Demand Generation Archives

You’ve probably heard of demand generation and lead generation in regards to inbound marketing strategies. However, you might be struggling to differentiate the two. Both…

You’ve probably heard of demand generation and lead generation in regards to inbound marketing strategies. However, you might be struggling to differentiate the two. Both are sales techniques that are used by companies that are trying to generate prospects and sales.

A key difference, though, is that they are both used at different stages of the sales cycle and therefore have independent aims. These strategies are generally used by B2B companies as a way to establish a presence on the market and draw new prospects in so that they eventually buy products and services from the company.

Having a good understanding of both demand generation and lead generation strategies can help your sales team generate qualified leads from an established target audience.

In this article, we’ll take a look at the differences between the lead generation process and a demand generation campaign. We’ll also look at how you can apply these methods to make successful sales.

Demand generation vs lead generation

Demand generation and lead generation are closely linked as one stage follows the other. The aim of demand gen is to spark interest from prospects in the company’s services and products, whilst lead gen aims to establish a relationship with them and convert the prospects into customers and sales.

Demand generation content should create awareness of how your company can provide the solution to a prospect’s problem and therefore create interest in your services and products. Lead generation, on the other hand, is the process by which you turn these prospects into paying customers.

If demand generation is at the top of the sales funnel, then lead generation is at the bottom. Companies usually create gated content as part of their lead generation tactics and then ask for the prospects contact information so that they can receive that information.

Continue reading to find out about both tactics in greater detail and how you can use both to generate leads into sales.

What is demand generation?

Companies use demand generation to create awareness and demand for their products and services. This includes data-driven strategies that are focused on revenue creation. Some examples of demand generation content include blogs, ebooks and videos that are aimed at your target audience.

You could post this content on your website and advertise it on other platforms (such as social media) once you have established your target customer group and know what they will be looking for.

The main goal of demand generation is to raise brand awareness and customer association between their need and your products and services. For example, if a customer has run out of face cream, you want them to immediately think of your company when they go to buy some more.

Thought leadership and a good social media presence are both important aspects of demand generation. The main aim of thought leadership is to establish your company as experts in your field so that when people think of a particular topic or problem, they instantly think of you.

Social media is also a good way to gain a public presence that helps with brand recall. Various sites such as Facebook, LinkedIn and Twitter can all help you advertise your products and services to your target audience.

Sponsored adverts and posts can also lead prospects to your website, where you can encourage them to sign up to a mailing list for more content. This is when you can move on to the lead generation part of your sales plan.

What is lead generation?

The main aim of lead generation campaigns is to turn prospects into paying customers. You can gain their attention through your demand generation efforts and then your sales team can seal the deal through lead generation tactics. One way that lead generation nurtures qualified leads is through the use of gated content.

Gated lead generation content includes things such as eBooks and PDFs as well as courses, free trials and events. The prospect must provide their contact information to your company in order to access these documents and content.

Good lead magnets for lead generation include sign-up content upgrades. For example, you could offer a PDF version of a web page if the prospect enters their email address. Once you have their contact information, you have already established a connection and can nurture this into real sales.

You will have already established brand recall and thought leadership through demand generation, so this is the time to build a relationship with your prospects and help them translate into long-term customers.

What are the main differences between demand generation and lead generation?

Demand generation is used to attract customers to your company whilst lead generation turns those prospects into actual leads and moves them on to the next stage of the sales journey.

You want to create a positive experience for potential prospects during your demand generation campaigns. However, along with brand awareness, you also need to increase conversions by identifying your target audience and creating buyer personas. You then need to think about their customer journey and how each individual persona will experience it.

Lead generation efforts differ from demand generation because these strategies are more targeted. Gated content is a popular lead generation strategy because prospects can only access specialised content once they have given personalised contact information, such as their email address.

Prospects will be expecting relevant and targeted content in return for giving you personal information. Lead generation, on the other hand, provides free information so the content is broader.

A strong demand generation campaign builds brand awareness and nurtures opportunities that will generate high-quality leads and will build your business through increased sales.

How do demand generation and lead generation work together?

Despite their differences, lead generation tactics and demand generation ideas are closely linked and can have a big impact on one another. They are used at different stages of the sales process, which means that they don’t work at the same time. Lead generation relies upon the interest and excitement that demand generation has built for prospects and then converts their interest into actual sales.

Demand generation is at the top of the funnel whilst a lead generation campaign is at the base. This means that you can broadly appeal to lots of prospects with demand generation and then filter down to actual customers and sales with lead gen content.

You want to attract leads through your content, whether that be blogs, social media or videos on YouTube. The next time the prospect needs an item or service, the goal is that they will remember your company because of the content they’ve seen.

After this, you should aim to get their contact information so that you can share specialized content with them through email campaigns in the hope that they will turn into paying customers.

Sourced from Boss Magazine

By Moss Clement.

Lead generation vs demand generation, what is the difference?

I’m sure you’ve heard these terms used regularly, but even though they sound alike, there are some important differences to be aware of.

