It can be perplexing when you hear demand generation and lead generation; you will most probably be like what’s the difference? Demand generation and lead generation are dissimilar and are not exactly the same, but they are not poles apart. They are overlapped and are used interchangeably. Revamping your strategies is very crucial to gain more customers.
If you are into marketing you definitely need to be familiar with the similarities and differences these two digital marketing methods.
• Demand generationis all about making people aware of your website, brand or product in order to increase your leads. It covers both inbound marketing and outbound marketing. The core responsibility of demand generation is building and executing specific programs based on the strategies that you develop.
One of the biggest challenges for new startups and other companies is demand generation. Demand generation is a much more involved process – which makes it all the more intricating for new startups.
• Lead generation is all about collecting actual leads from your customers directly and using those leads to improve your revenue.
It is actually like warming up customer interest or inquiry into products or services of your business. It is more suitable for very detailed content.
Major differences between Demand generation and Lead generation
A demand generation strategy is what a startup or a company does to get heed and how they engage while having not yet tried the product or service from your firm. Lead generation is the second half of this situation and is concerned with how you make the most upon this deserving attention.
1. The basic difference
Demand generation is to generate demand for your product or service in order to drive more business. Do not confuse this with lead generation, which is the strategy for bringing about consumer interest into your business.
Demand generation examples are-
A sponsored event
A monthly magazine
A company-sponsored seminar
Lead generation examples are-
Help videos for your prospects
Creating a worksheet that simplifies a process
2.Demand generation involves creating valuable content for people, and putting it up on different platforms and making sure that people are going to notice it while they search for it, find it attractive and might want to contact you and are willing to do business with you. They will be provided an access to view, read or download what they want without giving their personal details or without filling up any form.
Lead generation involves people giving you their information; they trade you their personal information like their phone number, salary, address, name, and company name in exchange for something which is profitable. For example, a website may offer its customers a free e-book for rendering their information. In this way, the website generates leads to their company. You have to capture the leads by creating an effective keyword strategy.
Click on the below link to know more about lead generation
3.Demand generation is a stage where the customer is just looking for the information. The customer is not at the buying stage. Therefore the first information source you provide is very valuable as it will forge relationships with your audience. Lead generation is a stage where the customers who contact you are ready to buy from you. They have already read or heard about you and are making their final purchase call. The person has decided to make a purchase and is now searching for the best option in the market.
4. All lead generation is demand generation and all demand generation is not lead generation.
In the marketing funnel, demand generation is higher up than lead generation. If you find it hard to get the leads, then you will probably find it harder getting demands. It is not possible to generate a lead without demand. Leads are actually the by-product of having good demands.
5. Demand generation strategies
So, now we have a better idea of what are the differences between demand generation and lead generation, how can you, as a new or smaller brand, go about implementing it? Here are few amazing demand generation strategies you can start applying to your business right now.
1. Team up with an influencer
The influencer you choose can be anyone who is famous like a YouTube star, Instagram celebrities, sports personalities, businessmen or even film stars. These people can bring in more customers and boost up your profits. People always crave the latest insights from celebrities. Choose an influencer who is related to your brand and your brand values so that they can help you raise significant awareness about your brand to their followers. Followers are always loyal to their influencer and trust these influencers and their opinions about your brand.
2. Measuring the effectiveness of your hard work. You need to have a clear picture of what is bringing you the value and what is not. By doing so you can fine-tune the areas of the funnel that are not functioning smoothly. Always measure your revenue generated, return on investment, sales velocity, cost per acquisition, revenue growth from existing customers and buyer journey conversions.
3.Segmenting target audience in enough detail. The narrower your target is, the higher will be your conversions. Trying to reach everyone might become a pitfall later. Instead, study your target market and figure out what exactly they look for. Usually, the segmentation criteria depend upon the factors like occupation, age, education, income, marital status and social status.You can use Customer Relationship Management (CRM) database system to assist with grouping customers with similar needs, buying patterns and other relevant characteristics.
4.Offering a free tool
One of the most powerful ways of creating a blooming demand generation campaign is by offering a free tool or resource. Create a solution for addressing your prospect’s’ problem by delivering a top-end asset by positioning your product or service as a feasible solution. The best example for this is Hubspot’s website grader(click here). It allows their prospect to assess their SEO, performance, and security for free.
Lead generation strategies
Generating qualified leads can be difficult but it’s an important part of a business. As technology changes, the way to lead generation has to change, too. Here are some of the top lead generation marketing strategies that help you grow your customer base.
1.Bring traffic to your websites using social media marketing
Social media is not just for branding. It helps in distributing and promoting your product. Choose the right platform to bring in the leads, just because has over billion users, it is wrong to assume that Facebook is your go-to option. Leads can also be generated through Twitter, Instagram, and LinkedIn.
2.Use content marketing
Content is a fundamental base of your lead generation efforts. It makes your audience share what they have read and this grabs the attention of even more visitors. And also it creates brand awareness which influences future purchases. Your content has to be relevant, consistent and valuable enough to attract and retain a good number of audiences who can become your profitable customers. All you have to do is identify the type of content your users want.
Never forget to keep your headline attractive. Make your content in depth, detailed and data-driven. The content not only has to be lengthy, but it has to be well-written, keyword-centric and highly engaging that helps in getting more readers on spending a good amount of time breaking down and consuming that content.
3.Focus on inbound and outbound marketing
Inbound marketing is something that brings the customer to you, which can be done through Search Engine Optimization (SEO), Social media or digital. Outbound marketing is you reaching out to your targeted customers. This can be done using telemarketing or email & direct mail.The best way to check out which should be your strategy of choice is to check the cost per lead. Higher the cost, the more expensive for your brand a particular strategy is.
The majority are now referring online before making any purchases and with the video being the most preferred method of learning for majority people, it is the best opportunity for you to stand out. YouTube is the second most popular search engine in the world only outdone by Google search! Over 100 hours of footage is uploaded to YouTube every day. YouTube always recommends you to have 8 pieces of video content when you start a YouTube page. Make sure that your video is of high quality. Also, make sure to like your website to your YouTube channel.
Creating demands and converting them into leads involves a lot of strategies and a proper execution. It is important in digital or every marketing strategy. With proper research and specific details on your target audience, you can generate leads.
Create the right amount of buzz to get leads, also track and optimize your return on investment to get more demands. If you have small sales team Demand generation is your ticket, if you have a larger business with the decent amount of sales team you can choose Lead generation.