Demand Generation vs Lead Generation

The Differences Between Lead Generation vs. Demand Generation

What are the differences between lead generation vs. demand generation? These two terms often get mixed up, but it’s important to know that they’re not the same strategies. Every interaction that you want your audience to have with your content, marketing, products, and services should be focused on either demand or lead generation, especially since demand gen. is higher up in the marketing funnel and lead gen. is further down.

The main difference between demand generation and lead generation is that demand generation creates demand for a product or service through marketing initiatives. On the other hand, lead generation marketing focuses on collecting and converting data about potential customers into leads.

Demand generation and lead generation have many differences between them, but they both are very important for business. The demand generation goal and lead generation goal can be the same, which is to improve the business in every possible way they have a few differences as well. 

Demand Generation

Demand Generation

Demand generation is the process through which a firm utilizes marketing to raise awareness and interest in its products or services. It is all about marketing strategies based on platforms, which are similar to inbound approaches. Demand generation can help align your marketing and sales teams, track marketing’s contribution to revenue, and help your business grow.

The demand generation keeps track of everything a customer does. This means that when a customer just comes to visit the page and then becomes interested in the product or service to become a potential customer, Demand generation keeps every record.  


Why do you need Demand generation?

Demand generation is very close to inbound lead generation. So, many people think that this is not necessary. But the truth is, it is as important as any other business strategy. It is a lot like a blue ocean strategy where there is no competition and no market, but the product and service exist anyway. 

Demand generation has lots of other importance too. For example- 

Creating thought leadership: Demand generation provides proper guidance and insights about the products in a business especially when customers face any problem with it. Maintaining thought leadership will help to position you as an authority in your space. When people think about your industry or the problem you solve, they are more apt to think of your company if you can establish thought leadership because they know they can get their problems(product or service related) solved there. 

Being present through social media platforms: Using social media to communicate your business is one of the simplest methods to do it. People learn to identify your brand with the topics you post about. It also enables you to present your company’s culture and ideals concisely and honestly.

Go to market strategy : A go-to-market strategy is a plan that outlines how a business company will reach out to potential consumers and gain their interest and trust so that whenever the customers need something they think of your company first. Demand generation can create demand for your product or service among the customers by giving out many types of offers like free trials, buy 2 get 1 free, etc.


Lead Generation

Lead Generation

The practice of creating customer interest in a product or service to convert that desire into a sale is known as lead generation. Lead generation works as a marketing strategy that leads the customers into your products and service. 

Lead generation has the list of targeted customers, who are most likely to be interested in a specific product or service. This strategy can make the targeted customers regular customers by contacting them and informing them about the details regarding that product or service. 

Why do you need Lead Generation?

Lead generation is very important in business to establish direct contact with the customer about the product or service. Otherwise, with only marketing, it is not confirmed if the customers have noticed the product or service or not. Not just this, it has more benefits such as- 

To grow business: The lead generation process undoubtedly helps to grow your business even the small ones. They are the ones who introduce your company’s service or product in a trustworthy way to the customers so that they would become interested in your product or service and eager to do business with you. Purchase b2b leads from the lobby, which will help your business grow. 

More business opportunities: Lead generation throws out seminars and trade fairs so that people can learn about your business or company. There, you might want to pair up with another company and market and sell your products or services together. This will expand your business opportunities. 

Automate lead management: There are many automated lead generation tools for managing leads. This is easier and saves a lot of time. And as in this era of online, many people are more eager to do business or buy things online rather than in person. Lead generation has the option of automatically managing these types of leads online. It also keeps records of your customers’ buying profiles. 

Gaining more trust and visibility: As lead generation introduces a business to customers, the business gains more visibility and the customers can trust the company more because of the direct contact with lead generation. They do it by creating content that your audience cares about and sharing it on the platforms they use to generate leads.

Read More: Best Free Lead Generation Tools


Demand Generation vs Lead Generation: What is the difference?

Demand Generation vs Lead Generation

The main difference between demand generation and lead generation is that demand generation is to attract the people to your product or service and lead generation is to collect the attracted people’s contact details with names. And, the sales team can follow up with the prospective buyer in the future.

Because of the same objectives of demand generation and lead generation, people often get confused between them. Whether it is in terms of sales or in terms of marketing your brand, lead generation and demand generation both play a vital role. However, as a business owner or an entrepreneur, you must have a clear understanding of these two generation types to utilize them properly. 

Lead generation providers deliver B2B contact data, lead a database of people who can be your target customers, and contacts them. Demand generation makes the customers demand your products and services by introducing the product and service to the customers. 

Demand generation can contact potential customers, ask about their desired products and what problems they are facing, and then come up with solutions that can solve their problems. This can create trust in the customers about your company.

Lead generation only delivers and introduces your products or service. This might make them want it but it can also hate your products because of reaching the customers through cold emails or cold calls. 

Demand generation marketing provides free marketing. It gives the customers the freedom to buy the products and services of a specific company. But lead generation can seem imposed sometimes. Demand marketing does not demand the customer’s contact details for further selling, but lead generation often does.

There are many offers provided by the lead generation that would only be activated if they refer a friend or share their contact information. 

Demand generation vs lead Generation: Metrics

You have to count the return on investment of your generation type to keep track of your business. As demand generation and lead generation both keep track of your customers and purchasing details, they both have different ideas of keeping track of things. But as they both have different records, this gives you a big plus point. 

Although there might be differences in the track information between the generation types, both types of information will benefit your business. There are many ways for tracking demand generation vs. lead generation campaigns, and this list is by no means exhaustive.

Demand generation

  • Market share percentage
  • Cost per mille (CMP)
  • Organic traffic

Lead generation

  • Conversion rate
  • Marketing ROI per campaign
  • Number of email subscribers
  • Customer acquisition cost per campaign
  • Time to purchase (length of the sales funnel)
  • Number of marketing or sales qualified leads

Demand Generation Examples 

Demand generation is a marketing process that follows the inbound methods. It creates business awareness as well as keeps track of the customer’s movements throughout the process of becoming a regular customer from a target customer. 

Some of the demand generation examples can be social media engagement, blogging, content marketing, webinars, podcasts, measuring and optimization, influencer marketing, PR campaigns, sales and marketing alignment, SEO, etc. 

Lead Generation Examples

As mentioned before, lead generation contacts targeted customers who might be interested in your products. This might seem like limiting your business in a way as this method of marketing is not open to all. But it can increase sales too by gaining the targeted customer’s interest and trust. 

Some of the lead generation examples include- referrals through old clients, cold emails, cold calls, job applications, blog posts, coupons, trade fair events, online content, befriending the market rivals, etc. 

Differences between demand gen and lead gen

There is a big difference between demand generation and lead generation. Lead generation is about generating leads, while demand generation is about creating demand for a product or service. The two terms are often used interchangeably, but they are actually quite different.

Lead generation is the process of attracting and converting strangers into leads. This is usually done through online channels like website forms and social media. Once a lead is generated, it can be further nurtured into a salesqualified lead or even a customer. Demand generation, on the other hand, is about creating demand for a product or service. This can be done through marketing initiatives like content marketing, search engine optimization, and social media.

Demand generation is about getting people interested in what you have to offer and getting them to take action. So, while lead generation is about attracting strangers and converting them into leads, demand generation is about creating demand for a product or service. Both are important for businesses, but they are different processes.

There is not much difference between demand generation and lead generation in terms of business goals. But any business person or entrepreneur must know the difference and must know the right way of utilizing both types of marketing provided by these two types of generations. Only then, there will be the highest chances of success. 

Riad Hossen