Definition
The process of attracting and capturing potential customers' contact information so sales can pursue them. Channels include SEO, paid ads, content, referrals, and inbound calls.
Why it matters
Lead generation is where marketing spend turns into actual sales conversations, so it's the part of the funnel owners feel most directly in revenue. It matters because a business can have a great product and still starve if not enough of the right people are asking about it. The key discipline is matching channel to customer: paying for leads that never had real intent burns budget faster than almost anything else in a small business.