Understanding Demand Gen vs. Lead Gen for B2B Leaders
Understanding the distinction between demand generation and lead generation is essential for B2B leaders to make data-driven decisions and drive success for their business.
Differences between demand generation (DG) and lead generation (LG) have many b2b marketing leaders confused. Don’t worry, clarity awaits. Each are equally important marketing strategies that B2B brands use to attract and retain customers. While they may sound similar, they are two distinct concepts with different goals and approaches. We like to think of it as one feeding the other. DG+LG = $
If you’re confused, you are not alone!
Demand generation is a comprehensive B2B marketing strategy that focuses on creating awareness and interest in a brand's products or services.
The goal of demand generation is to increase the overall demand for the brand and its offerings, which in turn can drive more leads and ultimately increase sales. This strategy typically involves a range of tactics, such as content marketing, paid, earned, and owned media, social media marketing, event marketing, and much more.
Lead generation, on the other hand, is a specific marketing tactic that focuses on collecting information about potential customers with the goal of turning them into paying customers.
Lead generation typically involves tactics that capture demand. Think landing pages, chat (live and bots) and form submissions to collect information about potential customers. Once a lead has been generated, the next step is to nurture them through the sales funnel with personalized and relevant content until they are ready to make a purchase.
One common confusion between demand generation and lead generation is that many B2B leaders think they are the same thing. However, while lead generation is an important aspect of demand generation, it is not the only goal. Demand generation encompasses a wider range of marketing tactics and is focused on building overall demand for a brand's products or services, while lead generation is a specific tactic focused on collecting information about potential customers.
Measurement between the two are different as well. When we’re teaching these concepts to to B2B leaders and teams, most of them achieve the “ah-ha” moment when we talk about measurement.
The success of demand generation is measured by increased brand awareness and interest.
The success of lead generation is measured by the number of qualified leads generated.
Knowing the difference between demand generation and lead generation is crucial for B2B leaders as it allows them to make informed decisions about their marketing strategies and allocate resources effectively.
By understanding the goals, tactics, and metrics for success of each strategy, B2B leaders can develop a comprehensive marketing plan that aligns with their overall business objectives and drives growth. Additionally, accurately tracking and measuring the results of each strategy provides valuable insights into what is working and what needs improvement, enabling B2B leaders to continuously optimize their marketing efforts and achieve better results.
We’re a teaching firm. We love working closely with B2B leaders like you to help round out your marketing knowledge and provide the tools and support needed to knock down walls. If you’d like to pick our brains or tell us where it hurts, we’re always here.