Unfortunately, marketers often use these terms interchangeably, and it can confuse those looking to learn more about digital marketing and the online world.

To clear things up, let’s take a look at the key differences between lead generation and demand generation.

What is lead generation?

Lead generation is the method of using different content types and various marketing tactics to attract users and collect their contact details. The information you gather enables you to nurture users into qualified leads. These leads are people who have willingly shown interest in your offerings and are ready to buy from you.

Lead generation ideas include:

Gated content
Coupon codes
Webinars
Special offers
Etc.

It means that the lead generator will create a fence or gate around your content, which will entice readers to give you their contact information before they can gain access to the material. After that, you can use the data you collect to reach out to your subscribers, nurture them with more useful articles, and finally, with your offers.

Why does your business need lead generation?

Lead generation is essential to your business because it delivers your sales team interested prospects (leads) that are ready and willing to discuss buying your products or services.

A lead is someone who shows interest in your brand’s products or services by voluntarily submitting their contact details, such as an email address or other vital information. The lead will, from that point onward, be receiving communication from the business in various forms, including email newsletters with marketing offers.

Without leads, a business cannot survive.

Lead generation tactics

Research reveals that over 60% of marketers say that their top marketing challenges are how to generate traffic and leads. That is, according to HubSpot’s State of Inbound Marketing Report.

Generating Traffic and Leads for lead generation vs demand generation

Nonetheless, several marketing tactics can help you boost your lead generation efforts. Here are some of the most effective lead tactics you can use to generate more leads.

1. Create highly-quality content frequently

In every digital marketing toolbox, content is a crucial instrument for attracting visitors to your website or a product page. It is not just any content but in-depth materials that provide value to your target market. Thus, creating quality materials will help increase your reach and produce more leads.

2. Use gated content

When used correctly, gated content can significantly generate more leads and increase your conversion rates. According to Optinmonster, the Trading Strategy Guide used gated content to increase email signups by 11,000 in a month. It shows you the effectiveness of gated content.

Use gated content to generate leads for lead generation vs demand generation

3. Personalize your brand’s point of consumer contact

Personalization has become more prominent because it awakens human feelings and helps in drawing users’ attention to your brand, product, or services. For instance, in a survey by Salesforce, about the “State of the connected customer,” they found that more than 55% of buyers are willing to give personal information in return for personalized overtures.

Furthermore, 50% of respondents will give you their contact data for a personalized shopping experience.

4. Optimize your landing pages

It is common to see multiple marketing offers on a single landing page. That is a digital marketing mistake you should avoid at all costs. Why? Research indicates that landing pages with multiple offers produce 266% fewer leads than landing pages with a single offer.

Therefore, concentrate on single offer landing pages. Create more landing pages with a focus on a unique offering for each page. That is because the study also shows that sites with 30 landing pages generate 7x more leads than those with 10 landing pages.

As a result, optimize your landing pages with clear messages that will move visitors to give you their contact details.

Other lead gen strategies include:

A/B test your paid marketing campaigns
Utilize influencer marketing
Evaluate the behavior of your web visitors
Automate your marketing tactics
Create more video content
Optimize and send personalized emails

Now that we have an idea of what lead generation is, and the why and how-to generate leads, let us define “demand generation” as well.

What is demand generation?

Demand generation is a business process that focuses on various marketing undertakings. These marketing efforts help to increase brand awareness and demand for the product or the services you offer. Demand gen is a thorough marketing application and sales proposal that takes place throughout the funnel when there is a demand for your products or services.

A viable demand generation approach comprises AIDA – an acronym for Awareness, Interest, Desire, and Action. Marketers are using this approach extensively to explain the subsequent stages from when a potential customer became aware of a brand, to when they make a purchase.

Why is demand generation important?

Demand generation is essential because its purpose is to arouse your target market and prospective customers’ interests in your business. This marketing process is responsible for all touchpoints in the customer’s journey. That is from being an unknown consumer to a qualified and happy client.

This method is about creating opportunities for demand and the overall growth of your business. You can create such opportunities by advertising your products or services on different marketing channels. Also, ramping up your brand with useful content materials.

Fundamentals of demand generation

Since demand gen programs are touchpoints throughout the conversion and sales cycles, you can segment the applications into five controllable sections.

This step is essential if you want to create a sustainable marketing strategy that will help you to generate demand for your brand and products or services.

Therefore, here they are the five fundamentals of demand gen:

1. Target-setting and planning

Generating more demand for your services or products and ultimately growing your income is the primary goal of initiating this program. Hence, to reach your objectives, you need to set targets and plan strategies that will help you accomplish your goals.

The planning stage is your roadmap to success. It should include marketing objectives and sales tactics that will harness every touchpoint through the conversion funnel. This approach will enable sales and marketing teams to work in a united front.

In consequence, you should define the outcome and KPIs of your campaign to understand whether your planning will meet your result.

2. Brand awareness

Increasing the awareness of your brand involves getting in front of your target market with your brand message. In this way, you educate your audience about your business, product, or services. Thus, it will enable you to increase your chances of being remembered at the purchasing phase.

