Demand Generation: What Works - What Doesn't

Wikipedia succinctly defines demand generation (DG) as "the focus of targeted marketing programs to drive awareness and interest in a company's products and/or services." It continues as, "demand generation involved multiple areas of marketing and is really the marriage of marketing programs coupled with a structured sales process."

When designing a demand generation strategy or approach, you truly have to consider the full marketing funnel - right through to sales. It isn't about executing a bunch of tactics that bring in droves of unqualified leads, and filling the top of the funnel. Lead generation in marketing is important to get the ball rolling, but much more important are counting the qualified leads that convert effectively, from MQL (marketing qualified leads) to SQL (sales qualified leads) - and right through to the 'closed won' deal.

Friday Night Talk

On this topic, an old friend and demand generation expert Carlos Araujo and I took up a discussion about what works and what does not, in the realm of demand generation programs. Here were a few key highlights.

Three Stages

Carlos pointed out that he perceives three distinct phases, that marketers often confuse as: demand capture, demand creation, and the 'Always On' approach.

Carlos defines demand capture as the SEO/SEM/SMM, and directories - lead generation strategy. Here it is all about the lead generation tools optimization, and it's all about filling the top of the funnel (TOFU). This focuses on launching marketing campaigns with the right calls to action enticing prospects to engage while providing their personal details. Albeit that this leads based approach is an important step, too many marketers and sales teams get mesmerized by this stage. This is an important stage, but it is NOT demand generation. This is merely the first step of filling the marketing and sales funnel.

For Carlos the second phase is that of demand creation. Here we see the traditional campaigns B2B marketers use. These are promotional push efforts, focused events and funnel drives. Good marketing teams use a trial and error approach to measure results, tweak, adjust, and improve these campaigns for effectiveness. But here too, Carlos pointed out that "for too many marketers the idea of the campaign approach is flawed. Too many marketers are doing short term campaign after campaign. Sometimes your promotions overlap confusing the customer about what you are trying to sell them."

This lead to a discussion about the third phase, being the 'Always On' approach. This approach is about understanding three things. First, 15% of the total addressable market is interested and open to a solution at any given time, at best (cannot recall source). Second, you need a long term approach to continually working the funnel and market. Third, you need to understand the full demand generation funnel, sales cycle, customer pain points, and so on... but understand that customer's aren't linear. It's about always being on, being findable, helping prospects - and ABS. ABS being - Always Be Selling (as in always offer a quote, offer a demo, or have someone to talk with about their challenges).

On this last point, blog posts, continual social media presence & amplification, nurturing programs (using the email addresses provided to maintain opt-in contact with prospects), and organic practices; are all important as 'always on' sources. When the prospect enters that 15% ready to buy phase, you want your brand to be there, ready to sell.

Demand Generation Cycle

Think of the full demand generation cycle as that shown in the marketing/sales funnel diagram. This will be obvious to most marketers, but it is clearly NOT understood by all. As an example, another colleague told me of his VP of Marketing being entirely mesmerized by raw lead volumes. This rather than considering the full impact of funnel conversion rates, and cost per converted lead, rather than the raw, unqualified bulk.

As shown lead generation (demand capture), is the top-most element of the funnel. Important to start the process, but merely optimizing at this level is not enough. Another important part just below this phase are aspects like landing page optimization, content quality considerations, content to phase of funnel mapping, lead scoring, qualification & lead disqualifications, nurturing programs, and so on.

Another important part shown on the diagram is to understand that prospects aren't always ready to buy, and that they jump all around. Hence the progression linearity shown as a squiggly line that jumps back and forth chaotically. Marketing funnels are an important concept that helps us as marketers. However, prospects will jump to a case study (BOFU), then back to a whitepaper (TOFU), then perhaps come back to read your feature description datasheet (MOFU), and pop back up to review your brochure (TOFU). Progression linearity truly is a bouncing squiggle. Be prepared for it.

As a marketer this non-linearity is frustrating. Agreed. Yet it is reality. And, this points back to Carlos' emphasis on the 'Always On' approach. Regardless of the stage your content is meant for, offer a bottom of the funnel (BOFU) offer to talk with someone, or get a quote. Also, always make sure that your content cross links to other content, encouraging prospects to gorge on as much of your material as possible. For more on this read Content Binge: 9 Tactics for B2B Marketing.

Tips: Dos and Don'ts

Another aspect of our discussion gravitated toward what NOT to do in lead generation.

One important premise Carlos and I both agreed with strongly is to avoid light content. This is a theme repeated time after time, yet it also seems easily forgotten by many marketers. If your content does NOT convey an important message to the prospects, or provide them with a useful and tangible take-away that they can use - then don't publish it! A flakey whitepaper that is well crafted, with a delightful theme, story, AND which doesn't actually tell the reader anything - is worse than useless! It will harm your brand as it erodes the credibility the prospect will have with your firm.

On content syndication we initially did not agree, but came to an understanding. Content syndicators must be chosen carefully. It can work very well for well segmented, niche markets. Two examples were that it was not effective for either of us in the IT equipment, nor retail software technology markets (although I still reserve the option to test further). Yet, I found it to be effective in the legaltech and payroll/fintech markets, for example (see chart).

Combining data from two companies, my ranked findings are shown in the chart. This shows both SQL volumes, and my rank based on cost per SQL. Note that for SEO, the rank is Zero. This was difficult to assess - as the full costs would include the company, website, staff, outsources costs, and so on. This ranking will change by industry, business, and approaches. But hopefully, it may be indicative for some B2B marketers.

Consistency & BDRs

Two more points from our conversation was our agreement that consistency counts, and that BDRs (business development reps) are a powerful extension of the marketing message.

Back to the 'always on' approach, make sure to pace your marketing. Prospects notice when there is a consistent stream of insightful blog posts, interesting social media feeds, and continual engagement and interaction with the market. Don't be tempted to upload 10 blog posts in one effort, then to go away for the next 3 months. Better to spread them out, and pace yourself.

Finally, make sure your BDR team is always aware of the marketing roadmap, and available content. Part of this role is to continually engage the prospect. So have the BDR tell prospects about your latest webinar on a particular topic, or have them send the most recent whitepaper / research on a particular topic of interest to that person. This a powerful channel. Having them engage the prospect with a 'pushed binge' makes them come across as genuinely helpful, and useful from the client's perspective. That type of contact, leads to conversions, and ultimately sales!

Thanks to Carlos Araujo for a thoroughly engaging discussion on Demand Generation.