The terms demand generation and lead generation are different. You might come across content that uses these two concepts interchangeably. However, there are some significant differences to consider when comparing demand generation vs lead generation:
- With a demand generation strategy, you’re focusing on activities that educate your audience about your products or services. Your goal is to show how your product or service can solve a pain point to create awareness and generate demand.
- Lead generation takes a different approach. A lead generation strategy is usually about targeting a specific profile among your prospects. Marketers often use lead generation to focus on audience segments that have a higher conversion rate or on qualified leads that are likely to spend more.
Demand generation and lead generation are two methods that rely on data. However, you’ll need to focus on different metrics to develop demand generation marketing efforts or build a lead generation program.
You’ll need to track metrics tied to content performance. Impressions, clicks, click-through rates, and conversion rates are critical for your demand generation program.
Closing percentages for different channels can also give you an idea of how effective your different strategies are.
You’ll also need qualitative data for your demand strategy since customer experience is a critical aspect of this approach. You can, for instance, use surveys to track your customer satisfaction index over time.
Key performance indicators like your cost-per-lead, customer acquisition cost per VP Technical Email Lists single paying customer, or your overall customer lifetime value are critical for both approaches.
Combining Demand Generation and Lead Generation
While the philosophy is different, there are some strategies and metrics you can use for demand generation and lead generation.
A siloed approach can ultimately hurt your marketing efforts, which is why it’s best to combine demand generation and lead generation for a better marketing strategy.