You’ve probably heard of demand generation marketing a million times. Some people use it in the aspect of lead generation, while others use it as an umbrella phrase. However, what is demand generation marketing?
In the article, you’ll discover what demand generation entails. Also, you’ll learn how to build a successful campaign.
Let’s get started!
What Is Demand Generation Marketing?
Demand generation marketing focuses on increasing clients’ knowledge. Also, it boosts their interest in your product or service using various strategies.
When demand generation marketing is successful, it spreads across sales by establishing a long-term relationship between a brand and a potential buyer. Also, it assesses and cultivates a prospect’s interest in the brand’s products and services.
Likewise, demand generation marketing may be viewed as an umbrella phrase. This means that it encompasses most top-of-the-funnel methods.
And it includes a sprinkling of mid-and bottom-of-the-funnel tactics thrown in for good measure. Other components of demand generation are:
- It creates thought leadership on themes relevant to business products or services.
- It provides reasons customers should continue buying your products or services.
- It improves your connections with customers.
Much of this may seem familiar to inbound marketing methods and lead generation. But what’s the difference? And how can these three approaches coexist?
Demand Generation vs. Inbound Marketing vs. Lead Generation
In some aspects, demand generation varies from lead generation. Lead generation occurs when your target audience perceives an issue. After which they actively seek various services that may offer a solution. And when customers come across your brand, they become aware of the problem you are trying to address.
A lead generation campaign’s primary purpose is to gather a prospect’s contact information. This will foster the connection through the rest of the marketing funnel.
However, if you constantly produce content, your lead generation will originate from inbound marketing. Inbound marketing occurs when your target audience seeks knowledge to address a problem and stumbles onto your brand as a potential solution.
When handled properly, inbound marketing is less distracting and more focused than outbound techniques. Hence, resulting in higher-quality leads. In addition, lead generation and inbound marketing complement one another.
Your brand will get inbound leads if you publish content that addresses a recurring problem. Your target audience is aware of the issue and is actively looking for solutions. But this is in contrast to demand generation.
In demand generation marketing, you attempt to attract audiences that are unaware of the benefits your products will offer them.
Furthermore, demand generation marketing requires more information and operates in the opposite direction of lead generation and inbound marketing. To generate demand, you must enlighten your leads by presenting them with a problem they face. And you have to show why it is essential to spend on a cure.
Let’s look at how to build a successful demand generation marketing campaign.
How to Build a Successful Demand Generation Marketing Campaign
Your demand generation marketing goal is to close the gap between sales and revenue. Every brand has a unique demand generation marketing strategy. However, you must include the measure below;
1. Define Goals
Your marketing objectives will determine the demand generation marketing tactics you develop. While increased brand recognition is a notable achievement for your demand generation team, it is not the only goal you might pursue. You might also create plans to:
- Boost online engagement.
- Enhance the quality of your leads.
- Increase the number of marketing-qualified leads.
- Improve prospect-to-lead conversions.
- Get more high-value leads.
Ensure that you share these objectives with your sales team, so they’re transparent with communication throughout the marketing funnel and sales pipeline.
2. Create A Content Strategy
Offer content that addresses consumer worries and queries as they progress through the purchasing experience. Not only that, give out your best, and it could be a content download, a freebie, or another promotional effort. Although it may sound odd, continuously providing real-world gifts offers various advantages.
First, it builds trust between your customers and brand. Thus, it increases the possibility that they will return to your content or website. Second, it positively affects your brand so much that excited prospects may promote it on your behalf, becoming elusive “brand ambassadors.”
In addition, use segment-specific data to create content and CTAs that will help customers. And expect queries from your high-value leads.
Add information that addresses challenges from the first to last moment a lead encounters your product or service. When in doubt, concentrate on the significant reasons customers choose a product or service provider during their initial search.
3. Offer A Free Resource
Nothing grabs people’s attention like the term “free.” People are always prepared to try anything if it doesn’t cost a dime. Hence, providing a free resource can help your audience comprehend your solution. Also, it will make you better understand your audience’s requirements.
