What’s the Difference Between Demand Gen & Lead Gen?

If you work in the marketing industry, or even if you own your own business or company, then you’ve likely come across two phrases: demand gen and lead gen. While we’re all aware of the terms, how many of us actually know what they are, what they involve and what they mean for marketing? In this article, we’ll be discussing what each one is, how they differ and when each one should be used in your work or marketing strategies and campaigns, so let’s get into it:

What is demand gen?

Demand gen, or generation as it’s also referred to, is focused on getting the attention of potential and prospective customers and clients, with a focus on nurturing their interests through the goods and services you’re offering. This is considered to be a long-term marketing strategy that requires stamina and consistency in order to get the best results. Essentially. 

It’s all about how a brand or business interacts with their potential customers and engages with them. Over time, the results will present themselves by way of brand mentions, revenue and high-quality leads. One form of demand gen is blogging and creating useful resources that can be counted upon and trusted. Think about content and long-term relationship-building between a business and a customer – that’s what demand gen is as a marketing strategy.

What is lead gen?

Lead gen, or lead generation, is all about identifying prospects that express interest in any goods or services that you might be offering. It’s something extremely fleeting and short-term in comparison to demand generation tactics. It happens when a basket is abandoned online without making a purchase. 

It happens when someone signs up to a newsletter or updates. It happens when you’re given an email address if someone makes an account with you. Lead gen strategies can also include gaining traction and custom by writing CTAs or via something as simple as email marketing. It’s a simple-yet-effective method of marketing that all company owners do. 

Demand gen vs. lead gen: what are the main differences?

While demand gen and lead gen differ in terms of strategies and tactics, they’re often used together in most cases. This can be done in combination with content marketing and CTAs or content marketing with email marketing, for example. In fact, it would be somewhat difficult not to use them in conjunction with one another. 

However, having said that, there are some key differences between the two when it comes to goals, engagement, content channels, metrics and more, and that’s what we’re going to be focusing on now. So what are the key differences between demand gen and lead gen, despite them being used together, most of the time?

Goals

You need to establish the goals of your business before going down either route. Demand gen will build awareness, consistently, over time, about your business. Lead gen, on the other hand, is a short, sharp and somewhat impersonal way of generating leads. It does this by targeting in-market buyers who have already shown an interest in purchasing your goods or services.

Engagement

Demand gen, seeing as it takes so long to establish a relationship between the business and the consumer, establishes trust between the former and the latter. This will make people more likely and more willing to engage with your company, one way or another. Lead gen, on the other hand, will differentiate your brand from that of your competitors’. In essence, it will present the consumer with all of the benefits of using your company rather than someone else’s.

Impact

Demand gen educates the target audience in one way or another. It can do this by using trusted resources and tools to answer any questions or queries the potential customer might have. Lead gen will nurture prospective leads and position your brand accordingly, using information in the form of contact sources, such as phone numbers, home addresses and email addresses.

Metrics & measurements

When it comes to metrics, demand gen shifts towards brand visibility and engagement, using indicators such as social media reach, customer loyalty, website traffic and more. This will paint a picture of your brand’s overall effectiveness and impact on the market. Lead gen, however, will measure the success of a business based on the quality and quantity of the leads that are generated. It can do this via: form submissions, free trial sign-ups and conversion rates in Google Analytics.

Content & focus channels

Demand generation content will focus on broader relationship-building goals. It does this by placing your brand in the memory of the consumer, in a way that is subtle and subliminal. As such, it presents you as a trusted and loyal source. It relies on organic reach, social sharing, word-of-mouth referrals and thought leadership content to attract new prospects. Lead gen will produce conversion-focused content that is aimed at capturing the attention of potential buyers. It does this via newsletters, emails and filling out forms.

Which one should you choose?

Regardless of the marketing method or strategy you have in place, both lead gen and demand gen tactics can be used separately, as well as together. If you’re looking at long form content or long-term campaigns, then demand gen strategies are the best way to go. However, if you work in e-commerce, work with microcopy or are running email marketing campaigns, then lead gen is your best foot forward in this case. Despite their difference, on the other hand, they can both be used in conjunction with one another, as they so often are. So don’t box yourself into one strategy over another when both can be used together to get the best results.

Kumo is a dedicated, knowledgeable digital marketing agency in the heart of the East Midlands, serving customers throughout the UK. Regardless of the industry you work in, we will be able to deliver unrivalled marketing services, including SEO, PPC, content writing, website design, helping to propel your business into the spotlight and set you apart from the competition. If you’d like further information about how we can help you today, get in touch with a member of our friendly, experienced team – we’re always pleased to hear from you.