7 min read
March 28, 2022
Are you looking to generate more demand for your products or services? Demand generation can help you do just that. In this article, we'll discuss what demand generation is and how you can use it to increase sales and grow your business. Stay tuned for more tips on how to generate demand and boost your bottom line!
What is demand generation?
Demand generation is the process of creating demand for a product or service. It is also known as demand generation campaigns or simply demand gen. The goal of demand generation is to generate qualified leads that can be passed on to sales for further nurturing and ultimately be converted into customers.
Demand generation usually comprises a holistic campaign consisting of a series of activities, such as lead nurturing, lead conversion, and lead scoring, that work together to create demand for a product or service.
A key part of demand generation is creating a funnel that captures leads at the top and moves them through the various stages of the funnel until they reach the bottom, where they are passed on to sales.
The steps in a typical demand generation funnel are:
- Awareness: The first step is to make potential customers aware of your product or service. This involves marketing activities, including content marketing, search engine marketing, and social media marketing.
- Interest: Once potential customers are aware of your product or service, you need to generate interest in it. You can achieve this through lead nurturing activities, such as providing valuable content that educates potential customers about your product or service and its benefits.
- Consideration: In this stage, potential customers are evaluating your product or service to see if it meets their needs. Lead conversion activities, e.g. providing a free trial or demo of your product or service will help in this regard.
- Purchase: The final stage is when potential customers actually purchase your product or service. Lead scoring activities like providing discounts or special offers to customers who are ready to buy can assist in converting leads into paying customers.
Why is demand generation important?
Demand generation is a crucial part of any marketing strategy and can help you achieve your business goals. In today's competitive marketplace, it's more important than ever to generate leads and get people interested in what you're selling. With so many choices out there, businesses need to find ways to stand out from the crowd and attract attention.
One of the best ways to do this is through demand generation. By creating a targeted marketing campaign that generates interest and drives sales, you can ensure that your business gets the attention it deserves.
Demand generation helps businesses focus their efforts on leads that are most likely to convert, saving both time and money. Demand generation is also important because it helps you build relationships with potential customers. By engaging with them and providing valuable information, you can create a connection that will encourage them to do business with you in the future.
Demand generation vs lead generation
Now that we've covered what demand generation is, let's take a look at how it differs from lead generation.
Lead generation is the process of generating leads, or potential customers, for a business. The goal of lead generation is to create a database of potential customers that can be marketed to in the future.
So, what's the difference between demand generation and lead generation? The main difference is that demand generation focuses on creating demand for a product or service, while lead generation focuses on generating leads for a business.
Both demand generation and lead generation are important parts of a marketing strategy, but they serve different purposes. If your goal is to create demand for your product or service, then you should focus on demand generation. If your goal is to generate leads for your business, then you should focus on lead generation.
How to get started
If you're not sure where to start with demand generation, don't worry! We've got you covered with a demand generation funnel template.
This demand generation funnel template will help you:
- Understand the steps in a typical demand generation funnel
- Plan and execute demand generation activities
- Measure and optimize your results
Here's what you'll need to get started:
- A list of potential customers that you want to reach
- A clear understanding of your products or services
- A plan for how you're going to generate demand for your product or service
Once you have these things, you're ready to get started with demand generation.
The steps in a typical lead generation funnel are:
- Lead capture: The first step is to capture leads. Targeting the right audience, offering compelling rewards in exchange for lead information and creating interesting forms will help you capture leads.
- Lead qualification: You then have to qualify your leads to see if they are a good fit for the business. Lead qualification activities include conducting research, sorting and filtering leads, and lead scoring.
- Lead conversion: In this stage, leads are converted into customers. Providing a free trial or demo of the product or service will help to achieve this.
Once you have these things in place, you're ready to start generating demand for your product or service.
Common demand generation tactics
There are many different demand generation strategies, but all of them share some common goals: creating awareness about your product or service, generating interest in what you have to offer, and qualifying leads so that you only spend time pursuing those who are actually interested in buying from you. Follow these tactics as part of your demand generation strategy to successfully generate demand:
1. Content marketing
Content marketing involves creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience — and, ultimately, to drive profitable customer action.
