In modern demand generation , there has been a significant shift from traditional isolated lead generation activities towards a more holistic and progressive strategy.
Now marketers are no longer solely focused on capturing leads, but rather building demand through targeted campaigns, content, and drive programs. This doesn't mean that lead generation is "dead"; rather, it has become an essential component within Demand Generation , focused on converting the created and captured demand. By developing more personalized and relevant guides, marketers can improve lead quality and conversion.
Demand Generation vs Lead Generation: What is the main difference?
The main difference between Demand Generation and Lead Generation is the focus of the strategy. Demand generation refers to a long-term strategy that improves company reputation and builds brand recognition by educating leads with solutions to problems present in their business.
On the one hand, Demand Generation seeks to incorporate new leads into the purchasing process and make them interested in your brand.
On the other hand, Lead Generation focuses on prospects already communicated and nurtures potential customers who have already contacted the brand, preparing them for sales conversations. It is a short-term strategy that aims to achieve immediate sales.
What should you prioritize? Lead Generation or Demand Generation?
Combining demand generation and lead generation strategies is more effective than relying on just one. Selling directly without building brand awareness can generate distrust, while awareness and test content campaigns prepare potential customers to engage in lead generation activities.
In the software industry, demand generation is crucial to staying top of mind with customers, even for established brands. Before starting lead generation activities , it is important to evaluate the awareness level of your audience.
Three considerations when prioritizing between lead generation and demand generation
To sell IT solutions, it is crucial to use tactics to both generate demand and generate leads at different times. Balancing these efforts depends on multiple factors. To find the right balance between Lead Gen and Demand Gen , consider these three dimensions:
Goals and time
Lead generation transforms existing demand into real leads by targeting buyers in the market who are ready to purchase your products or services. So, if you are looking to get leads quickly for an already popular software solution or want conversions for your new offers, lead generation is suitable. In contrast, Demand Gen creates a new audience by increasing awareness of your solutions. Whether you are a startup looking to be recognized or an established company launching an innovative solution, Demand Gen is the best option in this case.
Focus on content and channels
Lead Generation produces conversion-focused content designed to capture the attention of potential buyers and encourage them to take a specific action, such as filling out a form or subscribing to a newsletter. Use content that shows social proof of your customers' success and paid advertising channels like search marketing to reach buyers in the market. Instead, Demand Gen content focuses on building long-term relationships, subtly positioning your brand in prospects' memories and establishing you as a trusted authority in the industry.
Metrics and measurement
Success in lead generation is often measured by the quantity and quality of leads generated, with cost per lead being a key metric. Other metrics include the number of forms submitted, free trial signups, and conversion rates. For Demand Generation , metrics focus on brand visibility and engagement. Indicators such as website traffic, social media reach , content downloads, customer loyalty, and prospect engagement levels provide insight into the impact and effectiveness of the campaign.
Do you want to start capturing the attention of potential clients? At PGR Marketing & Tecnología we help you carry out a Lead Generation or Demand Generation campaign that allows you to achieve your objectives.
