November 18, 2021
5 Min Read
Having a way to generate demand for your product or service is fundamental to achieving growth. If you can build a system that enables you to identify potential buyers, educate them around your product or service, and show them why your solution is the answer to their problems, you’ll be on track to hit your ambitious targets every single quarter.
In this guide, we’ll show you exactly what demand generation is, how it differs from lead generation, plus proven strategies to drive demand.
Demand generation is the top and mid funnel activity designed to raise awareness of, and subsequent interest in, your brand product or service.
The goal of any demand generation programme is to build a continuous stream of new prospects into the top of your marketing funnel which you can then work to convert into sales. This ongoing process ensures that you are constantly growing your prospect pool which for most businesses is a core component of the growth strategy. Successful demand generation usually requires you to execute on 4 things :
Demand generation and lead generation often get confused. They are linked, and work together, but they are not the same.
Lead generation is all about turning already-interested people into serious sales leads. For example, encouraging a website visitor to book a demo or fill out a contact form on your website so your sales team can get in touch with them. The goal of lead gen is usually to take an interested person and get them to give you some information that you can use as the basis for further tailored communication that moves them closer to point of sale.
Demand generation needs to happen before lead gen can occur. Generally you have to be building demand, by identifying audiences and getting your product or service out there in front of the right people, in order to have any chance of scaling lead generation.
If your audience spends their time on Pinterest but you’re investing the majority of your budget in Facebook and Twitter Ads, you won’t see results. So the first (and most critical) part of building effective demand generation is to have a deep understanding of your buyer persona.
You need to know:
To inform your demand generation activities, talk to customers (or people matching your ideal customer profile) to fully understand their goals, behaviours, and preferences.
Only then will you know the best channels to invest your time and money into.
There are a variety of ways to generate demand. Here are some real examples from startups that have created incredible demand for their products.
If you're a startup operating in a market with established competitors, you can use this strategy to generate demand from buyers that would have otherwise gone to competitors.
People management software company, Hibob, runs Google Search Ads targeting competitor names to ensure they are reaching a tightly defined,in market, audience. When you search for a competitor, BambooHR, the first result is an ad from Hibob.
Source: Hibob’s Google Ads
The key benefits of this include:
If a searcher clicks on the ad, they’re sent to a landing page that directly compares Hibob to BambooHR.
Source: Hibob vs. BambooHR
On their landing page (it’s actually a blog post), they focus on the unique benefits of their solution over their well-established competitor. They’re up-front, direct, and not at all coy.
Bidding on competitor brand names and positioning your company as an alternative is a powerful way to capture existing demand and direct qualified buyers to your website. But it’s important not to break the rules, because bidding on competitor terms can sometimes land you in trouble. Check out this post by AdEspresso for more information about doing it right.
Deel is a fast-growing startup (they recently became a unicorn) for managing payroll and compliance when hiring team members around the world.
They’ve used smart content marketing tactics to get in front of qualified prospects and quickly grow their traffic to almost 20,000 visitors/month.
Source: Data from Ahrefs
Payroll is notoriously complicated, and the first place most people go to find answers is Google. So, Deel created informational content around all of the common questions they know their customers have (in other words, publishing content around relevant long-tail keywords).
For example, explaining what a 1099 Employee is, what a W-9 tax form is, and a variety of other topics that someone would only search if they’re currently dealing with it in their business.
Here’s a snippet of some of their top ranking pages and keywords:
Source: Data from Ahrefs
Every keyword is closely related to the real problems (aka, pain points) someone has when hiring. Deel are perfectly-placed to answer the question, and direct them to their platform.
As well as having content targeting valuable keywords, each blog post includes a clear call-to-action relating to the main problem that Deel solves: hiring international talent. This means any qualified visitors can quickly take action and test out the platform.
This call to action is in fact the seamless link to the lead generation element of the user journey, where data is captured to convert people at a later date.
To track ROI on this strategy, the Deel team will be tracking demand gen metrics like rankings and traffic — as well as lead gen metrics such as sign ups and trials.
3. How Notion fuels demand with an engaged community
Community can be a powerful lever for growth. Notion, a digital workspace platform, takes full advantage of it. They encourage users to involve themselves in Notion’s ecosystem, for example, joining forums on Reddit, Facebook, Discord, and Slack, as well as groups based on location:
Source: Notion Community
This focus on community engages their existing user base, thereby improving customer retention but also enables them to build naturally occurring prospect pools, of similar audiences with similar interests which they can then market to.
One way they activate these communities is to sponsor people with existing large fan bases:
Source: Notion Community
Notion provides each partner with a unique referral code or UTM code for traffic to drive to Notion, they can then easily track if the influencer content is generating new demand.
When looking at your results, you need to break down every strategy and channel you test into clear metrics that make it easy to compare channels and see which ones deliver the best performance.
Here are some common metrics to measure demand generation as well as end business performance:
If you need help developing, executing, and measuring your demand generation strategies, try Traktion for free today. We’ll match you with the world’s best growth marketing talent — experts who work with the biggest brands. All are pre-vetted, proven, and highly-experienced.