Businesses use lead magnets as part of their inbound marketing strategies to attract potential customers and collect their contact information. When customers sign up to receive a lead magnet, such as an e-book or a free webinar, they provide their email addresses or phone numbers. This information helps businesses build a relationship with customers by sending them valuable content and updates about products or services. For example, a company offering online fitness classes can offer a free workout guide as a lead magnet. When customers sign up, the company can keep in touch with them and eventually promote their paid classes. In short, lead magnets help businesses grow their customer base and engage with interested leads, turning them into loyal customers over time.