Welcome to the latest edition of our new weekly blog series, Marketing Definitions. Each week, we will identify an oft-used term or phrase in the marketing community and break down its use and meaning for the broader population.
Last week’s term that we defined was Paid Search.
Today’s Term = Leads
In marketing, we use the term “lead” most often when we’re talking about sales. You might hear “sales lead” instead, further linking the two.
A lead is a prospective sale. In the business to business world, it might be a business or individual decision-maker within that business. In the business to consumer world, a lead is most likely an individual.
These leads, or prospects, are potential clients that your sales efforts will be aimed at.
A few related terms:
Cost per lead = the amount spent to acquire each prospect. This is a useful metric in measuring advertising effectiveness.
Lead conversion rate = the amount of prospects that turn into paying customers. This metric helps you measure the effectiveness of sales programs, salespeople, or the quality of the leads.
Lead generation = refers to the activities used to acquire prospects. This could be online advertising, email marketing, cold calling, direct mail, list purchases, etc.
That does it for today’s definition. Have a term you’d like defined in a future post? Email us or post it in the comments below.