April 22, 2022

Demand Gen vs. Lead Gen: Which is Better? (2022 Guide)

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Last updated:
April 22, 2022

Demand gen vs lead gen. Which is better? Why are they different? Demand or "demand-generation" activity is different from lead generating activity because it creates content that people want to consume. In other words, it creates content people trust as a trusted source of information.

While lead gen dilutes brand power, demand or "demand-generation" activity focuses on creating content that ideal buyers want to consume.

This is not the same as lead gen, where you're aiming to reach 100,000 people who just saw your brand logo in an ad.

What is demand generation marketing?

If your business is experiencing a lack of customers, you may be wondering what demand generation marketing is. Demand generation is an essential part of any marketing campaign, since the demand for your product does not spontaneously appear. Instead, it is created by a concerted effort by salespeople and marketers.

This demand is what creates the supply of your product, and ultimately creates revenue for your business. Demand generation efforts typically begin with paid advertising such as PPC ads on Google, and then move to inbound marketing tactics that capture prospects and set them up for lead nurturing.

The metrics that are important for demand generation include cost per acquisition (CPA), customer lifetime value, and engagement rates. This metric can help you determine which marketing channels are working best for your company.

Among these, cost per acquisition (CPA), conversion rates, and customer lifetime value (LTV) are softer metrics. Other metrics you should monitor include customer lifetime value (CLV), which tracks the average profit per customer.

Demand generation creates more interest

Demand generation tactics

Demand generation is an ongoing process that helps businesses increase awareness and interest in their products and services. It involves various strategies that generate interest in a prospect by offering useful content.

These tactics start before a prospect is even aware of the brand, and continue long after a prospect converts. Successful demand generation campaigns require transparency between the sales and marketing functions. They should also be aligned with one another. Creating a mutually beneficial relationship is key to successful demand generation.

What is lead generation marketing?

Lead generation is the process of creating consumer interest in a company's products or services. This interest is what motivates visitors to contact the brand or make an initial purchase.

The marketing goal of lead generation is to convert the leads into paying customers. There are many ways to do this, including utilizing landing pages, blogs, and email marketing. Here are a few examples of effective lead generation methods.

Once the website visitor fills out the form, the website owner can then send a high quality offer to the email list.

Facebook has been a method of lead generation since its inception. Businesses could use outbound links in their posts and information about themselves in their bios to attract strangers.

Lead generation tactics

In 2007, Facebook launched ads. Since the algorithm favored accounts that utilized paid advertising, Facebook created Lead Ads to make this a possible option. With Lead Ads, Facebook users can place a call-to-action button on their Facebook page and direct followers to their website.

When generating leads, companies should consider the buyer's journey. By examining the buyer's journey, the marketer can develop a content strategy that is focused on the next step in the buyer's journey.

Lead generation marketing strategies are different depending on the target audience. In general, it focuses on building trust with viewers, ensuring that they take a step in the buyer's journey, and increasing the chances of conversion.

Average demand generation performance

If you're in the business of generating new leads, you've probably heard about demand generation and lead-generation. The two terms are similar in many ways, but they have distinct characteristics.

Demand-gen strategies use a combination of inbound marketing and outbound marketing strategies to generate qualified leads for a specific business. These efforts help marketers maximize the value of their marketing budgets and spend time where it matters most: in the sales funnel.

Lead generation creates more opportunities

Demand generation campaigns measure conversion rates

The first key difference is between the two types of metrics. Lead-generation metrics include cost-per-lead and cost-per-acquisition (CPA), and average customer lifetime value (CLV).

The former measures the average purchase frequency, whereas the latter measures the total lifetime value of a customer.

Ultimately, these metrics can help you decide which types of strategies are best for your business. By tracking your customers' lifetime value, you'll see where you can improve.

To determine the ROI of demand gen tactics, consider how long your leads take to convert. The average sales cycle is 60 days, so you'll need to track lead-generation performance in order to get a clear idea of whether the marketing efforts are working.

Whether a lead is converted into a customer is an entirely different matter. A better sales cycle means more revenue for your business. Therefore, your sales team should spend more time on generating qualified leads and converting them into customers.

Determining your average lead generation performance

To determine the effectiveness of your marketing efforts, it's important to compare average demand generation performance to lead generated by other channels. You can use metrics such as time to conversion, average purchase frequency, and cost per acquisition to determine the effectiveness of your marketing campaigns.

In addition, you can measure the ROI of your efforts by comparing average lead generation performance to the lifetime value of customers. Using these metrics to gauge your success will help you focus your marketing efforts and maximize the value of your marketing dollars.

While both tactics are important, they have different goals. Demand generation is about increasing awareness of your brand, while lead generation is about showing your value to attract prospects.

