What is Demand Generation and Why Does it Matter?

What is Demand Generation?

Demand generation, also known as demand gen, is a data-driven marketing effort that modern companies are adopting today. These tactics target each touchpoint in a customer's buyer's journey. This refers to a shopper's path from when they research a solution to when they become a loyal consumer to a brand.

Strategies under demand generation focus on the development of brand awareness. Generally, marketing teams will do so by creating a brand identity, pinpointing buyer personas, and building a social media presence. These methods allow potential customers to notice a company and recognize a brand. Another key component demand generation marketers use is posing the brand as the remedy to consumers' obstacles. For example, a restaurant may market itself as the best place to eat in California to tourists struggling to decide where to go.

Important -: Demand generation, which is also known as demand gen, is a marketing tactic modern businesses are using to raise brand awareness and product knowledge. This effort targets each step in a customers' buying journey.

Demand Generation Strategies

While demand generation marketing efforts will typically differ for each company, they oftentimes share the same goal or theme. The following are some of the most common demand generations strategies that businesses will use. Company leaders should assess these concepts and curate a demand gen campaign that works for them.

• Create a Unique Brand - Companies need to differentiate themselves from their competitors. Many brands will highlight their unique values, purpose, history, or goals to resonate with their consumer base.

• Maintain a Positive Reputation - Having a positive reputation will allow for a trusting relationship between the public and the brand. Companies may showcase their company culture and have a public relations team to protect their reputation.

• Utilize Online Tools - Social media and website management are great ways for businesses to attract and educate customers. Some online methods include blogging, email marketing, and social media content curation.

• Leverage Search Engine Optimization (SEO) - Various SEO best practices will help companies promote their brand on the first page of search engine sites. Similar keyword practices will enhance social media engagement.
  

Benefits of Demand Generation

Establishing a successful demand generation strategy will provide small businesses and enterprises with many advantages. For instance, it helps brands develop a consumer base and an online audience. This is important for start-ups and small companies that have recently entered the market. Other benefits to creating demand generation strategies include the following.

• Form Strong Brand Awareness - Consumer markets can oftentimes be over-saturated and competitive; therefore, companies need to ensure they stand out among the crowd. Demand gen tactics, such as social media campaigns, will help brands attract consumers from widespread demographics. This can also result in more customer referrals, which is a free and easy form of word-of-mouth marketing.

• Captivate Interested and Qualified Prospects - Effective demand generation marketing efforts will ensure potential customers are genuinely interested in the brand. This is because these tactics help prospect highlight their challenges and poses the company as the solution. Sales teams and representatives are then more likely to close new deals and generate revenue.

• Cut Costs During Customer Acquisition - Since most demand generation campaigns can be done on the Internet organizations can cut their customer acquisition costs. For example, brands can dedicate a bulk of their marketing efforts to social media content curation. With more money saved, business owners can allocate time and capital for other projects.

• Maximize Revenue - Company leaders are able to expand their market through demand generation techniques. As more people become aware and interested in a business's product or services, the more likely they are to become consumers. Eventually, this will increase revenue and maximize the brand's profit margins.

Elements of a Successful Demand Generation Campaign

Evidently, there are major advantages to having a successful demand generation campaign. But before business owners create their own strategies, it is important that they are aware of key elements to an effective campaign. The following are some foundational components to all demand gen plans.

• Catalyze a Need for the Product or Service - Consumers will typically be unaware of the current pain points that a brand's product or services can remedy. For instance, they may not know, at the moment, that they need a pair of athletic sneakers to prevent ankle rolls. A successful demand gen method ensures brand representatives thoroughly explain to customers why the challenges they experience are worth the investment to solve. This may include performing product demos and trial runs to show how an item can make customers' lives easier.

• Publish Informative Content - Creating and posting informative content online will help customers educate themselves about a product or service. It also helps them realize an obstacle or issue that they are facing and how they can effectively solve it. Online content will generally range from blog articles, social media posts, infographics, videos, and photos.

• Provide Free Resources - Companies can provide free resources, such as a calculator, reporting, estimation tool, or trials so that prospects can identify why they need a product or service. These resources can also highlight the benefits of the goods to consumers. For example, an investment app may offer a calculator for users to input their income so they can see how much money they can generate through the platform.

Important -: Demand gen strategies will vary from company to company. However, almost all successful tactics will have the same key elements, which include pinpointing customer needs, posting informative online content, and offering free tools.

Key Takeaways to What is Demand Generation

• Demand generation is a data-driven marketing effort that focuses on brand awareness and product education throughout each step in a buyer's journey.
  
• Common demand generation strategies include utilizing SEO, promoting brand awareness, and utilizing online tools.
  
• With a successful demand gen campaign, companies can cut costs, build a consumer base, and increase revenue.
  
• Elements that all demand gen strategies have include highlighting customer needs, promoting informational content, and offering free resources.