In this article, you’ll know what exactly a lead generation and demand generation is? And along with that let’s talk about the difference between them (Lead Generation Vs Demand Generation) and what to opt.
Lead generation and demand generation, many B2B marketers, sales and executive teams have used the terms demand generation and lead generation interchangeably. They’re not the same thing. There are significant differences between demand generation and lead generation – differences that any B2B executive or sales leader should understand.
When B2B marketers say demand generation, they mean lead generation — which is to say they will measure success based on the number and value of the leads their efforts bring in. The majority (80%) of today’s marketers rate their efforts to generate new leads as only “slightly” or “somewhat” effective.
Now, let’s define the terms demand generation and lead generation.
What is Demand Generation?
Demand generation is a marketing operation that serves to create a demand for or interest in your product. To make it simple, it is focused on shaping the audience’s perspective. The direct outcome is that your audience is more likely to purchase your products or services.
It supports the entire marketing and sales cycle, from initial prospect interest and lead generation to lead nurturing and sales enablement to the first sale and cross-sell. Demand generation is in fact key to providing the full-funnel education needed to ensure loyal, profitable customer relationships.
How does it work?
Demand generation creates interest in your product first, through the open distribution of information or content. Individuals who are now interested in your offering (not your content) can provide their information, expecting (and even wanting) to hear from you.
Marketers who embrace demand generation often capture leads through a contact-us or learn-more form. Instead of contact info from people who just want access to an individual piece of content, these are individuals who want to hear more from you. They actually want the follow-up communications that many people who simply register for content actively avoid.
Here are some of the marketing tactics every B2B marketer uses within demand generation (it may vary between organisations).
- Inbound and website marketing
- Content marketing
- Content syndication
- Event marketing
- Social media marketing
- Paid advertising
- Lead nurturing via marketing automation
- Lead scoring
- Program measurement and optimization
- Sales/marketing alignment activities, such as sales enablement
What Is Lead Generation?
Lead Generation is a marketing practice of attracting a visitor who came to inquire about a product/service and converting them into qualified leads. It is a subcategory or component of demand generation. The goal of a B2B lead generation program is simpler than that of a demand generation program– to convert targeted audiences into a high volume of quality leads.
How does it work?
To generate leads, a company will collect some data(registration) of a visitor, often in exchange for content, in order to build a marketing database for email or telemarketing follow up. The direct outcome of lead generation is new contacts available for sales or marketing.
Lead generation tactics used by an organisation:
- Third-party content marketing offers, such as whitepapers, eBooks case studies and more
- Inbound content offers on the company website and landing page forms
- Paid, targeted advertising on social or in search
- Ad retargeting
- Live events
Difference between Lead generation and Demand generation:
From the definitions itself, we came to know the difference between them. They two are completely different aspects. It’s really as simple as the words themselves.
Lead generation is just one aspect of a holistic demand generation program – it’s just one tactic in the B2B demand marketing strategy. Since demand generation is the broad activity of creating an increasing want for a product or service, content marketing is typically used in a much wider range of ways for demand generation than for lead gen.
If it’s demand generation, you’ll want the content to be shared as widely as possible, so readers should be able to access your eBook without filling out a form. If your goal is lead generation, you’ll want to promote the eBook but require readers to fill out a form before downloading the file.
Lead generation focuses on top-funnel performance, while demand generation focuses on full-funnel performance.
What to opt – Lead generation or Demand generation? Which will be more beneficial for an organisation?
Now, up to here, everything is clear- what is a lead generation, demand generation and the difference between them. Here a question arises to everyone that which will give you more benefits and what to opt.
Though B2B marketing has evolved substantially over the last few years, demand marketers are often asked by other B2B marketers if they should focus on generating leads or demand. The answer is almost always both. For example, if you have to win a cricket match, you should be good at both batting (by scoring more runs) and bowling (restricting runs score and getting wickets).
Lead generation tactics are a critical part of a demand generation program. Without landing page forms, your organization will struggle to capture the contact information you need to begin conversations that translate to pipeline and revenue. However, you must also focus on building the awareness and authority you need to get qualified prospects to your website in the first place, as well as the nurturing and sale enablement efforts to bring more value to the business. For most B2B organizations, a demand generation strategy that includes lead generation tactics is likely to drive the best results.