Types of Leads: Warm, Cold, and Everything in Between

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class="post-categories u-mb-lg" itemprop="itemListElement" itemscope itemtype="http://schema.org/ListItem"> <h1 itemprop="name" class="post-title">Types of Leads: Warm, Cold, and Everything in Between</h1> <meta itemprop="position" content="3" /> </div> </div> <div class="u-flex u-flex-wrap u-Mt-sm md:u-Mt-md u-mb-md u-text-p8 u-text-gray-700"><div class="u-flex u-items-center u-basis-12 md:u-basis-auto md:u-mr-lg u-mb-lg md:u-mb-0"> <div class="success-authors-info u-flex u-items-center"><div class="u-flex success-authors-info__avatars "> <a href="/success/authors/jacquelyn-dunham/" class="success-authors-info__avatars__a"><img src="https://res.cloudinary.com/dn1j6dpd7/image/fetch/f_auto,q_auto,w_96,h_96,c_fill/https://success-cms.labs.livechatinc.com/app/uploads/2023/03/Jacquelyn-Dunham.png" class="u-w-fit u-ml-0 u-round success-authors-info__avatars__img u-mr-sm" style="width: 48px;" width="48"></a href="/success/authors/jacquelyn-dunham/" class="success-authors-info__avatars__a"></div><a href="/success/authors/jacquelyn-dunham/" class="u-text-p8 success-authors-info__a">Jacquelyn Dunham</a href="/success/authors/jacquelyn-dunham/" class="u-text-p8 success-authors-info__a"></div> </div><div class="u-flex u-items-center u-mr-lg sm:u-mr-xl"> <img src="/success/icons/time-to-read.svg" class="u-w-fit u-mr-xs u-ml-0 u--mt-3xs" alt="" width="20"> <span>12 min read</span> </div> <div class="u-flex u-items-center"> <img src="/success/icons/calendar.svg" class="u-w-fit u-mr-xs u-ml-0 u--mt-3xs" alt="" width="20"> <span>Aug 24, 2023</span> </div> </div> </div> <img src="https://res.cloudinary.com/dn1j6dpd7/image/fetch/f_auto,q_auto,w_1300,h_500,c_fill/https://success-cms.labs.livechatinc.com/app/uploads/2023/08/pawel-czerwinski-6lQDFGOB1iw-unsplash-scaled.jpg" 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class="c-copy-button__textarea u-maxw-1">https://www.livechat.com/success/types-of-leads/</textarea> </li> </ul> </div> <p class="u-text-p5">There are two types of leads in this world — warm and cold — right? Wrong. Just like life isn't black and white, it's the same when it comes to lead generation. Sure, warm and cold are the fundamental division, but there's so much more to lead qualification. </p> <p>What are the other, not-so-obvious types of leads, their differences, and, most importantly, how to approach them?</p> <figure class="block-youtube"> <div class="o-fluid-video"> <iframe width="560" height="315" src="https://www.youtube.com/embed/guW35nbeGak?start=0" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe> </div></figure> <h2 class="block-heading u-text-p4" >Types of leads</h2> <p>You can look at different types of leads from a few different angles and classify them according to various criteria — how old they are, if they're offline or online, inbound or outbound, and how ready they are to buy.</p> <h2 class="block-heading u-text-p4" >Fresh leads vs. old leads</h2> <p>Fresh leads are new <a href="https://livechat.com/success/sales-prospecting">prospects</a> who have recently actively expressed interest in your product or service. They can come from various sources as a result of all your marketing efforts, including content marketing, search engine optimization (SEO), social media marketing, cold calls, email marketing, and so on.  </p> <p>Since they have recently interacted with your product or service, they may have a more immediate need or intent to purchase. They are typically more engaged, receptive to communication, and more likely to convert if you follow up quickly.</p> <p>Old leads are prospects who interacted with your product in the past but haven't converted into customers for some reason. </p> <p>They might have gone cold because of a lack of need at that moment, budget constraints, or a change in priorities. Usually stored in your database or CRM, these leads can be re-engaged through retargeting or nurturing campaigns.</p> <h3 class="block-heading u-text-p5-bold" >Differences between fresh and old leads</h3> <h4 class="block-heading u-text-p6-bold" >Engagement level </h4> <p>Fresh leads are more engaged and interested in your product or service. On the other hand, old leads require additional efforts to reignite their interest.</p> <h4 class="block-heading u-text-p6-bold" >Conversion potential</h4> <p>Fresh leads have a higher potential for conversion as they are more recent, while old leads might require more nurturing and convincing before they are ready for purchase.</p> <h4 class="block-heading u-text-p6-bold" >Follow-up strategy </h4> <p>The strategies to engage these two types of leads are often different. For fresh leads, immediate follow-up and providing detailed information can help in conversion. With old leads, you'll need a well-thought-out nurturing process where you provide value and stay top of mind, waiting for the right time when they are ready to make a purchase.</p> <h4 class="block-heading u-text-p6-bold" >Information relevance</h4> <p>The information your sales team has about fresh leads is usually more relevant and up to date.