Lead Gen vs Demand Gen: Which is best for IT and Software Businesses?
Which water is safer and healthier to drink?
Canadian Living noted that tap water is the worst water type to drink. Chlorine treatment may kill unwanted bacteria in it but may contain lead or aluminum as it passes through extensive piping prior to coming out of the faucet. On the safe side of the list is Bottled water which is treated through distillation, reverse osmosis or ionized, and Charcoal filtration but which is also prone to bacteria breed when filters are not changed regularly.
The course of IT and Software companies in choosing between Lead Generation and Demand Generation as to which best marketing strategy would work for their business seems turbid as the question which water type is best safe for drinking. Although much informational scripts have already been penned for both tactics, for some reasons, some IT and software companies still remain reserved in taking new grounds and instead settle in the comfort of old tools and processes which they are already much familiar with. Who can argue on that?
However, competition mainly in the aspect of customer acquisition is getting stringy as (other) aggressive companies look for more prospecting options and bravely invest in the powers of advanced technologies to grab all the chances of dominating the market.
What are their reasons and what are the baselines in deciding whether to take Lead Generation or opt for Demand Generation as the best fit marketing strategy for IT and Software companies?
Below are some insights that would help you discern which marketing tactic would best work for your IT or Software business.
What is your Goal?
Customer acquisition is the major and most commanding need in a business but realizing that goal may require a stern process in order to get all points leading to that goal.
You may have to answer the question “Is your product not known to your target market or is your target market not well aware about your product?”. Affirmation to the question would mean that you need to create awareness among your target customers about your product and its capabilities and features that would benefit them – that is Demand Generation.
However, if you already have a good demographical and psychological profiles of your target customers and at the same time they are already well aware about your product and its benefits to their business, it’s perfect time to drive interest among these customers via Lead Generation. This is an important factor in the sales funnel.
What are the Success Qualifications?
Operational procedures or processes may come similar for Demand Generation and Lead Generation but Success Criteria may differ.
As discussed earlier, demand generation aims to create awareness among your target customers. With the help of automation and nurture tools, and regardless of the number of leads generated, such awareness must not only get your message to your targets but at the same time lead your marketing efforts into substantial discussion between you and your prospects.
Lead generation may require a specific success criteria like the BANT which stands for Budget, Authority, Need and Timeframe. Most IT and Software companies would require these important information to qualify a lead in order for them to tailor fit the best solution for their interested customer. One or two criteria like Budget and Timeframe may sometimes be missing but the lead may still be considered for as long as the Need and the Decision Maker are identified.
What is your target Result?
Demand generation will provide you a room to exist in your target market which will pave the way for your business to engage and to know them better – their thoughts, their behavior and their business perception. A successful demand generation campaign will result a profiled list of qualified candidates whose trust you have gained through nurturing.
For lead generation however quality and quantity matter. The number of leads generated and the quality of each lead which is determined by the success criteria play important roles in the business’ sales funnel and are considered to be non-negotiables.
Lead Generation and Demand Generation may have distinct differences in terms of Goal, Success Qualification and Result but at a certain point may be fused together as one efficient process that would realize success for your IT or Software business.
So why so picky with the water type you drink? I won’t mind at all for as long as it would quench my thirst…Success!