Demand Generation vs. Lead Generation
It always amazes me how many terms, abbreviations, and letter combinations there are for different things. When I first started at Gartner, I remember feeling like people were talking in a foreign language. Most people were talking in what seemed to be some sort of secret code. Sometimes the same letter combination could mean two different things, depending on who you were talking to. One example is MDM. To some, it meant Master Data Management. To others, it meant Mobile Device Management. Definitions are essential to make sure you’re talking about the same thing.
During the year that was 2020, I applied for many jobs and experienced a fun variety of job descriptions. One company wanted to hire a demand generation manager, which seemed like a good idea. But when I spoke with the company, the job responsibilities were to convert existing contacts to paying customers. So, from my point of view, the demand was already generated. This made me think about Demand Generation vs. Lead Generation, and in this post, I’ll give my perspective on each of these critical components of marketing.
Demand Generation
To sell your products or services, people must know you exist. It would help if you built your audience. This is where you boost brand awareness by bringing new visitors to your website using various tools available to you. You need to create compelling content introducing your business to new individuals or companies. You can establish your company as a thought leader or pioneer within your industry to support your efforts and ambitions.
The #1 rule for demand generation content is: all content should be free. What does this mean? Well, you should not require visitors to submit their email address or any other information to access your content. You’re generating interest (demand), and you don’t want to have any barriers. When colleagues and clients ask me what type of content they should develop for their demand generation efforts, I usually recommend:
- Social media
- Blog posts
- YouTube videos
- Case studies
- Podcasts
- Interviews
- Free tools
Most brands and industry organizations are always looking for external content contributors to make the visitor experience more exciting. Guest posts on industry or partner websites are one way of expanding your reach. You should also create social media posts and explainer videos that drive traffic to your website. Make your content as engaging and exciting as possible.
Lead Generation
You’ve created demand and interest in your products or services – how do you convert prospects into qualified leads? Qualified leads are persons or organizations who have indicated an interest in your products or services. To me, that is what lead generation is about. Do you have the right activities in place to attract new customers and move them effectively through your funnel? This is where you will see your marketing efforts resulting in hot leads and eventually turning qualified leads into sales.
During the demand generation process, we were giving away everything for free. Now is the time to ask for something in return for your advice and free content. Some of the most commonly used types of content in this stage are:
- Free trials
- Newsletters
- Webinars
- eBooks
- Product demos
For visitors to gain access to your content, you should ask for something in return. You have to decide what information you need to move a lead through the funnel at this stage. This could be one or more of these items:
- Email address
- Job title
- Phone number
- Location
Or other information that is crucial for you to move the lead forward. If a visitor provides information to gain access to your content, that is Lead Generation.
What did we learn?
So, what are the main differences between Demand Generation and Lead Generation? In my world, demand generation is where you build a larger audience and get visitors interested in your company, services, or products. Lead Generation is where you convert prospects and visitors into hot leads, guiding them through your sales funnel. Neither requires money to gain access to the content, but with lead generation, you ask for something in return for your free advice, tools, or meeting. You should be using both to develop a solid content marketing strategy.
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