As a marketer, you know that generating leads is a crucial part of the sales process. But what about demand generation? Is it the same thing as lead generation, or is it something different?
Confused? Don’t be, to answer this question, it’s important to understand the definitions of both lead generation and demand generation.
Lead generation is the process of attracting and converting strangers and prospects into someone who has indicated interest in your company’s product or service. This usually involves capturing contact information, like an email address or phone number, through forms or other methods of communication. The goal of lead generation is to create a pool of qualified leads that can be nurtured and converted into customers.
Lead generation is typically associated with inbound marketing, where a company attracts leads through its own efforts, such as through a website or social media presence.
Lead generation is typically more targeted, as it involves attracting individuals who have already shown some level of interest in a company’s product or service.
Lead generation often involves the use of lead magnets, such as free ebooks or webinars, to attract and capture the contact information of prospects.
Lead generation tactics often used by companies:
- Offering a free trial or demo of a product or service
- Providing a free consultation or assessment
- Offering a free ebook, whitepaper, or other resource in exchange for an email address or other contact information
- Hosting a webinar and requiring registration in order to attend
- Running a contest or sweepstakes that requires participants to provide their contact information to enter
- Creating a quiz or assessment that requires an email address to receive the results
- Offering a discount or special offer in exchange for contact information
Demand generation, on the other hand, is the process of creating and nurturing demand for a company’s products or services. This involves a variety of tactics, such as content marketing, social media marketing, email marketing, and other forms of outreach. The goal of demand generation is to drive awareness and interest in a company’s offerings, which can ultimately lead to more qualified leads and sales.
Demand generation, can encompass both inbound and outbound marketing efforts.
Demand generation, is more broad-based and aims to create demand among a wider audience.
Demand generation, might involve creating and distributing valuable content to a wider audience in order to drive awareness and interest in a company’s offerings.
Demand generation tactics often used by companies:
- Creating and distributing valuable content, such as blog posts, infographics, and videos, to attract and engage a target audience
- Running paid advertising campaigns on platforms like Google Ads or social media networks
- Participating in industry events, trade shows, and other speaking opportunities to increase brand visibility
- Building relationships with influencers and industry thought leaders who can help amplify a company’s message and reach
- Utilizing email marketing to reach and engage a targeted audience
- Leveraging social media to build a community and engage with prospects and customers
- Running referral or affiliate programs to encourage customers to spread the word about a company’s products or services
Both lead generation and demand generation are important for a successful marketing strategy. Lead generation helps companies fill their sales funnel with qualified leads, while demand generation helps to create a steady stream of leads by increasing brand awareness and interest in a company’s offerings.
Both lead generation and demand generation require ongoing effort and a consistent approach. Lead generation requires nurturing leads through the sales funnel and continuing to provide value to keep them engaged. Demand generation involves ongoing outreach and promotion to maintain and increase brand awareness.
The success of both lead generation and demand generation can be measured through metrics such as the number of leads generated, conversion rates, and the overall impact on sales and revenue. By tracking these metrics, companies can determine the effectiveness of their marketing efforts and make adjustments as needed.
Ultimately, the goal of both lead generation and demand generation is to drive sales and revenue for a company. By understanding the difference between these two concepts and how they work together, you can create a comprehensive marketing strategy that will help your business succeed.
In conclusion, lead generation and demand generation are two important aspects of a comprehensive marketing strategy. Lead generation involves attracting and converting strangers and prospects into interested leads, while demand generation involves creating and nurturing demand for a company’s products or services. By understanding the difference between these two concepts and how they work together, companies can effectively drive sales and revenue. At Entrustech, we have a team of experienced marketers who are skilled in both lead generation and demand generation. Contact us to learn more about how we can help your business succeed.