Why this post on demand generation?
All of us are trying to generate leads and drives sales. But too often our lead generation efforts feel like a treadmill. We do more and more, and the outcomes are less and less.
So in this blog, I want to highlight how we can improve lead generation by focusing on one step higher in the funnel, i.e. Demand Generation.
What’s the Difference?
Demand generation is a way of getting buyers to know us, understand us, and begin to understand the pain we can solve for them.
Without good demand generation, lead generation will typically fail. It’s the good old Marketing vs Sales debate but within marketers.
That’s because lead generation is focused on generating sales leads. What good are those leads if they are not ready for sales to close? In fact, a lot of what lead generation teams end up doing is demand generation.
But lead generation teams monitor lead gen metrics (see metrics section below) instead of demand gen metrics. As a result, the metrics don’t look all that good.
Of course, demand generation activities merge with lead generation activities at some point. But we should be measuring both differently.
Let’s dig into what goes into good demand generation.
1. Have a Solid Go-to-Market Foundation
A solid foundation includes having a clear understanding of the target market. That keeps our messaging focused and optimizes the effort we spend on demand generation.
Who are buyers are, who influence them, what are the key pain points, what alternatives are they using to address the problems, and what is our unique value proposition or method to address the pain that brings them the benefits.
This also includes defining the right value propositions as needed so that our messaging can be backed by tangible assets and proof points.
2. Define a Partnerships Plan for Demand Generation
Most likely, there are other industry players who are already speaking to our target market. Many of them can be complementary to our own solutions and products.
A key part of setting up our demand generation is to identity who these partners are, what kind of joint solutions or propositions we can position jointly with them, and how will we market and sell together.
Then we can create a program to engage and monetize these partners systematically. We can create a joint business plan by considering the success metrics of both parties.
3. Create and Execute a Funnel Strategy
This is where the rubber meets the road.
First, we define what the expected buyer journey is and how would we move the audience along – i.e. generate awareness and create interest.
This means defining what types of tactics we will use and what will enable those tactics. Some common items are:
- Content – blogs, research, co-branded content
- Events – industry, partner, self
- Influencer campaigns – experts, industry leaders etc.
- PR – earned media
- Social Media
- Podcasts – appearing in relevant podcasts
- etc.
Essentially, our goal should be to create a brand awareness platform so that when the lead generation team reaches out for a meeting or a demo, the buyers already know and understand us.
Keep in mind that a demand generation team may also capture email address through lead magnets and events, but these are not considered “sales leads”. That’s because these leads may not be bottom-of-the-funnel or ready-to-engage customers.
Instead, they become leads when they also respond to a lead generation campaign meant to sell something. For example, someone who takes a quiz or downloads a high level eBook must also respond to, say, a webinar on “How to do X with our product” in order to become a lead.
4. Measure the Right Things
The metrics to measure for demand generation are different from lead generation.
in general, key demand generation metrics to measure are mostly about brand awareness and perception, not leads or sales.
These would include metrics such as % of target audience reached, share of voice in media, size of quality database organically built up, influencer messaging, and so on.
In contrast lead generation would measure things such as # of qualified leads, conversion rates, time to close, etc.
As we mentioned earlier, having to do demand generation and measure lead gen metrics is often the key reason why we see lead gen programs as failing. That’s because they are not really doing lead generation, but monitoring lead gen metrics!
5. Keep Ahead of the curve
The world of business and marketing is constantly evolving. New players are emerging, and old ways are giving way to new.
So, to ensure our demand generation stays current, we need to be innovative and adopt emerging technologies when they make sense.
For example, Augmented Reality (AR) experiences can provide potential customers with a unique, immersive encounter.
Similarly offering interactive content and using new marketing technology that gives us a keen sense of buyer interest trends and how they interact with us.
Innovation keeps the brand fresh.
What Next?
In conclusion, demand generation is the engine that is a mix of strategy, brand marketing, content marketing, partnerships, and field execution.
It propels our lead generation and revenue marketing efforts forward. The best way to generate leads is to create demand that resonates, ensuring your business thrives in the long run.
In practice, demand generation and lead generation often overlap. But by measuring the right metrics for each type of activity, we can ensure that we are pulling the right levers.