</p> <h4 class="block-heading u-text-p6-bold" >Sales cycle </h4> <p>The <a href="https://livechat.com/success/sales-cycle">sales cycle</a> for fresh leads may be shorter as they have an immediate need or intent to purchase. On the other hand, it's usually longer with old leads as it takes time to rekindle their interest and convince them to make a purchase.</p> <p>While managing fresh and old leads requires different strategies, both can be valuable sources of potential sales for your business. Maintain a balance between nurturing old leads and capitalizing on fresh ones to ensure a healthy sales pipeline.</p> <h2 class="block-heading u-text-p4" >Lead generation isn't just about the online world</h2> <p>It's easy to think about lead generation only as a purely digital concept. After all, online leads are easier to track and manage because your sales team starts collecting data about them the moment they interact with your brand on the internet. They visited your website, engaged with social media, and any other digital touch point where they might have filled out the form with their contact details. </p> <p>Don't disregard offline leads, though. While they're less easily trackable, prospects coming across your product or service via offline channels like trade shows, networking events, print advertising, direct mail, cold calling, or television and radio advertising can be equally valuable. </p> <h3 class="block-heading u-text-p5-bold" >Differences between online and offline leads</h3> <h4 class="block-heading u-text-p6-bold" >Speed of acquisition</h4> <p>You can acquire online leads more quickly as digital interactions happen in real time. On the other hand, offline leads may require more time to collect and input into your CRM or database.</p> <h4 class="block-heading u-text-p6-bold" >Volume</h4> <p>Online methods can generate a larger volume of qualified leads due to the widespread reach of the internet. Offline methods may have a more limited reach, generating fewer leads.</p> <h4 class="block-heading u-text-p6-bold" >Data collection </h4> <p>Online leads often allow for more automated and comprehensive data collection, capturing everything from demographic info to specific interactions with your website or ads. Offline leads generally require manual data entry and might lack some details unless specifically gathered, making it more difficult to turn them into marketing qualified leads.</p> <h4 class="block-heading u-text-p6-bold" >Cost </h4> <p>Depending on the strategy, online lead generation can be less expensive as it can reach a larger audience at a lower cost. Offline lead generation methods like print advertising or events can be costly.</p> <h4 class="block-heading u-text-p6-bold" >Engagement</h4> <p>While you can quickly and automatically send follow up messages to online sales leads, the communication with offline leads is often more personalized and direct.</p> <h4 class="block-heading u-text-p6-bold" >Quality </h4> <p>The quality of leads can vary. Offline leads might be more qualified leads, as they often result from one-on-one interactions or targeted, localized campaigns. Online leads can be high in quality, too, especially if they come from targeted online advertising or inbound marketing efforts.</p> <p>In a comprehensive approach, both online and offline leads play crucial roles. Come up with a holistic strategy that caters to both types of leads. Online leads will benefit from the power of the internet and its broad reach, and offline leads will reinforce direct, personalized engagement. </p> <h2 class="block-heading u-text-p4" >Outbound marketing is alive and well </h2> <p>With inbound marketing, potential customers find you on their own. Also known as pull marketing, it involves creating and sharing in-depth content designed to appeal to your target customers, and it relies on <strong>earning people's interest</strong> instead of buying it. </p> <p>Inbound lead sources include blog posts, SEO, social media marketing, informative content, webinars, and more. Customers from inbound leads have usually done some research and have shown interest in your product or service, which often turns them into marketing qualified leads almost instantly.</p> <p>Outbound leads are identified and pursued actively through more traditional methods, a.k.a <strong>push marketing</strong>. It involves contacting prospects directly through cold calling, direct mail, trade shows, email blasts, advertising, and other marketing materials designed to insert yourself in front of the audience, whether they've demonstrated an interest or not.</p> <h3 class="block-heading u-text-p5-bold" >Differences between inbound and outbound leads</h3> <h4 class="block-heading u-text-p6-bold" >Interest level </h4> <p>Inbound leads are more interested in your product or service since they have found you while searching for solutions for their pain points. Outbound leads are often unaware of your product or service, and your outreach puts you on their radar.</p> <h4 class="block-heading u-text-p6-bold" >Engagement</h4> <p>Inbound leads are more engaged because they've interacted with targeted content and brand voluntarily. Outbound leads aren't as engaged initially since they didn't actively seek out your company.