Tag: Strategy

10 Min Read If you work in marketing, you’ve probably heard the phrase “demand generation.” But what does demand generation mean, and why is it important? How do you use demand generation successfully? Read on to discover everything you need to know about this critical element for the success of your marketing strategy. Demand Generation Definition What is demand generation marketing and how does it work?  Demand generation is the strategic process of creating authority and awareness for your brand, and the ensuing desire in the hearts and minds of consumers for your products. The end goal of demand generation is the creation of reliable, high-quality leads, but its function is to alert your prospects to an issue they may be facing but are unaware of. If you were selling supplements, you might start by talking about proper nutrition’s importance for mental and physical health and how very few Americans get everything they need from a run-of-the-mill diet.  Once you’ve successfully captured your audience’s attention and made them consider what they can do to improve the standing of their nutritional profile, you’ve successfully generated demand for the answers your product can offer and can start to get more targeted in your strategy. Demand Generation vs Lead Generation What’s the difference between demand generation and lead generation? Demand generation is the bigger-picture start of the process, involving the creation of awareness and excitement around your brand. It involves exciting your existing audience base and also potentially reaching out to new ones. Lead generation is the ultimate and likely more concrete act of converting prospects’ attention to actionable leads. Demand generation happens at the very top of the marketing funnel, and is akin to the very first stage of getting your prospects’ attention, whereas lead generation is for prospects who have already started to show some interest in your product — in which case, congrats are in order, as it means your demand generation process is working! B2C vs B2B Demand Gen: How Are They Different? One of the foremost differences between appealing to consumers as distinct from businesses is that consumers are individuals or families whereas businesses are larger entities. At the very minimum, when appealing to businesses, you’ll need to get the attention of an entire team. That may seem more challenging than reaching one consumer idly browsing social media, but ultimately there’s more than one CMO whose attention’s been caught that way, and every marketing team aims to stay current by keeping tabs on streaming services and socials. Consumers tend to browse the internet or watch TV, open to being captivated by a new product or service that may enhance their lives. That is, indeed, the foundation of traditional advertising. By contrast, businesses, one hopes, have plans and goals they need to hit. So any product — say, a marketing service or some tech to aid their production and distribution —will have to be congruent with their sales or productivity goals.  Businesses will consider offerings if they’re in line with their longer-term goals, whereas consumers — especially if it’s to do with a small purchase that can be justified at the moment, as a pick-me-up — are more likely to just get something in the spur of the moment if it aligns with their general goals, such as feeling better, looking better, and so on.  Given the clear differences between the priorities of consumers and businesses, your messaging will probably be different, too. Businesses are apt to respond to professional-looking materials full of stats, charts, and jargon. Consumers, on the other hand, will prize such qualities as authenticity and reliability, which you can emphasize with such techniques as user-generated content (UGC). For more on B2B demand generation, read this handy guide. Where Does Inbound Marketing Fit In? Inbound marketing is an approach to marketing that emphasizes welcoming your customers and creating experiences that delight them and keep them engaged, as opposed to taking a more generalized crop dusting sort of approach to marketing, which could lead to plenty of people getting information or offers they don’t want.  The simple idea behind inbound marketing is that once you attract the right customers for your business, you can keep them engaged and informed on how your business’s products can help ease their pain points, and make them ongoing stakeholders in your business’s success. Making them feel like valued partners is a constant goal of inbound marketing, which aims to increase trust between customer and business, and lead to ongoing, meaningful relationships. Inbound marketing is a component of demand generation, although not its only aspect. Importance of Demand Generation Marketing Demand generation marketing is very important for a business looking to grow its customer base and increase its footprint. Its most important aspect is that it has the potential to change your company’s profile from one furiously looking for customers to one on the receiving end of consumer attention. That’s a change in the dynamic that every business is interested in.  Further, demand generation marketing may be an important tool to help a business understand its own goals better. What’s the unique proposition it’s selling? What pain points is it easing? If a business can answer those questions easily to itself, it can then communicate them to others and provoke their desire to partake in the solutions your business is offering them to their problems. That’s an appealing prospect both to startups — who need to announce their existence — and to any company operating in a crowded, competitive space. Proven Demand Generation Strategies Okay, so demand generation is key. But what are the actual strategies that work? As noted above, there will be some differences in your approach depending on whether your orientation is B2C or B2B. But there are similarities, too. One notable component of a demand generation strategy, as noted above, is an inbound marketing approach — which involves above all a sense of respect for the customer. Start by modeling your ideal customer so you can then strategize how to target them. That can involve using social media to craft a profile of the kinds of sites they would visit and the sorts of material