Growth Marketing Vs Demand Generation: Which Is Better?

Growth Marketing Vs Demand Generation Which Is Better


Growth marketing focuses on long-term, sustainable growth. It attempts to increase brand loyalty, engage existing consumers, and gradually grow the client base. It is more strategic and comprehensive in nature, focusing on client retention and lifetime value.

Demand generation is mostly concerned with short-term objectives such as raising brand recognition and generating leads. It’s a more conventional technique that focuses on filling the top of the sales funnel and generating rapid results.

The decision relies on your business objectives. Growth marketing is best for long-term organizations, whereas demand generation is best for short-term sales objectives. There is no one-size-fits-all solution; it is determined by your business strategy.

Remember that both have a role in an overall marketing plan, and their success varies depending on your individual demands and sector.

What is growth marketing?

Growth marketing is a marketing strategy focused on growing a business by acquiring and retaining customers through continuous experimentation across the marketing funnel. Unlike traditional marketing approaches that may prioritize brand building or one-time sales, growth marketing emphasizes iterative testing, data analysis, and rapid optimization to drive sustainable growth.

Key principles of growth marketing include:

  • Data-driven approach
  • Experimentation
  • Iterative optimization
  • Cross-functional collaboration
  • Focus on Customer Lifetime Value (CLTV)
  • Scalability

Let us understand them in detail

1. Data-driven approach:

Growth marketers rely heavily on data and analytics to inform decision-making. They collect and analyze data from various sources to understand customer behavior, identify opportunities, and measure the effectiveness of marketing campaigns.

2. Experimentation:

Growth marketing involves testing hypotheses through controlled experiments. Marketers run A/B tests, multivariate tests, and other experiments to determine which strategies, tactics, and messaging resonate best with their target audience.

3. Iterative optimization:

Based on the results of experiments, growth marketers continuously refine and optimize their strategies. They make data-driven adjustments to improve conversion rates, increase customer engagement, and maximize the return on investment (ROI) of marketing efforts.

4. Cross-functional collaboration:

Growth marketing often requires collaboration across different teams within an organization, including marketing, product development, sales, and data analytics. By breaking down silos and fostering collaboration, businesses can leverage diverse expertise to drive growth more effectively.

5. Focus on customer lifetime value (CLTV):

Rather than focusing solely on acquiring new customers, growth marketing considers the long-term value of customers. Marketers aim to maximize CLTV by enhancing customer satisfaction, fostering loyalty, and encouraging repeat purchases.

6. Scalability:

Growth marketing strategies are designed to scale efficiently as a business grows. Marketers prioritize tactics and channels that can accommodate increasing demand without sacrificing performance or effectiveness.

Overall, growth marketing is about adopting a mindset of continuous improvement and innovation to drive sustainable business growth in a competitive market landscape.

10 Growth marketing tactics that SaaS companies should adopt

Here are 10 growth marketing strategies that SaaS (Software as a Service) companies should consider adopting to drive their growth:

1. Content marketing
2. In-App messaging
3. Referral programs
4. Product upselling and cross-selling
5. User onboarding optimization
6. Email marketing
7. Search Engine Optimization (SEO
8. B2B Social Media Marketing
9. Customer success programs
10. A/B testing and conversion rate optimization

Let us understand them in detail:

1. Content Marketing: Create high-quality, useful content that addresses your target audience’s pain concerns. Blog postings, whitepapers, webinars, and eBooks are all examples of content.

2. In-App Messaging: In-app messages and alerts may be used to engage users, provide suggestions, and advertise new features.

3. Referral Programs: Create referral programmes that reward current consumers for referring new users. Both the referrer and the referee should be rewarded.

4. Product Upselling And Cross-Selling: Analyze user behavior to recommend additional features or related products within your SaaS platform.y

5. User Onboarding Optimization: Improve the onboarding process to make it seamless and intuitive. Help users experience the value of your product quickly.

6. Email Marketing: To nurture prospects and keep existing clients, segment your email list and deliver targeted, personalized communications.

7. Search Engine Optimization (SEO): To generate organic visitors, optimise your website for search engines. Identify important keywords and develop useful content.

8. B2B Social Media Marketing: B2B social media marketing leverages platforms like LinkedIn, Twitter, and even niche forums to connect with other businesses. By fostering relationships, sharing industry insights, and showcasing expertise, companies can build credibility and generate leads. 

9. Customer Success Programs: Implement robust customer success programs to ensure users get the most out of your software. Provide excellent support and resources.

10. A/B Testing And Conversion Rate Optimization: A/B testing should be used on a regular basis to optimise landing pages, registration forms, and other features in order to increase conversion rates.

These strategies can help SaaS companies attract, engage, and retain customers, ultimately driving sustainable growth. It’s essential to tailor these marketing strategies to your specific audience and business goals for the best results.

What is demand generation?

Demand generation is the process of generating interest and awareness in a product or service with the goal of driving sales.

It is a data-driven marketing strategy that focuses on building demand for your product or service. Companies that use demand generation, like those that use growth marketing, are data-driven and must have a strong alignment between marketing and sales. As a result, a funnel of methods and channels is created to produce qualified leads, nurture them, and pass them on to sales.

The goal of demand creation is to generate income. Some of the objectives of organizations that utilise demand creation tactics are similar to those of growth marketers, but with distinct aim. 

It is critical to understand that demand generation is not the same as lead generation. Lead generation is a subset of demand generation that focuses on gathering contact information (often via forms on landing sites).

