What is the difference between growth marketing and demand generation?

Growth marketing and demand generation are both essential facets of a comprehensive marketing strategy an while there are some similarities, they focus on different areas, utilize unique tactics and are measured differently. Here’s how I think about it and would break down the differences:

Scope and Focus

• Growth Marketing: It is a broader strategy that encompasses a wide range of tactics and channels to not only attract customers but also retain them, aiming to increase the lifetime value (net retention rate) of customers and foster brand advocacy. It involves a data-driven approach to all aspects of the customer lifecycle — a combination of customer acquisition, expansion and retention with a focus on revenue at all stages.

• Demand Generation: This is more focused on generating interest and awareness about the company's products or services. The primary goal is to create a demand for the product in the market, targeting potential customers at the top and middle of the sales funnel.

Tactics and Strategies

• Growth Marketing: Utilizes a mix of content marketing, SEO, social media marketing, email marketing, A/B testing, and more, aiming to grow the business sustainably through iterative improvements and experiments.

• Demand Generation: Involves tactics like inbound marketing, content creation, paid advertising, webinars, and events to stir interest and create buzz around the product or service in the market.

Metrics and KPIs

• Growth Marketing: Measures success using a variety of metrics including Customer Lifetime Value (CLV), retention rate, churn rate, and Net Promoter Score (NPS), focusing on long-term growth.

• Demand Generation: Focuses on short-term metrics such as lead generation, conversion rates, and the number of new opportunities created, tracking the immediate impact of campaigns on generating interest and demand.

Target Audience

• Growth Marketing: Targets a broader audience, including prospects, existing customers, and even past customers, aiming to nurture relationships and build a community around the brand.

• Demand Generation: Primarily targets potential customers, focusing on attracting quality leads that can be nurtured into customers, usually working at the top of the sales funnel.

Customer Journey

• Growth Marketing: Engages customers at every stage of the customer journey, from awareness to advocacy, focusing on providing value and building long-term relationships.

• Demand Generation: Focuses mainly on the early stages of the customer journey, aiming to create awareness and generate interest to move potential customers through the sales funnel.

In summary, while there is an overlap between growth marketing and demand generation, growth marketing has a broader scope, focusing on long-term sustainable growth through customer acquisition, expansion and retention, while demand generation is more centered on generating interest and creating a demand for the products or services in the market.