Demand generation is an evolution, not a revolution.
Demand Generation isn’t new. It’s a twist of thought, execution, and then measurement of just your best Lead Generation results.
Marketing is a constantly evolving landscape, with new buzzwords and strategies popping up all the time. But two that are getting lots of attention are "demand generation" and "lead generation." They may seem similar and that’s because… they are! A few slight nuances and a change in measurement takes you from old school to new school.
The one good thing, it’s better for your targets/customers.
Lead Generation: Old-School Marketing
Lead generation is the traditional approach to marketing, focused on capturing the information of potential customers for future marketing efforts. The goal of lead generation is to build a list of qualified leads that can be nurtured over time to eventually become paying customers. It's a passive approach that focuses solely on capturing leads and has been around for a long time.
Demand Generation: A Modern Approach
Demand generation, on the other hand, is a more modern and holistic approach to marketing. It's not just about capturing leads, but about creating a demand for your product or service by educating and engaging your audience. The goal of demand generation is to build a relationship with your target audience and create a desire for your product or service. This approach is more effective in the long run, as it helps to build a loyal customer base and create a sustainable source of revenue.
Why the Difference Matters
The difference between lead generation and demand generation is critical to your marketing success but let’s not pretend those two definitions say drastically different things.
Lead generation may work well in some cases, but it's limited because it doesn't focus on creating demand for your product or service. Demand generation, on the other hand, is a more active approach to marketing, helping you build a relationship with your audience, educate them about your product or service, and create a demand for it.
Demand generation = lead generation done well.
Word of mouth is now digital.
The differences in thought between the two is nothing more than an acknowledgment that “word of mouth” still exists and it happens digitally. Neither of these things are new.
demand generation is just the latest version of word of mouth, and that it requires the same things that have always been required to create 1. positive word of mouth:
creating quality content,
deliver a quality experience/product/service,
capturing the 1% of your audience and
measuring the reach and conversion of remarketing tactics for the 99%
The Final Word
In conclusion, there is a difference between demand generation and lead generation but it is not a radically different approach. It requires an openness of thought to make the shift but I think we can all agree, if the leaders of your organization are entering year 14 of fighting the lead generation playbook, they won’t all of a sudden buy into this new one.
