Demand generation and lead generation are both key parts of building your customer base, but there are several differences between the two. Because these are two separate strategies, lead generation efforts look a lot different than demand generation efforts, and the results differ as well.
Understanding when to use lead generation and demand generation is essential if you want to build your business. Both strategies can help you build your customer base and increase sales, and combining several marketing strategies is often the most effective way to grow your business.
Before you can fully understand how to use lead and demand generation marketing, you need to understand your target audience and the nuances of these two strategies. Learn more about the difference between demand gen vs. lead gen and how you can combine the two to benefit your business.
What is demand generation?
Demand generation marketing is a strategy that's used to increase interest in your brand and its products or services. The goal is to boost brand awareness and position your product as a quality product that people can trust.
While other parts of your marketing strategy may be focused on converting traffic to sales or encouraging customer loyalty, lead generation is specifically aimed at generating buzz that increases brand recognition and brings more attention to your product. There are several components to an effective demand gen strategy, but effective demand generation can eventually make it easier to increase lead generation down the road.
Demand generation objectives
Generating demand isn't as simple as pumping out content that focuses on your target audience. An effective demand generation strategy can help you build buzz that can ultimately lead to sales, but it starts with setting clear objectives and taking steps to meet those objectives.
The main goal of demand generation is to increase interest in your products and services. You've probably seen some of the products that have gone viral on social media, all of which are excellent examples of generating demand. You can tell people about your product, showcase it in a video, and use other strategies to build awareness.
Your demand generation content should also be focused on educating your customers. Many business owners make the mistake of using traditional marketing channels as their primary form of marketing, but educating your customers without selling a product positions your business as an authority and not spammy. Ultimately, you want to build attention around your brand without blatantly trying to sell your product.
Lastly, building relationships with prospective customers is a big part of demand generation. The more you build trust and form relationships with your customers, the easier it is to deliver valuable content. People also like brands and products that don't feel like faceless entities.