The Role of Demand Generation in B2B Sales

Demand generation is the process of creating interest in your products and services. It is an investment in new client acquisition aimed at increasing the number of qualified leads. Demand generation is an integral part of any modern sales strategy, but it has never been as vital as it is today. This is because there are so many more tools available for B2B marketers to use. This article will cover some of why demand generation is essential for B2B salespeople.

What Is Demand Generation?

Demand generation is essentially the process of creating interest in your products and services. The goal is to do that by speaking to your target market through various strategies within social media, email marketing, content marketing, and more. The purpose is to generate leads that will turn into sales.

Why Is It Important?

Demand generation has always been something that salespeople need to be doing, but it has never been as important today. This is because there are so many more tools available for B2B marketers to use. It’s also important because so many more tools are available for B2B buyers to use. This means that buyers can find information about B2B products and services independently instead of relying on salespeople.

How Can Demand Generation Be Applied to Your Sales Strategy?

If you are a B2B marketer, you already know that demand generation is essential. But how do you apply it to your sales strategy? Here are a few ideas:

  • Create content for your target audience. There are various types of content that you can create to generate interest in your products and services. For example, create blog posts, infographics, videos, whitepapers, webinars, eBooks, etc. Once you have made the content, promote it through social media, email marketing, and other channels to increase interest in your products and services.
  • Host a webinar. Webinars are a great way to generate interest in your products and services. They also provide you with a way to build relationships with prospective customers. Just make sure that the webinar is valuable for your attendees and isn’t just an opportunity for you to promote your products and services.
  • Use social media. You can use social media in various ways to generate interest in your products and services. For example, you can create contests, engage with interested prospects, use hashtags, etc. You can also use social media to promote content that you have made.
  • Create an email marketing campaign. Email marketing is one of the essential tools available to you for demand generation. You can use email marketing to connect with prospects, promote content, and more. Just make sure that you follow your email marketing best practices to be successful.
  • Use a variety of strategies. It’s not enough to use one strategy for demand generation. It would be best if you used a variety of strategies to get results. If you only use one strategy, your prospects will get tired of seeing the same thing repeatedly, which will decrease your results. This is why it’s vital to create unique content, host webinars, engage on social media, and more.

How Can You Measure Demand Generation?

Once you have started using demand generation strategies to increase interest in your products and services, you want to make sure that you are measuring your results. To improve your results, you need to know where you are starting. You can measure demand generation in a variety of ways. Here are some ideas:

  • Track how many leads you are getting from each channel. For example, if you are doing a webinar, you can use HotJar to track how many leads came from the webinar.
  • Track how many contacts are engaged with each piece of content. For example, if you have a blog post getting a lot of traffic, you can use Google Analytics to see how many people are clicking on links within the post or signing up for your email list.
  • Track how many people are sharing each piece of content. You can track this through social media and then use it to create a strategy for the future. For example, if a blog post gets a lot of shares through LinkedIn, you can use that information to create a similar blog post aimed at LinkedIn users only.

Demand Generation vs. Lead Generation

There is a common misconception that demand generation and lead generation are the same. It’s not uncommon to see them used interchangeably, but the two are very different. Think of it this way: lead generation is capturing and converting leads into sales, while demand generation is the process of creating demand for your product or service.

It’s important to distinguish between the two because they both require very different approaches to your marketing strategy, and they have other goals and different outcomes. So, let’s look at the differences between lead generation and demand generation.

The key differences between lead generation and demand generation are:

  1. Lead generation creates leads, while demand generation creates demand for your product or service. 
  2. Lead generation focuses on creating leads for future sales, while demand generation focuses on creating awareness for current needs. 
  3. Lead generation is about capturing data through a call to action, while demand generation is about converting your audience into buyers by providing them with helpful information.
  4. Lead generation is the process of capturing and converting leads into sales. When generating leads, you’re capturing data through a call to action, such as a landing page or registration form. This data is then used to convert leads into sales. So you’re not just creating awareness for your product or service—you’re creating opportunities for future sales.
  5. Demand generation is about creating awareness for your product or service and creating demand for your product or service. Next, it’s about converting your audience into buyers by providing helpful information. Finally, it’s about engaging with your audience and building trust through content marketing efforts like blog posts and e-books.
  6. You aren’t just creating awareness for future sales—you’re creating awareness for your current needs. Lead Generation Focuses on the Future, While Demand Generation Focuses on the Present
  7. Lead generation is all about generating leads that you can convert into sales down the road. It’s focused on the future—on converting leads into sales after they’ve been created. You’re trying to build relationships over time and capture data that can later be used to convert leads into sales.
  8. Demand generation, on the other hand, is focused on the present. It’s about creating demand today so that you can close sales today. It’s about engaging your audience and building trust now so that you can close sales today. You’re trying to build relationships today and capture data that can later be used to convert leads into sales.
  9. You aren’t just creating awareness for future sales—you’re creating awareness for your current needs. Lead Generation Is About Capturing Data, While Demand Generation Is About Creating Awareness
  10. Lead generation is about capturing data through a call to action, such as a landing page or registration form. This data is then used to convert leads into sales. So you’re not just creating awareness for your product or service—you’re creating opportunities for future sales.

The two are not mutually exclusive. They complement each other.

Lead generation should be the direct goal of demand generation. Therefore, you want to capture as much information as possible, especially in a lead or email address, to convert them into customers eventually.

You want to drive traffic to your landing page or registration form and optimize it for conversion. Then, once you have this information, you can use it to convert your audience into buyers by providing them with helpful information.

To eventually drive traffic back to your landing pages, your goal is to create awareness for your product or service through demand generation activities, like blogging, social media, and content marketing.

Conclusion

Demand generation is the process of reaching out to prospective customers to calculate a metric that combines attention, interest, and availability. The ultimate goal of quantifying these components is to convert those prospects into leads that may eventually turn into sales—a less sophisticated version of this process can be seen in the cold calls that many sales professionals make to generate leads for their business. For businesses selling B2B (Business to Business) products and services, converting consumers into actual revenue is often more arduous than it might be for a company selling business-oriented products to other businesses.

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