Written by: Richard Fong
Published on September 14, 2022
Published on September 14, 2022
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 awareness and getting noticed by 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 lead generation.
Demand generation creates interest in a product or service, while lead generation 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.
|Demand Generation||Lead Generation|
|Top of the funnel strategy to increase brand awareness by helping customers identify the problem||Bottom of the funnel strategy, which aims to capture customer contact details so the brand can offer a solution to the problem|
|Builds trust by educating audiences and increasing brand authority||Differentiates brand to competitors by presenting the benefits of the offered solution to demonstrate brand value and differentiation|
|Educating audiences involves creating free resources to answer their questions and guide them with their needs||Content created is aimed at nurturing leads and creating brand position usually involving gated content.|
|Sparks interest among a broader audience base to help them discover more about the brand and its services||Focuses on capturing quality leads and converting them to paying customers.|
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:
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 funnel 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:
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?
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.
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.
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 Blissdrive blog.