5 Essential Steps to Build a Demand Generation Strategy

20240228 - WK9 5 Essential Steps to Build a Demand Generation Strategy - gigCMO

As marketing budgets tighten and sales teams' revenue goals increase, it is becoming more important for B2B to develop and focus on strategies that boost revenue. 

Demand generation is a structured method of generating interest in a product or service. It works by raising awareness of a product and encouraging customers to consider it a solution to their problems. It is the initial stage of the marketing funnel that helps identify the target audience. Aside from customer data, it helps understand customer preferences, which can be incorporated into future versions of the product.

Importance of Creating a Demand Generation Strategy

Demand generation differs from other client acquisition strategies in that it emphasises long-term customer connections and a strategic approach. Let's delve into why creating a demand-generation strategy is important.

1. Higher ROI

Implementing a well-thought-out demand-generation strategy contributes to a more efficient use of resources, resulting in a better return on investment. By targeting specific customer segments and tailoring marketing efforts accordingly, businesses can maximise the impact of their spending and achieve a higher ROI.

2. Boosts Your Brand Awareness

An effective demand-generation strategy helps elevate your brand's visibility. Through targeted marketing campaigns, businesses can reach a wider audience, making potential customers more aware of the products or services they offer. This increased brand awareness is essential for building trust and credibility in the market.

3. Generate More Leads

One of the primary objectives of demand generation is to generate a steady flow of leads. By creating interest and demand for your product and service, you can attract potential customers and initiate the sales process. This influx of leads provides a pool of prospects that can be nurtured and converted into customers over time.

4. Align the Sales and Marketing Efforts

A well-defined demand generation strategy aligns the efforts of the sales and marketing teams towards a common goal. Whether it's increasing sales, expanding market reach, or launching a new product, a well-defined strategy provides clarity and direction for your team. This ensures that everyone is working towards one goal, which ultimately leads to more efficient and effective outcomes.

5. Enhances your position over your competitors

By understanding your target audience's needs and preferences better than your competitors and delivering tailored messages and offers, you can differentiate yourself and attract more customers. Consistently staying ahead of the curve with innovative marketing tactics and staying responsive to market changes can further solidify your position as a leader in your industry.

5 Steps to Create a Demand Gen Strategies in 2024 

Demand generation can make a company's marketing communications appear more authoritative, carry a greater significance with potential customers, and ultimately help increase revenue by generating strong leads. Let's look at five key steps for developing an effective B2B demand generation strategy.

1. Define Your Target Audience

Every successful marketing strategy begins with a thorough understanding of your target audience or ideal customer profile. Demand generation is no different. Defining your target audience will enable you to develop a strategy that includes better messaging, accurate targeting, and the best tools to utilise. This will boost your campaign's conversion rates, engagement rates, client retention, and cost-effectiveness.

2. Create a Compelling Value Proposition

A convincing value proposition is critical to determining the success of any demand generation strategy. It helps you grab attention, increase conversion rates, improve lead quality, and ultimately develop trust with your target audience. A powerful value proposition encourages your audience to act. 

A compelling value proposition will assist you in achieving your desired action, whether it is filling out a form or convincing them to make a purchase. It will assist you in identifying leads who are truly interested in your product/service, as well as attracting them by addressing their problems.

3. Nurture Your Potential Leads

Throughout the purchasing process, marketing teams should collaborate with sales to be informed of customer questions, concerns, and sentiments. Depending on their resources, marketing teams should continue to contact these high-value leads all the way through the purchasing process, delivering helpful content to answer typical questions. 

Your marketing staff should focus on the types of material that prospective customers require and the most appropriate platforms for sharing that information. This type of targeted nurturing campaign aims to reach customers with the most relevant content or assets at the right time.

4. Include Account-Based Marketing

Everything in an account-based marketing (ABM) approach is built on a thorough understanding of the customer accounts and audiences you're targeting. ABM requires that marketing and sales teams proactively choose accounts to target and nurture through tailored interaction and support. 

Marketing teams should create targeted business personas for high-value clients who are most likely to convert or expand. Evaluate what businesses are aiming for and values these target accounts are likely to share, as well as what significant milestones in their purchasing process happen before purchase.

5. Refine and Optimise Your Efforts

Tracking and analysing performance allows you to evaluate the success of your efforts. Metrics such as lead quality, conversion rates, and revenue earned are indicative of your campaigns' effectiveness. You can use them to make essential changes to your demand strategy as needed.

In addition to fine-tuning existing strategy and their effectiveness, tracking and evaluating their performance allows you to find new opportunities by better knowing your target audience and allocating resources accordingly. Using the data you have, you can enhance your messaging, targeting, and a variety of other elements to improve the overall performance of your demand-generation efforts.

Highlight the Value and Convert More with gigCMO

As your company grows, you'll face the difficulty of increasing market awareness of your products and services while also generating leads for your sales team. This is how marketing fits into your overall business plan. However, firms commonly delegate marketing tasks to managers with other responsibilities and talents, leaving the marketing strategy in limbo. If your firm requires a marketing strategy for revenue growth, you need to consider gigCMO's Fractional CMO Service.

Developing effective demand-generation strategies requires a team effort and a competent leader in the top marketing position. Unfortunately, many businesses, particularly those with tighter budgets, struggle to develop an effective long-term strategy. Without skilled marketing leadership to drive the effort, it can appear impossible to fully align all aspects of their marketing operations. 

With gigCMO’s Fractional CMO Service, you get playbook-driven marketing to meet your company's needs, including increased lead generation, revenue growth, and marketing mix optimisation. We will collaborate closely with other members of your team to create a strategy for next-level growth. In addition, we will examine your company's existing performance and the market landscape to identify opportunities for growth. Once completed, we can develop a demand-generation strategy to produce measurable outcomes within a set timeframe. 

If you want to implement an effective demand generation strategy, contact gigCMO to drive leads and ensure new revenue opportunities.