to capture sales leads.

Give Awards:

Recognizing and rewarding loyalty through referral programs, as seen in successful companies like Smytten, Paytm, Google Pay, etc. This strategy generates awareness and is cost-effective, as businesses can spend less on customer acquisition.

However, to acquire new customers, they must have exceptional products or services. Other than this, you can also engage in contests and giveaway activities.


What could be better than customer testimonials for greater conversions? In today's time, customers trust what they see. Collecting positive feedback and testimonials builds trust with prospects, establishing credibility for your business.

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What are the types of sales leads?


1) Information qualified lead 2) Marketing qualified lead 3) Sales-qualified lead 4) Cold lead 5) Hot lead 6) Warm lead

What is a sales-qualified lead?


The sales team identifies a sales-qualified lead as more likely to convert. With the help of lead scoring models, the SQLs are identified, and they are confirmed to become a customers of your business.

What is a hot sales lead?


A hot lead is more likely to convert as it shows active interest. They have a high probability of getting converted into a customer, and they are likely to say yes to the offer.

What is lead generation in sales?


Lead generation is the process of attracting potential customers for business growth. Businesses continuously make efforts to keep their sales pipeline filled by employing marketing and sales strategies.

What is the 5-step sales lead generation process?


The sales lead generation process involves several key steps: discovering the audience, crafting a value proposition, optimizing digital channels, deploying lead capture tactics, and analyzing for continuous improvement.

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