What Is Demand Generation?

A simple definition

As the name suggests, demand generation encompasses any action that draws awareness and generates interest in the service or product you’re offering. Through ‘generating demand’, the growth, development and expansion of your business is enabled.

Growth generation is the overarching term that refers to the sales and marketing strategies you employ within your business. Whilst some consider the term synonymous with lead generation, they are entirely different and should not be confused as having the same purpose.

Demand generation refers to all sales and marketing initiatives and the holistic consideration of a customer’s journey, from initial prospect to happy buyer. Demand generation considers the long-term. Rather than simply presenting your target audience with marketing campaigns that you hope will convert, demand generation provides you with the tools you need to present the ideal information to the ideal individual at the ideal time. On the other hand, lead generation is more specific in its focus with the ultimate aim of converting your target audience into quality leads.

Examples Of Demand Generation

As an all-encompassing, umbrella term, there are many different ways to implement the strategies of demand generation within your business. We’ve included some of the most effective and successful. Whether it be email marketing or SEO, the strategy you choose to implement is a subcategory of demand generation, and will depend on the specific needs, type, and aims of your business.

For example, a company generating most of their sales from a retail store would need to invest less time in SEO website copy than a company operating solely online. Ensuring you remain aware of your business will help your sales and marketing strategies to be as effective and rewarding as possible. After all, there’s simply no point investing time and money into marketing funnels that don’t deliver the results you’re looking for.

That’s also why having an evaluation process in place to assess the results of your demand generation as well to understand what’s working and what’s not, is intrinsically linked to your business growth, expansion and development.

1. Paid advertising

This one’s pretty self-explanatory. What’s important to consider here is the amount you would like to invest, weighed in with the return you can make. Be careful not to over invest in paid advertising and ensure the advertising type that you choose is relevant to your targeted audience.

2. Lead scoring

Lead scoring refers to the points a client receives based on their behavior. By assigning a certain score to a client, you develop an understanding of when they’re most likely to buy and why. It’s safe to say the information lead scoring provides is invaluable to the effectiveness of your brand’s marketing and sales initiatives.

3. Lead nurturing programs Whilst it may be tempting to land a sale as soon as possible, establishing trust with your clientele, being responsive to their requests and providing educational leads are all a part of lead nurturing program. Providing content that your target audience is interested in provides them with value. This value becomes associated with your business. Think social media marketing, paid re targeting, blog posts and other digital media platforms.

4. Client retention methods

Whilst you may have locked in that first sale, ensuring your customers return by employing the right client retention methods is fundamental. Exclusive offers, online coupons and events are achievable ways of doing this.

5. Real-time messaging

The digital world has forever altered the way we perceive customer service. Instant and real-time messaging allows your customers to feel acknowledged and attended to. The customer service you offer is a reflection of your product value which is why real-time messaging can be a crucial part in securing a sale

While we haven’t included all the strategies generation demand includes, the aforementioned provide you with an idea about what the term is and how it can help you and your business. Other subcategories include:

  1. Content marketing
  2. Organic search engine optimization (SEO)
  3. Social media marketing
  4. Email marketing
  5. Content syndication
  6. Sales ennoblement assets

The Verdict

In exploring demand generation and its many applications, it’s clear the strategy is far more integrative and broad than lead generation. Demand generation also implements more strategies than a marketing agency does due to the subcategories the term includes. Working with both sales and marketing, demand generation capitalizes on opportunities that are unique to your business. With a tailored approach, the effectiveness in reaching your target audience with the right message and the utilization of the right medium are significantly increased.

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