Lead generation and demand generation are two important concepts in digital marketing that are often used interchangeably but actually refer to different stages in the sales funnel. Understanding the differences between lead gen and demand gen is crucial for developing an effective strategy on LinkedIn to generate quality leads and accelerate the sales cycle.
What is Lead Generation?
Lead generation refers to the early stage of the sales funnel where the focus is on identifying and qualifying potential customers or leads. The goal of lead generation is to capture interest and contact information from prospective buyers so they can be further nurtured and converted.
On LinkedIn, common lead generation activities include:
- Publishing relevant content like articles, images, videos.
- Engaging on LinkedIn groups related to your industry.
- Connecting with prospects.
- Building relationships by commenting and liking content.
- Running targeted LinkedIn ads to capture leads.
- Promoting lead magnet offers like gated content, webinars, free trials.
Lead generation is typically the entry point to the sales funnel. It brings new names and contacts into the fold for further marketing and sales efforts. The quality and quantity of leads represents the top of the funnel.
What is Demand Generation?
Demand generation focuses on stimulating interest and creating ‘demand’ among qualified prospects already in the sales funnel. The goal is to engage prospects and accelerate them through the buying journey towards a sale.
On LinkedIn, common demand gen activities include:
- Retargeting content to accounts and contacts.
- Engaging through InMail and customized outreach.
- Nurturing leads with relevant content.
- Promoting offers, trials, demos to accelerates sales.
- Running tailored LinkedIn ads to accounts.
- Automating workflows and lead scoring.
Demand generation comes after leads have already been captured further down the funnel. It focuses on stimulating demand and speeding up the sales cycle through highly targeted, personalized messaging and content.
Key Differences Between Lead Gen and Demand Gen
While lead generation and demand generation work hand-in-hand, there are some key differences between the two concepts:
| Lead Generation | Demand Generation |
|---|---|
| Attracting new contacts and accounts | Engaging existing prospects in funnel |
| Casting a wide net | One-to-one personalized messaging |
| Top of funnel activities | Middle and bottom of funnel focus |
| Less sales-ready prospects | More sales-ready prospects |
| Cool audience | Warm or hot audience |
| High volume of leads | Lower volume, higher quality |
| Content, ads, gated offers | Retargeting, personalized outreach |
As shown in the comparison, lead generation casts a wide net to capture interest and contacts at the top of the funnel. Demand generation engages warmer prospects already in the funnel to drive them towards sales.
Best Practices for Lead Gen and Demand Gen on LinkedIn
Here are some best practices to succeed with both lead generation and demand generation on LinkedIn:
Lead Generation Best Practices
- Publish engaging, relevant content consistently.
- Participate actively in niche LinkedIn groups.
- Leverage lead ad formats like Message Ads.
- Create gated lead magnet content like ebooks, toolkits.
- Use LinkedIn tracking pixels to retarget.
- Test different types of organic and paid content.
- Measure lead quality with metrics like CTR, cost per lead.
Demand Generation Best Practices
- Segment and target prospects effectively.
- Personalize messaging and content.
- Use lead nurturing workflows and drip campaigns.
- Provide demos, trials, proposals to hot leads.
- Retarget and remarket to prospects.
- Measure demand metrics like sales pipeline growth.
- Track prospect engagement and buying signals.
Leveraging LinkedIn’s Solutions
LinkedIn provides powerful tools and solutions to support both lead gen and demand gen activities. Key products include:
- LinkedIn Ads – Target prospects with tailored ads ideal for top, middle, and bottom funnel.
- LinkedIn Pages – Publish and share content to generate awareness and leads.
- LinkedIn Groups – Participate in niche communities to connect with prospects.
- Sales Navigator – Identify key accounts and contacts to target.
- Dynamic Ads – Retarget prospects with relevant content at scale.
- Lead Gen Forms – Capture leads with customizable forms.
Combining these solutions allows B2B marketers to attract new prospects and accelerate them through the funnel to drive pipeline and revenue.
Key Takeaways
- Lead generation attracts new leads and contacts at the top of funnel.
- Demand generation engages existing prospects to progress them in funnel.
- Lead gen uses wider targeting while demand gen is highly personalized.
- Quality content, targeted ads, and lead magnets drive lead gen.
- Workflow automation, remarketing, trials, demos accelerate demand gen.
- Measure lead generation by volume and quality of leads.
- Measure demand generation by sales pipeline growth and velocity.
- Leverage LinkedIn’s solutions for both lead gen and demand gen.
Conclusion
Lead generation and demand generation work hand in hand to attract prospects and drive them through the funnel. Developing the right mix of content, targeted ads, and solutions on LinkedIn allows B2B marketers to capture interest and accelerate sales. Keeping lead gen and demand gen strategies separate provides focus on the unique goals and metrics for top, middle, and bottom funnel activities.