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Jul 30, 2023

Fueling B2B SaaS Growth: Understanding the Difference Between Demand Generation and Lead Generation

Is Demand Generation the same as Lead Generation? Uncover their difference in B2B SaaS. Learn how they drive business growth.

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Fueling B2B SaaS Growth: Understanding the Difference Between Demand Generation and Lead Generation

Attracting and retaining customers is crucial to achieving growth and revenue goals in the ever-evolving B2B SaaS market. Two crucial marketing strategies that play a pivotal role in this process are demand generation and lead generation. These two concepts are distinct and serve different purposes in the sales and marketing funnel. 

Suppose you have a fantastic service to offer. But how do you ensure the right people know about it? That’s where demand generation comes into play. It builds awareness around your service. Once people are curious, you don’t just leave them hanging. That’s where lead generation takes the stage. It's about capturing those interested people, getting their contact information, and nurturing the relationship until they're ready to become loyal customers. 

Let’s understand the difference between demand generation and lead generation in more detail. 

Demand Generation Vs. Lead Generation

Demand generation is creating awareness and interest in a product among potential customers. Its primary aim is to drive curiosity, educate the target audience, and build a sense of urgency. It prompts people to seek more information or take action. 

An image showing the top B2B demand strategies for driving growth

What is lead generation in marketing?

Lead generation is focused on capturing and qualifying potential customers who have expressed a specific interest in the service. The primary aim is to gather contact information and other relevant data to initiate personalized communication and nurture the lead further down the funnel. The types of lead generation services include gated content, lead magnets, landing pages, and sign-up forms.  

When exploring lead generation, you may come across terms like ‘lead generation vs lead acquisition.’ While lead generation involves building relationships with prospects through valuable content, lead acquisition involves obtaining contact details of prospects from third-party sources. Knowing lead generation vs acquisition is crucial to determine what suits your business best.  

Combining the Power of Demand and Lead Gen in Your Marketing Game 

Think of demand generation vs lead generation as two puzzle pieces that fit perfectly together in the grand marketing scheme. They are not mutually exclusive. In fact, they work most effectively when combined in a cohesive marketing approach. While demand generation lays the foundation at the top of the sales funnel, lead generation moves prospective customers through the funnel. 

By aligning these two strategies, you can create a seamless experience for your prospects. You can introduce people to your brand through captivating content. As you uncover ‘What is the difference between Lead Generation And Demand Generation,’ you will find that the lead generation process helps identify and prioritize the most interested and qualified prospects. This way, you can ultimately drive more revenue and business growth.

The Role of Lead Generation in the Sales Funnel in B2B SaaS 

In B2B SaaS, the sales funnel typically consists of several stages. It starts with awareness and interest and progresses toward conversion and retention. Here, you may wonder, ‘Is lead generation worth it?’ Well, the answer is a resounding yes! It plays a crucial role in the middle and bottom parts of the funnel. 

An image showing the stages of a B2B sales funnel

At the middle of the funnel, lead generation focuses on capturing potential customers who have already shown interest in your service. You can collect contact information through lead magnets, gated content, or other sign-up methods and establish a direct line of communication. 

As you uncover demand generation marketing vs lead generation, remember that the latter also helps you qualify your leads. You can understand your prospects’ interest level and pain points and assert their fit with the service. Finally, lead nurturing comes into play. It involves engaging with leads through personalized communication.

Lead Generation Vs. Demand Generation: Measuring Success and ROI for B2B SaaS

You can leverage KPIs and analytics tools to gauge the effectiveness of demand and lead generation strategies. Brevo, Blaze, HubSpot, and Salesforce Pardot are the top demand and lead generation analytics tools you can use to gain valuable performance insights. 


Here is the difference between lead generation and demand generation regarding relevant KPIs.

Demand Generation Metrics

Relevant KPIs for demand generation are:

  • Website traffic 
  • Social media engagement 
  • Content downloads 
  • Email open rate 
  • Event attendance 
An image illustrating the steps to measure the performance of the demand generation campaign

Lead Generation Metrics

Relevant KPIs for lead generation are:

  • Number of leads captured
  • Conversion rate
  • Lead-to-customer conversion rate 
  • The overall cost per lead  

Understanding ‘What is the difference between demand generation and lead generation’ in terms of measurable outcomes can help you optimize your marketing efforts.

The Difference Between Demand Generation and Lead Generation: Wrap Up 

Demand generation and lead generation are indispensable strategies for driving growth and revenue in the B2B SaaS landscape. You should create a cohesive marketing approach that combines demand and lead-generation efforts seamlessly. Recognize the difference between demand generation and lead generation and understand their unique roles in the sales funnel. It will help you capture qualified leads and drive sustainable growth. 

Sign up with Blaze to boost your demand generation and lead generation efforts. Crush your sales goals today!


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