Lead generation and Demand generation are both important B2B marketing strategies. However, businesses must be able to identify the differences between the two; else companies will start losing the opportunity to attract those valuable leads and waste marketing budget.
In this article, we will be looking at what both strategies entail and further explore the distinction between them.
Lead Generation vs Demand Generation
Demand generation is a holistic process that includes all stages of the customer journey (from awareness-research-consideration). However, lead generation is a subcategory within demand generation. Demand generation aims to create awareness and attract more people, whereas lead generation simply looks at transforming people into qualified leads.
Demand generation is when you are creating demand for your company's products/services; you are looking to attract new potential users to your business. It starts with companies providing information about the products/services and what they have to offer. The overall aim is to build a target audience, create interest among them, so they start talking about your products, and establish trust through well thought out contents.
Free content such as informational blog posts, case studies, infographics, and social media posts are some typical examples. This content should be designed to draw attention to your brand and build connections with your target audience.
As mentioned earlier, Lead Generation aims simply to turn the target audience into qualified leads. It requires companies to capture information from their potential leads and use that information to convert them into paying customers.
Lead generation tactics include getting information such as names and email addresses for their potential customers for the sales team who will eventually turn them into qualified leads; hence, gated content is more appropriate. Content such as whitepapers, PDF guides, online courses, and email subscriptions and free trials are perfect ways to generate leads.
Differences between Demand Generation and Leads Generation
Whilst demand generation looks at creating interests, lead generation focuses on converting those interests into customers.
Demand generation uses inbound marketing to attract leads by creating valuable content and experiences. Lead generation uses a lead magnet method to create offers/content which encourages potential customers to provide valuable information about themselves.
Lead generation focuses on top-funnel performance whilst demand generation tends to every stage of the marketing funnel and sales cycle.
Lead Generation or Demand Generation
Lead generation and demand generation are not the same and can be highlighted as two different strategies, but companies overall will aim to generate both demands and leads; therefore, both should work alongside each other.
Whilst the demand generation can be used to raise awareness and interest, lead generation can be used to turn that interest into qualifying leads.
In short, they are both vital parts of your marketing strategy. There is no need to choose between the two.
But if you must, think of what your overall business goal is; if it involves creating brand awareness and building relationships with potential customers, practice demand generation.
If you are aiming to generate more leads by putting your products, and its offering in front of your potential buyers, we suggest prioritising lead generation.
Want to learn more about how applying demand and lead generation strategy can help your business grow? Our marketing specialists are always on hand to provide you with the right support and recommendations. Simply give us a call or fill out the form below.