Demand Generation is a fundamental component of any marketing strategy. People have limited consumer capacity, so several businesses compete for it with their products and services. You must take the proper demand generation steps to enhance your marketing efforts and stand out in a crowded marketplace.
Demand generation doesn’t involve manipulating people to buy your products or use your services. You’re simply telling your customers the benefits of your products and allowing them to make purchase decisions with you as the focal point.
In this article, we’ll look at the concept of demand generation, why demand generation is essential to business growth, and the demand generation steps you should take to develop an effective marketing strategy.
Let’s delve in.
What is Demand Generation in Marketing?
Demand Generation is a marketing strategy that helps businesses to generate demand for their products and services. It’s a series of holistic steps that increases brand awareness and website traffic and transforms curiosity into revenue.
Demand generation tactics involve identifying your target audience that will most likely be responsive to your offers and nurturing them at every stage of the sales funnel.
Does demand generation sound too similar to inbound marketing? Probably. And not without a cause. Inbound marketing is a critical component of demand generation. The only difference is that demand gen aligns sales teams with marketing teams to develop campaigns that appeal to prospective customers.
Why is a Demand Generation Strategy Essential To Business Growth?
The consumer ecosystem is gradually moving from traditional channels to digital media. People only respond to offers and are prompted to purchase products or use helpful services, making demand generation a powerful tool.
Here are some reasons why demand generation is essential to business growth:
It Streamlines Marketing Efforts
Demand generation helps you identify prospects, especially when incorporating relevant data. When you offer relevant information and services to people looking for such, it becomes easy for you to streamline your marketing efforts and utilize every resource you have at your disposal.
For instance, you can use FrescoData’s analytical and automation tools to segment, manage, and enhance business data to create an effective demand gen strategy for your team.
If you spread your marketing efforts across the board without focusing on the right prospects, you will never achieve your business goals in the stipulated time.
Generates High-quality Leads in Less Time
As mentioned earlier, customers are more likely to respond to content marketing tactics when they deem them helpful. People generally react or take recommendations from people they trust. This Deloitte report goes far to show that people that take recommendations from social media influencers buy four times as much as their counterparts.
Demand generation helps you to directly address your target audience’s needs and attract highly-qualified leads. Plus, you establish your business as an authority figure.
Reduces the Cost of the Customer Acquisition Process
The customer-acquisition process is typically expensive, especially at the top of the funnel, because you must go through many processes to filter your prospects. Companies invest heavily in customer acquisition because it generates revenue and proves traction for external parties such as partners, social media influencers, and investors.
Demand generation has you covered if you’re worried about the ever-increasing cost of customer acquisition processes. According to the 2018 Nashville Analytics Summit, companies with aligned sales and marketing teams cut as much as 30% of their customer-acquisition cost. It utilizes every marketing resource you have and gets you the best results possible.
Enhances Brand Awareness
Several products and services swamp the marketplace, so getting overwhelmed is super easy. If you want a slice of the pie, you need to create helpful content that makes you stand out and give people reasons why they should trust your brand above all else.
You should tailor every aspect of your demand generation campaign toward directing people’s attention to your business. It establishes you as a reference and builds a solid digital footprint. Once your prospect’s attention is locked down, it’s easy to predict a sales pipeline and guide them through it successfully.
Boost Brand Loyalty
Demand generation strategies produce the highest customer retention rate compared to other marketing strategies. When you create awareness for a product or service, and people see the value, they keep returning for more.
The more you generate relevant information, and people see how your offer improves their lives, the more likely they will patronize your business again. Over time, they turn to loyal customers and generate impressive revenue. The more loyal customers you have, the more income you can generate, which is the ultimate goal of your marketing strategy.
6 Proven Demand Generation Steps To Grow Your Business
Do Your Research
The first step towards an effective demand generation strategy is researching and identifying your niche. You can’t be concerned with demand generation if you don’t have a viable product or service to promote, and you can’t advertise what you don’t think it’s the best offer you’ve come across.
People will only believe in the potency of your product/service to the extent the company believes in it. Every product has what makes it stand out from the competition. During your research stage, identify what sets your product apart from others. Figure out your competitive edge or the quality that can attract a suitable customer base.