they would show an interest in. As the aim of demand generation is to establish your brand as a market leader, the best strategies involve establishing authority and promoting trust. Creating alliances with companies that complement your own is one way of establishing yourself as a peer worth considering in your field. That could be via co-sponsorship opportunities of conferences or panels. Creating quality content like thoughtful essays on your areas of expertise — or white papers, if they’re for a more professional or academically-minded audience — relating to issues your business deals with is another easy and proven way to establish your bona fides in your field. That could extend to the sponsorship of seminars or podcasts related to your field of expertise. You can probably name the half dozen companies that are mainstays as podcast advertisers. It’s a powerful way of allying your brand with the right company. Giving away materials or creating an app resource that demonstrates your business’s prowess is another excellent strategy. Note that you should give them away free, to reduce as much possible friction as possible and make it easy for your potential customers to find you. That might take some getting used to, but remember that you need to establish yourself with your potential customer base and take steps that will lead to their reaching out and consulting you as an authority. Competitions, too, may be a winning strategy. Your aim here is good word-of-mouth and positive awareness of your brand, as well as to create a desire for your goods. Many consumers may not win the competition, but you want them to stick around your site and explore content, sign up for further emails, and make a purchase or two. Giving away products and content doesn’t have to be a one-way street. You can request positive online reviews from real people who have used your products. Testimonials can be a powerful incentive to other possible consumers.  The aim here is to position yourself as the go-to in your field. Think of how “Kleenex” stands for the world of facial tissues, “Xerox” is synonymous with copiers, or more recently, how “Netflix” stands for the world of streaming services. For other demand generation techniques that work, this article is a great primer. Metrics & KPIs to Measure Impact Although you might think demand generation involves somewhat amorphous concepts such as goodwill and interest, your success can still (and must) be measured. It’s important to set key performance indicators (KPIs), and other benchmarks to make sure your efforts are paying off. Some of these metrics include: Funnel conversion rates: This is how many consumers move to the next step of your funnel. You can measure the progress of each stage, with the goal being that you maintain consumer interest toward the pointy end of the funnel. Even if you don’t achieve this at first, it gives you valuable information you can use to nurture and strengthen customer relationships. Closing percentages: This refers to how many sales you end up ultimately generating.Cost-per-lead and cost-per-acquisition: These divide marketing costs by different benchmarks of success. Of course, the aim here is to lower your cost for each lead or conversion and to abandon any strategy in which the cost ratio is too high.Lifetime customer value: This charts if customers keep returning to your business, as you hope they will, and if they can be convinced to become repeat consumers, perhaps via subscription packages or some other ongoing relationship. In the age of big data, you can track not just how many visitors come to your site, but what content they read and find useful, so you can keep iterating and making improvements to your strategy. Stay on top of your demand generation strategy and keep it nimble and flexible. To read more deeply about KPIs, take a look at this essay. Performance TV Changes Everything Performance TV transforms your connected TV (CTV) — the device that allows you to stream video and other content — into a performance marketing channel. It allows you to reach engaged, curious viewers where they are, but also allows you to use data to tailor your offerings to them. When it comes to demand generation, that’s incredibly good news. Streaming is where viewers’ attention is, providing more diverse content and more niche content. It’s a perfect place, with the right expertise, to find viewers and, by helping them identify their pain points, turn them into your consumers. CTV has become the new way to find and target engaged consumers, as web marketing becomes old-fashioned, thanks to changes in digital tech like the deprecation of the third-party cookie on sites like Google and changes to data privacy laws. By contrast, Performance TV allows markets to build profiles of their ideal consumers, and then target them with precision, while also allowing for continual improvement in the process to keep them engaged and in your company’s flywheel. TV advertising has always been a great way of creating demand for products and letting consumers know your company exists. But in the old model, you were simply buying expensive TV real estate and hoping that a small percentage of viewers would spark to your product and later remember their interest in it.  With Performance TV, demand generation is easier, as you can target audiences and then drive new and highly-qualified traffic to your site immediately, minimizing friction. By establishing firm goals and KPIs for your campaign, you can optimize your campaign via automated media buying technology. You can decide what you want the end goal of the campaign to be, and make sure it’s effective. Essentially, when it comes to demand generation, Performance TV brings together the best of digital advertising and the best of TV advertising, to give you a sparklingly effective marketing B2B tool. Omnichannel capability means you continue to reach your audience whether they switch to their phone, tablet, or laptop. Final Thoughts on Demand Generation If you’re serious about demand generation, you owe it to your business to get in touch with MNTN today. MNTN is the market leader in Performance TV and the hardest working software in TV. They won’t rest until you have a demand generation strategy you’re getting real results from!

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