Demand and lead generation go hand-in-hand. Each can contribute to an effective marketing strategy. However, some key differences between these generation strategies make focusing on one or the other during different stages of your plan ideal.

Demand Generation Definition

Demand generation is a marketing strategy that builds interest in a brand’s products or services. It focuses on driving awareness while building brand identity and reputation, which provides long-term results.

Some demand-generation tactics include blogs and social posts focused on informing customers, infographics, webinars, podcasts, content syndication, influencer marketing, interactive and personalized email campaigns, contests and informational videos. Each of these examples generates interest in the brand and its products. However, because these tactics generate interest, most of the individuals captured with them are at the top of the sales funnel, which means those not interested in purchasing will quickly drop off. Only a few will ask for a quote or put your product in their cart as a direct result of one demand generation tactic. Instead, interested parties need exposure to multiple pieces of content and well-placed call-to-action buttons that lead potential customers from the top of the sales funnel to the bottom.

How Lead Generation Differs

Lead generation is the gathering of contact information for potential customers. Providing quality leads that convert into sales is the main focus of lead generation. When nurtured, these leads can garner further results, but generally, lead generation is a short-term game.

Some lead-generation tactics include newsletter subscriptions, gated webinars, ads, contact pages, lead-gen landing pages, call-to-action buttons, door-to-door sales, cold calls, cold emails, contest entry forms and social or blogs that lead readers to contact forms. Not all lead generation tactics are created equal. Some tactics direct interested parties to the sale. Others gather top-of-the-funnel leads and leave the sifting to you.

When to Focus on Generating Demand or Leads

Businesses need customers now and in the future. It makes sense to focus on both demand and lead generation. The question is when and how much of your time and money should be invested in each.

Focusing on Leads

While it’s tempting to spend on cold calling or door-to-door sales and quickly add fresh blood to the customer pool, these lead gen tactics don’t have a high yield and often have an offputting effect on the potential client. A Business Wire Zipwhip report found that 97% of people ignore cold calls. The best time to focus on lead generation is when prospects interact with your brand. This timing works best for both B2B and B2C marketers. In an Exploding Topics lead-gen stat roundup, 85% of B2B marketers used content to generate leads. 60% of B2C marketers used content for lead gen, leaving an average of 76% of polled marketers relying on content to guide potential leads down the sales funnel. These content-led lead gen stats are so high because individuals or organizations are likelier to fill out an organic lead gen form built into your website and positively respond to a follow-up call. As a result, these bottom-of-the-funnel leads will more easily transition to customers because they already know and trust your brand and are likely ready to try your product or service.

When to Create Demand

Demand generation is a top-of-the-sales funnel tactic. It helps potential customers become aware of your brand and generates interest.

A strong demand generation strategy helps your brand stand out while lowering the cost per lead (CPL). The lower your CPL, the more value you add to your campaign. It will decrease customer acquisition costs and save your team time by providing more accurate and actionable leads.

Implementing SEO pillars into your B2B demand generation strategy is the best way to lower your CPL. These pillars focus on search engine optimization tactics, so you know where to start after looking at an SEO audit with thousands of uncompleted tasks. Utilizing SEO Pillars will help your content get found in search engines so you can educate and engage your audience throughout their journey, lowering your company’s CPL and improving your lead-to-client rate.

Implementing Demand and Lead Generation Into Your Campaign

While lead generation has its place, demand generation campaigns will improve your company’s visibility, customer acquisition and retention at every sales funnel stage. If you want help creating and implementing a stellar demand-generation campaign that yields quality organic leads, the Avista team can help.

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