March 13, 2024
5 min read
Matt Gray

How AI Tools Make Lead Generation Better and Faster

Businesses are always evolving, especially with new technology — and these days, artificial intelligence (AI) is changing everything, including how we find new customers.

AI can help businesses find those perfect new customers a lot faster, and with AI’s help, your business can earn more money.

What Is AI?

Let’s talk about how AI actually works. AI basically makes computers think a bit more like people. In business, AI helps us understand large amounts of information more quickly, and it finds things we might not even notice ourselves.

Here’s a more simple way to think about it:

  • Machine Learning (ML): Machine learning is essentially like teaching your computer to get smarter on its own. You give it information, and it learns how to find the best new customers for you.
  • Natural Language Processing (NLP): Natural language processing helps computers talk to us like we’re friends. If you’ve noticed a chatbot on your favorite website before, for example, that’s NLP at work.
  • Predictive Analytics: With predictive analytics, AI looks at what happened in the past to guess what might happen next with your customers.

So, how does AI help you find those awesome new customers? I’m about to show you some tricks that will help your business grow.

What Is Lead Generation?

Lead generation is the first step in making friends with potential customers. It’s where you find people who might be curious about what your business offers. They haven’t bought from you yet, but they’ve shown some interest.

Maybe they visited your website, signed up for your email updates, or even asked a question on social media. Lead generation helps you gather their information so you can start a conversation and see if your products or services fit their needs.

Why does this matter? Because you wouldn’t walk up to a random stranger in the store and try to sell them shoes without knowing if they even need them. Lead generation lets you focus on the people who are most likely to be interested — and that means your time and energy can be spent where they can make the biggest difference.

Finding these potential customers helps your business grow. It plants seeds first, and with the right care and attention, those leads can turn into loyal customers who love what you do.

Lead Generation Before AI

It’s hard to believe now, but there was a time when we didn’t have the internet — or even cell phones. Back then, finding potential customers looked very different. 

Businesses relied on traditional lead generation methods, such as:

  • Cold Calling: This was like calling a bunch of people you don’t know, hoping they might want to buy something.
  • Direct Mail Campaigns: Direct mail campaigns generally involve sending letters or flyers to people, even if they don’t know about your company.
  • Networking Events: These were meetings where businesses could try to find new customers face-to-face.

These traditional methods had their limitations:

  • Time: It took a lot of effort to find the right people, make all those phone calls, and prepare mailings.
  • Imprecise Targeting: Often, leads weren’t a great fit. It wasted resources on people who weren’t really interested.
  • Hard to Measure: Unless someone called and told you they saw your ad, it wasn’t clear which campaigns were actually working.

These old ways could work sometimes, but think about all the time and money spent without getting much back. Luckily, AI has changed everything for the better in this regard.

AI-Powered Lead Generation

AI functions as a powerful tool that adds a major upgrade to the traditional approaches we’ve talked about. It won’t completely replace those methods, but it definitely makes them work a whole lot better. 

Here’s how AI gives lead generation a major upgrade:

  • Lightning-Fast Analysis: AI can crunch massive amounts of data faster than any human. It spots patterns in customer behavior to find the most promising leads.
  • Laser-Focused Targeting: No more generic mailouts to everyone in the neighborhood. AI helps you target specific people who really match your perfect customer.
  • Smarter Decisions: With AI tools, you can track which campaigns work best. This helps you make better choices and spend your budget wisely.
  • Frees Up Your Time: Instead of spending hours chasing leads, AI can do the legwork for you. This lets you focus on what matters: building relationships with those potential customers.

In short, AI makes lead generation more efficient and accurate while freeing you up to focus on what you do best — running your business.

5 Tips for Using AI for Lead Generation

Use these tips as your guidebook for finding customers who are eagerly waiting to discover your business.

1. Leveraging Chatbots for Initial Customer Interaction

Your website never sleeps, and neither should your customer service. Chatbots provide a 24/7 presence. A chatbot is always ready to answer visitor questions and collect valuable information — in other words, even if you’re unavailable, a chatbot isn’t.

The Power of Chatbots

Chatbots offer a warm welcome and can start conversations even when you’re not around. They can ask questions to gauge a potential customer’s interest, and even schedule appointments for you. 

Here’s a step-by-step guide for an effective chatbot:

  1. Identify Goals: What do you want your chatbot to achieve? Are you aiming to collect emails, qualify leads, or answer basic questions?
  2. Choose a Platform: Many different chatbot platforms exist, like ManyChat or Mobile Monkey. Find one that suits your budget and needs.
  3. Chat Like a Real Person: Make your chatbot’s questions and answers sound natural, like you’re having a conversation with a friend.
  4. Gather Important Info: Have your chatbot ask questions to learn about the visitor and what they need. Then, store that info so you can help them even better.

Chatbots can make it easy to help customers all the time. Plan your chatbot carefully, and it’ll be like having a whole new helper for your business.

2. Using AI for Predictive Analysis

AI can look at information about potential customers and determine who is ready to buy something. You’ll also get clues about those who need a little more convincing. This way, you won’t waste time on people who aren’t interested, and can focus on the customers that matter most.

How It Works

AI analyzes a pool of data, like website behavior, past purchases, and social media engagement, and spots patterns that signal a potential customer is ready to buy. 

Let’s look at the steps to make AI analyze data effectively:

  1. Data Is Key: The more data your AI tools can analyze, the better. Make sure you’re collecting all of those useful details about your website visitors.
  2. Predictive Tools: Invest in AI platforms that specialize in predictive lead scoring. Some popular options include tools like Infer or 6sense.
  3. Prioritize and Personalize: Use the insights to pinpoint the most promising leads. This lets you tailor your outreach strategy for maximum impact.