Furthermore, consider providing a free service to prospective consumers. Alternatively, offer a 14- to 30-day free trial. Then, see if you can get reviews. This will help you determine their reason for becoming paying clients.
4. Account-Based Marketing
Account-based marketing (ABM) is a B2B approach that concentrates sales and marketing efforts on personalized target accounts within a market. Even though you’re still attempting to create demand with ABM, you’re more precise in your effort. So, you specify the exact market and firms you want to target before reaching out.
Outbound marketing operations such as email marketing, LinkedIn advertisements, InMail, and direct mail are part of an ABM campaign. Also, you may direct your visitors to unique landing pages with tailored information or case studies.
5. Develop Social Media Strategy
Social media offers several opportunities to raise brand visibility among your target demographic. Connect with your target audience on the social channels that they are most active. And create social media campaigns that highlight your content and encourage participation.
Track keywords connected to client pain points so that your brand can respond with helpful information anytime someone requires a solution that you can supply.
You will enhance brand awareness and trust by implementing an effective social media marketing plan. Therefore, establishing a relationship with your audience on social media helps raise brand recognition and generate desire for the product or service.
Email marketing is a practical component of your demand generation marketing efforts. However, many marketers abuse it or fail to realize its full potential. When it comes to email marketing, A/B testing is critical. And the cliche “less is more” is certainly true.
So, if you carpet-bomb your email list daily, you risk transforming potential clients and hurting your brand. Instead of constantly bombarding your lists, work smarter, not harder.
7. Invest In Influencer Marketing
Collaborate with influencers who have active audiences. Because they have a deeper, more honest relationship with their fans, influencers yield superior campaign outcomes. So, consider engagement performance and yield instead of focusing on follower quantity. Make sure your efforts are adaptable if you want a bigger impact.
How To Evaluate The Success Of A Demand Generation Marketing Campaign
To determine whether your demand generation marketing strategy is effective, quantify its impact. Evaluating demand is challenging, particularly if you don’t know what to look for. However, there are a few methods for analyzing the effectiveness of your demand generation marketing efforts.
1. Identify KPIs
The first step in measuring your demand marketing effort is to define KPIs. Always ensure that the KPIs you select align with your marketing objectives. Some KPIs are;
- Lead magnet.
- Free sign-ups.
- Sales velocity.
- Traffic on website.
- Cost per acquisition (CPA)
- Customer lifetime value
With these, you’ll be able to connect the dots between demand generation activities and business development. Also, you can design your customers’ journey after identifying which KPIs are important to your organizational objectives. This will assist you in determining which sectors provide the best return on investment.
2. Track Data Gradually
Knowing what your leads react to the most will help you adjust your demand approach to attract high-quality leads from more dependable sources. Therefore, evaluate your conversions. And look for a link between those rates and the people you want to reach.
Frequently Asked Questions
Is SEO A Component Of Demand Generation?
Your demand generation approach might undoubtedly include search engine optimization (SEO).
How Can I Calculate Demand Generation?
You can calculate demand generation using a set of metrics. These KPIs will depend on what is essential to you and your firm and the phase of your company’s life.
What Is The Difference Between Lead Generation And Demand Generation?
Demand generation comprises lead generation. Lead generation focuses on converting someone into a lead by acquiring their email address. On the other hand, demand generation is concerned with ensuring that someone is attracted to your service enough to become a customer.
What Role Does Sales Play In Demand Generation?
When implementing a demand generation plan, sales must partner with marketing to analyze the quality of leads and find the best channels for demand creation. Also, sales can share information with the marketing team based on sales discussions that can be used in the firm’s advertising.
Henry is a marketing and communications specialist. He enjoys helping individuals and brands find answers to their marketing questions. He has spent the majority of his career in the SaaS industry, gaining experiences in areas such as corporate communications, digital marketing, branding, and community building.
Henry currently serves as the head of product marketing and comms at Metricks.