Demand generation is a broad category of marketing operations that includes anything from content marketing and email marketing to event marketing and webinars. The common thread is that all of these actions are aimed at raising knowledge and interest in a product or service in order to drive sales.

Demand generation programmes often generate high-quality leads that are sales-ready.  However, the specific strategies employed differ based on the firm or sector.

Demand creation is an essential component of every successful marketing strategy. You will be able to drive more sales and build your business if you take the effort to raise awareness and increase interest in your products or services.

Common demand generation tactics and channels that work

Demand generation is about creating interest and demand for your product or service. Here are common demand generation tactics and channels that have proven to be effective:

1. Content marketing: Create valuable content such as blog posts, articles, ebooks, and videos that address the needs and pain points of your target audience.

2. Email marketing: Use email campaigns to nurture leads and keep your audience engaged. This includes newsletters, drip campaigns, and personalized emails.

3. Social media marketing: Leverage social platforms like Facebook, LinkedIn, Twitter, and Instagram to connect with your audience, share content, and run targeted ad campaigns.

4. Search Engine Optimization (SEO): Optimize your website and content for search engines to increase organic traffic. Use keyword research and on-page SEO techniques.

5. Pay-Per-Click (PPC) Advertising: Run paid advertising campaigns on platforms like Google Ads and Bing Ads to drive targeted traffic to your website.

6. Influencer marketing: Partner with influencers in your industry to promote your products or services to their followers.

7. Webinars and events: Host webinars, workshops, or attend industry events to engage with your audience and showcase your expertise.

8. Referral programs: Create referral programmes that reward current consumers for referring new clients. This capitalizes on word-of-mouth marketing.

9. Podcast marketing: Podcast marketing has become a popular demand generation tactic due to the rise in podcast consumption. By sponsoring or creating podcasts, businesses can reach highly engaged audiences and build brand awareness in a natural, non-intrusive way.

10. CRO (Conversion Rate Optimization): CRO (Conversion Rate Optimization) marketing focuses on improving website performance to increase the likelihood of visitors taking desired actions, such as making a purchase or signing up for a newsletter..

What’s the difference between growth marketing and demand generation?


Below is a tabular comparison outlining the key differences between growth marketing and demand generation:

Aspect Growth marketing Demand generation
Focus Long-term business growth and scalability Immediate demand creation and lead generation
Objective Expand customer base, increase revenue, sustainable growth Generate awareness, interest, and demand for products/services
Time horizon Longer-term perspective Often immediate or short-term focus
Approach Holistic, incorporating product development, customer experience optimization, and marketing strategies Content-centric, focused on creating compelling content, optimizing marketing funnels, and engaging with prospects
Tactics Growth hacking, viral marketing, referral programs, data-driven experimentation Content marketing, SEO, social media advertising, email marketing, lead nurturing
Metrics Customer Acquisition Cost (CAC), retention rate, churn rate, viral coefficient, Net Promoter Score (NPS) Website traffic, lead quality, lead-to-opportunity ratio, conversion rate, Marketing Qualified Leads (MQLs)
Measurement Emphasis on scalable growth and long-term value Focus on immediate results and filling the sales pipeline

This tabular format provides a clear and concise comparison between growth marketing and demand generation, outlining their distinct focuses, objectives, approaches, tactics, metrics, and measurement criteria.

Growth marketing vs. demand generation: which is better?

Determining whether growth marketing or demand generation is “better” depends on various factors including your business goals, target audience, resources, and stage of growth. Both approaches have their strengths and are valuable in different contexts. Here’s a breakdown:

Growth marketing:


  • Focuses on sustainable, long-term growth.
  • Emphasizes experimentation and data-driven decision-making.
  • Seeks to maximize customer lifetime value (CLV) and retention.
  • Holistic approach integrating product, customer experience, and marketing strategies.  

Best suited for:

  • Startups and companies aiming for rapid expansion.
  • Products/services with potential for scalable growth.
  • Businesses willing to invest in long-term strategies and experimentation.

Demand generation:


  • Generates immediate results and fills the sales pipeline.
  • Builds brand awareness and drives customer engagement.
  • Nurtures leads through the buyer’s journey.
  • Effective for establishing market presence and capturing market share.  

Best suited for:

  • Established businesses looking to maintain a steady flow of leads and customers.
  • Products/services with established demand but seeking to increase market share.
  • Short-term marketing campaigns and promotions.

Which is “better”?

For long-term growth: Growth marketing might be preferable as it focuses on building a sustainable foundation for continuous expansion and maximizing long-term value.

For immediate results: Demand generation could be more suitable as it drives immediate demand, fills the sales pipeline, and can quickly generate leads and conversions.

Integrated approach: Often, a combination of both strategies yields the best results. Leveraging growth marketing principles for long-term growth while implementing demand generation tactics to maintain a steady flow of leads can create a balanced and effective marketing strategy.

Ultimately, the “better” approach depends on aligning your marketing efforts with your business objectives and adapting to the specific needs and circumstances of your company. It’s essential to evaluate the strengths and limitations of each approach in the context of your business and industry to make an informed decision.


In essence, the choice between growth marketing and demand generation depends on your business objectives, resources, and stage of growth.

While growth marketing offers a strategic framework for achieving sustainable business growth through experimentation and optimization, demand generation excels at driving immediate results and filling the sales pipeline.

Ideally, businesses should integrate elements of both approaches to create a comprehensive marketing strategy that addresses both short-term and long-term goals.

Ready to supercharge your pipeline and drive high-quality leads? Check this out, and connect with us!

Related Blogs