Lead Generation vs. Demand Generation: Key Similarities and Differences
It is well known that marketing is a tough task, particularly in terms of digital marketing. There are numerous strategies to choose form, platforms to engage, and tussle with stiff competition. Keeping updated with all the upcoming trends and tactics can be a tough job as the whole B2B landscape keeps evolving on a regular basis.
It is important to understand what identifies different types of marketing tactics. Let’s look at the two most popular tactics that are often confused with each other – demand generation and lead generation.
Just like the demand generation, lead generation is commonly shortened to ‘lead gen’. However, unlike demand generation, lead gen is all about bringing in your audience. Thus, the content for lead generation strategies should not focus on highlighting the brand name, but instead read out the benefits you offer to your audience.
The primary goal of lead generation is to gather information about your potential buyers. This can be done with the help of different types of signups, driven by content marketing. With this data in hand, it can be used along with other lead generation tactics to start filtering these leads down the marketing funnel.
Generally called as ‘demand gen’, it is all about creating your name in the B2B market. The aim is to make potential leads who want to know more about your business. This strategy is especially crucial for the businesses that are just entering the market.
In an ideal world, demand generation strategies are designed to entice audiences to find out more about you, which will directly lead them to sales and a conversion. However, this doesn’t happen often. Thus, your demand gen strategies should be able to familiarize the target audience with the brand name and your business operations. This helps drive your lead generation tactics.
Similarities between Lead Generation and Demand Generation
As you must have already noticed, there are several similarities between demand gen and lead gen activities. Both these strategies are used to target certain target audience. The aim in marketing is always to focus on the leads which are likely to buy the services or product that you offer. Just amassing a bunch of prospects for the sake of it and which blow cold after a period of time is highly counterproductive. Thus, it is important to devise demand generation and lead generation strategies that will target audience for quality leads.
In addition to this, both these strategies are heavily dependent on content marketing. The importance of content is growing each day and this is particularly significant for your lead gen and demand gen strategies. It also goes without saying that the quality of the content needs to be high for these strategies to succeed.
Difference between Lead Generation and Demand Generation
Obviously, there are some distinct features to demand gen and lead gen strategies that separate them. As said before, demand generation is all about increasing your brand presence and knowledge about your business among the target audience. On the other hand, lead generation tactics are about showing your worth and value to the audience to draw them in.
Content development for each strategy is different. Content for demand generation has the primary intention to inform about the product or services. Thus, it’s important to showcase what you do and how you do it. Do not go for a sales pitch right away.
On the other hand, lead gen content focuses more on pitching a sale. Such type of content is developed particularly to connect leads with your sales team.
Additionally, the CTAs in the respective strategies are also distinct. A demand gen CTA points towards learning more about the subject and sound more like ‘know more’. A lead gen CTA on the other hand, is more inclined to get a prospect to sign up or some specific action, and more often may sound like ‘start a free trial’.