This stage is essential when developing your demand generation campaign because people need to know your distinctive feature before they listen to you.
How do you find this competitive advantage? An excellent place to start is to find common denominators in demographics like age and gender and psychographics like buying preferences, personal goals, behaviors, and attitudes.
Figure Out How Your Target Audience Can Benefit From Your Offer
Unlike other marketing strategies that dangle products at people’s faces, demand generation teaches people why they need their products and allows them to make purchase decisions.
Your business objectives must align with your target audience’s wants. People hardly go out of their way to purchase products or use services that are not directly beneficial.
When promoting your products or services, outline your ideal buyer persona and the life objectives they’d be trying to attain.
For instance, let’s assume you offer career consulting services, and your target audience is college students looking to seek educational loans or pursue specific career opportunities. You should tailor your offer toward helping them achieve their goals (not yours). Your goal should be to help them meet their aims, and you receive value in return.
When you have figured out what they want, why they want it and the obstacle preventing them from achieving it, you have formed the basis of your demand generation process.
Building awareness is a critical step for your lead generation strategy. People can only patronize a business they know. Note that brand awareness is more than just informing people about your products. It’s about building long-term relationships between your business and customers, building a good reputation, fostering brand loyalty, and ensuring a consistent flow of leads through trust and referrals.
A Nielsen study shows that over 84% of customers trust their family members, friends, and colleagues that recommend brands to them over anyone else. Plus, according to Sprout Social, people are more likely to buy from trusted social media influencers than celebrities.
While this may seem like a pretty straightforward process, this is where the real work is. You must show customers that you understand their pain points and that your product has everything they want. Focus on the platforms your target audience resides the most and divert all your attention there.
Another way to create awareness is by putting up customer reviews- not just any customer reviews, but recent, authentic ones. These reviews are short summaries of customer experiences that help prospects build faith in your ability to deliver.
Develop an Excellent Content Strategy
Expertise works together with awareness. To attract people to your sales funnel, you must establish your brand as an authority or reference. Therefore, you need a solid content marketing strategy to fuel your demand generation tactics and provide helpful information at every step of the purchase journey.
Create content that genuinely answers prospects’ questions. Add calls-to-action (CTA) at different segments to prompt people to action. Spread this content across the social media platforms your customers reside the most. You can switch the format, but the core message remains the same. The right omnichannel marketing strategy will help you achieve this.
This strategy will help to build trust, and your prospects will see you as the brand to consult when they have a pressing need.
Source: Blue Fountain Media
Identify and Nurture High-quality Leads
Now that you have consolidated your content marketing efforts, it’s time to identify and nurture high-quality leads. Your demand generation strategy requires a complete lead generation and nurturing strategy to guide prospects from the contact to the purchase stages.
This is how the demand generation aligns both sales and marketing teams: The marketing team focuses on different types of content that can appeal to customers and distribute them through the proper channels.
They continue to engage with high-value leads by providing relevant information at every stage of the sales funnel, answering questions they might have, and building trust, depending on the number of available resources. When the prospects are ready to purchase, the sales team comes in.
Quality feedback is essential when nurturing leads. Closely monitor and track performance data for every marketing activity. Pay attention to activities and platforms with the highest engagement rates and attract the most prospects. Your ultimate goal should be to reach customers with assets or information at times they matter the most.
Partner with a Service Provider
If you don’t have a dedicated demand generation marketing team, managing PPC campaigns alone can be tasking, especially as digital interactions increase daily. You need to partner with a top-notch demand generation agency like FrescoData to reach your target audience through data segmentation and curate the perfect campaign for your business.
Your service provider should develop a solid remarketing strategy, as demand generation is more than just a one-trial plan. Your business needs to constantly retarget new offers and nurture prospects to keep them within the funnel and shorten the sales cycle.
Let FrescoData Guide You Through the Demand Generation Steps
Demand generation is not a walk in the park. It would be best if you had the right expertise to guide your business every step of the way.
FrescoData is a data-driven marketing company that can give you access to one of the largest business databases to enhance your marketing campaign. We incorporate solid digital marketing services like geofencing mobile marketing and programmatic display ads to give your business an edge over competitors.
Contact FrescoData today and watch your demand generation strategy flourish like never before.