Demand Generation vs Demand Capture Explained

For too long, companies have had a narrow view of "demand generation" that limits it to just top-of-funnel lead generation activities. It's easy to get caught up in building brand awareness only or focusing on lead quantity over quality, which causes a misalignment between marketing and sales.

The problem with this limited definition is that it prevents businesses from properly generating real demand and effectively capturing the interest they do manage to create.

True demand generation goes far beyond simply driving leads through tactics like paid advertising or content marketing. It's about igniting an actual desire and demand among your target buyers for the solutions you offer.

And demand capture represents the other critical half of the equation - turning that demand into tangible sales through seamless user experiences, frictionless purchasing flows, and robust retention strategies.

At Banzai, we understand that having a strong demand generation and/or demand capture strategy is essential for turning leads into loyal customers. We offer two solutions to help solve for this. Demio allows you to host engaging experiences with leads and customers through webinars. While Reach takes demand capture to its highest potential. It supports full-funnel demand strategies through 14 campaign types. Use it to drive action on your event registrations, free trials, or help book meetings.

In this article, we'll discuss:

• What demand generation truly means (and what it doesn't)
• What activities constitute real demand capture (not just lead capture)
• How successful companies integrate demand gen and demand capture
• A real example from Intercom on generating and capturing demand

What is Demand Generation?

Demand generation is the process of creating awareness, interest, and desire for your company's products or services among its target audience. The specifics of what demand generation means can vary depending on the company's stage:

• For a startup, demand generation is about establishing their brand in the market and generating initial traction - getting the word out and being out there. It involves activities like content marketing, social media presence, thought leadership, and leveraging personal networks to build awareness and attract early adopters.
  
  
• For a scale-up company, demand generation means accelerating growth by continuously attracting new potential customers and nurturing them through the sales funnel. It involves executing targeted campaigns, leveraging account-based marketing, and optimizing lead nurturing processes to convert more qualified leads into customers.
  
  
• For an enterprise company, demand generation is critical for maintaining market dominance and driving expansion into new markets or product lines. It involves activities like brand building, industry influence, strategic partnerships, and multichannel marketing to capture demand from a large customer base effectively.

What is the primary goal of Demand Generation?

Regardless of your company's stage, the primary goal of demand generation is to generate quality leads that fit your ideal customer profile and have an interest in the offered solutions, positioning the company as a trusted advisor in the industry.

Many people confuse demand generation with lead generation, but they are not the same.

Lead generation is a subset of demand generation, focusing solely on collecting contact information from potential customers and making the initial contact.

Demand generation, on the other hand, encompasses a broader set of activities aimed at building awareness, nurturing interest, and creating desire for a company's offerings. Demand generation is not about making a quick sale; it's about strategically positioning the company as a thought leader and a trusted advisor in the industry, thereby establishing a strong foundation for long-term customer relationships.

Demand Generation Metrics to Track

To prove your demand generation activities' ROI, you need to have a solid attribution system in place. It's essential to understand what drives clicks, as well as what drives pipeline. This table covers the key demand generation metrics to focus on.

Demand Generation Key Activities

Demand generation involves a multitude of marketing tactics and activities focused on attracting new potential customers and moving them through the sales funnel. Some of the core activities include:

• Content marketing: Creating educational content like blog posts, whitepapers, and e-books to build brand awareness and establish thought leadership.
• Search Engine Optimization (SEO): Optimizing website and content for better visibility and organic traffic from search engines.
• Social media marketing: Leveraging platforms like LinkedIn, X, and Facebook to share valuable content, engage with the audience, and build brand presence.
• Email marketing: Nurturing leads through automated email campaigns, announcements, newsletters, and personalized communication.
• Paid advertising: Running paid ad campaigns on search engines, social media, or other platforms to drive targeted traffic.
• Webinars/Events: Hosting or participating in webinars, conferences, or other events to educate the audience and generate leads. Look for a webinar platform (like Demio) that provides comprehensive analytics, from standard webinar KPIs like registration, attendance, and conversions, to deeper engagement metrics and focus time reports that take your lead scoring to the next level.

This table provides an overview of how to run these activities, depending on the stage of your company.

What is Demand Capture?

Demand capture is the process of attracting and converting the portion of your target market that is actively seeking a solution. Unlike demand generation, which focuses on creating awareness and interest, demand capture targets those who are already in the market for a product or service.

