What is demand generation? [FAQs]

If you ask 10 different B2B marketers what “demand generation” means, you will get 10 different answers.

Marketer looking up the definition of demand generation

Unfortunately, there are a lot of misconceptions about generating demand in B2B marketing.

In this guide, we’ll clear up the confusion. You’ll find an updated definition of demand generation, along with the components of a successful demand generation strategy.

And finally, you’ll learn why demand doesn’t equal production. lead generation,

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What is demand generation?

Demand generation captures the umbrella of marketing programs that get customers excited about your company’s product and services. Without Trying to sell them clearly.

Demand generation programs can help your organization reach new markets, promote new product features, create consumer buzz, generate PR and re-engage with existing customers.

Essentially, demand generation is a long-term, education-focused marketing strategy that prioritizes reaching and engaging “outside-the-market” buyers.

The ultimate goal of B2B demand generation is to stay top of mind while your potential customers are not in the buying cycle – so that your product or service is immediately considered for purchase whenever the need arises.

What makes demand creation a different concept from other customer acquisition tactics is its commitment to long-term customer relationships and a strategic mindset.

Why demand generation different from lead generation,

Demand generation marketing is all about educating your audience without holding any expectations. Meanwhile, lead generation is optimized for capturing contact information – but prematurely pushes non-solution seekers onto sales automation workflows, which is highly ineffective.

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why are most Lead Generation Strategies fail?

Let’s explore six reasons why most lead generation strategies may fail.

  • Wrong for the modern day buyer’s trip. Gartner’s research shows B2B buyers spend 17% of their time talking to sales So far most lead generation efforts have been about leading the prospect into a sales conversation.
  • Destroys the morale of sales teams. Since most MQLs by definition Not in a buying cycleYou are causing mental damage to SDR by generating huge amount of uninterested leads.
  • Creates a hostile environment between sales and marketing, the classic struggle of where “Marketing Is Sending Us Garbage” And ,sales can’t close deals, Tremendous inefficiency results.
  • Hurts brand perception among research-stage buyers, These are the buyers who may eventually request a demo when they are inspired and ready to talk sales.
  • Gating content generates top of the funnel leads, Content types such as white papers, webinars, case studies and free tools primarily collect contact information for uninterested buyers (MQLs).
  • Over-reliance on lead scoring and lead nurturing. With this method, marketing teams are betting on their ability to use behavioral data and intent signal To predict the right sales triggers.

Gated Content: Bad Practices vs Good Practices

Is Gated Content an Acceptable Lead Generation Tool for Demand Generation?

Let’s start by looking at the biggest drawbacks of gated material,

  • Lack of page views and traffic.
  • No SEO Benefit or Boost
  • Form prevents people from downloading content
  • no brand visibility

But if you’re going to march-on with gated content, it has to be done for ABM Warm-upAnd not direct response sales follow up.

Role of Inbound Marketing in B2B Demand Generation

inbound marketing Marketing is a key component of any high-performing demand generation campaign. However, it’s no longer about the content calendar or aida framework,

Instead, it is about alignment with sales to properly respond to buyer intent (stated intent), while orchestrating and facilitating the desired buying experience.

Today, with inbound marketing, you are either Capturing demand or Make demand,

Let’s find out what it means.

