What is lead generation?

Lead generation refers to the process of attracting and converting potential customers into individuals or businesses that have an interest in a company's products or services. It fundamentally involves identifying and engaging prospects through various marketing methods, such as content marketing, social media, email campaigns, and more. The ultimate goal of lead generation is to create interest that can eventually lead to sales, thereby nurturing those prospects into customers.

This process is vital in the sales funnel as it helps organizations consistently fill their pipelines with potential clients, ensuring a robust and ongoing source of business opportunities. Effectively executed lead generation not only increases the likelihood of sales but also enhances customer engagement by providing valuable information to prospects.

In contrast, focusing solely on selling to existing customers or strategies for reducing costs does not align with the fundamental definition of lead generation. Additionally, determining pricing strategies pertains to pricing analysis rather than engaging potential customers. Therefore, the option that accurately describes lead generation is the process of attracting and converting prospects into customers.