The terms “demand generation” and “lead generation” get tossed around a lot in business-to-business (B2B) marketing. The terms are closely related, so it’s no surprise that marketers use the phrases interchangeably. Orchid Agency tackles the differences between the two and best practices to leverage demand generation and lead generation to accelerate growth for tech startups.
What is demand generation?
Demand generation is a term used to describe the process of building awareness and interest from ideal customer profile (ICP). Demand generation tackles how a business reaches new customers and how to generate hype for the target audience. An effective demand generation marketing strategy usually involves an omnichannel marketing strategy that delivers clear, concise and effective value propositions to ICP at the ideal stage of the customer journey.
Demand generation increases brand awareness, educates audiences, and generates trust. It focuses on building relationships with influencers, decision-makers. Furthermore, it dabbles in building awareness about your brand and its value proposition.
What is lead generation?
Lead generation is the process of converting prospects into leads and eventually accelerating pipeline journeys and converting prospects to leads to customers. Leads are typically contacts and prospects within ICP that are a part of the buying journey – either as – gatekeepers, influencers, decision makers, project champions, advisors, financial budget owners, and an executive sponsor such as CEO and/or President.
Lead generation strategies can take many forms: from creating a compelling piece of content that drives traffic to the website, to running a paid ad campaign on platforms like Facebook or Google Adwords, to email marketing — or all three! The overall goal of lead generation is leading the prospects from being interested in a product or service, educating prospects, to take that last step, leading to a purchase.
Why should every company leverage both lead generation and demand generation?
The main difference between demand generation and lead generation is that demand generation is about increasing brand awareness while lead generation aims to convert brand-aware prospects into customers. Both lead generation and demand generation are important and contribute to the marketing funnel, sales funnel and ultimately revenue. Thus companies need to appropriately leverage both demand generation and lead generation to accelerate growth and maximize results.
Both demand generation and lead generation are necessary components of today’s marketing landscape. With the tools for measuring and sharing information readily available, it’s important to use both in order to drive business success.
Combining these two strategies will improve marketing spend, create repeatable marketing and sales playbooks to accelerate growth and drive sales.