AI-powered predictive analysis lets you focus your time and energy on the people who are most likely to buy what you’re selling. You’ll make more sales, and get the most out of your efforts.

3. Implementing AI for Enhanced Customer Segmentation

AI-powered customer segmentation gives you the power to group your potential customers. It effectively puts them in teams based on their likes and needs, which helps you figure out who is most interested in what you have to offer.

Why AI Segmentation Matters

Not all potential customers are alike. Some might be just starting to check out your products, while others are ready to buy them right away. AI segmentation helps you target your messages and offers to the right people at the right time.

How It Works

AI analyzes a wealth of data, then groups leads based on shared patterns and characteristics. 

Here’s how you can use AI segmentation to your advantage:

  1. Gather the Right Data: Make sure you’re collecting as much relevant information about your leads as possible. This is the fuel that powers accurate AI segmentation.
  2. Choose Your Segmentation Tool: Check out websites and tools that use AI to help you sort your customers into groups. Some good ones to try are Segment, Bloomreach, or Optimove.
  3. Define Your Segments: Decide what factors are most important for your business. Age, location, interests, and purchase history are common starting points.
  4. Create Personalized Experiences: Change your website, emails, and even what products you suggest based on what different groups of customers like.

AI-powered segmentation has a few key advantages:

  • Improved Targeting: No more blasting the same message to everyone. Reach the right customers with the right message at the right time.
  • Higher Engagement: When messages feel like they’re made just for someone, they’re more likely to pay attention to your business.
  • Boosted Conversion Rates: When your offers perfectly match a lead’s needs, they’re far more likely to become a paying customer.

AI-powered segmentation can change the way you reach out to customers. Use this technology to stop sending the same message to everyone and start making stronger connections.

4. Harnessing AI for Content Creation

You can make your content better with an AI helper. AI can help you figure out what your customers care about, suggest topics, and write headlines and offers that grab people’s attention.

How It Works

AI tools analyze your website analytics, social media engagement, and even customer feedback. This reveals which types of content are most likely to turn those leads into customers. 

Let me show you the steps needed to get results:

  1. Content Audit: Start by understanding what’s already working. Analyze your existing content to see which pieces have the highest engagement and conversions.
  2. Explore AI Tools: Research AI-powered content tools like Jasper or MarketMuse. These platforms can help you with idea generation, optimization, and even content creation.
  3. Test and Refine: Experiment with different AI-generated suggestions. Track performance and adapt your approach based on what works best with your audience. For me, my best content involves tips and insights into business growth and entrepreneurship. My content stems from my own experience in the industry, and I’m able to find ways to effectively engage my audience and keep them coming back — like with my video “How I Work 4 Hours a Day (and Make $730,000/Month)”.

Just keep in mind that AI is a powerful tool, but it can’t do everything. The best results come from using AI’s ideas along with what you know about your customers and business. Use AI wisely, and you can create content that brings in more customers, builds better relationships, and helps your business sell more.

5. Utilizing AI Tools for Improving Customer Relationship Management (CRM)

CRM is how you keep track of potential customers, and AI can make your CRM smarter. It helps with tasks, gives you insights about your customers, and makes it easier to connect with them.

Why AI-Powered CRM Matters

AI helps you focus on the most important conversations and opportunities with potential leads. This frees your sales team to give attention to those valuable relationships. 

Here’s how to make it work:

  1. Choose the Right CRM: If your current system doesn’t have AI tools, check out platforms like Salesforce, HubSpot, or Zoho. They have AI features built-in.
  2. Automate Tasks: Teach your AI to handle tasks like figuring out who’s most likely to buy, setting up appointments, or sending reminders.
  3. Uncover Insights: Use AI-powered analytics to reveal patterns in customer behavior. This guides your sales team’s focus and helps refine future campaigns.

You’re most likely using a CRM already — but if you aren’t, or you’re not happy with your current one, make sure you choose one that’s AI-ready. It’s a quick and easy way to power up your lead-generation efforts.

Real-World Examples of Successful AI-Powered Lead Generation

AI lead generation isn’t just a concept — it’s delivering real results for businesses of all sizes. Let’s look at a few success stories:

Harley-Davidson NYC

This iconic motorcycle brand turned to Albert, an AI marketing platform, to reach new customers. They saw website views skyrocket by 566% and achieved a 40% jump in sales.

H&M

H&M, one of the most popular retailers today, uses artificial intelligence for predictive analytics — and this data helps them predict trends, make informed choices, and strive for a more sustainable business. Specifically, H&M uses AI algorithms to obtain fashion trend data via information on search engines and blogs. H&M then uses this data to inform everything from how much they buy to when they buy and where certain clothing should be placed in its stores.

These examples show that AI-powered lead generation isn’t just for tech giants. Businesses in a variety of industries are harnessing the power of AI to reach the right people at the right time.

Conclusion

We’ve talked about all the ways AI helps businesses find new customers. From chatbots that are always ready to help to tools that guess which customers are ready to buy, AI can do a lot. 

Ready to see how AI can revolutionize your own lead-generation efforts? Founder OS is at the forefront of helping businesses harness the power of automation and AI.

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Matt Gray

Founder & CEO of Founder OS

I’ve built 4 successful companies and a community of over 14 million people. My mission is to help 100,000,000 founders automate their business and hit $5,000,000 profit per year. I help you grow your personal brand and business in just 3 minutes a week.

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