2. Search engine marketing
Search engine marketing (SEM) helps you increase the visibility of a website or landing page in search engine results pages (SERPs). SEM can be done through paid advertising, such as pay-per-click (PPC) advertising, or through organic means, such as search engine optimization (SEO).
3. Social media marketing
Social media marketing is a type of demand generation tactic that involves using social media platforms, such as Facebook, Twitter, and LinkedIn, to generate interest in a product or service.
4. Lead nurturing
Lead nurturing is about developing relationships with potential customers, even if they are not yet ready to buy. Ways to nurture leads include providing valuable content, staying in touch with potential customers, and offering special deals or discounts.
5. Lead conversion
Lead conversion is the process of turning a lead into a customer. Activities such as providing a free trial or demo of a product or service, offering a discount for purchasing a product or service, or simply making it easy for potential customers to purchase a product or service can help convert leads.
6. Lead scoring
Lead scoring is where you assign a point value to leads based on their likelihood of becoming customers. Lead scoring lets you identify which leads are ready to be passed on to sales and which ones need more nurturing.
7. Email marketing
By sending emails to potential and existing customers, you can get leads interested in a product or service. Use email marketing to promote new products or services, offer special deals or discounts, or simply keep customers up-to-date on what’s going on with your business.
8. Paid advertising
Pay-per-click (PPC) advertising, cost-per-impression (CPM) advertising, or cost-per-acquisition (CPA) advertising are forms of paid advertising. You can e.g. pay for space on a website or in an email newsletter in order to generate interest in a product or service.
9. Trials, and demos
A great way to generate demand for your product or service is to offer a trial or demo. This allows potential customers to try out your product or service without commitment and see if it’s a good fit for them. Trials and demos are also an effective way to generate leads as potential customers will have to provide their contact information in order to take advantage of these offers.
Free resources or tools can grab your leads' attention and lure them in. A free tool might be expensive to develop, so make sure you have the budget. Resources like playbooks or whitepapers are easy to generate and cheaper to produce.
11. Discounts and special offers
Another common demand generation tactic is to offer discounts or special offers to potential customers like providing a discount for signing up for a newsletter or making a purchase within a certain time frame.
12. Event marketing
Event marketing can be used to educate potential customers about a product or service, offer special deals or discounts, or simply provide valuable content. Event marketing includes hosting events like tradeshows, conferences, and webinars
13. Partnerships and influencers
A partnership is a type of business relationship in which two or more companies agree to collaborate in order to achieve a common goal. Partnerships can be formed for a variety of reasons, such as to pool resources, share risks and rewards, or simply to tap into new markets.
Influencer marketing is a type of marketing that involves working with influential people who can promote your product or service to their followers. It entails providing influencers with free products or services, offering discounts or commissions for promoting your product or service, or simply working with influencers who already have an audience that is interested in what you have to offer. Both partnerships and influencers can be a useful method of creating demand.
14. Referral marketing
Referral marketing involves getting customers to refer their friends and family to your business. You provide referral codes or discounts, offer rewards for referring others, or simply make it easy for customers to refer their friends and family.
Utilizing multiple demand generation tactics will give you the best chance of success. Experiment with different tactics to see which ones work best for your business.
What strategies are best practice for demand lead generation?
The best demand generation strategies vary depending on the product or service being marketed and the target audience. However, some common demand generation strategies include paid advertising, trials and demos, freebies, discounts and special offers, event marketing, partnerships and influencers, and referral marketing. Experiment with different tactics to see which ones work best for your business.
Demand generation is a process that can help your business more efficiently identify and qualify potential customers. It relies on using marketing and sales resources to create demand for a product or service in the market. If you’re looking for a way to streamline your sales process and improve your bottom line, you will benefit from demand generation.
Learn more about what we do at OnceHub here.