1. What is demand generation?
Demand generation (marketing) creates need for a product or service with the goal of passing qualified leads to the sale team. Demand generation covers the entire marketing process from awareness to sale. It's a holistic, usually lengthy approach made up of different touch points and tactics.
Think of demand generation as a long-term relationship between a brand’s marketing and sales teams, and prospective customers. Demand generation starts by identifying and qualifying prospective customers through content and inbound marketing, direct response and email campaigns, and events, before passing these leads to a nurturing team. This team then further qualifies these prospects through scoring systems depending on the stage at which the prospect is in the conversion funnel, before passing these highly qualified, nurtured leads onto the sales team.
2. Demand generation vs Lead generation
Although demand generation and lead generation might seem very similar, there is actually an important distinction between them.
Some businesses are indiscriminate when it comes to leads and what qualifies a prospect as a lead. Some people who merely visits a website, for example, may be considered as a lead to some companies. This is especially true of businesses that rely on high-volume cold-calling to generate new businesses.
Demand generation identifies potential prospects based on their initial actions and takes them through a (frequently lengthy) nurturing process to provide sale team with much higher quality, genuinely qualified leads. This results in better conversations between sale reps and prospects, and of course higher conversion rates and more sales.
Essentially, the greatest difference between demand generation and lead generation is that demand gen is a significantly more comprehensive process that takes place over a much greater span of time than lead generation, involves close collaboration and communication between sales and marketing departments, and incorporates elements of inbound, direct, and email marketing to nurture prospects while offering them the material they need to learn more about how you can solve their problems.
3. Role of inbound marketing in demand generation
Simply put, inbound marketing is one type of demand generation activity. Common demand generation tactics that are inbound include blogs, social media, videos, podcasts, newsletters, e-books - content-driven resources that establish your company as a though leader, influencer, and information hub in your industry.
Inbound marketing focuses on creating quality content that pulls people towards your company. By aligning your content and messaging with your customers’ interests, you naturally attract audiences, connect with stakeholders, and build a culture around your brand. Over time, a high proportion of this inbound traffic will convert into paying customers. In fact, inbound leads are 5x more likely to become customers than outbound leads. In addition to closing deals, you delight customers and build lasting, long-term relationships with your community.
By: VSHR Digital Media
Source: 1. Wordstream