marketing Marketing is the act of acquiring, satisfying and retaining customers. It is one of the primary components of Business administration, business management and commerce. Marketing is usually conducted by the seller, typically a retailer or ma ...

, lead generation () is the process of creating consumer interest or inquiry into the products or services of a business. A lead is the contact information and, in some cases, demographic information of a customer who is interested in a specific product or service. Leads may come from various sources or activities, for example, digitally via the

Internet The Internet (or internet) is the Global network, global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a internetworking, network of networks ...

, through personal referrals, through telephone calls either by the company or telemarketers, through

advertisement Advertising is the practice and techniques employed to bring attention to a Product (business), product or Service (economics), service. Advertising aims to present a product or service in terms of utility, advantages, and qualities of int ...

s, and events. Lead generation is often paired with lead management to move leads through the purchase funnel. This combination of activities is referred to as pipeline marketing, which is often broken into a marketing and a sales pipeline.

Lead scoring

Lead scoring involves a quantitative method of assigning a numerical score to a lead. This helps the company determine whether a contact is valid for their pipeline and allows them to prioritize leads and allocate resources accordingly. The introduction of

marketing automation Marketing automation refers to software platforms and technologies designed for marketing departments and organizations to automate repetitive tasks and consolidate multi-channel (email, SMS, chatbot, social media) interactions, tracking and ...

has made lead scoring easier to implement. The score assigned to each lead is assigned based on their level of interest, fit with the company's target market, and likelihood of becoming a paying customer. It is not static and can change based on the demographic or behavioral criteria set by the company.

Regulation

In February 2024, the

Consumer Financial Protection Bureau The Consumer Financial Protection Bureau (CFPB) is an independent agency of the United States government responsible for consumer protection in the financial sector. CFPB's jurisdiction includes banks, credit unions, securities firms, Payday lo ...

(CFPB) issued guidance targeting the manipulation of comparison-shopping tools for financial products due to kickbacks. This manipulation impacts lead generation, steering consumers towards certain products not because of their merits but due to hidden financial incentives. The guidance highlights how such practices may breach federal

consumer protection law Consumer protection is the practice of safeguarding buyers of goods and services, and the public, against unfair practices in the marketplace. Consumer protection measures are often established by law. Such laws are intended to prevent business ...

s, emphasizing the need for unbiased, transparent comparison tools in the financial sector and offering the concept of a federal comparison shopping site as an alternative.

Lead scoring

Regulation

See also

References

Further reading