Know the Difference Between Lead Generation and Demand Generation

Michele Warg
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Companies seeking to expand their business and distribute products and services are focused on sales growth. Leads are a crucial component of maintaining business and acquiring new clients. Companies who know the difference between lead generation and demand generation can maximize their sales and improve the processes led by sales managers by utilizing both strategies.

A dedicated team can boost sales growth by utilizing both lead generation and demand generation simultaneously. Designate your inbound team to respond to demand-generated sales requests from online contact forms, website inquiries and paid marketing leads while training outbound sales team to focus on lead generation within the community and target demographic areas.

Lead generation consists of driving interest or inquiries toward the company's services and products. The sales team focused on lead generations works to build relationships with potential clients and retain existing customers. A lead generation strategy may consist of an aggressive approach that includes collecting contact information from potential buyers and following up on inquiries regarding products and services. Utilize connections in the industry and among the sales team's professional network to build a contact list that can ultimately boost sales growth.

A demand generation team works closely with the lead generation team, but their focus is primarily spent on building awareness of the company's products and services to spark interest from potential clients and to boost sales growth. Your sales team should be utilizing social media, marketing campaigns and sales strategies that create a demand for the company's products and services. Public relations and social media strategies should be aimed at enticing the consumer with information to produce inquiries that ultimately lead to sales. This strategic approach focuses on building relationships with community partners, local and national businesses, and the target audience without a pushy sales approach. Direct interaction is often minimal with the consumer, but the aggressive approach focuses on pointing potential business to the lead generation team to enhance conversions.

Sales managers must be keenly aware of strategies to track the success of both lead generation and demand generation and how it impacts sales growth. Follow up with customers and clients to evaluate their likes and dislikes pertaining to interactions with the sales team. Seek out sales reports that determine potential vulnerabilities with both processes and focus on training employees to represent the company's best interests while fulfilling the goals and mission of the company.

Companies thrive based on the relationships built during the sales process. Businesses that know the difference between lead generation and demand generation can utilize sales strategies that enhance the company's growth and potential contacts within the target audience to improve awareness. All this ultimately leads to increased sales of products or services in the long term.

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