Lead generation campaigns measure brand awareness

As such, the content created for each type should be tailored to their specific objectives. While lead generation is about attracting new prospects, demand generation is intended to educate and inform rather than convert. That said, demand generation campaigns should include content that helps you create a buzz about your product and brand.

Increasing your qualified pipeline will help you achieve your sales goals. By tracking the time that prospects spend in your demand generation funnel, you can reduce the time it takes to convert them to a sale.

This will ultimately boost your revenue. If your conversion rate is low, you may need to adjust your top-of-funnel strategy.

What types of content is considered demand generation?

Demand generation and lead generating content have the same purpose: converting potential customers into paying customers. Demand-generation content can be in the form of one-off pieces shared on social media or by email, and is aligned with promotional efforts.

Demand generating content targets potential customers during the awareness phase of the sales funnel. It can be in the form of blog posts, videos, case studies, or easily accessible resources.

Its main difference is that demand-generation content performs better than lead-generating content.

Lead generating content should challenge the status quo and provide value to the reader. Lead magnets help build opt-in lists. Content should be created with pre-planning to meet the objectives.

In demand generating content, the CTA may be a request for contact details.

While these people may not be highly qualified, they are likely to sign up for a newsletter or download free resources.

Demand-generating content targets the audience that is unfamiliar with a brand or product and who are unsure of whether they need the product or service.

Demand-generating content is designed to inform people of alternatives to the product or service that a company offers.

Demand-generating content encompasses a company's entire marketing strategy, from product creation to brand marketing. For instance, a company could use a combination of content marketing and SEO to reach its target audience.

What types of content is considered lead generation?

To produce high-quality content that generates leads, you need to ask yourself these questions: What are the needs of potential customers? How can you build trust and a relationship with them? What types of content are effective in generating leads?

You can use testimonials to convince your prospects that you are the right choice for them. If you can answer these questions, you are well on your way to generating leads.

Case study, eBook (white paper), or other material

A case study, an eBook, or a gated infographic can generate leads. These materials increase your authority in your industry and educate your target audience, so you need to make sure they're interested in what you have to offer.

Providing an exclusive video or eBook can also be a great lead gen strategy. The most important aspect of creating and using content for social media is determining where your audience is, and how they use these platforms. By conducting social media analytics, you can figure out what kind of content will resonate with them.

In addition to offering useful information, content should also be optimized for users and search engines. Businesses usually use content marketing and SEO together.

Make sure to cover various angles. Use content to answer common questions and concerns of your prospects. For instance, a dental practice can answer frequently asked questions about dental procedures and their costs.

By providing content that helps your prospects with these questions and concerns, you'll gain credibility as a brand and trust from your audience.

Combine both lead generation and demand generation strategies together

Demand generation vs. lead generation

Often confused, many marketers still struggle to determine which marketing strategy is better for their business. There are two primary types of marketing efforts: demand generation and lead generation.

Demand generation focuses on capturing awareness, while lead generation captures interest and moves prospects through the buying cycle. If you're just starting out, focus on demand generation activities, such as creating content and building trust.

Demand generation efforts

Demand generation focuses on creating brand awareness and educating your target audience about your product or service. In contrast to lead generation, demand gen does not push visitors to provide contact information.

This is because demand generation is not meant to be intrusive or aggressive. Demand generation is more strategic and results-oriented.

It is an effective way to drive traffic and boost sales. But there are a few key differences between demand generation and lead generation.

Lead generation efforts

While lead generation focuses on building awareness, demand generation is the most effective way to convert leads into customers. The key difference between the two is the goal. Demand generation involves drawing prospects to your site, piquing their interest, and nurturing them until they become customers.

It may include content sharing and CTAs. Demand generation may also include cold email marketing, lead nurturing, and ABM campaigns. If your goal is to generate leads, you should focus on demand generation.

Common FAQ's

Questions from business owners and marketers.

What is lead generation content?

Typically, this is content that is designed to target your ideal customer persona. And provide them with information that could be useful to their business.

Through building this brand awareness and trust, a potential sale can occur.

What are the core tactics to generating demand?

Typically, they would fall into the following categories:

  • Press or public relations.
  • Developing media, such as podcasts, videos, content, and white papers.
  • Referral engines.
  • Product-led growth tactics.

What is a demand generation campaign?

Typically, a demand generation campaign would be press, media, or another demand generation strategy that gets executed with the appropriate attribution tracking to push the lead generation process further.

What is a demand generation strategy?

Demand generation is a marketing technique that focuses on generating high-quality leads by increasing brand knowledge and interest.

Demand generation may help a company's marketing communications appear more authoritative and credible to potential customers, and it can also assist raise income by cultivating strong leads.

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