For example, Jeff Bullas partnered with the Instagram tool “HashtagsforLikes,” a platform where you can find the best hashtags that’ll increase your Instagram reach and grow your followers fast.

Grow Organic Followers for lead generation vs demand generation

So to increase awareness and generate demand for the tool, Jeff puts it in front of his target market via social media sites, including Twitter and other marketing channels.

You can use Jeff’s example as inspiration for your brand. Nonetheless, generating awareness for your business is primarily the first step in applying demand generation strategies. This activity will continue from the initial stage of the funnel to when a consumer makes a purchase.

Therefore, the best way to make it work for you is to know your targets:

Who are they?
What are their goals?
What interests them the most?
Where are they hanging out?
Why are they interested in your business?

To find the answers, you should create buyer personas. Your buyer persona will help you to understand and serve your target market better.

3. Inbound marketing

In today’s digital marketing space, consumers are more informed than they used to be. As a result, users will research your brand, products, or services before making a buying decision.

That is where inbound marketing comes in. Inbound marketing is part of the overall demand generation strategy that handles the high-volume acquisition of targeted leads. It is a lead nurturing tactic that nurtures web visitors through every stage of the funnel into qualified customers.

With inbound marketing, you can establish bonds with eventual customers by frequently offering users helpful information that adds value. It will assist in making your products and services relevant to the reader.

To make the best of inbound marketing, use the following marketing platforms:

Content marketing
Email marketing campaigns
Social media marketing

*Important* If you fail to nurture your website visitors, they will hang-out with your competitors. So help them define their problems and how to fix them with helpful content. In that way, you will build a loyal community around your business.

Other fundamentals of demand gen incude:

Client Retention
Testing and Analysis
Sales Enablement
Lead Scoring

Demand generation is not a one size fits all approach. It is a continuous process that is always evolving. Consequently, you should keep reviewing your tactics and make adjustments regularly.

Effective demand generation strategies

Demand generation strategies are helpful at every stage of the buyer journey. Demand generation enables you to create a positive impact and address all touchpoints before consumers enter the funnel to customer loyalty and retention.

Plus, the strategies involve multiple marketing and sales processes. These approaches will ensure that your marketing tactics are relevant to your target audience throughout the entire funnel.

Several marketing tactics will help you generate demand for your brand, products, or services. However, we will discuss only a few actionable steps.

1. Develop a free product

One of the best strategies for increasing demand for your brand is to develop free helpful products that applaud your brand. And the best product you can produce is one that solves your audience’s needs.

Develop Free handful products for lead generation vs demand generation

In consequence, do a bit of research to understand the struggle of potential buyers. After that, create a resource that addresses the issues and provide it for free. Jeff Bullas did that by creating a Free E-book containing over 100 tips and tricks to grow your organic web traffic for free.

The more value you provide to your audience for free, the more demand for your products or services you will generate. That is because your audience will become brand ambassadors. So when users signup for the tools, you can then nurture them through the funnel until they qualify as paying customers.

2. Create quality blog content regularly

Blogging is an excellent way to generate demand for your business. Although some content marketers choose to create and publish thin blogs that do not address the significant issues of their readers, blogging is still a fantastic tool for demand generation.

Blog post writing is not about creating lame content and expecting it to shine. You need to create persuasive blogs with strong conclusion paragraphs that will leave lasting impressions on the reader.

You can make the best of your blog by frequently publishing quality blog content. This type of blog will add value to the reader and drive more Google search traffic.

For instance, my blog post about the “Top 12 Most Profitable Freelance Writing Niches” has generated more demand for my freelance writing services, and also driven organic traffic to my site.

Top publications and websites have syndicated the post, giving it more exposure. Plus, yesterday, the new Marketing Director at Zest.is, Netanel Baruch, invited me through Twitter DM to contribute a guest post on the Zest blog. Why would he ask me when there are millions of other bloggers out there?

create quality blog content regularly for lead generation vs demand generation

The answer is simple. Netanel read my article and was impressed with the quality of the content. That is the power of creating informative blog posts.

However, besides the tips mentioned above, there are other demand generation strategies you can apply to generate more demand for your brand. These include:

Optimize your email marketing campaigns
Utilize video content marketing
Partner with influencers in your industry
Make the most of social media marketing
Analyze your marketing performance
Use display remarketing
Marketing automation
Guest posting, and so forth.

Wrapping up the differences between lead generation vs demand generation

At this point, I’m assuming that you already know the difference between these two marketing programs. However, for emphasis, the distinction is that lead generation is a subset of demand generation – a process of collecting web visitors data which you can use to nurture prospects and qualify them into customers.

Lead gen strategies typically imply the use of gated content and other types of lead magnets on landing pages to attract leads. On the other hand, demand generation is an excellent method of creating demand for your brand, products, or services.

Demand generation involves the use of inbound and content marketing in various ways that is far broader than lead gen tactics to generate a need for your services.

Are we missing something? Please, tell us in the comments!