For a startup:

Demand capture means identifying and engaging with early adopters and potential customers who are actively seeking a solution similar to what the startup offers. This involves targeted marketing efforts to reach these prospects at the right time and place, leveraging channels such as social media, search engine optimization (SEO), and content marketing.

For a startup, demand capture is crucial for establishing a foothold in the market, gaining initial traction, and driving early revenue growth.

For a Scale-up:

Demand capture shifts towards optimizing and scaling existing demand generation strategies. At this stage, the focus is on refining messaging, improving conversion rates, and expanding the reach of marketing efforts to capture demand from a broader audience.

Scale-ups may have to invest more heavily in marketing automation tools, customer relationship management (CRM) systems, and data analytics to streamline their demand capture processes and drive sustained growth.

For an Enterprise Company:

Demand capture involves deploying sophisticated sales and marketing strategies to capture demand from large enterprises and high-value clients. This may include account-based marketing (ABM) tactics, personalized sales outreach, and strategic partnerships to target key decision-makers within target accounts.

Enterprise companies may also have to invest in advanced lead scoring and nurturing techniques to effectively manage and prioritize leads at scale, ensuring a steady stream of qualified opportunities for their sales teams.

How does Demand Capture contribute to sales growth?

Demand capture contributes to sales growth through several key strategies:

1. Great demand capture favors ease of purchase

The first way demand capture contributes to sales growth is by making it easy for your prospective customers to transact with your brand. Consider:

• Pushing your brand to be easy to find and transact with

Ensuring your product or service is easily accessible when customers are ready to make a purchase is super important. This includes having a user-friendly website, clear navigation, and streamlined checkout processes. The easier it is for customers to find and buy your product, the higher the chances of capturing sales from ready-to-buy prospects.

• Encouraging your brand to be present on your audience's preferred channels

Being available on the channels your target audience prefers, such as marketplaces, social media platforms, or retail stores, ensures that when they decide to buy, your product is readily accessible. Cognism's success with repurposing webinar content into podcasts, video snippets, and social posts highlights the effectiveness of being present across multiple touchpoints to capture demand.

2. Great demand capture builds trust and credibility

Are you even a business if your prospective clients can't trust you and feel that your brand is legit? Demand capture, when applied the right way, boosts your brand's credibility, all while boosting your sales through social proof, and other brand credibility elements.

• Being "Rubber Stampable"

As Drew Leahy from KlientBoost mentioned, "A rubber stamp is a metaphor for an endorsement without careful thought."

That means it should be a no-brainer for influencers, creators, and your existing clients to endorse your brand. At the final stages of the buying process, customers often look for quick validation of their choice. Social proof, such as reviews, testimonials, and endorsements, can help customers feel confident in their decision.

Here's another example of Adam Robinson, CEO of Retention, partnering with AI influencer Michelle Lieben to promote Retention's new product RB2B.

• Leveraging social proof and guarantees

Offering money-back guarantees, free trials, and easy returns can reduce the perceived risk for buyers, making them more likely to complete their purchase. Using case studies and customer success stories and featuring your existing customers in your podcast, blog, or webinars can also be a great way to boost sales through social proof.

3. Great demand capture prioritizes targeting the right audience

Segmentation and targeting are at the core of sales. The more targeted your audience is, the higher the sales. And marketers with great demand capture strategies use intent data, segmentation, and hyper-targeting to boost sales. Here's how:

• Leveraging precise targeting

Capturing demand effectively requires focusing on the right audience. This means avoiding the trap of targeting broad or non-relevant segments that won't convert.

More specifically, this means focusing on low-hanging fruits and bottom-of-the-funnel content versus top-of-the-funnel activities.

• Leveraging intent data and paid ads

Paid search ads and high-intent campaigns are akin to securing prime shelf space in a supermarket. Imagine Google PPC as a supermarket aisle where intent to purchase is already established.

By targeting these high-intent searches, businesses can capture demand from prospects who are actively seeking their products or services, leading to immediate sales growth.For instance, language tutoring marketplace Preply has a programmatic ads campaign for bottom-of-the-funnel keywords such as "French tutors in New York," "French tutors in LA," and thousands of other keywords.

This helps them be where their audience is when they're searching for French tutors.

Demand Capture Key Metrics to Track

When it comes to measuring the success of your demand capture strategies, it's essential to track key metrics that provide insights into how effectively you are converting high-intent prospects into customers.