Demand Capturing: Intent Channel and Content Examples

Demand Creation: Education Channels and Content Types

  • Social Media Platforms: LinkedIn, Twitter, Facebook, TikTok.
  • Influencer Marketing: brand awareness or product launch campaigns with relevant influencers in your niche.
  • email marketing: Newsletters, content promos, nurture sequences and event invitations.
  • online community: To struggle, sales hacker, demand curveetc.
  • Offline Media: Direct mail, NYC subway ads, etc.
  • Offsite Channel: Guest posts, press and thought leadership.
  • Audio Channel: Podcasts, interviews, radio commercials.
  • Video: YouTube, LinkedIn, Vimeo, Wistia, Loom, etc.
  • events: Webinars, Live Hangouts, Virtual Conferences.
  • conference: inner, Shastra, dreamforceetc.
  • Forum: Reddit, Quora, Slack, Discord.
  • brand search volume
  • Your brand vs competitor’s brand search volume
  • Organic traffic to website pages with high intent
  • Direct traffic (people typing your website URL into a browser)
  • Access and engagement on your feature/solution pages
  • Referral traffic from other relevant websites and social platforms
  • Assisted Conversions: Pages consumed “on the path” to becoming a conversion.
  • Website traffic to conversion rate (declared intent)
  • Demo qualified for sales opportunity rate
  • Offer sent at closed/won rate
  • average deal size
  • sales pipeline velocity
  • Cost Per Acquisition (CPA)
  • Customer lifetime value (CLV)

Role of Sales in B2B Demand Generation

Rewind five years ago and ask anyone about demand generation – they’ll tell you it was marketers disguised as salespeople running a lead generation strategy through marketing automation.

And that’s because marketing used to be a service organization for sales, until B2B executives realized it. Marketing should be a strategic partner Not an order taker.

Today, outbound-focused demand generation isn’t just about high-volume cold outreach with automated follow-up sequences. instead, it’s about abm (Account Based Marketing), Inverse Marketing Funnel.

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Rather than a top-down inbound marketing approach, ABM is a bottom-up marketing strategy that partners with sales to engage with high-quality leads and targeted accounts during complex B2B sales cycles.

revenue teams have learned that full-funnel marketing with a hybrid mix of inbound, outbound and lifecycle marketing There’s just the right balance for a high-performance on-demand manufacturing program.

Metrics and KPIs to measure success

Your demand generation marketing efforts should be guided by the North Star: leadership quality,

beyond understanding Key SaaS MetricsThese are important questions to ask:

  • Which channels are providing the most qualified leads?
  • Which lead types most often convert into a qualified sales pipeline?
  • What percentage of our opportunities convert into paying customers?
  • What percentage of our paying customers stick around long enough to turn a profit?
  • Which marketing channels are providing opportunities with the best LTV?
  • How do we generate the most qualified leads from the best channels?
  • How do we champion full-funnel pipeline visibility?
  • How do we hold sales accountable for working leads properly?
  • How can we develop an effective feedback loop between marketing and sales?

Leading Indicators: Example Metrics

  • brand search volume
  • Your brand vs competitor’s brand search volume
  • Organic traffic to website pages with high intent
  • Direct traffic (people typing your website URL into a browser)
  • Access and engagement on your feature/solution pages
  • Referral traffic from other relevant websites and social platforms

Lagging Indicators: Example Metrics

  • Assisted Conversions: Pages consumed “on the path” to becoming a conversion.
  • Website traffic to conversion rate (declared intent)
  • Demo qualified for sales opportunity rate
  • Offer sent at closed/won rate
  • average deal size
  • sales pipeline velocity
  • Cost Per Acquisition (CPA)
  • Customer lifetime value (CLV)

Declared Intent vs Inferred Intent

Digital marketing has evolved away from direct response, lead generation focused marketing campaigns to a more holistic approach that includes brand awareness, demand nurturing and capturing demand throughout the sales funnel.

With this in mind, it’s worth thinking about the CTA buttons on your website — and what is declared intent versus implied intent.

a “run”declared intent audit” to check whether Predicted Intent leads are being considered as Declared Intents. If yes, then this is a clear misalignment of the sales experience and buyer’s expectations.

It’s the ultimate test that confirms whether your marketing team truly understands the customer journey – a critical component of any demand generation program.

Once you are familiar with your buyers’ needs and can anticipate marketing trends, you can fuel your marketing programs with advanced levels of personalization.

marketing automation software Will help you run A/B tests, choose the right content, and optimize timing for each of your marketing campaigns and customer segments.

To start with your demand gen strategy, know your customers and conduct qualitative research through user feedback and interactions. If you’re having trouble understanding the needs of your potential customers, pick up the phone and ask.

Demand generation success stems from your ability to connect with target customers. All you need is a reference point to get started.

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