Table of Contents:
- What is Demand Generation?
- Challenges of Demand Generation Planning Process
- Demand Generation Metrics to Measure Success Rate
- Essential Elements to Build your Demand Generation Campaigns
- Launch your Demand Generation Campaign Now
What is Demand Generation?
Demand generation is a multi-step process including brand awareness storytelling, nurturing by addressing problem statements, and bringing out use cases. The goal is to create demand and position your brand among your target audience. It focuses on solving the potential challenges of your target audience through your product or service.
With the amplification of brand-to-customer relationships, demand generation works gradually to engage your target audience. It is a comprehensive approach to drive long-term engagement through lead generation, prospecting, and revenue generation. It is supported by inbound marketing, social interactions, website resources, webinars, and more.
When done right, demand generation includes various touchpoints to create awareness, identify problems, qualify leads, and close more deals. It ensures your brand positioning as a revenue generation source instead of a cost center. Now that we're clear on what demand generation means let's understand its challenges in detail.
Challenges of Demand Generation Planning Process
Demand generation is complex as it includes multiple channels, touchpoints, and customer profiles. Roadblocks and challenges will be a part of its planning process. Here are the most common challenges of the demand generation planning process:
Attracting Quality Leads
Generating web traffic is not equivalent to generating demand. You can't control the audience visiting your website. With an abundance of data from web traffic, identifying points to improve lead quality can get problematic. To begin with, you can develop content that works as a lead magnet. Focusing on real-time problems and providing resources to help your audience make informed decisions will help build brand identity.
Demand generation focuses beyond deal closure. Nurturing customers with timely follow-ups, sharing relevant content, acquiring feedback periodically, and interacting with customers is essential for an effective demand generation planning process. Customer feedback further attracts good-quality leads by focusing on what they might be looking for.
Confusing Ideal Customer Profile
The secret to generating demand among ideal customer profiles (ICP) is to ensure they match your profit-generating customers. Neither all leads are equal, nor are all customers great. It's essential to focus your time and effort on value-generating customer types and target similar accounts. To design, implement and monitor your demand generation process, you must focus on building different segments of the ideal customer profile.
Lack of Data-driven Decision-making
Data leads to the best demand generation strategies. With a well-thought sales stack and data-driven decisions, executing the demand generation process gets simplified. But identifying the right source, type of data can be challenging. With the suitable attribution model, you can track the effectiveness of your efforts to continue driving sales.
Defining relevant metrics and regularly tracking them through analytics tools, CRM, and automation software can help in improving your demand generation process. It can help in getting a clear understanding of your audience and their goals.
Demand Generation Metrics to Measure the Success Rate
With demand generation, instead of the vanity metrics, you must focus on lead quality and impact of activities on revenue. Based on the different factors you can use the following demand generation metrics to measure its impact and success rate. Here are the most important metrics to consider:
Visit to Lead Conversion
Marketers often focus on the marketing-qualified leads generated through a demand generation campaign. Even though it is essentially prominent, it leaves out the middle-of-the-funnel touchpoints. The visit to lead conversion metrics determines the effectiveness of content, nurturing activities, and the number of qualified leads passed on to sales
MQLs to SQLs to Meetings to Conversions
Marketing-qualified leads are filtered by the sales team and approached for meetings. The number of sales-qualified leads that book meetings, and ultimately closed deals is essential to identify improvement areas. It simplifies and quickens the process to address the gaps in the funnel.
Cost Per Lead
Cost-per-lead is the total advertising cost by the total number of leads generated. It can give an overview of the average expense per campaign, persona, or channel. The numbers may vary based on industries even though B2B companies spend more to bring new leads into the pipeline.
Customer Acquisition Cost
Tracking the cost per acquisition of customers is essential to ensure it is always lower than the average customer lifetime value. It helps in the early detection of high cost per acquisition that further helps in the timely fine-tuning of demand generation goals, strategies, and targeting.
Average Deal Size
Average deal size is the average value of each new deal closed during the sales cycle. It helps forecast, makes revenue predictable, determines goals, and effectively manages the sales pipeline. Depending on your product, the deal size can be linked to the customer lifetime value, for example, SaaS products that can be billed monthly or annually, on a subscription basis, or the lump sum long-term contracts. It also provides deeper insight into targeting prospects and personas that will deliver maximized revenue.
Customer Lifetime Value
Customer lifetime value represents the total amount a customer is willing to spend throughout the business relationship. It provides an overview of your ability to continue delivering value to customers post-deal closure.
Hubspot reports that 74% of companies that don't exceed their revenue goals didn't track visitors, leads, MQL, or sales opportunities. Metrics help in determining the right set of goals along with a smooth demand generation campaign planning process. Let's now understand the components involved in a demand generation campaign planning process.
Essential Elements to Build your Demand Generation Campaigns
Demand generation focuses on building a reliable brand identity through interest-driven awareness campaigns that result in high-quality leads. Laying a solid foundation is essential to ensure consistent results. Get started with these critical elements to build your demand generation campaigns:
Interactive & Relevant Content
Leverage Customer Behavior & Intent Data
- Identify new prospects
- Personalize content for prospects
- Acquire high-quality leads
- Shorter sales cycle
- Longer customer retention
Align Sales & Marketing Efforts
Adopt Automation Tools
Ensure Omnichannel Outreach instead of Multi-channel
Incorporate Account-based Approach
While 87% of B2B marketers use content marketing, only 3% do it right. Building industry expertise is the key to unlocking reliable demand gen. You must bring out your brand as the authority in the domain to attract potential customers. Answering questions that your prospects are searching through your content will portray you as a trustworthy brand. It lays the groundwork for starting conversations and addressing the pain points of prospects with reliable solutions.
Behavioral and intent data can be gathered through search, browsing history, and purchases through prospect online activities. Its smart research reveals the purchasing capability of prospective customers. Leveraging customer intent data can help you in the following ways:
Merging the gap between the sales and marketing team is essential as they are cross-functional for demand generation. Creating a well-rounded strategy can generate consistent demand for your product or service with a shorter sales cycle. Keeping a centralized approach simplifies internal communication regarding qualified leads, using resources, and more such customer touchpoints.
Automation ensures timely, accurate, and error-free outreach among prospects. Using it for demand generation can simplify task delegation, data collection, and identifying errors on time. You can use it to share dynamic content based on the prospect's stage within the sales funnel. It can also engage prospects with timely follow-ups so that you never miss out on an opportunity. Automation can even track sales, send action-triggered messages, and onboarding emails for new customers. You can also use it for customer retention with timely promotions and discounts.
Multi-channel communication opens the door to identifying the preferred channel of communication for prospective customers. Omnichannel outreach, on the other hand, engages prospects across different channels where they are most active.
Account-based marketing focuses on individuals or small groups of prospects with a personalized approach. When you observe reliable leads from demand gen strategies, you can acquire better results by fast-tracking high-value leads. Account-based marketing requires the sales and marketing team to align and strategically identify accounts to target, nurture, and support.
Launch your Demand Generation Campaigns Now
A robust demand generation approach will drive engagement among new leads with interactive content. It will result in building relationships with prospects by solving their pain points through your products or services. To scale your demand generation efforts, you need to leverage automation wherever possible.
Maintaining a consistent experience throughout the purchase journey will, in turn, grow your brand reputation. Identify your ideal customer profile and build your target audience accordingly. Finally, ensure you optimize your demand generation campaigns by measuring the performance and analyzing results. A well-thought demand generation strategy will attract reliable, high-quality leads that generate growth for your business.