Do you want to increase demand for your products and services? Then you need to create the perfect demand generation plan.
Every marketing strategy for a product or service dwells on one thing: solving the customer’s problem. The demand, which ultimately leads to sales, increases as more customers become aware of your offer and how it can solve their problems.
How do you create this awareness? Through demand generation.
If you want to understand how demand generation works, don’t worry! This article will explore demand generation, creating an effective demand generation plan, and building successful demand generation strategies.
Let’s delve in, shall we?
What is Demand Generation in Marketing?
Demand Generation is a process that increases brand awareness and website traffic to generate high-quality leads. It’s a marketing strategy that inspires genuine curiosity in a product or service and guides prospects through the journey or upsells to current clients.
Marketing teams erroneously concentrate just on SEO. Although significant, that can only take you so far. The right demand generation plan will help potential prospects to see your business as a solution provider and convert their interest into sales.
Demand generation marketing doesn’t involve manipulating your audience or forcing your offer down their throats. It helps the brand or agency build a predictable pipeline and increase sales over time.
Demand Generation vs. Lead Generation
People often use both terms interchangeably, but they are not identical. The difference is quite simple.
Demand generation uses marketing campaigns to create a demand for your product or service. It increases your prospect’s interest in your offer and encourages them to buy from you. Demand generation tactics involve capturing leads based on curiosity, like people who signed up for a free trial or booked a consultation with your team to get more information.
Lead generation, on the other hand, uses marketing campaigns to obtain information about prospects and convert them to high-quality leads. When you capture the right information about potential buyers, you can utilize targeted marketing campaigns using the right content to nurture them down the sales funnel.
Email marketing is an excellent lead generation strategy.
Demand Generation vs. Inbound Marketing
People use these two terms interchangeably because they both attract and engage prospects. However, they have one significant difference- Inbound marketing is a component of the demand generation process.
Inbound marketing involves producing relevant content and experiences that suit the specific needs of your target audience.
This marketing strategy attracts potential customers to your company and guides them through the buyer’s journey- they become aware of the problem, consider different ways to solve the problem, and then decide on which solution to choose (with the marketer’s help, of course).
Demand Generation Planning
Demand gen is not a walk in the park. You must consistently create relevant content to spark people’s interest because they will not convert to leads or give you their money on the first attempt.
In most cases, these people have a close-knit relationship with other providers, preventing them from looking for alternatives.
However, even though they’re not actively interested in your offer, they might want to get information from your videos and blog posts.
Demand generation helps to create brand awareness and build trust over time. Once your prospects are looking for solutions, you already have an edge.
Therefore, creating an effective demand generation plan is essential to your marketing strategy.
Elements of an Effective Demand Generation Plan
A good demand generation plan answers three significant questions: WHAT, WHY, and WHO.
You can rephrase these questions this way:
- Who is my target audience?
- What marketing projects does my brand carry out?
- Why am I doing this? (What are my goals?)
The ideal demand gen plan should answer these three questions effectively. However, that rarely happens because there are hardly any ideal business environments. Several businesses face peculiar problems like inefficient data management, poor performance analysis, and the like.
It’s one thing to have an innovative product, but another to inform and market it to others. The goal is to tell people why they need that product and why you’re the best person to offer it. The only way you can do this is to create a plan that correctly positions the answer to these three questions.
Some brand owners may know who their target is (WHO), may have long-term business goals (WHY), and know the marketing projects to carry out (WHAT), but these components will only work if they align with each other.
It takes an incredible amount of effort to find a method that implements all these components and generates the revenue your business needs.
Now, note that your demand generation plan can survive with just two components, but it comes at a cost. The trick is to start with one piece and gradually implement the other two over time. While that may be theoretically easy, it’s pretty hard to achieve.
The best component to start with is WHY (your business goals) because it helps you to identify your WHO and WHAT more quicker. For instance, outline the goals you want your business to achieve, identify the audience that will benefit the most from those goals, and then outline your marketing campaigns to suit the demographic.
What are the costs of going with just two components?
- WHO and WHAT: If you focus only on marketing projects and your target audience without outlining or stating your business goals, you will be wasting time and effort. There will be no clear metrics to measure the level of your impact.
- WHO and WHY: If you focus majorly on your target audience and business goals, you will be largely inactive because you need to figure out what to do.
- WHAT and WHY: Focusing majorly on your marketing projects and business goals without identifying your target audience is like throwing a slingshot with blindfolds. You will be marketing offers to people who are not interested.
The best demand generation plan is the intersection between these three components. Here is a clear illustration:
How Do You Know Your Demand Generation Plan is Effective?
When drafting your demand generation plan, you must accurately set expectations relative to your marketing objectives. Here are two simple ways to do that:
Look at your conversion rate for different strategies. Find out if the rates are proportionate to your target audience. When you track your data over a period, it helps you to know what your leads respond to the most. Data tracking allows you to finetune your methods when planning your next demand generation strategy.