Here are the main demand capture metrics to monitor:

1. Average conversion rates: It measures the percentage of leads that convert into paying customers. It's a clear indicator of how well your demand capture efforts are working. High conversion rates suggest that your marketing and sales strategies effectively persuade potential customers to make a purchase.
   
   
2. Return on Investment (ROI): ROI is a critical metric that evaluates the profitability of your marketing campaigns. It is calculated by comparing the net profit generated from the campaigns to the total investment made. A positive ROI indicates that your demand capture strategies are generating more revenue than they cost.

Note: Proving the ROI of your in-person events is important for showing your leadership and sponsors that they are worth the time, effort, and money. But, it can be difficult to quantify. We explore ways to measure In-Person ROI in the blog, "How Do I Prove ROI from My In-Person Event?".

1. Return on Ad Spend (ROAS): Similar to ROI, ROAS focuses specifically on the revenue generated from ad campaigns. It helps you understand which ads are most effective at capturing demand and driving sales.
   
   
2. Win Rate: The win rate is the percentage of deals won out of the total number of opportunities. This metric helps you assess the effectiveness of your sales process and the ability of your sales team to close deals.
   
   
3. Customer Lifetime Value (CLV): CLV estimates the total revenue a customer will generate over their relationship with your company. Tracking CLV helps you understand the long-term value of customers acquired through demand capture efforts. It helps you allocate resources efficiently.
   
   
4. Marketing Cycle Length: This metric measures the time it takes for a lead to move through the sales funnel from initial contact to conversion. Shorter cycle lengths typically indicate a more efficient demand capture process.

Key Activities to Capture Demand

Capturing demand involves various targeted activities designed to convert high-intent prospects into paying customers. These activities leverage existing awareness and interest, pushing potential buyers through the final stages of the sales funnel. Reach solves these challenges by deploying multi-channel outbound campaigns directly to your ICP; helping you capture demand with event, opportunity, and engagement campaign types.

Here are some key activities for effective demand capture:

1. Targeted paid advertising
   • Search ads: Use search engine advertising to target keywords with high purchase intent.
   • Display ads: Deploy retargeting campaigns to re-engage visitors who have shown interest in your products or services.
   • Social media ads: Utilize platforms like LinkedIn, Facebook, and Instagram to reach users who have previously interacted with your brand.
     
     
2. Landing pages
   • Optimized landing pages: Create specific landing pages tailored to different audience segments, emphasizing strong calls-to-action (CTAs).
   • Lead magnets: Offer valuable content such as e-books, whitepapers, or exclusive deals in exchange for contact information.
     
     
3. Account-Based Marketing (ABM)
   • Personalized outreach: Develop customized campaigns targeting specific high-value accounts with personalized messages and offers.
   • Content customization: Tailor content to address the unique pain points and needs of targeted accounts.
     
     
4. Lead nurturing
   • Email marketing: Send segmented and personalized email campaigns to nurture leads through automated workflows.
   • Follow-up sequences: Implement structured follow-up sequences for leads who have shown interest, such as demo requests or webinar attendees.
     
     
5. Leveraging intent data
   • Behavioral tracking: Use B2B marketing tools to monitor and analyze online behavior, identifying prospects showing strong buying signals.
   • Predictive analytics: Leverage predictive analytics to prioritize leads based on their likelihood to convert.
     
     
6. Sales enablement
   • CRM integration: Ensure your CRM system is integrated with marketing tools to provide sales teams with comprehensive lead information.
   • Sales collateral: Equip your sales team with relevant materials, such as case studies, product brochures, and ROI calculators.
     
     
7. Webinars and events
   • On-demand webinars: Offer on-demand access to recorded webinars that potential customers can watch at their convenience. Demio makes it easy to create live, automated, and on-demand webinars that educate your customers about your company's services.
   • Virtual events: Host virtual events and Q&A sessions to engage directly with high-intent prospects.
     
     
8. Customer reviews and testimonials
   • Showcasing reviews: Highlight positive customer reviews and testimonials on your website and in marketing materials to build credibility.
   • Case studies: Develop detailed case studies that demonstrate the success of your product or service for similar customers.
     
     
9. Chatbots and live chat
   • Real-time assistance: Implement chatbots and live chat on your website to answer questions and guide prospects through the purchasing process in real time.
   • Lead qualification: Use chatbots to qualify leads by asking pertinent questions and directing high-intent prospects to sales representatives.
     
     
10. Free trials and demos
    • Free trials: Offer free trials to allow prospects to experience your product or service firsthand.
    • Personalized demos: Provide personalized product demos tailored to the specific use cases of potential customers.

