Demand Generation vs. Lead Generation: What Is The Difference?

Small businesses have a tougher time than larger businesses when generating leads and marketing their products or services. Start-ups face an uphill battle in building brand awarenessThe extent to which consumers are familiar with the qualities or image of a particular brand. and getting noticed by potential customers. Bliss Drive is an agency with expertise in Lead generationThe process of attracting and converting prospects into potential customers..

Generating leads is essential for small businesses since they often don't have the same marketing budgets as their larger counterparts. To compete, they must understand the difference between demand and leadA potential customer referred by an affiliate who has shown interest in the product or service but h... generation. 

Demand generation creates interest in a product or service, while lead generation through an expert agency like Bliss Drive converts that interest into actual sales. By understanding these two concepts, small businesses can focus their efforts on generating leads more likely to result in sales 

What To Know About Lead Generation 

Lead generation is the process of acquiring potential customers. There are several ways to generate leads, but one of the most effective methods is inbound lead generation. 

It involves attracting your target audience to your website and converting them into leads using compelling content. Once they visit the site, you must collect their contact information using sign-up forms, contact forms, or email newsletters. 

Once you have their contact information, you can begin marketing to them and eventually convert them into customers. Lead generation is a key strategy in marketing because it allows businesses to attract and convert potential customers they would otherwise be unable to reach.

Here are a few examples of inbound lead generation:

• Website Presentation: Gated content is a surefire way to filter interested visitors. If they want the information, they’d be willing to exchange information. 
• Quality Content:  Create white papers and case studiesIn-depth analyses of specific instances or examples to highlight success stories or lessons learned.... with compelling facts and reasons why your service or product is superior to others. 
• BloggingWriting and publishing articles on a website to provide information and engage readers.: Consistently create blogs that address bottom-of-the-funnel topics like instructional blogs, comparison blogs, etc.
• Search Engine Optimization (SEO): Optimize for keywordsWords or phrases that users type into search engines to find information. used by customers close to their purchasing decisions. 
• Social Media MarketingThe use of social media platforms to promote products or services, engage with audiences, and build ...: Use social media to humanize your business as you present your unique solutions and offer. 
• Product video and webinarsLive or recorded online presentations or seminars used to educate and engage an audience.: People consume content differently. Experiment with explainer videos, podcastsAudio content distributed through digital channels, often in series format., and demo videos. 
• Strong CTA: Guide customers with what you want them to do using a solid and clear call-to-action.

What To Know About Demand Generation

Demand generation encompasses market research, product development, advertising, and public relations. It is about creating interest in a product or service.

Demand generation has more potential to reach the sales funnelAnother term for conversion funnel, focusing on the steps leading to a purchase. because it casts a wider net by targeting people who may not even be aware that they need your product or service. 

By creating awareness and interest, demand generation can bring more people into the sales funnel and ultimately increase sales. Here are some examples:

• Social Media Marketing: Thought leadership is a great way to utilize social media to drive demand for your products and services.
• Interactive ContentContent that requires user interaction, such as quizzes, polls, or calculators.: Engage with your target audience by offering quizzes, surveys, and other content that solicits their participation 
• Webinars: Create educational webinars that help create demand for your product. Make sure they are purely education without CTAs. 
• Ad Campaigns: Running ads on various platforms helps drive interest to your services and products
• Guest Posting: Appear on high authority websites frequented by your audience to reach more potential customers.

How To Make Both Work For Your Business

Any business that wants to be successful needs to generate leads and create demand for its products or services. But finding the right balance between both can be challenging. If there are too many leads, the sales team won’t be able to follow up with all of them, and some will fall through the cracks. 

On the other hand, if there’s insufficient demand, the business won’t be able to meet its sales goals. So how can businesses strike the right balance?

Tip 1: Look at the sales cycle. 

How long does it typically take to close a deal? Focus more on lead generation if it's a long cycle. But if it’s a shorter cycle, focus more on generating demand. 

Tip 2: Consider customer acquisition costs. 

If acquiring new customers is expensive, ensure you have a steady pipeline of leads. But if it’s less expensive, you can afford to be more selective and focus on generating demand among your target market. 

Tip 3: Think about your audience

Creating buyer personas and knowing your target audience will help make both strategies efficient. Rather than casting a wide net and reaching lots of unqualified leads, you can target the right people.

Demand and lead generation are two essential pieces of the puzzle for any business’s success. By understanding the difference between the two and how to execute each one, you can bring in more leads and sales than ever before. For more helpful articles like this, visit the Bliss drive blog.