Set Clear KPIs
Defining clear KPIs helps you to know what to look out for. Whatever KPI you set must align with your overall marketing objectives. Examples of KPIs include Cost Per Lead or Pay-Per-Click (PPC), free trial signups, site traffic, gated content downloads, etc.
6 Demand Generation Strategies That Work
Now that you know how to create an excellent demand generation plan, here are six demand generation strategies that yield results:
Find Buyers Using Intent Data
Data is at the forefront of any marketing strategy.
Analyzing intent data is one of the best ways to generate demand and discover potential customers. According to this 2022 Statista report, over 52% of marketers use intent data to produce ad content targeted for various demographics.
When you create the buyer persona, you may have standard ways to get information to them via videos, ads, landing pages, blog posts, or emails. Using intent data helps you to focus your demand generation tactics on people who are already interested in your offer.
For instance, if you want to generate demand via email marketing, devise your marketing strategy using an email list segmentation checklist. This technique helps you to focus your marketing efforts on the right people.
Expand Your Reach Through Omnichannel Marketing Strategies
Once you’ve identified your target audience and those willing to accept your offer, you need to reach them via commonly used platforms. If you use only one channel, you’re streamlining the people who can see your brand.
How do you solve this? By employing an effective omnichannel marketing strategy to reach customers on the platforms they reside the most. Businesses with solid omnichannel marketing strategies have an 89% retention rate, compared to others with a mere 33% retention rate.
The right omnichannel strategy should include inbound, outbound, social media, and email marketing strategies.
Establish Your Brand As An Authority With Relevant Content
The 2022 CMI report shows that over 67% of marketers attribute their increase in demand and lead generation to content marketing. This report indicates that your brand must create an effective content marketing strategy to help prospects make a well-informed purchase decision.
The top content formats that most buyers engage well with are videos, webinars, case studies, blog posts, eBooks, and white papers. When you consistently create relevant and relatable content n these formats, you establish yourself as an authority in your field and a go-to option for people’s needs.
The beauty of content marketing is that it helps customers at every stage of the sales funnel. Firstly, it provides relevant information and answers basic top-of-funnel questions. According to Databox, over 67% of B2B marketers create top-of-the-funnel content the most.
When the customer shows interest and proceeds to the middle-of-the-funnel, it educates them using personalized videos and more blog posts. Then, it nurtures them down to the bottom-of-the-funnel and promotes products and services using case studies, virtual events, and account-based advertising.
Run Ads Via Niche Targeting
One of the best ways to generate demand is by running ads on the right platform and targeting the right niche. The best social media platforms to carry this out are LinkedIn and Facebook. On LinkedIn, it’s easy to run targeted ads at companies on segmented criteria, like company names, regions, and types of industries.
On Facebook, you can run ads by promoting relevant content. For instance, run search ads based on targeted, relevant keywords that lead the prospect to gated content. Once the potential customers input their email addresses, you start generating your targeted list.
This tactic increases your return on ad investments.
Use the Right Automation Tool
When you start generating leads from your demand gen strategy, you need to guide them down the sales funnel. But it’s almost impossible to handle a high lead volume manually.
Most of them will fall by the wayside if there is no system to handle the process.
Therefore, it’s essential that you use the right automation tool or software in your demand gen strategy, or better still, employ the services of a digital marketing agency like Fresco Data to handle all automated functions. It makes everything run properly and frees up time for you to handle more critical aspects of your business, like interacting with potential customers.
For instance, the right automation software can give you quick insights into your analytics systems. Statista reports that over 82% of marketers focus highly on analytics systems during the demand generation process because it helps them understand the prospect’s buying journey. The more you know them, the better you can guide them down the pipeline.
One essential trait of a good demand generation marketer is consistency. Most people fail at demand generation or lose trust in their strategies because they lack patience. They want immediate results after the first or second trials.
Remarketing should be a key component in your demand generation strategy because you can hardly get a prospect’s attention with one attempt. As mentioned earlier, some people are loyal to their brands and would not consider alternatives if there is no pending problem.
Flash your offer before their eyes several times to propel them to give you a try.
Remarketing helps boost customer engagement, target ads to former website visitors (even on other websites), and sustain customers’ interest in your products and services. Note that remarketing is different from retargeting.
Create the Perfect Demand Generation Plan With FrescoData
As you can, planning your demand generation strategy is essential to achieving your marketing objectives.
The good news is that you don’t have to do it alone. FrescoData will guide you through every stage of the demand generation process to help you produce the right plan and implement the best strategies to help your business grow.
We are the best data-driven digital marketing agency with the best analytical, automation, content, and geofencing mobile marketing tools that can convert leads to loyal, paying customers. We connect the sales and marketing data to produce the right demand generation plan for your business. Contact us today and enhance your demand generation marketing success.