A Real-Life Example of a Demand Generation And Capture Strategy At Play

Intercom is an example of a company that nails demand generation and capture. Here's how.

How Intercom Runs Demand Generation

Intercom invests heavily in producing high-quality, thought-provoking content that establishes them as a trusted authority in their industry. Some of their most popular and widely shared articles include:

• "Browsers, not apps, are the future of mobile": This article went viral by piggybacking on an existing popular narrative about the decline of mobile apps. By providing a fresh perspective, it attracted a huge audience eager for Intercom's viewpoint.

"People leave managers, not companies": Drawing inspiration from a previous #1 post on Hacker News, Intercom revived this discussion with new data-driven insights. The novel angle allowed them to resurface an evergreen topic.

Their content doesn't merely regurgitate advice - it introduces new ideas that get their audience thinking differently about key issues. This mindshare creates demand for Intercom's products as the solution.

Also, rather than directly promoting their product features, Intercom focuses on positioning their brand around the bigger vision of helping businesses enable "real, human connection" with customers. This "aspirational" messaging about facilitating more authentic communication resonates emotionally with businesses struggling to connect with increasingly disloyal customers.

Intercom's brand values shape the perception that their products are essential for delivering better customer experiences. Speaking engagements are also part of the Intercom demand gen strategy. The Intercom founders actively speak at major industry conferences like Mind the Project, which draw their core audience of product managers, marketers, and business leaders.

These speaking sessions allow Intercom to build credibility and share their philosophy with a warm audience that has gathered due to their interest in the topics being presented.

Intercom can then introduce their products as a way to implement the ideas they promote on stage.

How Intercom Runs Demand Capture

• Targeted Landing Pages

For each main traffic source, whether that's organic search, paid ads, or referrals, Intercom has crafted dedicated landing page experiences that directly map to the visitor's specific needs and research goals.

For example, they have an "Olark Alternative" landing page exclusively targeting people searching for an alternative to Olark's chat software.

The page highlights Intercom's superior features and migrates businesses over to their platform.

These hyper-relevant landing pages capture demand more effectively than generic pages by continuing the conversation already happening in the searcher's mind.

• Free trial with frictionless entry

A "Free Trial" call-to-action makes it easy for interested visitors to experience Intercom's products with just an email address. There's no lengthy form or commitment required.

This allows Intercom to capture demand from visitors at their maximum point of curiosity and desire. Once inside the product, Intercom can work to convert free trials to paid customers through their onboarding process.

• Granular ad targeting

Intercom runs hyper-targeted paid advertising campaigns where each unique ad is laser-focused on a specific product use case or keyword. Ads map directly to the corresponding solution landing pages.

For example, an ad targeting "autoresponder software" would send people to a landing page extolling how Intercom's suite can handle automated customer messaging flows.

This precise ad targeting ensures Intercom's demand capture extends throughout the full search funnel.

• Lead magnets

For top-of-funnel demand generation, Intercom offers free resources like their "Onboarding Starter Kit" as a way to attract and capture leads before they're ready to trial the product.

These in-depth resources establish trust while allowing Intercom to start nurturing prospective buyers through email toward eventually becoming customers.

Why Generating and Capturing Demand Go Hand in Hand

For businesses, there is little value in just generating demand through marketing if you don't have an effective strategy for capturing that demand and converting interest into paying customers.

Demand generation and demand capture activities need to be fully aligned and integrated; they go hand-in-hand.

This means breaking down organizational silos between sales and marketing teams. Too often, marketing is responsible for building awareness and filling the top of the funnel, while sales takes over to close deals lower in the funnel. This handoff creates a discontinuity for prospects - which can cause huge (often deal-breaking) friction.

Instead, demand generation and capture should be viewed as an interlinked process designed to guide potential buyers through every stage of their customer journey.

Marketing and sales must collaborate, along with other customer-facing teams, to create a unified experience from initially grabbing attention to nurturing interest to successfully making the sale.

The Bottom Line

Savvy businesses don't think of demand generation and demand capture as segmented activities. They unify marketing campaigns and advertising that create demand through user experiences, purchasing flows, and retention tactics that systematically capture that demand over time.

Sales and marketing need to be aligned every step of the way, with a consistent hand-off from when a customer first learns about an offering to when they make the purchase decision and continue deriving value.

This holistic view of demand generation and demand capture as one integrated motion is what truly separates the most successful companies.

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