Lead gen Vs Demand gen

For years b2b performance marketing has been done by performing Lead generation. But the evolution of the internet and the change in user behavior has given way to a new way of doing performance marketing called Demand Generation. For us to understand what demand generation is, we first need to understand what is lead generation?

Shabahat Ali

February 8, 2023


As most of us know lead gen refers to the objective of running an advertising or marketing campaign with the objective of capturing someone's email address or contact information.

Once this information is captured the leads are then passed on to the sales team to do sales.

The ones that convert are considered won deals, the ones which are not , are put into an email nurture sequence in hopes of converting one day.

Now that we understand what is lead gen, let’s talk about,


Demand gen is the update to the lead gen playbook. It at its core is all about marketing in a way that the modern customers want and align it with the way that they buy.

Demand generation refers to the objective of running marketing and communication in a way that the buyers receive all the information they need during their buying process to make a decision and come inbound through our website to initiate the buying process themselves.

In a way Demand gen is truly inbound where we don't go out bound at all.

Now that we have a basic understanding of both, let’s look at them side by side:

LEAD GEN DEMAND GEN OUTBOUND:   We need to go outbound to the captured contact to initiate the buying journey 100% inbound:   the buyers come in when they are ready to buy Longer sales cycle:  Since the buyer is not well educated about your service/product the sales cycles are longer Shorter Sales Cycle:  Buyer comes in well educated and prepared to buy resulting in shorter sales cycles Demand Capture:  This method can only capture existing demand in the market. This results in a smaller market segment you can target. Demand Creation + Capture:  This method creates the demand in the user through education and content, then later captures that demand increasing market share along with sales efficiency Mindset = Create Contact  In lead gen marketers are reporting the numbers of generated leads. They have no regard for the quality of the lead as sales has to deal with them. Mindset = Business Impact  Demand gen focuses on impacting the consumer behavior and the business revenue.  PAID MEDIA ONLY  Lead gen is possible through paid media and paid channels only.  The leads stop when you stop the ads.  This also means high Customer acquisition cost. ORGANIC  Demand Gen works on building an organic marketing engine. So the enquiries keep coming in even if you stop working.  Being organic also reduces customer acquisition cost. Low win rate  The potential deals that are sourced through this mode generally convert into wins at a very low rate somewhere between 0.3% - 3% High win rate  Buyers come in at a much higher level of buying intent and are highly qualified which results in much higher win rate somewhere between 25% - 66%
A side by side comparison between lead gen and demand gen

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