Edition 2: Demand Generation vs Lead Generation

Lead generation and demand generation form two important practices in the sales funnel. Whilst sometimes spoken about as if interchangeable, these practices actually do two separate jobs, sitting in different – but just as crucial – parts of the funnel. It’s important to appreciate these differences whilst using them together to maximise results.

Demand generation = making your audience aware of, and promoting interest in, your organisation’s products and services.

It’s all about audience awareness; educating them, and building that initial trust so they can be turned into a lead. That generally means everything’s free – namely, content. This could be a podcast, a blog, contribution to an industry publication, or influencer marketing, amongst other things. For demand generation, you need to ensure your audience knows your brand exists, then demonstrate what problem your product or service can solve.

Lead generation = transforming prospects into leads.

It’s about nurturing your audience, so you can convert them into paying customers. They’ll then express interest in some way – perhaps calling your sales team, replying to an email, completing an online form, or attending an event. Either way, they want to find out more from you. In the process, they’re qualified as a target audience. Lead generation is definitely much more transactional than demand generation.

Top of the funnel = demand generation, building brand awareness, trust, interest and educating your audience.

Bottom of the funnel = lead generation, conversion through nurturing and contacting your audience, and showing your brand value and differentiation.

We’re big advocates for using a mixture of demand and lead generation. This way, they can be fully leveraged, and achieve the best results for your business.

It’s key to note that lead generation actually depends on demand generation. If you carry out the latter effectively, you’ll have qualified, interested leads that are significantly easier to convert. According to B2B marketing, the marketing rule of seven still rings true: it takes seven interactions before deciding to purchase.

It’s also become an expectation that potential customers are provided with valuable content in the modern world– at no cost – and this includes inputting their information.

So you don’t need one; you need both.

Sometimes, your content can suit both purposes too. Say you undertook comprehensive research for an eBook to educate your audience and increase demand. This can work twofold: it’s a high-value item, and many prospects might be willing to give their contact details in exchange for access.

Whilst lead and demand generation are ultimately different, they can share resources. Having said this, although the content can remain the same, its formatting and presentation should differ so they can target all audiences effectively.

It’s important to note that a prospect can move from the demand phase and being aware, to becoming a lead, quicker than you think. You can bring in lead generation sooner if you detect intent through machine learning – specifically with Interlink’s unique methodology. It enables you to make the most of demand, and get your prospects further down the funnel, allowing you to beat your competition who are also trying to progress these potential customers.

Demand and lead generation techniques are always evolving. Here at Interlink, we’re developing machine learning that will transform the way B2B companies approach lead generation – for the better. We use cookieless technology to detect intent, and nurture target clients from awareness, to consideration, to sales-qualified lead status.

Want to know more about us?

Speak to a member of our team, get in touch on +44 20 3911 7500 or email [email protected].