</p> <h4 class="block-heading u-text-p6-bold" >Cost </h4> <p>Inbound marketing often has a lower cost per lead since it primarily relies on creating tailored content and optimizing for search. Outbound marketing can be more expensive due to costs associated with advertising, direct mail, or event sponsorship.</p> <h4 class="block-heading u-text-p6-bold" >Conversion potential </h4> <p>Inbound leads have a higher conversion potential because they are often more qualified and invested in your solution. However, outbound leads can also have good conversion potential with a well-targeted and researched approach.</p> <h4 class="block-heading u-text-p6-bold" >Time to convert </h4> <p>Inbound leads, already interested and engaged, may have a shorter conversion time, making them a better fit to become sales qualified leads. Outbound leads often require more time to nurture and convince of your product or service's value.</p> <p>Successful businesses usually have a blend of both inbound and outbound leads in their marketing strategies. Inbound marketing excels at drawing in aware and interested prospects, while outbound marketing campaigns help cast a wider net and pull in those who may not find you otherwise.</p> <h2 class="block-heading u-text-p4" >Don't underestimate cold leads</h2> <p>Warm leads have shown interest in your product or service and are more likely to be receptive to your direct sales pitch. They show their interest by subscribing to your newsletter, downloading a white paper, filling out a contact form on your website, or attending a webinar you hosted. Warm leads are usually in the middle of the <a href="https://livechat.com/success/sales-funnel">sales funnel</a>, having moved beyond the awareness stage and actively considering your offerings.</p> <p>Cold leads may fit your target demographic or ideal customer profile (ICP) but have not shown any specific interest in your product or service. These leads are usually at the top of the sales funnel, in the awareness stage. You may acquire a cold lead by purchasing a list of contacts or identifying potential clients who match your ICP.</p> <h3 class="block-heading u-text-p5-bold" >Differences between warm and cold leads</h3> <h4 class="block-heading u-text-p6-bold" >Sales approach</h4> <p>With warm leads, the sales approach can be more direct, tailored, and product-focused since they've shown a degree of interest and familiarity with your offerings. With a cold lead, the sales approach usually involves a more general introductory pitch focusing on creating awareness and interest.</p> <h4 class="block-heading u-text-p6-bold" >Conversion probability</h4> <p>Warm leads are more likely to convert into customers because they've already engaged with your brand. Cold leads, on the other hand, may require more time and effort to nurture and convert.</p> <h4 class="block-heading u-text-p6-bold" >Response Rate</h4> <p>Warm leads are more likely to respond to your communication since they are interested and familiar with your brand. Cold leads may have a lower response rate as your communication may be unsolicited.</p> <h4 class="block-heading u-text-p6-bold" >Nurturing needs</h4> <p>Warm leads often require less nurturing than cold ones, as they have already shown interest and are further along in the <a href="https://livechat.com/success/sales-process">sales process</a>.</p> <h4 class="block-heading u-text-p6-bold" >Time to convert</h4> <p>Generally, it takes less time to convert warm leads into customers, whereas cold leads may take more time as you need to create awareness, interest, and trust first.</p> <p>In sales and marketing, it's important to have tactics for handling both warm and cold leads. While warm leads may be more likely to convert, cold leads can represent new opportunities and markets. One way or another, your goal is to turn cold leads warm and, ultimately, into customers.</p> <h2 class="block-heading u-text-p4" >Lead combinations can be (almost) endless</h2> <p>A lead can have multiple characteristics and fit into multiple categories, including being warm, old, online, and inbound simultaneously. Here's how:</p> <ul> <li><strong>Warm</strong>: The lead has shown interest in your product or service in the past and has engaged with your company, either by subscribing to your newsletter, attending a webinar, or some other interaction.</li> <li><strong>Old</strong>: Although the lead has shown interest, they haven't made a purchase or taken the desired action, and a significant amount of time has passed since their last interaction with your company.</li> <li><strong>Online</strong>: The lead originally came through an online channel, like Google search or social media.</li> <li><strong>Inbound</strong>: The lead found your company through their research, perhaps through your Facebook page or a LinkedIn profile. They definitely didn't enter your marketing funnel because you contacted them first.