What is Demand Generation and Why Is It Important
What is the simple and easiest answer to –‘What is demand generation’? Do you think it is the marketing method which is used to generate more demand? Perfectly right! In Demand generation, you help your prospects to make data-driven decisions, align your sales and marketing. This all helps in generation demand for your product which in turn helps in revenue growth. In this article let’s see in depth, what is demand generation.
Demand generation is meant to help the buyer at every point of his journey right from the time they are prospects until they are consumers. How is this done considering every stage of the marketing and sales funnel? You will understand ‘what is Demand Generation’ by taking note of the role of demand generation in mainly four stages of the buyer’s journey –
- Brand Awareness
- Inbound Marketing
- Sales Enablement
- Client retention
You will get an answer to ‘What is Demand Generation’ question by following through following main touching points where demand generation is implied.
Why not start with brand awareness?
It’s the initial phase of attracting customers to your brand by means of a solid strategy. The ultimate result of it will be a group of loyal customers following you. You need to focus on your brand’s target audience who are highly interested in your brand. Your prospects who visited your website, are reading your emails, or by any chance showed interest in buying your products are the ones who should be targeted.
What is Demand generation? Is it similar to Inbound Marketing? No, Demand Generation and Inbound Marketing are not the same. Inbound marketing tactics help to convert your leads into active customers by means of lead nurturing and are just a part of the whole demand generation strategy. Inbound tactics are meant to attract people to your company. How can you use Inbound Marketing to generate more demand?
Inbound Marketing can include lead generation, lead nurturing, Content marketing, email marketing, targeted advertising, SEO, etc methods.
What is sales enablement?
If your products have to be sold, there has to be marketing and sales alignment. Here we will see what sales enablement is and why is it important?
As simply as given in TOPO blog,
It is a process which provides the sales team with all the necessary tools, content, information which helps the sales team to sell more proficiently. Sales enablement focuses more on the buyers and hence provides the sales team with what their buyers need. In this process, the sales team is trained to help them understand how the resources have to be used. Sales enablement helps a large number of the sales team to achieve their goals and that is why it has to be made the part of corporate culture. You can provide such as testimonials, case studies, FAQs, etc content to your sales team.
If you are doing demand generation, you also need to know client retention tactics. More than getting new customers for yourself, you have to focus on retaining the existing customers. How can you do client retention successfully? You can think of exclusive offers and services, up-sells and renewals. It is important that you make decisions based on data rather than doing all the guesswork. It is mandatory to continuously optimize your demand generation strategy which will drive efficiency and revenue.
We have seen above what Demand generation is and what it involves. To state again, it is a very crucial part of your marketing strategy and hence you need constantly test, experiment, and optimize your demand generation efforts. Hence, extra caution needs to be exercised when hiring a Demand Generation Manager.
Demand generation is called an umbrella of marketing but it involves more than early funnel activities. It does not focus on making a sale but on driving people’s interest in your product. You need to be well acquainted with your buyers so that you know which marketing trends to go for to fuel your marketing funnel activities. You can take help of technology tools like marketing automation but before anything, it is necessary to get to know your customers effectively. If you properly generate demand for your products, your customers will last long. If you don’t know what your prospects needs are, the best way to pick up the phone and call them.
Are you getting ready to start your demand generation strategy? Why not make a list of things on a priority basis which will help you in carrying out full funnel activities? As a marketer, which channels are you going to incorporate as a part of your demand generation strategy? Social media, PR, sales, word of mouth, email, ads, direct mail, promos, etc are the pre-sales activities that you can focus on. Packaging, up-sell, e-commerce, trade-show are done for nurturing your leads and customer service, loyalty program, etc can be post-purchase demand generation activities.
Because the customer is now the center of all the buying process, it is important to put substantial efforts in doing demand generation which makes sure that your marketing efforts have an effect on your prospects. If you are still confused thinking ‘What is demand generation?’ please read our blog to understand more or comment below.