What are Leads in Marketing – a Guide to Different Types of Leads

Picture this: you want to sell online. To do that, you need to know two things — where to find customers and how to contact them. Leads give you exactly that information.

Today we'll explain what leads are in marketing, discuss the main tools for attracting customers, and find out who needs lead generation.

What is a lead and lead generation

A lead is a potential customer who has shown interest in your product or service and provided their contact information: left a phone number for a callback or submitted a request form. We can also call those who performed a target action leads — someone who subscribed to your newsletter, downloaded an app, or registered on your website.

Here's the difference between leads and your regular target audience:

• Leads are closer to making a purchase. They've chosen a product (or are seriously considering a service) and are ready to pay for it. This category is often called "warm" audience. Companies can easily reach out to these "warmed-up" customers — send a push notification or an email with a call to action.
• Regular audience is far from taking action. With "cold" customers, you have to act indirectly: for example, show them ads. Direct emails or calls might irritate users, so it's recommended to start from a distance. If a user becomes interested in your product or service, then you can call the potential customer.
• Lead generation is the process of attracting leads. You can collect contact information using various marketing tools: pop-up forms on websites, app promotion through marketplaces, or social media advertising.

Different types of leads

Not all leads are created equal. Understanding the main types of leads helps you tailor your approach and improve conversion rates. Let's break down the lead types based on their intent to purchase:

• Information Qualified Leads (IQLs) are at the top of the sales funnel. These are people who have engaged with your content but aren't ready to buy yet. Maybe they downloaded a free guide or attended a webinar. They're gathering information and learning about solutions to their problems.
• Marketing Qualified Leads (MQLs) show stronger engagement and have moved further down the buyer's journey. They might have requested a demo, signed up for a free trial, or repeatedly visited your pricing page. MQLs are more likely to convert than IQLs because they've shown clear intent to consider your solution.
• Sales Qualified Leads (SQLs) are ready to buy and should be handed over to your sales team immediately. These leads have done their research, understand their needs, and are actively looking to make a purchase. They might have asked specific questions about implementation or pricing.
• Product Qualified Leads (PQLs) have actually used your product — perhaps through a free trial or freemium version — and shown behavior indicating they're ready to become paying customers.

Understanding these lead types helps you use personalized content and targeted messaging based on where each person is in their buyer's journey.

Who needs lead generation

Lead generation is essential for anyone selling products or offering services online. It's also used in offline business: mobile operators, stores, restaurants. For example, a fast-food chain might tell visitors about a unique promotion on their website, and employees can send messages about special offers.

Lead generation is especially valuable for marketers. Advertisers only pay for actual leads like confirmed orders or app installations, making it a cost-effective way to convert leads into customers.

Main tools to generate leads

Marketers attract potential customers to websites from various platforms. Webmasters mainly use these lead-generation tools:

• Lead forms. A user wants to sign up for English courses and visits your website. A form appears asking for their name, phone number, and email to register for the course or get a free consultation. These forms are one of the most direct ways to capture leads who are ready to engage.
• Chatbots. Specialists install them on websites, social networks, and messengers. Chatbots help answer potential customers' questions, provide consultation when choosing products or services, collect contact details, and pass them to managers for follow-up. This automated approach helps nurture leads 24/7.
• Lead magnets. This is free content offered to users in exchange for their contact information. For example, a gaming company might give away a free game or offer it at a huge discount. Lead magnets work because they provide immediate value while identifying people with genuine interest in your offerings.

Social media platforms also offer special ad formats for generating leads without requiring a website. Facebook and Instagram have "Lead Generation" campaigns where you create request forms and show them to your target audience. Potential customers view the form, leave comments, and provide answers. The resulting lead list goes directly to the advertiser.

How to convert leads into customers

Leads need proper handling. You must contact potential customers as quickly as possible, learn about their interests, and offer the most attractive product or service.

Several methods help persuade users to make a purchase:

• Send personalized emails and tell them about new products and company news. In your first email sequence, it's recommended to send a useful overview or create a collection based on the product category that interests the user. Use personalized content based on their specific needs and preferences.
• Send personal messages. Notify customers about new discounts and promotions. Keep them engaged with relevant information that matches their interests.
• Make phone calls. Offer services the customer was previously interested in. This direct sales engagement works best with SQLs who have shown strong intent to buy.

If a customer initially showed interest in a specific product (like buying a lawn mower), you can be more aggressive: explain why your company's product is the best in that price segment. Simply listing features isn't enough. Ideally, show the lawn mower in action.

Be careful with the "aggressive" approach: pushing products or services too hard might irritate some buyers. Use lead scoring to determine which leads are ready for more direct sales efforts.

Converting leads: Advanced strategies and improve your process

Working with leads often happens through social networks and messengers. For example, when a bot sends subscribers in Telegram an offer with an interesting discount that's only valid today — these limited-time offers create urgency and encourage action.

Depending on the platform, you might need additional resources like proxies, accounts, and so on. Sometimes different offers are sent from separate profiles, and if you exceed the network's limits, you'll face blocks or restrictions. These sanctions can be lengthy, and during this period you might lose potential hot customers.

That's why it's important to understand which method you'll use to maintain contact with customers, and decide whether it makes sense to purchase additional accounts based on that.

Use a CRM to track lead behavior and optimize your sales process. A good CRM helps you:

• Score leads based on their engagement level
• Set up automated followup sequences
• Track which leads are most likely to convert
• Identify your ideal customer profile

Create targeted content for different stages of the buyer's journey. Someone who just attended a webinar needs different information than someone who's requesting a demo.

Optimize your landing pages to capture more qualified leads. Test different headlines, forms, and offers to see what converts best with your audience.

Main types of lead nurturing

Once you've captured leads, nurturing them properly is crucial for turning them into loyal customers. Here are the most effective approaches:

• Email nurturing sequences work well for IQLs and MQLs. Send relevant content that addresses their pain points and gradually introduces your solution. Use analytics to track open rates, click-through rates, and engagement patterns.
• Retargeting campaigns help re-engage leads who visited your site but didn't convert. Show them personalized ads on various platforms based on their previous behavior.
• Content marketing provides ongoing value. Create blog posts, videos, and guides that help leads solve their problems while positioning your company as a trusted expert.

The key is to provide the information they need when they need it, gradually building trust until they're ready to buy.

Conclusion

To effectively work with leads, you need lots of practice, ability to build relationships with potential customers, and solid marketing knowledge. You'll need skills of a strategist, analyst, and targeting specialist. It's important to follow trends and understand which promotion tools work best in specific categories.

Remember that successful lead generation isn't just about quantity — it's about attracting the right type of lead and having systems in place to nurture them effectively. Focus on understanding your buyer's journey, creating valuable content, and using data-driven strategies to improve your conversion rates over time.