</li> </ul> <p>To nurture such a lead, your sales team could re-engage them online with fresh, relevant content based on their previous interactions and interests. Since they're already familiar with your company (as they're a warm lead), your content can have middle-of-the-funnel (MOFU) or bottom-of-the-funnel (BOFU) characteristics, which means that it can be more specific and targeted towards your product or service. You can also use personalized communication to remind them of their past interest and help move them toward conversion.</p> <p>Is it possible to face a combination that's the complete opposite? Since our products only focus on online leads, I'll stick to that characteristic and change the rest. A sales lead can undoubtedly be cold, new, online, and outbound at the same time. Here's how:</p> <ul> <li><strong>Cold</strong>: The lead has not expressed a specific interest in your product or service, and they might not have prior knowledge of or engagement with your business.</li> <li><strong>New</strong>: You've recently identified or added the lead to your database.</li> <li><strong>Online</strong>: You found and contacted the lead via an online channel. This could be through email, social media, or digital ads.</li> <li><strong>Outbound</strong>: You've targeted the lead proactively through your outbound marketing efforts, such as paid ads, direct emails, or cold outreach.</li> </ul> <p>For such a lead, your nurturing strategy should first focus on creating awareness and interest. This could involve sharing <strong>informative and educational BOFU content</strong> about your industry or offering. Introduce them to your brand and its values, and explain how your product or service can address their needs or problems. </p> <p>Regular follow-ups through online channels, personalizing your communication based on any data you've gathered about the lead, and using retargeting strategies can be effective ways to nurture and eventually convert such leads.</p> <h2 class="block-heading u-text-p4" >What types of leads do ecommerce businesses deal with?</h2> <p>Because of their online characteristic, ecommerce businesses typically work with a combination that includes fresh, online, inbound, and warm leads. </p> <p>Ecommerce businesses usually use a variety of strategies like personalized email marketing, retargeting ads, content marketing, SEO, and social media engagement to nurture these leads. Automated email sequences, AI-driven product recommendations, and personalized discounts based on browsing behavior can also be highly effective in generating leads.</p> <p>Many ecommerce businesses also use <strong>live chat software and chatbots</strong> to enhance lead qualification and website engagement. If your traffic is so big that your customer service agents can't keep up with visitors flooding your website, consider using <a href="https://chatbot.com/">ChatBot</a> to prequalify leads and transfer the ones with the highest conversion potential to human agents with a better chance of closing the sale. </p> <p>On the other hand, some warm leads don't need a hand, and a well-designed chatbot scenario should do the trick and allow your agents to focus on the more challenging cases. </p> <p>If your business is more about building and nurturing relationships and your website traffic is less intense, <a href="http://livechat.com/">LiveChat</a> will be perfect for you. You can integrate it with major ecommerce platforms like <a href="https://livechat.com/shopify-chat">Shopify</a>, <a href="https://livechat.com/bigcommerce-chat">BigCommerce</a>, or <a href="https://livechat.com/success/best-live-chat-for-squarespace">Squarespace</a> and use <a href="https://livechat.com/success/ecommerce-businesses">built-in features dedicated to ecommerce</a>, like product cards. Use them to present your products as interactive cards right in the chat. </p> <h2 class="block-heading u-text-p4" >It's time to take a closer look at your leads</h2> <p>How many of the types of leads described above do you recognize? Do you know what different lead types you can find among your leads and what are the best ways to approach them? </p> <p>Like I said before, lead combinations can be almost endless, and it's impossible to come across a sales-qualified lead with only one characteristic. You'll need to mix and match your tactics accordingly, and products like <a href="https://accounts.livechat.com/">LiveChat</a> and ChatBot can be your best allies. </p> <div class="post-sources"> <h3 class="u-text-p6-bold u-mb-lg">Sources</h3> <ul class="c-list u-pl-0 u-text-p8"><li class="u-mb-sm"> <a href="https://unsplash.com/photos/6lQDFGOB1iw" class="u-text-black" rel="noopener noreferrer nofollow" target="_blank">Featured image courtesy of Pawel Czerwinski via Unsplash</a> </li></ul> </div></article> <div class="post-grid"><section> <h2 class="u-text-p3 u-Mt-lg u-text-center">Keep the conversation going</h2> <ul class="post-share"> <li> <a href="https://twitter.com/intent/tweet?text=Types%20of%20Leads:%20Warm,%20Cold,%20and%20Everything%20in%20Between&via=Success__Team&url=https://www.livechat.com/success/types-of-leads/" target="_blank" rel="nofollow noopener noreferrer" class="post-share__button success-hover" style="color: #4AA0EC;" data-controller="track" 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