Demand Generation (or DemandGen), seems to be gathering a lot of momentum at the moment.
Its big brother, Lead Generation (LeadGen) is sulking in the corner as this sibling rivalry continues to gathers pace.
So what is it and why has it gathered such momentum? Before we do, let’s briefly look at Lead generation.
What is Lead Generation?
So the dictionary definition is, “the action or process of identifying and cultivating potential customers for a business’s products or services”.
In real world speak this is normally generating leads through email marketing and paid media like Google Ads, Facebook Ads, LinkedIn Ads etc.
Though not everything paid for is Lead Generation, with the growth of Demand Generation, the goal is to create channels that are more engaging and cover will allow (help) potential customers, to do their own due diligence and as such, approach your company for its product or service.
What is Demand Generation
Well, according to Gartner, “Demand generation is a data-driven marketing strategy focused on driving awareness and interest in an organization’s products and services, with the ultimate goal of developing long-term customer engagement. Demand generation includes lead capture, lead nurturing, and pipeline acceleration”.
Gartner should know. They create demand for themselves by creating seminars and research programs that show authority and as such build its brand trust. The company is a technological research and consulting firm that conducts research on technology and shares this research both through private consulting as well as executive programs and conferences.
All of this creates a ‘demand’ for their brand.
Typical channels in demand generation include blogs, seminars, podcasts, webinars, video, etc.
It goes without saying, that normally the two are not always done in isolation i.e. either or but normally are run side by side. There is more than one reason for this.
Both require thought and data analysis, creative treatment and measurenet – as well as good KPIs.
However, one factor to consider is that Lead Generation can be set up instantly. Whereas creating demand or a Demand Generation programme will take time. Both for planning and execution, but more importantly for the results. Time to plan, time to get the wite message and time to execute the plan. Once done, it takes time for it to be distributed, and engaged with.
To borrow for the excellent team at FullFunnel (FullFunnel.io and Co-Founder Vladimir Blagojević) creates a great 4 point plan for Demand Generation that is worth sharing in it entirety and full credit to him below.
Use this formula to build trust and drive demand with target buyers:
EXPERTISE × CREDIBILITY × VISIBILITY × CONSISTENCY
Expertise: Demonstrate to buyers you understand their problems and know how to solve them with expert content.
Credibility: Share real case studies and results, and co-create with brands and people your buyers already trust.
Visibility: Be where your buyers are and share native, stand-out content they’ll share in the places you cannot get to (“dark social”).
Consistency helps buyers build trust in your brand. Results don’t come overnight, or from sporadic activities.
Actively growing and engaging your network of buyers AND people they already trust:
– Their colleagues, the other members of the buying committee
– People from the industry who’re active on LinkedIn and your buyers are connected to
– Brands that worked hard to win the trust of your buyers
– Thought leaders, industry or local Influencers
– Podcast hosts, event organizers, and community owners
– Turning more than 50% of content engagement into meaningful conversations.
You’ll build a more engaged audience and deeper relationships, and capture the demand you’ve worked so hard to create.
- Customer recommendations are up to 10x more effective than other marketing messages
- 83% of your customers are open to providing a referral
- Most B2B companies DON’T speak to their customers
Embed customer interviews in your sales and CS process, and use them to drive customer advocacy.
Most B2B companies treat “no news as good news” and assume satisfaction by default.
But, the truth is that only 1 out of 26 unhappy customers complain, the rest simply churn.
Timely interactions, and proactively helping the customer’s team get the most value out of the solution, can help identify and prevent churn.
On the flip side, you can also collect expansion insights to help sales expand contracts, and grow the lifetime value of every customer.
So, the above from FullFunnel.io and their research into their own customers on the market showed the value of planning and executing a Demand Generation campaign.