Lead Generation vs. Demand Generation - Marketing WTF?
Some may say that lead generation is passé. Today, Marketers have Demand Generation titles and they run demand generation programs. Does the new label mean our roles have changed? And, what was wrong with Lead Generation? It clearly stated our goal – to generate leads for Sales.
At ReachForce we started to transition our content from lead generation to the trendy new demand generation labels, I guess because everyone else was. But as I was searching and replacing I found myself thinking – what does demand generation really mean? Interestingly, Wikipedia has no definition for demand generation.
I know my sales guys could care less about demand. They want leads, real leads that have been warmed up by marketing. I’m wondering, is the new title just a way for Marketers to continue to employ tactics of the past and still not be held accountable for real measurable results?
Leads, now that is something I can measure. With the new analytics tools and automation systems, we as Marketers can now truly generate, nurture and measure LEADS. So at ReachForce, we decided to stay with Lead Generation. I still wonder though…am I missing something?
Our mission at ReachForce is to provide B2B Marketers with the data or fuel for their lead generation initiatives, hence our tagline, Fueling Targeted Lead Generation.
What does Demand Generation mean to you?
2 Responses to “Lead Generation vs. Demand Generation - Marketing WTF?”
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May 21st, 2008 at 3:21 pm
I am not sure it is an either/or discussion. Sure, you can measure leads – if you have clearly defined what a “lead” is with your sales team. And, that is definitely easier than measuring “demand”…unless…you clearly define what “demand” is. What if we define “demand” as “revenue”?
For me, demand generation is a broader term that encompasses the full lifecycle of revenue-generating activities - from lead acquisition through customer retention, and ultimately lifetime development of that customer. One could even argue that it includes brand reputation as well.
Lead generation is a component… for many, a very important component…but it exists within a greater demand gen strategy. Lead gen is focused on the direct acquisition of new opportunities. But, many marketers today are being held accountable beyond acquisition to nurturing and accelerating the sale…and beyond (i.e. customer nurturing and development).
What about this? Demand Gen = Awareness + Lead Gen(Aquisition) + Lead Nurturing + Customer Development. That way, when we measure total “demand” in terms of revenue we can start to hold ourselves accountable to not only quantity of leads, but size of lead opportunity, time lead takes to become revenue, total lifetime value of a customer, etc. Thoughts?
May 27th, 2008 at 8:01 pm
I think the terms “demand generation” and “lead generation” are used as synonyms in B2B marketing speak.
But perhaps, as suggested by Jen, lead generation is a subset of demand generation.
For example, demand generation may be used to describe driving customers to make e-commerce or retail purchases where leads are not part of the sales process.